Western District of North Carolina

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today the annual meeting of the Western District’s Health Care Fraud Working Group, a partnership of federal and state agencies focused on combating health care fraud and protecting taxpayer dollars in the Western District of North Carolina.

The working group comprises investigators, analysts, auditors, and attorneys from state and federal agencies, including the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), the Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI), the Internal Revenue Service Criminal Investigation (IRS-CI), the U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG), the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS), the North Carolina Attorney General’s Medicaid Investigations Division, the North Carolina Department of Insurance, the South Carolina Medicaid Investigations Division, and the Office of Personnel Management.

At today’s meeting, U.S. Attorney King reaffirmed the importance of collaboration among the partner agencies and recognized their contributions.

“Health care fraud undermines public trust, exploits vulnerable patients, and siphons billions from taxpayer-funded programs,” said U.S. Attorney King. “By combining our expertise and resources we can detect, dismantle, and prosecute health care fraud schemes and protect vital government programs that so many North Carolinians rely upon for their health care needs. I am grateful to our partner agencies for their dedication to protect our health care system and hold perpetrators accountable.”

The Health Care Fraud Working Group’s mission is to detect health care fraud through coordinated investigations, information sharing, identification of existing and emerging schemes, and case development. This includes uncovering schemes of fraudulent billing, COVID-19-related fraud, kickback schemes, and fraud targeting government health care programs like Medicare, Medicaid, and TRICARE. The working group also focuses on fraud committed by both corporate entities and individuals, including hospitals, telemedicine companies and providers, nursing home chains, pharmacies and pharmaceutical manufacturers, durable medical equipment suppliers, physicians, therapists, and affiliated health care professionals.

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.

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. – Gustavo Guzman, 61, previously of Fullerton, California, was sentenced today to 70 months in prison followed by two years of supervised release and was ordered to pay more than $1.9 million in restitution for orchestrating an investment fraud scheme that defrauded victims of nearly $2 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In November 2022, Guzman was extradited to the United States from Australia to face federal charges in the Western District of North Carolina.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and North Carolina Secretary of State Elaine F. Marshall join U.S. Attorney King in making the announcement.

According to filed court documents and court proceedings, from April 2010 to August 2015, Guzman, through various entities he controlled, including G2 Asset Management and East Egg Private Equity, executed a scheme to defraud approximately 10 investors of at least $2 million, by falsely representing that he would use the investors’ money to trade in options and other similar investments. Instead of investing the funds as promised, Guzman stole a substantial portion of the investors’ money and used it to fund his personal lifestyle, including to make large credit card payments and cash withdrawals, and to pay for personal expenditures.

Court records show that Guzman suffered massive trading losses with the money that he did invest and used some of the victim’s money to make Ponzi-style payments to investors. To conceal the trading losses and the fraudulent scheme, and to prevent his victims from redeeming their investments and complaining to authorities, Guzman lied to his victims about the status of their investments, and provided them with fake documents, including sham IRS forms and fraudulent account statements. When Guzman learned that the Government was preparing to charge him, he fled to Australia.

According to court documents, Guzman perpetrated the investment scheme by soliciting and victimizing people he knew, including close friends. One victim investor described Guzman as “a trusted family friend,” and another as someone they had known for “over 15 years.” As court records reflect, several of Guzman’s victims suffered substantial financial hardship and are under extreme emotional distress as a result of Guzman’s deception and scheme.

In July 2023, Guzman pleaded guilty to securities fraud. In announcing today’s sentence, U.S. District Judge Robert J. Conrad, Jr. highlighted, among other things, the nature and circumstances of Guzman’s fraud, characterizing it as “reprehensible conduct that occurred over a long period of time.” 

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

The investigation was conducted by the FBI in Charlotte and the Securities Division of the North Carolina Department of the Secretary of State.

The U.S. Securities and Exchange Commission conducted a parallel investigation that resulted in the entry of a default judgment against Guzman in Civil Action No. 3:17-cv-00276 (WDNC).

The Department of Justice also appreciates the significant assistance provided by the Department’s Office of International Affairs, the Government of Australia, including the Attorney General’s Department of Australia and the Australian Federal Police, in securing the extradition of Guzman and obtaining evidence from Australian authorities.   

Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte prosecuted the case. 

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that $6,817,676 in federal grants has been awarded to six counties in the Western District of North Carolina to combat opioids, stimulants, and other substances and to support local treatment programs.

The grants were administered by the Justice Department’s Bureau of Justice Assistance (BJA), under the Comprehensive Opioid, Stimulant, and Substance Use Site-Based Program. The funding will assist communities with the prevention, diversion, treatment and recovery needs of individuals affected by substance use disorders.

According to provisional data from Centers for Disease Control and Prevention, “there were an estimated 107,543 drug overdose deaths in the United States in 2023,” of which 81,083 were due to a synthetic opioid, primarily fentanyl.

“The funding allocated to Western North Carolina will strengthen local efforts to fight the opioid crises and its impact on our communities,” said U.S. Attorney King. “These grants further our commitment to work with our local partners to support public health and help build safe and healthy communities.”

The six counties below received funding to address the opioid and stimulant crisis and meet the needs of individuals with substance use disorders.

• Catawba County was awarded $1.3 million to support its existing collaborative Law Enforcement Assisted Diversion (L.E.A.D.) and Medicated Assisted Treatment (M.A.T.) programs.
• Gaston County was awarded $1,219,877, to support services provided to children and their families in foster care as a result of parental drug use.
• Henderson County was awarded $1,299,000 to supplement funding for its Recovery Community Center and to expand its capacity.
• Jackson County was awarded $998,952, to implement a comprehensive program designed to impact the overdose crisis and community-wide effects of illicit opioid substances.
• Transylvania County was awarded $999,947, to support its Bridging Reentry: Expanding Access to Treatment and Holistic Care (BREATH-C) program, that aims to reduce the impact of substance misuse on justice involved residents.
• Wilkes County was awarded $999,900, to implement a program to increase access recovery support services and to reduce the impact of illicit substances on individuals and communities.

BJA offers funding through a variety of different programs. Visit https://bja.ojp.gov/funding

to review currently available grant opportunities and learn about funding webinars.

CHARLOTTE, N.C. – A grand jury has charged Tammy Cox, 52, of Charlotte, with multiple federal charges for stealing the identities of her co-workers to obtain college student loans for family members, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Cox was in federal court this morning for her initial appearance.

Jason Krizmanich, Acting Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.

According to allegations in the indictment, from August 2019 through at least July 2023, Cox engaged in a scheme to steal the identities of five co-workers, including their Social Security Numbers, which she used to fraudulently obtain college student loans for family members. The indictment alleges that Cox falsely claimed that her co-workers were cosigners on the loan applications and falsely represented that her co-workers had agreed to be equally responsible for the loans. The indictment further alleges that, during the scheme, Cox fraudulently applied for at least 13 college student loans seeking more than $250,000.

Cox is charged with one count of wire fraud affecting a financial institution and seven counts of financial institution fraud. Each count carries a maximum penalty of 30 years in prison and a $1,000,000 fine. Cox is also charged with five counts of disclosure of Social Security Numbers, which carry a maximum statutory penalty of five years in prison and a $250,000 fine for each charged offense.

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

The USPIS and CMPD investigated the case.

Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

CHARLOTTE, N.C. – Three Charlotte men charged with conspiring to steal high-end vehicles appeared in federal court today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A grand jury returned the criminal indictment earlier this week, which remained under seal until today.

Robert M. DeWitt, 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 King in making today’s announcement.

Jonathan Marquis Stitt, 36, Francisco Arnoldo Lopez Pena, 41, and Jason Randall Spearman, 43, all of Charlotte, are charged with conspiring to violate federal laws prohibiting the transportation, possession, and sale of stolen vehicles and the altering and removal of Vehicle Identification Numbers (VINs).  Each defendant is separately charged with altering the VINs of specific vehicles. In addition, Stitt is also charged with two counts of possession of a stolen vehicle and Spearman is charged with possession of a firearm by a convicted felon.

The indictment alleges that, between 2020 and October 2024, the defendants and their co-conspirators engaged in a conspiracy to steal high-end motor vehicles worth millions of dollars from businesses and individuals in North Carolina, South Carolina, Georgia, Virginia, and Maryland. In order to maximize profits, Stitt and other co-conspirators allegedly sought to obtain high-end vehicles, including various luxury models made by Acura, Cadillac, Lamborghini, Land Rover, and Mercedes-Benz, as well as trucks and other expensive models from Chevrolet, Dodge, Ford, Freightliner, and GMC.

According to allegations in the indictment, once in possession of the stolen vehicles, the defendants and their co-conspirators regularly altered or tampered with the stolen vehicles’ original VINs to avoid detection by law enforcement and to maximize resale value. Stitt and his co-conspirators also used fraudulent 30-day tags on the stolen vehicles, caused certain of the stolen vehicles to be fraudulently registered with state motor vehicle agencies, and repainted stolen vehicles, all in an effort to further avoid detection from law enforcement.

According to allegations in the indictment, Stitt and his co-conspirators often sought to sell the stolen vehicles at prices significantly below their fair market value, and also possessed several of the stolen vehicles for personal use and to further facilitate the scheme.

The defendants were detained by the U.S. magistrate judge at their initial appearance pending detention hearings next week. The conspiracy charge carries a maximum penalty of five years in prison. The charge of possession of a stolen vehicle carries a maximum penalty of 10 years in prison. The charge of altering or removing a VIN carries a maximum penalty of five years in prison. And the charge of possession of a firearm by a convicted felon carries a maximum prison term of 15 years.

This is the fifth indictment filed in the U.S. District Court in Charlotte related to federal offenses involving stolen vehicles since August 2023. In July 2024, a Charlotte man was indicted for stealing high end luxury vehicles and altering VINs, including several vehicles from the Charlotte Douglas International Airport. Also, in March 2023, two individuals were charged for a scheme that involved buying and selling stolen vehicles from across the country. In August 2023, five individuals were indicted for stealing luxury vehicles from dealerships throughout the United States, and two additional individuals were indicted in November 2023, 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 King commended the FBI and CMPD for their investigation of the case and thanked the National Insurance Crime Bureau and Homeland Security Investigations for their assistance. 

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

CHARLOTTE, N.C. – A pair of repairmen that earned more than $1.5 million from elderly customers for home repair services appeared in federal court today and pleaded guilty to tax fraud, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. David Angelo Quick, 43, of Charlotte, and Tony Joshua Christo, 33, formerly of Charlotte, now residing in Florida, pleaded guilty to filing a false tax return.

Jason Krizmanich, Acting Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.

According to plea documents and the court hearing, from 2018 to 2021, Quick and Christo provided home repair and improvement services, as well as car repair services, to elderly clients. During that time, the defendants collectively received more than $1.5 million from elderly customers but failed to report any of this income on their federal income tax returns filed with the IRS. Quick, who was not a licensed contractor, owned and operated David Quick Home Improvements, which provided roofing, painting, driveway construction and other home services. Christo worked with Quick on home repair projects. Filed documents and statements made in court show that the defendants defrauded some of the elderly clients by overcharging them for repairs. Court records also show that the defendants received payment for their services, but they failed to report their income to the IRS.

Both defendants pleaded guilty to filing a false tax return. The charge carries a maximum sentence of three years in prison and a $250,000 fine. The defendants were released on bond following the plea hearings and will be sentenced at a later date.

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

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

CHARLOTTE, N.C. – A Charlotte behavioral health services provider was sentenced yesterday to 135 months in prison for Medicaid fraud, COVID-19 fraud, and money laundering, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Ashley Nicole Cross, 42, of Charlotte, was also ordered to serve three years of supervised release and to pay $481,436.08 in restitution. On May 17, 2024, following a nine-day trial, a federal jury found Cross guilty of healthcare fraud, making false statements and writings relating to a healthcare matter, promotional money laundering, wire fraud, and conspiracy.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Stephanie G. Opet, Director of the South Carolina Medicaid Fraud Control Unit, join U.S. Attorney King in making today’s announcement.

According to filed court documents, evidence presented at trial, and witness testimony, Cross owned and operated Odyssey Health Group (OHG), a Charlotte-based company, which was enrolled with the South Carolina Medicaid Program (SC Medicaid) to provide outpatient behavioral health services to eligible Medicaid beneficiaries. Under SC Medicaid rules, beneficiaries are allowed to use providers within 25-miles of the South Carolina border, including Charlotte. From 2016 to 2021, Cross’s company submitted fraudulent reimbursement claims to SC Medicaid and its contracted managed care organizations for rehabilitative behavioral health services that were never provided. To carry out the scheme, Cross used the personal identifying information (PII) of qualified SC Medicaid beneficiaries to file reimbursement claims totaling more than $1.2 million. In some instances, Cross billed SC Medicaid more than 11 hours and up to 19 hours for one-on-one counseling services in a 24-hour period. To further the scheme and to give the appearance that OHG’s fraudulent claims were legitimate, Cross instructed OHG employees to create fake clinical service notes after she filed fraudulent claims in the names of Medicaid beneficiaries.

Court documents show that, in the course of the investigation, FBI agents identified and interviewed 21 Medicaid beneficiaries whose names, Medicaid numbers, and PII were used to file claims on behalf of Cross and OHG. Each of those beneficiaries stated that neither they nor their children received mental health services from Cross. Many beneficiaries stated that the information written about them in OHG’s assessments and clinical notes were not true, while others said that their signatures had been forged.

Cross engaged in money laundering and used some of the fraudulent proceeds to promote the scheme by paying for Medicaid beneficiary names and PII.

According to court documents in September 2019, Cross was informed of audits of OHG’s Medicaid claims. To cover up the fraud, Cross submitted fictitious patient medical records and made false statements to auditors. Court records show that, the fraud at OHG was so pervasive, it was impossible for investigators to distinguish the fraudulent claims from legitimate ones.

In addition to the Medicaid fraud scheme, from April 3, 2020, to May 14, 2022, Cross executed a scheme to obtain fraudulent Paycheck Protection Program (PPP) loans on behalf of her companies, including OHG, and Gucci International Inc. (Gucci), a purported event planning business owned by Cross’s boyfriend and co-conspirator. To obtain the PPP loans, Cross submitted loan applications and supporting documents that contained false statements regarding Cross’s companies and Gucci’s payroll expenses, number of employees, and other misrepresentations. Cross obtained more than $287,000 in COVID-19 relief funds for her companies and Gucci. At the time of Gucci’s loan application, Cross’s boyfriend was under indictment for a federal offense.

During the trial, the Court heard testimony that Cross contacted prospective witnesses in violation of the conditions of her bond. One witness identified a recording of a call in which Cross suggested that the witness falsely testify that Cross had provided mental health services to the witness’s children. The court noted Cross’s attempt to obstruct justice when announcing sentence.

Cross remains in federal custody. She will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

The FBI investigated the case with substantial assistance from the South Carolina Attorney General’s Office, Medicaid Fraud Control Unit, and the Small Business Administration’s Office of Inspector General.

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

A three-count indictment was unsealed today in the Western District of North Carolina charging a North Carolina man with federal civil rights and firearms violations for threatening eight individuals with force because of their race, color, religion and national origin.

According to the indictment, on June 8, Maurice Hopkins, 31, threatened eight individuals with a firearm inside Zambies Pizza, a restaurant in Charlotte, North Carolina. Count one of the indictment charges Hopkins with threatening 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. Count two of the indictment charges Hopkins with threatening the eight individuals with force on account of their race, color, religion and national origin to intimidate the individuals from exercising their federally protected housing rights. Count three of the indictment charges Hopkins with carrying, using and brandishing a firearm during and in relation to a crime of violence.

If convicted, Hopkins faces a maximum penalty of 10 years in prison on each of the civil rights charges and a mandatory minimum prison sentence on the firearms charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Dena J. King for the Western District of North Carolina and Special Agent in Charge Robert M. DeWitt 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 Attorneys Daniel Grunert and Chloe Neely of the Civil Rights Division’s Criminal Section are prosecuting the case.

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

CHARLOTTE, N.C. – A three-count indictment was unsealed today in the Western District of North Carolina charging a North Carolina man with federal civil rights and firearms violations for threatening eight individuals with force because of their race, color, religion and national origin, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office join U.S. Attorney King in making the announcement.

According to the indictment, on June 8, 2024, Maurice Hopkins, 31, threatened eight individuals with a firearm inside Zambies Pizza, a restaurant in Charlotte. Count one of the indictment charges Hopkins with threatening 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. Count two of the indictment charges Hopkins with threatening the eight individuals with force on account of their race, color, religion and national origin to intimidate the individuals from exercising their federally protected housing rights. Count three of the indictment charges Hopkins with carrying, using and brandishing a firearm during and in relation to a crime of violence.

If convicted, Hopkins faces a maximum penalty of 10 years in prison on each of the civil rights charges and a mandatory minimum prison sentence on the firearms charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Charlotte Field Office investigated the case.

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

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

ASHEVILLE, N.C. – Scottie Alan Keith Frady, 27, of Morganton, N.C., was sentenced today to 204 months in prison followed by five years of supervised release, for trafficking methamphetamine and illegal possession of firearms, including a machinegun, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Bennie Mims, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff Banks Hinceman of the Burke County Sheriff’s Office (BCSO), join U.S. Attorney King in making today’s announcement.

According to court documents and court proceedings, on May 17, 2023, investigators were making an arrest of Frady for a post-release supervision warrant alleging that, among other things, Frady had absconded supervision. Law enforcement located Frady at a residence in Morganton and the defendant was taken into custody. During a search of the residence, law enforcement found more than 2.1 kilograms of methamphetamine, two loaded firearms and $1,518 in cash that belonged to the defendant. Investigators recovered from another residence in Rutherford County a machinegun and an AR type pistol that also belonged to Frady. During the investigation, law enforcement found pictures of some of the firearms that Frady had posted on social media. Law enforcement also recovered text messages between Frady and other individuals, where Frady discussed possessing some of the seized firearms.

On December 20, 2023, Frady pleaded guilty to possession with intent to distribute methamphetamine, possession of a machinegun, and possession of a firearm by a felon. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King thanked the ATF and the Burke County Sheriff’s Office for their investigation of the case, and the U.S. Marshals Service’s Carolinas Regional Fugitive Task Force and the North Carolina Department of Public Service’s Division of Community Supervision for their invaluable assistance with Frady’s apprehension.

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

CHARLOTTE, N.C. – An armed carjacker was sentenced to eight years in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Johnvonta Shiquan-Alexander Dixon, 26, of Charlotte, will also be subject to two years of supervised release upon his release from prison.

Bennie Mims, Special Agent in Charge of the 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 King in making today’s announcement.

“Dixon pointed a gun and threatened an innocent victim’s life just to steal a car. That’s more than a brazen crime – it’s a ruthless display of violence. The eight-year sentence reflects the seriousness of the offense and delivers a measure of justice to the victim,” said U.S. Attorney King.

“ATF’s top priority is protecting communities against those who pose the greatest threat,” said Special Agent in Charge Mims. “In this case, we had a calculated individual determined to break the law and endanger innocent lives. We are proud of to be part of a strong collaborative effort that brought this individual to justice.”

According to court documents and court proceedings, on September 12, 2022, at approximately 9:20 p.m., the victim, identified as J.W., was carjacked at gunpoint while he was in the parking lot of an AutoZone store in Charlotte. Court records show that a man later identified as Dixon approached the victim, pointed a firearm at him, and demanded the keys to his vehicle. According to the victim, the gunman said, “I will f***ing kill you if you don’t give me your keys.” The victim complied and the gunman drove away in the victim’s vehicle. Within five minutes of receiving the 911 call from the victim, a CMPD officer located the stolen vehicle abandoned near Old Pineville Road in Charlotte. The victim had reported that there were two firearms in the vehicle. When the vehicle was returned to the victim, the firearms and many other items were missing. 

According to filed court documents, prior to the carjacking at the AutoZone, the victim had made two stops. First, he had stopped at the Stars Arcade II in Charlotte, followed by a stop at a QT gas station on Woodlawn Road. CMPD collected and analyzed video surveillance footage from multiple locations, including the arcade, street cameras, and the gas station. The video footage shows that Dixon was inside the arcade at the same time as the victim and followed the victim when he left the arcade. After leaving the arcade, the victim and Dixon got into their respective vehicles and video footage shows Dixon following the victim to the gas station. From the gas station, the victim went to the AutoZone where he was approached in the parking lot and carjacked by Dixon.

Court records show that CMPD officers identified the carjacker as Dixon and obtained state arrest warrants. On October 4, 2022, CMPD’s Violent Criminal Apprehension Team went to a townhome in Charlotte to arrest Dixon. Dixon attempted to get away from the police by climbing into the attic, and then crashing through the bedroom ceiling of a neighboring unit. He was arrested shortly thereafter.

During the investigation, law enforcement seized Dixon’s phone. A forensic analysis of text messages revealed that, on the night of the carjacking, Dixon had communicated with another individual about the victim’s whereabouts further indicating that Dixon had tracked the victim. Law enforcement also found photographs of one of the victim’s stolen firearms on Dixon’s cell phone.

On April 18, 2024, Dixon pleaded guilty to possession and brandishing of a firearm in furtherance of a crime of violence. Dixon 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 King thanked the ATF and CMPD for their investigation of the case.

Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

CHARLOTTE, N.C. – A member of the Inglewood Family Gangster Bloods was sentenced to 20 years in prison today after he was caught trying to smuggle 46 kilograms of methamphetamine through the Charlotte Douglas International Airport, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Rashad Jamal Blanchard, 47, of Los Angeles, was also sentenced to five years of supervised release upon completion of the prison term.

Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.

According to court documents and court proceedings, on February 1, 2023, during an enforcement action at Charlotte-Douglas International Airport, HSI’s Queen City Regional Border Security Task Force conducted a search of Blanchard’s suitcases. Court records show that Blanchard had boarded a flight from Los Angeles to Charlotte and had checked four suitcases. A search of three of the suitcases revealed that each contained multiple black vacuum sealed packages that contained methamphetamine wrapped in comforters. The three suitcases contained a total of 34.6 kilograms of methamphetamine. Court records show that Blanchard’s fourth suitcase had been picked up from the airport’s baggage claim area by another individual who had then driven off in a vehicle. Law enforcement tracked down the vehicle and retrieved the fourth suitcase, which contained an additional 11.4 kilograms of methamphetamine.  In total, Blanchard had attempted to smuggle a total of 46 kilograms of methamphetamine through the Charlotte airport.

According to court documents, Blanchard has an extensive criminal record in four states – North Carolina, California, Florida and Virginia. His prior felony convictions include carjacking and bank robbery. When Blanchard was arrested in Charlotte, he was on probation for the bank robbery conviction. He was also on bond pending prosecution in California, where he is charged for allegedly possessing nearly four pounds of methamphetamine and shooting at an individual during a dispute.  

On November 28, 2023, Blanchard pleaded guilty to possession with intent to distribute methamphetamine. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King thanked HSI, CMPD, and the Queen City Regional Border Security Task Force. 

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

CHARLOTTE, N.C. – Roger Trent Melchor, 56, of Indian Trail, N.C., pleaded guilty yesterday to wire fraud for fraudulently obtaining $32,000 in COVID-19 pandemic relief loans, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

According to plea documents and the court hearing, between July 2020 to May 2021, Melchor used false information to apply for loans and receive funds from the Economic Injury Disaster Loan (EIDL) Program and the Paycheck Protection Program (PPP). To obtain the loans, Melchor submitted applications on behalf of himself and his company, “RSTR Sanitizing,” that contained false information about Melchor and his business’s gross income and gross revenue. Melchor also submitted a fabricated tax return in support of the PPP loan application and falsely stated in the loan application that he had not “commenced any form of parole or probation” within the last five years. Based on the fraudulent applications, Melchor received approximately $32,000 in COVID-19 relief funds.

Court records show that Melchor was prosecuted in the Middle District of North Carolina for conspiracy to commit bank fraud and aggravated identity theft. As a result of that conviction, Melchor served a term of imprisonment and was on federal supervised release when he engaged in the PPP and EIDL fraud scheme.

Melchor is currently released on bond. The wire fraud charge carries a maximum sentence of 20 years in prison. A federal district court judge will determine Melchor’s sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. A sentencing date for Melchor has not been set.

The Small Business Administration’s Office of the Inspector General investigated the case.

Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

CHARLOTTE, N.C. – Joseph Franklin Jordan, 53 of Charlotte, was sentenced to 262 months in prison today for distribution of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Upon his release from prison, Jordan will be subject to a lifetime of supervised release and must register as a sex offender. U.S. District Judge Kenneth D. Bell also ordered Jordan to pay $19,000 in assessments and restitution.

Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Eddie M. Buffaloe, Jr., Secretary of the North Carolina Department of Public Safety (NC DPS), and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.

“Protecting our children from sexual predators like Jordan is a top priority and one of the most urgent challenges we face today,” said U.S. Attorney King. “My office is committed to working hand-in-hand with our law enforcement partners at every level to identify child predators and bring them to justice.”

According to filed documents and statements made in court, in November 2022, an HSI undercover agent (UC) was in an online chat group where its users distributed child sexual abuse material (CSAM). Court records show that the UC began to exchange direct messages with a user later identified as Jordan, about the defendant engaging in illicit sexual acts with a young child the UC purported to have access to. Over the course of the communications, Jordan began to make plans to meet with the UC to have sex with the child. Law enforcement identified the user as Jordan, who was on supervised probation with the State of North Carolina for a sex offender conviction.

On December 2, 2022, HSI agents assisted by NC DPS probation officers conducted a search of Jordan’s residence. Four electronic devices were seized and forensically examined. The examination revealed that the devices contained more than 28,000 images and videos depicting the sexual abuse of children, including infants and toddlers. Jordan had also distributed child pornography to others. In addition, law enforcement located online messages in which Jordan discussed his desire to sexually abuse children and to make child pornography. In some of the chats, Jordan also made statements about having previous sexual encounters with children as young as three years old, and shared details about those purported encounters using extremely graphic and vulgar language.

On March 21, 2024, Jordan pleaded guilty to distribution of child pornography. At today’s sentencing hearing, the Court sentenced Jordan to a 262-month sentence due, in part, to the nature and circumstances of Jordan’s offense.

In making today’s announcement, U.S. Attorney King commended HSI, NC DPS, and CMPD for their investigation of the case.

Assistant U.S. Attorney Nick J. Miller 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. – Jonah Terrell Bryant, 29, of Charlotte, was sentenced today to seven years in prison followed by three years of supervised release for the armed robbery of a local convenience store, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.  

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.

According to court documents and information presented at court hearings, on August 18, 2022, at approximately 6:19 a.m., CMPD officers were dispatched to an armed robbery call at the Circle K convenience store located at 10000 N. Tryon Street, in Charlotte. The store clerk had called 911 to report the crime. When CMPD officers arrived at the scene, they spoke with the store clerk who said that the robber had walked up to the counter and asked to buy a cigar. When the store clerk put the cigar on the counter and rang up the sale, the robber pointed a firearm at the clerk and demanded money.  The store clerk told the robber that he didn’t have access to the safe. The robber then ordered the store clerk to open the drawer and proceeded to come around the counter and grab the money that was in the register.

According to filed court documents, during the investigation, law enforcement used video surveillance footage to identify Bryant’s white Dodge Charger and a fingerprint recovered from the scene to determine the robber’s identity. CMPD officers arrested Bryant on August 26, 2022, while he was driving the white Dodge Charger. In the front center console of the vehicle, law enforcement found a black 9mm semi-automatic pistol with a round in the chamber and rounds in the attached magazine.

On October 26, 2023, Bryant pleaded guilty to possession and brandishing of a firearm in furtherance of a crime of violence. Bryant is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

The FBI and CMPD investigated the case.

Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Samantha Marie Vono, 34, of Hickory, N.C., was sentenced to 15 years in prison followed by five years under court supervision for trafficking methamphetamine. Vono was classified as a Career Offender as a result of multiple prior drug trafficking convictions for possessing methamphetamine with the intent to distribute it to others.

Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office, join U.S. Attorney King in making today’s announcement.

According to court documents and today’s proceedings, in December 2021, law enforcement officers were conducting a drug investigation in Catawba County. During the investigation, they identified Vono as a local distributor of methamphetamine. The investigation determined that Vono would travel to Charlotte to meet with a narcotics source of supply, and then travel back to Catawba County where she distributed narcotics to other local sellers. Court records show that, on January 25, 2022, officers followed Vono as she travelled to Charlotte. Officers observed Vono meet her supply source at an apartment complex and then travel back to Catawba County. Officers conducted a traffic stop of Vono’s vehicle for a traffic violation and Vono’s multiple outstanding warrants. During a search of the vehicle, law enforcement located 160 grams of methamphetamine inside the vehicle.

According to court records, while Vono was released on bond pending sentencing, and confined to her apartment on home detention with electronic monitoring, Vono set up a robbery in her apartment with three other co-conspirators where a victim was shot.  Two of Vono’s young children were home at the time of the robbery turned shooting. After the incident, court records show that Vono was encountered by the police while attempting to clean up the bloody crime scene. Later, Vono also attempted to obstruct the police investigation. 

On June 14, 2023, Vono pleaded guilty to possession with intent to distribute methamphetamine. She is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

U.S. Attorney King thanked the DEA and the Catawba County Sheriff’s Office for their investigation of the case.

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

CHARLOTTE, N.C. – Two Charlotte men were sentenced to prison today on bank robbery charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Sherrod Davidson, Jr., 33, was sentenced to 139 months in prison followed by five years of supervised release. Rashad Jackson, 44, was sentenced to 84 months in prison followed by five years of supervised release. A third individual, Dominique Duggins, 33, has pleaded guilty for his role in the robbery and is awaiting sentencing.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.

According to court documents and court proceedings, on September 9, 2020, two Garda World Cash Services employees were servicing a Bank of America ATM machine in Charlotte. Davidson, Jackson, and Duggins were sitting in a parked vehicle on a hill overlooking the ATM. Duggins and Davidson exited the vehicle while Jackson stayed behind as the getaway driver. Surveillance video recovered during the investigation shows Duggins approach the first employee who was standing at the ATM machine servicing it. Duggins put a gun to the employee’s back and forced him to the ground, while Davidson approached the Garda van where the other employee was refilling the ATM cassettes with cash. Davidson pointed a gun at the second employee and grabbed multiple bags of cash. Duggins and Davidson returned to the getaway vehicle and fled the scene. Over the course of the investigation, Duggins was identified as one of the three suspects. Duggins had worked from June to July 2020 at Garda World Cash Services before he was fired. Investigators later identified Davidson and Jackson as the other two accomplices.

On April 29, 2022, Duggins pleaded guilty to bank robbery. On June 28, 2024, Davidson pleaded guilty to bank robbery and aiding and abetting, and Jackson pleaded guilty to possession and brandishing of a firearm during a crime of violence.

Davidson and Jackson are in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. A sentencing date for Duggins has not been set.

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

Assistant U.S. Attorney Brandon Boykin of the U.S. Attorney’s Office in Charlotte prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

CHARLOTTE, N.C. – Two tax attorneys and an insurance agent were sentenced today to a combined 16 years in prison for conspiring to defraud the United States and helping clients file false tax returns, based on their promotion and operation of a fraudulent tax shelter, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. 

Michael Elliott Kohn, an attorney, was sentenced to seven years in prison. Catherine Elizabeth Chollet, also an attorney, was sentenced to four years in prison. David Shane Simmons, an insurance agent and broker, was sentenced to five years in prison.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Charlotte Field Office (IRS CI), join U.S. Attorney King in making today’s announcement.

“The defendants are tax professionals that conspired to promote a fraudulent tax scheme based on deceit and fabrications to impede and impair our nation’s tax laws and cheat our tax system,” said U.S. Attorney King. “My office is committed to uncovering schemes that undermine the integrity of our tax system and bringing tax offenders to justice.”

“The use of tax schemes by the defendants were clearly intended to conceal income from the IRS,” said Special Agent in Charge Eakins. “Today’s sentencing reinforces IRS-CI’s commitment to the American taxpayer to identify and help bring to prosecution people who promote illegal schemes designed to avoid the payment of taxes.”

According to court documents and evidence presented at trial, from 2011 to November 2022, Kohn and Chollet, both of St. Louis, and Simmons, who is based out of Jefferson, North Carolina, promoted, marketed and sold to clients the Gain Elimination Plan, a fraudulent tax scheme.

The defendants designed the plan to conceal clients’ income from the IRS by inflating business expenses through fictitious royalties and management fees. These fictitious fees were paid, on paper, to a limited partnership largely owned by a charity. In reality, Kohn and Chollet fabricated the fees.

Kohn and Chollet advised clients that the plan’s limited partnership was required to obtain insurance on the life of the clients to cover the income that was allocated to the charitable organization. The death benefit was directly tied to the anticipated profitability of the clients’ businesses and how much of the clients’ taxable income was intended to be sheltered.

Simmons earned more than $2.3 million in commissions for selling the insurance policies, splitting the commissions with Kohn and Chollet. Kohn and Chollet received more than $1 million from Simmons. Simmons also filed false personal tax returns that underreported his business income and inflated his business expenses, resulting in a tax loss of more than $480,000.

In total, the defendants caused a tax loss to the IRS of more than $22 million.

In addition to the terms of imprisonment, U.S. District Judge Kenneth D. Bell for the Western District of North Carolina ordered each defendant to serve three years of supervised release and to pay $22,515,615 in restitution to the United States.

IRS-Criminal Investigation investigated the case.

Assistant U.S. Attorney Caryn Finley with the U.S. Attorney’s Office in Charlotte, and Trial Attorneys Kevin Schneider and Todd Ellinwood of the Justice Department’s Tax Division prosecuted the case.

 CHARLOTTE, N.C. – A Charlotte man was sentenced to 18 months in prison today for unlawful transportation and shipment of firearms and ammunition, after he tried to get two firearms and ammunition through security at the Charlotte Douglas International Airport, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Ahmad Mohmad Elzein, 61, was also ordered to serve two years under court supervision after he is released from prison.

According to court documents and court proceedings, on July 30, 2023, officials with the Transportation Security Administration (TSA) were conducting a screening of Elzein’s carry-on luggage in connection with his international travel from Charlotte to Beirut, Lebanon. During the inspection, TSA officials located approximately $17,500 of U.S. currency in Elzein’s carry-on luggage. TSA officials also inspected Elzein’s checked baggage where they found a black 9 mm pistol concealed in a boot inside the luggage, and a revolver that was duct-taped and concealed inside the liner of Elzein’s suitcase. In addition to the firearms, TSA officers found 9mm ammunition wrapped in a plastic baggie and concealed in Elzein’s checked bag. During an interview with law enforcement, Elzein indicated that he was bringing those firearms and ammunition with him while visiting his family in Lebanon. Over the course of the investigation, law enforcement determined that the 9mm firearm had been reported stolen.

Elzein 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 King thanked the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Air Marshal Service, the TSA, and the Charlotte-Mecklenburg Police Department, for their investigation of this case.

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

A Florida man pleaded guilty today to conspiracy to commit offenses against the United States and conspiracy to commit money laundering in connection with a scheme to defraud insurance regulators and policyholders through a web of companies based in North Carolina, Bermuda, Malta, and elsewhere.

According to court documents, from no later than 2016 through at least 2019, Greg Lindberg, 54, of Tampa, conspired with others to defraud various insurance companies, other third parties, and ultimately thousands of insurance policyholders. Lindberg and others conspired to deceive the North Carolina Department of Insurance and other regulators, evaded regulatory requirements meant to protect policyholders, concealed the true financial condition of his companies, and improperly used insurance company funds for his personal benefit. Lindberg and his co-conspirators caused companies he controlled to invest more than $2 billion in loans and other securities with his own affiliated companies and laundered the proceeds of the scheme. As set forth in the indictment, Lindberg directed the scheme and personally benefitted from the fraud in part by “forgiving” more than $125 million in loans to himself from the insurance companies that he controlled.

To carry out the conspiracies, Lindberg and others engaged in circular transactions among Lindberg’s web of entities using insurance company funds and made and caused to be made various materially false and misleading statements and representations to and omitted material information from regulators, various ratings agencies, insurance companies, insurance policyholders, and others regarding these transactions.

As a result of Lindberg’s conduct, his insurance companies, third-party entities, and policyholders suffered substantial financial hardship, and some of his insurance companies have been placed in rehabilitation and liquidation.

“Greg Lindberg and his co-conspirators misused $2 billion of company funds in their international scheme to defraud corporate victims, regulators, and policyholders,” said Principal Deputy Assistant Attorney General Nicole Argentieri, head of the Justice Department’s Criminal Division. “Thousands of policyholders suffered substantial financial hardship as a result of Lindberg’s fraud scheme, which left multiple companies in or on the brink of liquidation. The Justice Department will not hesitate to hold corporate executives accountable when they threaten critical sectors of the economy, like the insurance industry, to enrich themselves.”

“Lindberg created a complex web of insurance companies, investment businesses, and other business entities and exploited them to engage in millions of dollars of circular transactions. Lindberg’s actions harmed thousands of policyholders, deceived regulators, and caused tremendous risk for the insurance industry,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “Today’s guilty plea affirms our commitment to protecting the public from predatory financial schemes and bringing to justice those who betray public trust for personal gain.”

“Lindberg’s elaborate network of investments, insurance companies, and financial deals was designed to exploit the insurance system and drain millions from policyholders to enrich himself at the public’s expense,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “The FBI remains steadfast in our commitment to root out financial fraud.”

Lindberg pleaded guilty to one count of conspiracy to commit offenses against the United States, including wire fraud, investment adviser fraud, and crimes in connection with insurance business, and one count of money laundering conspiracy. He faces a maximum penalty of five years in prison on the conspiracy to commit offenses against the United States count and 10 years in prison on the money laundering conspiracy count. In addition to pleading guilty to these charges, on May 15, following a retrial, Lindberg was convicted by a federal jury in Charlotte of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions, aimed at bribing the elected North Carolina Commissioner of Insurance to influence the regulation of Lindberg’s insurance companies. A sentencing date has not yet been set. A federal district court judge will determine Lindberg’s sentence in both cases after considering the U.S. Sentencing Guidelines and other statutory factors in each case. Lindberg was remanded into the custody of the U.S. Marshals.

In December 2022, one of Lindberg’s top executives, Christopher Herwig, pleaded guilty in a related case to conspiring with Lindberg and others to commit offenses against the United States, including wire fraud, investment advisor fraud, and money laundering, as well as to the making of false statements in the business of insurance. Herwig is also awaiting sentencing.

The FBI Charlotte Field Office is investigating the case. The Securities and Exchange Commission’s Chicago Regional Office provided valuable assistance to the investigation.

Trial Attorney Lyndie Freeman of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Dan Ryan and Taylor Stout for the Western District of North Carolina are prosecuting the case.

CHARLOTTE, N.C. – A Florida man pleaded guilty today to conspiracy to commit offenses against the United States and conspiracy to commit money laundering in connection with a scheme to defraud insurance regulators and policyholders through a web of companies based in North Carolina, Bermuda, Malta, and elsewhere, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

According to court documents, from no later than 2016 through at least 2019, Greg Lindberg, 54, of Tampa, conspired with others to defraud various insurance companies, other third parties, and ultimately thousands of insurance policyholders. Lindberg and others conspired to deceive the North Carolina Department of Insurance and other regulators, evaded regulatory requirements meant to protect policyholders, concealed the true financial condition of his companies, and improperly used insurance company funds for his personal benefit. Lindberg and his co-conspirators caused companies he controlled to invest more than $2 billion in loans and other securities with his own affiliated companies and laundered the proceeds of the scheme. As set forth in the indictment, Lindberg directed the scheme and personally benefitted from the fraud in part by “forgiving” more than $125 million in loans to himself from the insurance companies that he controlled.

To carry out the conspiracies, Lindberg and others engaged in circular transactions among Lindberg’s web of entities using insurance company funds and made and caused to be made various materially false and misleading statements and representations to and omitted material information from regulators, various ratings agencies, insurance companies, insurance policyholders, and others regarding these transactions.

As a result of Lindberg’s conduct, his insurance companies, third-party entities, and policyholders suffered substantial financial hardship, and some of his insurance companies have been placed in rehabilitation and liquidation.

“Greg Lindberg and his co-conspirators misused $2 billion of company funds in their international scheme to defraud corporate victims, regulators, and policyholders,” said Principal Deputy Assistant Attorney General Nicole Argentieri, head of the Justice Department’s Criminal Division. “Thousands of policyholders suffered substantial financial hardship as a result of Lindberg’s fraud scheme, which left multiple companies in or on the brink of liquidation. The Justice Department will not hesitate to hold corporate executives accountable when they threaten critical sectors of the economy, like the insurance industry, to enrich themselves.”

“Lindberg created a complex web of insurance companies, investment businesses, and other business entities and exploited them to engage in millions of dollars of circular transactions. Lindberg’s actions harmed thousands of policyholders, deceived regulators, and caused tremendous risk for the insurance industry,” said U.S. Attorney King. “Today’s guilty plea affirms our commitment to protecting the public from predatory financial schemes and bringing to justice those who betray public trust for personal gain.”

“Lindberg’s elaborate network of investments, insurance companies, and financial deals was designed to exploit the insurance system and drain millions from policyholders to enrich himself at the public’s expense,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “The FBI remains steadfast in our commitment to root out financial fraud.”

Lindberg pleaded guilty to one count of conspiracy to commit offenses against the United States, including wire fraud, investment adviser fraud, and crimes in connection with insurance business, and one count of money laundering conspiracy. He faces a maximum penalty of five years in prison on the conspiracy to commit offenses against the United States count and 10 years in prison on the money laundering conspiracy count. In addition to pleading guilty to these charges, on May 15, following a retrial, Lindberg was convicted by a federal jury in Charlotte of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions, aimed at bribing the elected North Carolina Commissioner of Insurance to influence the regulation of Lindberg’s insurance companies. A sentencing date has not yet been set. A federal district court judge will determine Lindberg’s sentence in both cases after considering the U.S. Sentencing Guidelines and other statutory factors in each case. Lindberg was remanded into the custody of the United States Marshals.

In December 2022, one of Lindberg’s top executives, Christopher Herwig, pleaded guilty in a related case to conspiring with Lindberg and others to commit offenses against the United States, including wire fraud, investment advisor fraud, and money laundering, as well as to the making of false statements in the business of insurance. Herwig is also awaiting sentencing.

The FBI Charlotte Field Office is investigating the case. The Securities and Exchange Commission’s Chicago Regional Office provided valuable assistance to the investigation.

Assistant U.S. Attorneys Dan Ryan and Taylor Stout for the Western District of North Carolina and Trial Attorney Lyndie Freeman of the Criminal Division’s Fraud Section are prosecuting the case.

CHARLOTTE, N.C. – A Charlotte fentanyl distributor was sentenced to five years in prison today for possession of a firearm in furtherance of a drug trafficking crime, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Demetrius Lamar Mattox, 39, was also ordered to serve three years under court supervision after he is released from prison.

Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.

According to filed court documents and court proceedings, over the course of an investigation into drug trafficking activities in Charlotte, law enforcement identified Mattox as a local fentanyl distributor. The investigation determined that Mattox sold fentanyl and firearms to a confidential source on multiple occasions between September and October 2023.

Mattox pleaded guilty on August 13, 2024. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

The ATF led the investigation. Assistant U.S. Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

CHARLOTTE, N.C. – James Earl Holmes, 45, of Charlotte, was sentenced today to 110 months in prison followed by three years of supervised release for possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Bennie Mims, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Michael Hudgins of the Pineville Police Department (PPD), join U.S. Attorney King in making today’s announcement.

According to court documents and court proceedings, on May 30, 2021, PPD officers responded to 911 calls about a shooting in a parking lot of an apartment complex. When the officers arrived, they found a female, identified as F.L., in the backseat of a vehicle. F.L. had sustained two gunshot wounds. The victim and witnesses on the scene told PPD officers that Holmes had shot F.L. The officers located Holmes nearby seated in his wheelchair and recovered three 9mm casings from the area where F.L. was shot. F.L. was transported to the hospital and Holmes was taken into custody. Holmes repeatedly denied having a firearm. While at the police station, officers discovered Holmes to have a firearm in his diaper. PPD officers retrieved from Holmes a loaded 9mm pistol with a round in the chamber. Court records show that, at the time of the incident, Holmes was on supervised release for a federal firearms conviction in the Eastern District of Wisconsin. As a result of that conviction, Holmes was prohibited from possessing a firearm or ammunition.

During the investigation, F.L. told the officers that she was at the same party as Holmes and had rejected the defendant’s advances. After F.L. left the party, Holmes approached the victim while she was sitting in a parked vehicle and shot her. The victim recalled that she had begged Holmes not to shoot her, but Holmes told her, “Don’t be sorry now, b**ch,” and then shot her.

According to court records, Holmes initially denied shooting the victim. However, the three 9mm discharged casings collected from the scene of the shooting, and a bullet fragment surgically removed from the victim’s body, were submitted to the Charlotte-Mecklenburg Police Department’s Crime Laboratory for analysis, which concluded that the three discharged casings and the bullet recovered from the victim’s body were all fired from Holmes’s 9mm pistol.

According to court records, Holmes committed numerous offenses while in pretrial custody at the Mecklenburg County Jail (MCJ).  In 2021, Holmes threatened a detention officer after she told the defendant to put on a shirt. Holmes then spit at the detention officer, bit her, and stabbed her with a shank. Court records show that, in March 2022, MCJ detention officers were performing a safety and security check on Holmes because he was being transported to a hospital for medical treatment. During the search, a detention officer found a four-inch shank in Holmes’s wheelchair. On yet another occasion, Holmes threw a brown liquid substance at a detention officer’s head. Holmes also assaulted a nurse at the jail and has repeatedly refused to follow lawful orders while in custody.

On June 16, 2022, Holmes pleaded guilty to possession of a firearm by a convicted felon. At today’s sentencing hearing, the government argued that the defendant possessed the firearm in connection with the attempted murder of F.L.  The Court agreed, applied the sentencing enhancement, and sentenced Holmes to 110 months in prison.

Holmes will remain in federal custody until he is transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Holmes still faces a potential revocation of supervised release and additional prison sentence in federal court in Wisconsin.

In making today’s announcement, U.S. Attorney King commended the ATF and the Pineville Police Department for their investigation of the case and the Charlotte Mecklenburg Police Department’s Crime Laboratory for their invaluable assistance.

Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

CHARLOTTE, N.C. – Kristin Turney, 54, of Catawba, South Carolina, pleaded guilty in federal court today to wire fraud for embezzling more than $1.7 million from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, joins U.S. Attorney King in making today’s announcement.

According to court documents, from 2016 to 2023, Turney executed a scheme to defraud her employer, a Charlotte-based company, by embezzling more than $1.7 million. Turney was in charge of the company’s financial matters, including bank accounts, payroll, accounts payables and receivables, and tax filings. As part of the scheme, Turney misused her access and control over the company’s bank accounts and books and records to write company checks to herself without proper approval or authorization and then deposited the checks into bank accounts under her control. As a result, Turney caused at least 1,000 fraudulent and unauthorized deposits totaling more than $1.7 million to be made from the bank account of the victim company to Turney’s bank account. Turney then covered up the fraud by, among other things, making false accounting entries in the company’s books and records, providing false information to the company’s tax return preparer, and giving false information to the company’s owner and employees. Turney generally spent the embezzled funds to pay for personal expenses, that included hundreds of thousands of dollars in shopping trips, car payments, mortgage payments, tuition payments, and vacation expenses.

The wire fraud charge carries a maximum sentence of 20 years in prison and a $250,000 fine.

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

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

CHARLOTTE, N.C. – Tomonta Simmons, 32, of Charlotte, N.C., was sentenced today to 70 months in prison followed by three years of supervised release for illegally possessing firearms, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The firearms were fitted with illegal machinegun conversion devices (MCDs) also known as “Glock Switches.”

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

“Illegal guns in the hands of felons pose a serious threat to the community – a threat that is amplified when those guns are converted with devices capable of firing a hail of bullets in seconds,” said U.S. Attorney King. “My office will continue to prioritize the safety of our communities and send a strong message to those who disregard our federal gun laws and put innocent lives at risk.”

“These conversion devices are illegal to possess and extremely dangerous,” said ATF Special Agent in Charge Bennie Mims. “They pose a very serious threat and ATF will continue to work with our law enforcement partners to keep them off our streets.”

According to court documents and court proceedings, on June 21, 2022, CMPD officers located Simmons sitting in the driver’s seat of a vehicle parked in a parking lot. When law enforcement attempted to arrest Simmons on outstanding warrants, he did not comply. Instead, Simmons abruptly pulled out of the parking lot and began to drive through a residential neighborhood at a high rate of speed. CMPD officers followed Simmons, and observed the defendant get out of the vehicle near a residence and approach the front porch. Officers arrested Simmons in the yard.

Court records show that, after Simmons was arrested, CMPD officers retraced the path that Simmons took while he fled and located two handguns the defendant had discarded while driving. The first handgun was a 9mm caliber pistol, loaded with one round of ammunition in the chamber and fourteen rounds of ammunition in the magazine. The second handgun was a stolen 19x 9x19mm caliber pistol, loaded with one round of ammunition in the chamber and twenty-two rounds of ammunition in the extended magazine. According to court records, the ATF’s Firearms Technology Branch determined that both firearms had a Glock Switch device installed. The installation of the Glock Switch device allows a conventional semi-automatic Glock pistol to function as a fully automatic firearm.

According to court documents, on September 12, 2022, CMPD officers attempting to arrest Simmons in connection with the firearms seized during the June incident located a rental vehicle driven by the defendant. During a search of the vehicle, officers recovered a semiautomatic pistol loaded with fifteen rounds of ammunition.

Simmons has prior criminal convictions, including a federal conviction in the Western District of North Carolina for conspiracy to commit bank fraud, and he is prohibited from possessing firearms or ammunition.

On February 9, 2024, Simmons pleaded guilty to possession of a firearm by a prohibited person. Simmons is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

The investigation was conducted by the ATF and CMPD.

Assistant U.S. Attorney Shavonn Bennette of the U.S. Attorney’s Office in Charlotte prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

CHARLOTTE, N.C. – Steven Andiloro, 53, of Mooresville, N.C., pleaded guilty today to securities fraud and wire fraud for orchestrating a multimillion-dollar investment fraud scheme and fraudulently obtaining more than $2.6 million in COVID-19 relief funds, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, and Hannibal “Mike” Ware, Inspector General of the Small Business Administration, Office of Inspector General (SBA-OIG), join U.S. Attorney King in making today’s announcement.

According to the plea agreement and documents filed in the case, from 2018 to 2021, Andiloro operated an investment fraud scheme and induced victims to invest money in businesses that were both real and fictitious, by making false representations about where and how the money would be invested. For example, some of Andiloro’s victims were told their money would be invested into his car service business. Other victims believed their money would be invested into a non-existent marijuana dispensary business. Contrary to representations made to victims, Andiloro did not invest the money as promised. Instead, Andiloro used the funds to pay for personal expenses and to make Ponzi-style payments to other investors.

In addition to the investment scheme, Andiloro also engaged in COVID-19 fraud. Court records show that, from April 2020 to March 2021, Andiloro obtained funds from the Paycheck Protection Program (PPP) by submitting fraudulent applications for disaster relief loans intended for businesses that suffered economic hardship due to the pandemic. To obtain the PPP funds, Andiloro submitted applications that contained false financial information about his businesses, including fake employment data and inflated revenues, costs, and payroll expenses. Andiloro received more than $2.6 million in disaster relief funds, which he used to fund his personal lifestyle and to make payments in furtherance of the investment fraud scheme.

Andiloro was released on bond. The securities fraud and the wire fraud offense each carry a maximum prison sentence of 20 years. A sentencing date has not been set.

In making today’s announcement, U.S. Attorney King thanked the U.S. Secret Service, the FBI, and the SBA-OIG for the investigation which led to the charges.

Assistant U.S. Attorneys Graham Billings and Katherine Armstrong with the U.S. Attorney’s Office in Charlotte are prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with U.S. Attorneys’ Offices and agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

CHARLOTTE, N.C. – United States Attorney Dena J. King announced today that the Justice Department will monitor compliance with federal voting rights laws in Mecklenburg County for the Nov. 5 general election.

The Justice Department enforces federal voting rights laws that protect the rights of all eligible citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country.

The Justice Department’s Civil Rights Division will coordinate the effort. Monitors will include Justice Department personnel, who will contact state and local election officials as needed throughout Election Day.

The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act and Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.

On Election Day, Civil Rights Division personnel will be available all day to receive questions and complaints from the public related to possible violations of federal voting rights laws. Reports may be made through the department’s website www.civilrights.justice.gov or by calling toll-free at 800-253-3931. The U.S. Attorney’s Office will also be available to receive complaints on Election Day at 704-344-6222 in Charlotte, and at 828-271-4661 in Asheville. 

Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information hotline at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.

Complaints related to any disruptions at a polling place should always be reported to local election officials (including officials based in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.

More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

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CHARLOTTE, N.C. – Three defendants charged in separate cases with illegal possession of a firearm were sentenced today in federal court, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney presided over the hearings.

The cases are being prosecuted as part of Project Safe Neighborhoods (PSN), a collaboration between federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Federal Bureau of Investigation (FBI), aimed at reducing violent crime and gun violence and making communities safer for everyone.

Tyree Lashawn May, 31, of Charlotte, was sentenced to 78 months in prison followed by three years of supervised release for possession of a firearm by a convicted felon. According to court documents filed in the case, in 2015, May was convicted of robbery. As a result of that conviction, he is prohibited from possessing firearms. Court records show that, on October 6, 2022, two individuals reported to law enforcement that someone they knew as “Scooter” had stolen their vehicle. During the investigation, law enforcement determined that Scooter was May. The next day, on October 7, 2022, officers found the stolen vehicle and observed May carry a black bag to the car and place it in the trunk. The officers stopped May who falsely claimed his name was Jerome Drummond and he was from Virginia. Law enforcement conducted a search of the vehicle and found a 9mm firearm in the bag May had put in the trunk.

Victor Angel Ortiz, 42, of Matthews, N.C., was sentenced to 30 months in prison followed by three years of supervised release for possession of a firearm by a convicted felon. According to court records, in April 2023, law enforcement began an investigation into Ortiz, after the defendant made reference to a “strap,” which is a slang term for a firearm, during a conversation with an inmate in the North Carolina Department of Correction. On May 4, 2023, law enforcement executed a search warrant at Ortiz’s residence, where they located a 9mm firearm hidden behind the oven in the defendant’s home. Ortiz is prohibited from possessing a firearm due to prior criminal convictions.

Zaire Edreece Lucky, 24, of Charlotte, was sentenced to 24 months in prison followed by three years of supervised release for possession of a firearm by a convicted felon. According to court documents and proceedings, on November 22, 2023, Lucky was arrested on outstanding state arrest warrants by CMPD officers at the train station in Charlotte. During the arrest, Lucky was found to be in possession of a Glock firearm with a loaded 17-round magazine. At the time,CMPD detectives were investigating Lucky for his role in motor vehicle thefts in the region. In addition to the firearm, Lucky also possessed an Autel handheld key programmer, frequently used in vehicle thefts, as well as three key fobs. Lucky has multiple criminal convictions and he is prohibited from possessing a firearm.

The ATF and CMPD investigated the cases against May and Lucky. The FBI handled the investigation into Ortiz. 

Assistant U.S. Attorney Tim Sielaff is in charge of the prosecution of May and Ortiz. Assistant U.S. Attorney William Bozin is handling Lucky’s prosecution.
 

CHARLOTTE, N.C. – David Matthew Lowe, 33, of Shelby, N.C., was sentenced today to 57 months in prison followed by three years of supervised release for possession of ammunition by a convicted felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Bennie Mims, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Gerald Childress of the Kings Mountain Police Department, join U.S. Attorney King in making today’s announcement.

According to court documents and court proceedings, on August 12, 2023, at approximately 1:45 a.m., officers with the Kings Mountain Police Department were dispatched to a Comfort Inn in the area for a service call for an assault. Upon entering the hotel lobby, an officer encountered a female, identified in court documents as L.T., and the defendant. L.T. told the officers that Lowe had hit her, and she could not see out of her eye. At that point, Lowe fled toward the back of the hotel. Officers chased after Lowe and ultimately Lowe was taken into custody.

As part of the investigation, law enforcement obtained CCTV footage from the hotel that depicted Lowe possessing a firearm during his assault of L.T. Specifically, the footage depicted L.T. and Lowe having an altercation, L.T. running away from the hotel room, and Lowe following her. Lowe then removed a firearm from his pants and struck L.T. in the side of her head. This caused the firearm’s magazine to break and ammunition along with several firearm parts fell to the floor. The defendant then struck L.T. several more times with a closed fist, causing L.T. to fall to the ground. Lowe then left the scene. Law enforcement recovered the firearms parts from the scene and 15 rounds of mixed ammunition. Court records indicate that Lowe has prior criminal convictions, including a federal conviction in the Western District of North Carolina for conspiracy to participate in racketeering activity – RICO conspiracy. Because of the criminal convictions, Lowe is prohibited from possessing firearms or ammunition.

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

The investigation was conducted by the ATF and the Kings Mountain Police Department.

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

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According to the National Coalition Against Domestic Violence, 19% of domestic violence involves a weapon. The presence of a gun in a domestic situation increases the risk of homicide by 500%.

To understand more about domestic violence, visit: https://www.justice.gov/ovw/domestic-violence#dv. If you require immediate help, please call the National Domestic Violence Hotline at 1-800-799-SAFE (1-800-799-7233) or Strong Hearts Native Helpline at 1-844-762-8483.

CHARLOTTE, N.C. – The leader and three members of a drug trafficking organization (DTO) were handed down sentences ranging from 70 months to 27 years in prison today for the bulk distribution of methamphetamine, fentanyl, and other narcotics, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, Bennie Mims, 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 King in making today’s announcement.

Led by the FBI, ATF, and CMPD, this Organized Crime Drug Enforcement Task Force (OCDETF) operation successfully dismantled a poly-drug network that trafficked large quantities of methamphetamine, fentanyl, heroin, and cocaine in Mecklenburg County.

The investigation identified nine members of the DTO who were prosecuted federally in connection with this case. The four sentenced today are:

George Irving Rivens, 38, of Charlotte, and leader of the DTO, was sentenced to 27 years in prison followed by five years of supervised release. He pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, heroin, and fentanyl.

Paul Alexander Kaber, 29, of Charlotte, was sentenced to 172 months in prison followed by five years of supervised release. He pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, and heroin.

Christopher Ahmad Townsend, 32, of Charlotte, was sentenced to 130 months in prison followed by five years of supervised release. He pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, and fentanyl.

Joseph Earl Connor, 34, of Charlotte, was sentenced to 70 months in prison followed by five years of supervised release. He pleaded guilty to distribution of fentanyl.

The five DTO members previously sentenced and the charges they pleaded guilty to are as follows: 

Daneon Hansen, 47, of Charlotte, was sentenced to 10 years in prison followed by five years of supervised release. He pleaded guilty to possession with intent to distribute methamphetamine and heroin.

Deion Rashaad Thompson, 30, of Charlotte, was sentenced to 10 years in prison followed by five years of supervised release. He pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, heroin, and fentanyl; distribution of methamphetamine; and two counts of distribution of fentanyl.

Joseph Stewart, 36, of Charlotte, was sentenced to 15 months in prison followed by three years of supervised release. He pleaded guilty to distribution of fentanyl.

Naliyah Tekayla Herd, 26, of Charlotte, was sentenced to a year and a day in prison followed by three years of supervised release. She pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, heroin, and fentanyl.

Alexis Taylor, 27, of Mount Holly, N.C., was sentenced to four months in prison followed by three years of supervised release. She pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, heroin, and fentanyl.

According to court documents and court proceedings, from at least January 1, 2021, to June 3, 2022, Rivens supplied the members of the DTO with methamphetamine, fentanyl, heroin, and cocaine for local distribution in Charlotte. During the investigation, law enforcement identified a residence in Charlotte the DTO was using as a wholesale stash house to store and traffic drugs. On June 3, 2022, investigators executed a search warrant at the stash house, seizing 16.5 kilograms of methamphetamine, more than 5.7 kilograms of fentanyl, over 2.6 kilograms of cocaine, over a kilogram of heroin, 37 kilograms of marijuana, and more than half a kilogram of cocaine base. In addition, 10 firearms and nearly $30,000 in cash drug proceeds were seized. Court record show that, when law enforcement conducted the search warrant, it appeared that some of the occupants of the stash house had been attempting to destroy evidence by flushing methamphetamine down the toilet.

On the same day, investigators also executed a search warrant at another location, seizing 3.6 kilograms of methamphetamine, 1.1 kilograms of heroin, three firearms, and $60,000 in cash. From another residence used by Rivens, law enforcement seized $30,303 in cash and two more firearms. In total, over the course of the investigation, law enforcement seized over a quarter million dollars in drug cash proceeds and other assets, including over $100,000 worth of jewelry, a 2020 Dodge Charger Scat Pack, and a residence used by the DTO to facilitate drug trafficking. 

In making today’s announcement, U.S. Attorney King commended the FBI, ATF, and CMPD for leading this OCDETF operation.

OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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

CHARLOTTE, N.C. – Two defendants appeared in federal court today and entered guilty pleas for their respective roles in cases involving high-end stolen vehicles worth millions of dollars, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert M. DeWitt, 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 King in making today’s announcement.

According to filed documents and statements made in court, Andre Lamar Sumner, 41, of Charlotte, pleaded guilty to a count of conspiracy to violate federal law, including by transporting and possessing stolen vehicles in interstate commerce, and altering vehicle identification numbers (VINs). Sumner also pleaded guilty to one count of possession of a stolen vehicle. According to filed court documents, between 2022 and 2024, Sumner and his co-conspirators engaged in a scheme to buy and sell high-end motor vehicles that were stolen from car dealerships, rental car companies, and private parties across the United States, including North Carolina, South Carolina, Florida, Alabama, Maryland, Pennsylvania, New Jersey, New York, and Missouri.

Sumner operated as a “fence” in the conspiracy, arranging the buying and selling of the stolen motor vehicles. A fence is someone who assists in finding or dealing with buyers for stolen properties. To maximize profits, Sumner sought to fence high-end stolen vehicles such as luxury models made by BMW, Land Rover, Porsche, Mercedes-Benz, and Rolls-Royce, as well as trucks and other expensive modes from Chevrolet, Dodge, Ford, and RAM. As court documents show, Sumner and his co-conspirators possessed stolen vehicles with an estimated value well over $2 million.

According to court records, Sumner sold the stolen cars to buyers at prices significantly below the vehicles’ fair market values. As Sumner admitted in court today, to avoid detection and to maximize the stolen vehicles’ resale values, Sumner and others regularly altered the stolen vehicles’ original VINs and fraudulently registered the stolen vehicles with various state motor vehicle agencies.

One of Sumner’s co-conspirators, Erren Woodson, 40, of Charlotte, pleaded guilty last Friday, October 18, 2024, to one count of conspiracy and one count of possession of a stolen vehicle.  Court documents show that Woodson purchased stolen vehicles from Sumner. Court documents filed in Woodson’s case show that Woodson regularly communicated with Sumner to discuss the available inventory of stolen vehicles and potential buyers as well as prices for the stolen cars.

Both Sumner and Woodson also pleaded guilty to one count of possession with intent to distribute marijuana. According to court records, the defendants were involved in marijuana trafficking, in part funded by the stolen vehicles scheme.

In a separate case involving high-end stolen vehicles, Terrick D. Lumpkin, 39, of Charlotte, pleaded guilty today to conspiracy to violate federal law, including by transporting and possessing vehicles in interstate commerce and altering VIN numbers. Lumpkin also pleaded guilty to one count of possession of a stolen vehicle.

According to documents filed in this case and the plea hearing, between November 2023 and January 2024, Lumpkin conspired with other individuals to steal and possess luxury and high-end models of vehicles worth over $1 million. Lumpkin and his co-conspirators obtained stolen vehicles from various locations throughout the United States, including in North Carolina, Illinois, and New York. In addition, several of the vehicles Lumpkin possessed were stolen from the Charlotte Douglas International Airport.

Court documents show that Lumpkin and others mainly sought high-end vehicles made by Audi, BMW, Cadillac, Lamborghini and Mercedes, as well as sports utility vehicles, and other expensive models from Chevrolet, Dodge, Ford, GMC, and Jeep. Once they came to possess the stolen vehicles, Lumpkin and his co-conspirators altered or removed the vehicles’ VINs to avoid detection by law enforcement.

All three defendants are currently released on bond. The conspiracy charges carry a maximum penalty of five years in prison. Each charge of possession of a stolen vehicle carries a statutory maximum penalty of 10 years in prison. The charge of possession with intent to distribute marijuana carries a maximum prison sentence of five years. At sentencing, Sumner and Woodson face a maximum of 20 years of imprisonment. Lumpkin faces a maximum of 15 years of imprisonment.

Since August 2023, the U.S. Attorney’s Office has charged 11 individuals with conspiracy offenses related to high-end stolen vehicles and other related offenses. Of those charged, nine have pleaded guilty to federal charges. Additional individuals involved in stolen vehicle possession have also been prosecuted by the U.S. Attorney’s Office for other federal crimes, including illegal gun possession and drug trafficking.

In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD’s Stolen Car And Recovery Law Enforcement Team (SCARLET) for their investigation of these cases.

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

CHARLOTTE, N.C. – Phalen Devon Izard, 42, of Hickory, N.C., was sentenced today to 70 months in prison followed by three years of supervised release on drug and gun offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Reed Baer of the Hickory Police Department (HPD), join U.S. Attorney King in making today’s announcement.

According to court documents and the sentencing hearing, in July 2022, HPD was investigating Izard for suspected drug trafficking activities. During the investigation, HPD utilized a confidential informant on two occasions to buy cocaine base from Izard. Court documents show that, on April 11, 2023, HPD officers were patrolling near an apartment complex in Hickory, where they observed Izard walk into an apartment. A short time later, Izard walked back outside and fired a gunshot into the air. Officers immediately detained Izard. The HPD officers also recovered a 9mm pistol loaded with a magazine containing thirteen rounds of ammunition and a spent shell casing from the front porch.

According to filed court documents, on October 22, 2023, a shooting occurred at the Gateway Pub in Hickory. During the investigation of the shooting incident, law enforcement obtained security camera footage that captured a fight break out between a large crowd. Izard, who was present in the crowd, was captured on video using a small black handgun to fire multiple rounds into the air. Izard was arrested the next day in connection with the incident. According to court records, HPD officers executed a search warrant at an apartment where Izard had been staying. Officers seized several firearms from the apartment including a 9mm semi-automatic pistol loaded with eight rounds of ammunition; a stolen 10mm semi-automatic pistol loaded with nine rounds of ammunition; a 12- gauge shotgun and 22 12-gauge rounds; and a stolen 9mm semi-automatic pistol fitted with an extended magazine loaded with multiple rounds of ammunition. Izard has prior criminal convictions, and he is prohibited from possessing firearms or ammunition.

On May 15, 2024, Izard pleaded guilty to two counts of possession of cocaine base and two counts of possession of a firearm by a convicted felon. Izard remains in federal custody until he is transferred to the custody of the Federal Bureau of Prisons.

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

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

CHARLOTTE, N.C. – A citizen of the Republic of India was sentenced to prison today for stealing more than $20 million from hundreds of victims through the use of fake or “spoofed” websites mimicking the cryptocurrency exchange website Coinbase, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell ordered Chirag Tomar, 31, to serve 60 months in prison followed by two years of supervised release.

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

According to filed court documents and today’s sentencing hearing, from as early as June 2021, Tomar and his co-conspirators engaged in a spoofing scheme to steal millions in cryptocurrency from hundreds of victims located worldwide and in the United States, including in the Western District of North Carolina. Spoofing, as it pertains to cybercrime, is when a malicious cyber actor disguises an email address, sender name, or website URL to convince victims they are interacting with a trusted source. Court documents show that Tomar and his co-conspirators executed the fraud by spoofing Coinbase, one of the largest virtual currency exchanges in the world, that allows customers to buy, sell or trade cryptocurrencies.

Coinbase operated a “Pro” version of its exchange, which was found at the URL “Pro.Coinbase.Com.” According to court documents, Tomar and his co-conspirators spoofed the Coinbase Pro website by using a similar fake URL, CoinbasePro.Com, and created a fraudulent website to mimic the authentic website. Once victims entered their login credentials into the fake website, an authentication process was triggered. In some instances, victims were tricked into providing their login and authentication information of the real Coinbase website to fraudsters. Other times, victims were tricked into allowing fake Coinbase representatives to execute remote desktop software, which enabled fraudsters to gain control of victims’ computers and access their legitimate Coinbase accounts. The fraudsters also impersonated Coinbase customer service representatives and tricked the users into providing their two-factor authentication codes to the fraudsters over the phone. Once the fraudsters gained access to the victims’ Coinbase accounts, the fraudsters quickly transferred the victims’ Coinbase cryptocurrency holdings to cryptocurrency wallets under the fraudsters’ control.

Court documents show that, in February 2022, a victim located in the Western District of North Carolina attempted to log into his Coinbase account through the fraudulent website. The spoof website immediately notified the victim that his account was locked and prompted the victim to use a number provided to call a fake Coinbase representative. The fake representative tricked the victim into providing his two-factor authentication information, ultimately gaining access into the victim’s real Coinbase account. Using the information, fraudsters stole cryptocurrency from the victim’s Coinbase wallet worth over $240,000.

According to court records, Tomar used the victims’ stolen log-in credentials to access the victim accounts and transfer the victims’ cryptocurrency holdings to wallets controlled by Tomar. After Tomar received the stolen cryptocurrency, he would convert it to other forms of cryptocurrency and move the funds amongst many wallets controlled by Tomar. Ultimately, the cryptocurrency was converted into cash which was then distributed to Tomar and his co-conspirators.

Tomar used the victims’ funds to pay for his lavish lifestyle, including to purchase Audemars Piguet and other expensive watches, to buy luxury vehicles like Lamborghinis and Porsches, and to make trips to Dubai, Thailand and elsewhere.

On December 20, 2023, Tomar was arrested at the Atlanta airport upon entering the United States. On May 20, 2024, Tomar pleaded guilty to wire fraud conspiracy. Tomar remains in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. 

U.S. Attorney King commended the U.S. Secret Service for their investigation of the case and thanked the FBI in Nashville for their invaluable assistance.

Assistant U.S. Attorney Matthew T. Warren of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

CHARLOTTE, N.C. – Thomas Lagene Franklin, 56, of Charlotte, was sentenced today to 15 years in prison followed by three years of supervised release for the armed robbery of two local convenience stores, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department, join U.S. Attorney King in making today’s announcement.

According to court documents and court proceedings, on August 7, 2022, at approximately 3:30 a.m., a black vehicle pulled up alongside a male victim who was walking toward his hotel room in Charlotte. The driver of the vehicle, later identified as Franklin, demanded money from the victim. When the victim replied that he did not have any money, Franklin fired multiple shots at the victim striking him in the leg before driving away.

According to filed court documents, on August 9, 2022, Franklin robbed at gunpoint the Circle K convenience store located at 2833 Freedom Drive, in Charlotte. Court records show that, at approximately 1:45 a.m., Franklin entered the store wearing a bucket-style fishing hat with clear safety glasses and a black surgical mask. Upon entering the store, Franklin posed as a customer, brought items to the counter, and gave the clerk money to pay for those items. When the clerk opened the register, Franklin pulled a small silver semiautomatic handgun from his pocket, pointed it at the clerk, and demanded money in the register. The clerk complied and Franklin fled the scene.

According to court records, later the same day, the 7-Eleven convenience store located at 8315 Steele Creek Road, in Charlotte, was robbed at gunpoint in a similar fashion as the Circle K

robbery. At approximately 6:50 a.m., Franklin entered the store dressed identical to the robber from the Circle K robbery. Once again, Franklin acted as a customer and pretended to buy and pay for his items. When the store clerk opened the register, Franklin pulled out a small silver semi-automatic handgun and demanded money. The store clerk gave Franklin money and Franklin fled the scene. CMPD officers arrested Franklin the following day. A firearm recovered over the course of the arrest was identified as the gun used in the shooting and the two robberies.

On February 7, 2024, Franklin pleaded guilty to two counts of Hobbs Act robbery and one count of possession of a firearm by a convicted felon. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

U.S. Attorney King commended the FBI and CMPD for their investigation of the case.

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

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Frank Lynold Mercado, 27, of Charlotte, to 41 months in prison followed by two years of supervised release for defrauding over 100 victims of more than $700,000 through a fraudulent investment scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Mercado was also ordered to pay $709,690 in restitution.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.

According to court documents and court proceedings, from July 2019 to December 2022, Mercado executed an investment fraud scheme in which he caused more than 100 investors to sustain nearly $700,000 in losses. Mercado induced the victims – many of whom were his friends, former co-workers, and other social acquaintances – to invest their money by holding himself out to be an expert in options trading with years of experience and a successful track record. As part of the scheme, Mercado falsely represented to victim investors that he would use their money for options trading and similar investments through his hedge fund, Tiger-Wolf Capital, LLC (Tiger-Wolf Capital). Instead of investing the funds as promised, Mercado used a portion of the money to make Ponzi-style payments to investors, and to fund his personal lifestyle, including to make large credit card payments and pay for personal expenditures such as Airbnb rentals, restaurants, and bars.

Court documents show that with the money that he did invest, Mercado suffered trading losses and then lied to investors about the performance of their investments. For example, Mercado periodically sent updates to victim investors through emails, text messages, or screenshots of purported account portals that reflected fictitious trading gains. He also made false and fraudulent statements to investors about substantial returns on their investments in order to induce his victims to invest additional money with him and/or to leave their current investments with him. According to court documents, as a result of the scheme, Mercado caused victims to suffer losses, with some victims experiencing significant financial hardship.

On June 12, 2022, Mercado pleaded guilty to wire fraud. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.

On May 30, 2024, the U.S. Securities and Exchange Commission announced the filing of a complaint against Mercado in the U.S. District Court for the Western District of North Carolina, charging Mercado and Tiger-Wolf Capital with securities violations.  On July 2, 2024, the court, pursuant to consents signed by Mercado and Tiger-Wolf, enjoined them from violating the charged provisions and ordered them to pay disgorgement, prejudgment interest, and civil money penalties in amounts to be determined at a later date.  The court also barred Mercado from serving as officer or director of a public company and enjoined him from participating in the issuance, purchase, offer, or sale of securities, except in his personal account.

U.S. Attorney King commended the FBI for their investigation of the case and thanked the U.S. Securities and Exchange Commission for their coordination and assistance.

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

CHARLOTTE, N.C. – A federal grand jury returned a criminal indictment this week, charging Matias Alexander Vinces Aguayo, 24, formerly of Gastonia, N.C., with conspiring with others to launder over $380,000 in illegal proceeds from a wire fraud scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.

According to allegations in the indictment, during the scheme, Aguayo owned and operated Keys ‘N Go, a North Carolina company located in Gastonia, which maintained online payment processing accounts with Stripe and Square. In addition, the indictment further alleges that Aguayo owned and controlled personal and business bank accounts with a financial institution, including in the name of Keys ‘N Go, and a cryptocurrency exchange account at Binance.US.

According to allegations in the indictment, Aguayo’s co-conspirators used fraudulently obtained personally identifying information (PII) to open bank accounts online in order to receive promotional money and other fraudulently obtained funds, which was then deposited into the bank accounts. A co-conspirator of Aguayo then allegedly sent the bank account information to Aguayo, who used it to withdraw the money from the accounts via the Keys ‘N Go accounts at Stripe and Square. It is further alleged that, after receiving the Stripe and Square deposits into the Keys ‘N Go bank account at the financial institution, a co-conspirator provided Aguayo with directions to transfer the proceeds from the accounts Aguayo controlled to overseas bank accounts in Pakistan and to cryptocurrency addresses. In total, Aguayo allegedly transferred at least $240,000 to cryptocurrency addresses and via wire transfers. Aguayo earned compensation for his role in the scheme, including keeping a percentage of the money initially deposited into the accounts he controlled.  

The money laundering conspiracy charge carries a maximum sentence of 20 years in prison and a $500,000 fine or twice the value of the property involved in the transaction.

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

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

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

CHARLOTTE, N.C. – United States Attorney Dena J. King announced today that Assistant United States Attorneys (AUSAs) Michael Savage in Charlotte, and Don Gast in Asheville, will lead the efforts of the Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election.

AUSAs Michael Savage and Don Gast have been appointed to serve as District Election Officers (DEOs) for the Western District of North Carolina, and in that capacity they are responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

United States Attorney King said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election.  Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence.  The Department of Justice will always work tirelessly to protect the integrity of the election process.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).  

U.S. Attorney King stated that, “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.”

In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs/DEOs Savage and Gast will be on duty in this District while the polls are open. AUSA Savage can be reached by the public in Charlotte at 704-344-6222, and AUSA Gast can be reached in Asheville at 828-271-4661.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 704-672-6100.        

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

U.S. Attorney King said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that LabXperior Corporation (LabXperior) and owner Tina Ball (Ball) have paid $235,000 to resolve allegations that they violated the Federal False Claims Act and North Carolina False Claims Act by knowingly billing North Carolina Medicaid (Medicaid) for urine drug tests that were medically unnecessary and resulted from violations of the Anti-Kickback Statute.

The United States and State of North Carolina alleged that from September 28, 2016, through December 20, 2017, LabXperior submitted claims to Medicaid for urine drug tests that were false. The claims were false because they were the result of an illegal kickback arrangement between LabXperior and BPolloni Consulting, LLC (BPolloni), an entity that referred urine drug tests to LabXperior. Under the arrangement, LabXperior paid BPolloni a percentage of the revenue or profit from the Medicaid reimbursement for each urine drug test that BPolloni arranged for another entity, Do It 4 the Hood Corporation (D4H), to send to LabXperior. The Chief Executive Officer of BPolloni and other individuals who operated D4H previously pleaded guilty to conspiracy to commit health care fraud and Anti-Kickback Statute violations arising from D4H’s illegal kickback arrangements with urine drug testing laboratories.

In addition to being tainted by illegal kickbacks, the United States and State of North Carolina alleged that claims for drug tests that LabXperior submitted to Medicaid were false because the tests were medically unnecessary. Specifically, the orders for the tests were not patient-specific and did not reflect a qualified medical provider’s determination of the patient’s need for the testing.

The civil settlement and resolution of claims obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office and the FBI in Charlotte, with assistance from the Medicaid Investigations Division of the North Carolina Attorney General’s Office, the Office of Inspector General of the United States Department of Health and Human Services, and the Internal Revenue Service Criminal Investigations.

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud.  One of the most powerful tools in this effort is the False Claims Act.

Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

CHARLOTTE, N.C. – Robert Garner Gambill, 91, of Sparta, N.C., appeared in federal court in Charlotte today and pleaded guilty to killing a bald eagle, in violation of the Bald and Golden Eagle Protection Act, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Douglas Ault, Special Agent in Charge with the U.S. Fish and Wildlife Service’s Office of Law Enforcement (USFWS), Southeast Region, joins U.S. Attorney King in making today’s announcement.

According to filed plea documents and today’s court proceedings, on June 5, 2024, Gambill, without being permitted to do so, set his firearm on a fencepost, and aimed, shot, and killed a bald eagle that was perched in a tree near the Farmers Fish Camp Road Bridge in Sparta. Gambill killed the federally protected bird with a Ruger M77 Mark 2 22-250 rifle with an attached Nikon Monarch MR31 4x16-42 scope. As Gambill admitted in court today, after killing the bald eagle, Gambill left the scene in his vehicle, abandoning the eagle carcass on the bank of the New River. The carcass was recovered with the assistance of two individuals who witnessed the incident and was subsequently taken into the custody of the USFWS. A necropsy performed by a USFWS forensic laboratory identified injuries suffered by the bald eagle that were consistent with a gunshot wound from a high-powered rifle.

In 1940 Congress enacted the Eagle Protection Act, predecessor to today’s Bald Eagle and Golden Eagle Protection Act (BGEPA), to protect the bald eagle from extinction. The BGEPA makes it a crime against the United States to hunt, take, capture, kill, possess, and to otherwise deal with the bald or golden eagle, or any part, nest or egg thereof, except as authorized by a valid permit issued by the U.S. Secretary of Interior.

Gambill pleaded guilty to unlawful taking of a bald eagle, which carries a maximum sentence of one year in prison and a $100,000 fine or twice the gross gain or loss derived from the offense. Gambill also agreed to pay a fine in the amount of $9,500. Gambill was released on bond. A sentencing date has not been set.

In making today’s announcement, U.S. Attorney King commended the U.S. Fish and Wildlife Service for the investigation of the case and thanked the North Carolina Wildlife Resources Commission and the Alleghany County Sheriff’s Office for their substantial assistance with the investigation.

Assistant U.S. Attorney Katherine Armstrong of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

For immediate assistance with fishing or hunting violations, please contact the North Carolina Wildlife Resources Commission or local law enforcement. If you have information about any other wildlife crime, please follow the link https://www.fws.gov/wildlife-crime-tips, or call       1-844-397-8477. Please do not leave reports requesting assistance for injured wildlife/birds. Learn more about what to do with injured or orphaned wildlife here.

CHARLOTTE, N.C. – A physician assistant was sentenced to prison today for his role in a $10 million Medicare fraud scheme involving genetic testing, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Colby Edward Joyner, 37, of Monroe, N.C., was sentenced to 72 months in prison and ordered to pay over $3.6 million in restitution. Last June, a federal jury convicted Joyner of health care fraud and making false statements relating to health care matters.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Kelly Blackmon, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), join U.S. Attorney King in making today’s announcement.

According to today’s sentencing hearing and evidence presented at Joyner’s trial, in 2018 and 2019, Joyner was a physician assistant in the Charlotte area who worked as an independent contractor for a physician staffing and telemedicine company. During the relevant time frame, Joyner signed fraudulent prescriptions for medically unnecessary genetic testing, specifically cancer genomic and pharmacogenetic testing, for over 600 Medicare beneficiaries residing in North Carolina. Joyner had never met, seen, or treated the beneficiaries, and only had brief telephone conversations with them or no interactions at all.

According to court records, Joyner received from the telemedicine company and its clients pre-populated prescription forms and related records for patients who were pre-selected for genetic testing, which he then electronically signed and returned, in exchange for $12 – and later $15 – for each purported consultation that he performed.

As trial evidence showed, to conceal that Joyner was not the beneficiaries’ treating physician and that he did not conduct medical evaluations or examinations of the beneficiaries, Joyner falsified medical records in connection with the unnecessary prescriptions and falsely certified that the genetic tests were medically necessary. Joyner’s scheme resulted in the submission of more than $10 million in fraudulent reimbursement claims to Medicare, and more than $3.6 million in

payments.

In announcing Joyner’s sentence, U.S. District Judge Robert J. Conrad, Jr. stated that Joyner “abused his position of trust” as a Medicare provider and referred to Joyner’s “cheap and easy” opportunity to make money and “willingness to sign and attest to things, knowing them not to be true.” Judge Conrad further noted the potential impact of Joyner’s conduct on Medicare beneficiaries’ future ability to obtain certain genetic tests.

Joyner will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.

The FBI in Charlotte and HHS-OIG investigated the case.

Assistant U.S. Attorneys Katherine Armstrong and Matthew Warren, and Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – A Charlotte man was sentenced to prison today for his role in a bank fraud conspiracy involving stolen mail, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Terrell Alexander Hager, Jr., 25, of Charlotte, was ordered to serve three years in prison followed by two years of supervised release.

In September 2023, Hager’s co-conspirators, Kiara Padgett, and her husband, Dominique Dunlap, pleaded guilty to conspiracy to commit bank fraud. Dunlap also pleaded guilty to four counts of possession of stolen mail.  A sentencing date for Padgett and Dunlap has not been set.

Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, Jeff Krafels, Special Agent in Charge of the United States Postal Service, Office of the Inspector General (USPS-OIG) for the Mid-Atlantic Area Field Office (MAAFO), which oversees Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.

According to court documents and today’s sentencing hearing, from August 2021 to November 2022, Hager conspired with Padgett, Dunlap, and others to operate a bank fraud scheme involving stolen checks. Padgett, who at the time was employed by the U.S. Postal Service, used her position as a postal carrier to steal incoming and outgoing checks of businesses and individuals. Padgett used Dunlap as her intermediary to sell the stolen checks to Hager. Hager and his co-conspirators then deposited the stolen checks into bank accounts they controlled and withdrew the funds before the financial institutions discovered the fraud. During the conspiracy, Hager and his co-conspirators deposited more than $66,000 in stolen or counterfeit checks and money orders.

Court documents also show that, from October 2021 through November 2022, Hager served as the primary administrator and owner of a Telegram channel, “Hunnitband Swipe School,” which he used to sell some of the stolen checks. For example, in June 2022, law enforcement operating in an undercover capacity purchased a check with a face value of more than $2,400 for $250. According to court records, over the course of the scheme, the Telegram channel posted over 400 checks stolen from the U.S. Mail, with a total face value over $7.3 million. At the time Hager committed this fraud, he was on probation with the state of North Carolina for an unrelated offense.

In making today’s announcement, U.S. Attorney King commended the USPIS, USPS-OIG, and CMPD for their investigation of the case.

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

* * *

In September, the U.S. Attorney’s Office announced efforts to stop the rise in mail thefts and increase the prosecution of cases involving stolen mail. Federal prosecutors and investigators also continue to urge residents and businesses to report stolen mail promptly and to take the following steps to protect their mail and avoid becoming a victim of mail theft:

1. Promptly Retrieve Mail: Collect your mail daily and avoid leaving it in the mailbox overnight.
2. Secure Mailboxes: Use secure, lockable mailboxes for incoming and outgoing mail.
3. Inquire About Overdue Mail: If you have not received valuable or important mail you’re expecting, contact the sender to inquire about it.
4. Don’t Send Cash: Avoid mailing cash, gift cards, or other items of value. When doing, so utilize the package tracking and signature confirmation options.
5. Hold Mail When Away: Use the USPS Hold Mail service when you are out of town.
6. File a Change of Address: When moving, file a change of address with USPS.
7. Report Suspicious Activity: Immediately report any suspicious individuals or activities near mailboxes to local law enforcement.
8. Monitor Financial Statements: Regularly review bank and credit card statements for any unusual activity.
9. Sign up for Informed Delivery and get daily digest emails that preview your mail and packages scheduled arriving soon.

Customers are encouraged to report stolen mail as soon as possible by submitting an online complaint to the Postal Inspection Service at www.uspis.gov/report or calling 877-876-2455.

Additionally, report the theft to your local police department to ensure they are aware of potential criminal activity in your area. Individuals are also encouraged to report allegations of Postal Service employee misconduct, including attempts to corrupt a Postal Service employee, to the USPS OIG at 1-888-877-7644 or www.uspsoig.gov.

CHARLOTTE, N.C. – The U.S. Attorney’s Office for the Western District of North Carolina joins the Justice Department and the Office on Violence Against Women (OVW), as well as law enforcement agencies, community organizations, victim service providers, advocates, victims, and survivors in observing October as National Domestic Violence Awareness Month (DVAM).

According to OVW, domestic violence is a pattern of abusive behavior in any relationship, used by one partner to gain or maintain power and control over another intimate partner. Domestic violence can be physical, sexual, emotional, economic, psychological, or technological actions or threats of actions or other patterns of coercive behavior that influence another person within an intimate partner relationship. Domestic violence can happen to anyone regardless of race, age, sexual orientation, religion, sex, or gender identity. Domestic violence affects people of all socioeconomic backgrounds and educational levels and occurs in both opposite-sex and same-sex relationships. It can also happen to intimate partners who are married, living together, dating, or share a child. 

“We have a shared responsibility to fight against domestic violence in all its forms,” said Dena J. King, U.S. Attorney for the Western District of North Carolina. “My Office is dedicated to using every tool available to ensure victims and survivors can find safety and justice, and we remain committed to working with the community year-round to address and prevent domestic violence, hold offenders accountable, and ensure that support and resources are accessible by individuals and families impacted by domestic abuse.”

In September 2024, the U.S. Attorney’s Office announced that the City of Asheville and the Eastern Band of Cherokee Indians (EBCI) were among 78 communities designated by the Department of Justice under Section 1103 of the Violence Against Women Act (VAWA), to strengthen efforts to reduce intimate partner violence through training, increased prosecutions of domestic violence offenders that illegally possess firearms, and federal resources to support local efforts.

Today, U.S. Attorney King announced the allocation of more than $1.8 million in grants administered by OVW, to combat intimate partner violence and assist victims of violence, survivors, and their families in Western North Carolina. The federal grants will be used to fund existing projects and new initiatives developed to prevent domestic violence and to support victims and survivors who have experienced domestic violence, dating violence, stalking, or sexual assault.

Specific to Asheville and EBCI, OVW will administer $500,000 toward funding Buncombe County’s Improve the Criminal Justice Response (ICJR) project, which aims to enhance the criminal justice response to incidents of domestic violence, dating violence, sexual assault, and stalking; foster victim safety; and enhance offender accountability. OVW will also administer $400,000 to the University of North Carolina at Asheville, to support its work to prevent, investigate, and reduce incidents of domestic violence, dating violence, sexual assault, and stalking on campus. In addition, OVW will administer more than $414,000 to Reflection of Inspiration, Inc. (ROI), a nonprofit organization that serves the EBCI, in support of its efforts to increase awareness about domestic violence and sexual assault against Indian women and to enhance the response, services, and assistance to victims and survivors.

This week, U.S. Attorney King and office staff also attended the annual “Breakfast of Hope” hosted by Safe Alliance, an organization that offers resources to domestic violence and sexual assault victims in the greater Charlotte area. The organization provides housing assistance, court advocacy, trauma services, counseling, and support groups for both adult and teen survivors.

DVAM serves as an important reminder to raise awareness and engage the community in efforts to end intimate partner violence. According to the National Domestic Violence Hotline, one in four women and one in seven men will experience severe domestic violence in their lifetimes. These rates are higher among American Indian and Alaska Native populations, women of color, LGBTQ+ individuals, and people with disabilities.

For more information on domestic violence, visit: https://www.justice.gov/ovw/domestic-violence#dv.

If you need help, contact the National Domestic Violence Hotline at 1-800-799-7233 or the Strong Hearts Native Helpline at 1-844-762-8483.

A dual citizen of Nigeria and the United Kingdom was sentenced yesterday to seven years in prison for his role in a multimillion-dollar business email compromise (BEC) scheme.

According to court documents, Oludayo Kolawole John Adeagbo, 45, conspired with others to participate in multiple cyber-enabled BEC schemes in an attempt to steal more than $3 million from victim entities in Texas, including local government entities, construction companies, and a Houston-area college. Adeagbo and conspirators also defrauded a North Carolina university of more than $1.9 million.

Adeagbo, also known as John Edwards and John Dayo, arrived in the United States in August 2022 after he was extradited from the United Kingdom to face criminal charges filed in Charlotte and in Houston. On April 8, Adeagbo pleaded guilty to one count each of wire fraud and conspiracy to commit wire fraud for his criminal conduct in both cases, following the transfer of the case in the U.S. District Court for the Southern District of Texas to the U.S. District Court for the Western District of North Carolina.

A BEC scheme, also referred to as “cyber-enabled financial fraud,” is a sophisticated scam that often targets individuals, employees, or businesses involved in financial transactions or that regularly perform wire transfer payments. Fraudsters are usually part of larger criminal networks operating in the United States and abroad.

There are many variations of BEC scams. Generally, the schemes involve perpetrators gaining unauthorized access to legitimate email accounts or creating email accounts that closely resemble those of individuals or employees associated with the targeted businesses or involved in business transactions with the victim businesses. The scammers then use the compromised or fake email accounts to send false wiring instructions to the targeted businesses or individuals, to dupe the victims into sending money to bank accounts controlled by perpetrators of the scheme. Generally, the money is quickly transferred to other accounts in the United States or overseas.

The North Carolina BEC Scheme

According to court documents and court proceedings, from Aug. 30, 2016, to Jan. 12, 2017, Adeagbo, his codefendant, Donald Ikenna Echeazu, 42, a dual citizen of Nigeria and the United Kingdom extradited to the United States, and others defrauded a North Carolina university (the University) of more than $1.9 million via a BEC scheme.

Court records show that Adeagbo and his co-conspirators obtained information about significant construction projects occurring throughout the United States, including an ongoing multi-million-dollar project at the victim University. To execute the scheme, Adeagbo, Echeazu, and others registered a domain name similar to that of the legitimate construction company in charge of the University’s project and created an email address that closely resembled that of an employee of the construction company. Using the fake email address, the fraudsters deceived and directed the University to wire a payment of more than $1.9 million to a bank account controlled by an individual working under the direction of Adeagbo and his co-conspirators. Upon receiving the payment, Adeagbo and his co-conspirators laundered the stolen proceeds through a series of financial transactions designed to conceal the fraud.

The Texas BEC Scheme

According to information contained in court documents, from November 2016 until July 2018, Adeagbo conspired with others to participate in multiple cyber-enabled BECs in an attempt to steal more than $3 million from victim entities in Texas, including local government entities, construction companies and a Houston-area college. As with the scheme in North Carolina, Adeagbo and his co-conspirators registered domain names that looked similar to legitimate companies. They then sent emails from those domains pretending to be employees at those companies to clients or customers of the companies they impersonated and deceived those customers into sending wire payments to bank accounts the co-conspirators controlled.

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

On May 16, 2023, Echeazu was sentenced to 18 months in prison followed by a year of supervised release and was ordered to pay $655,408.87 in restitution for his role in the conspiracy. 

As part of his sentence yesterday, Adeagbo was sentenced to one year of supervised release following his sentence of incarceration and ordered to pay $942,655.03 in restitution for his role in the schemes.

“Oludayo Adeagbo and his coconspirators perpetrated transnational cyber-enabled fraud schemes that targeted schools, government entities, and companies across the United States, and caused millions of dollars in losses,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Adeagbo’s extradition, plea, and sentencing underscore the Criminal Division’s commitment to working with our law enforcement partners to pursue cybercriminals who target American victims, no matter where that pursuit leads. We are especially grateful to the Government of the United Kingdom for its assistance in this case.”

“Adeagbo ran a sophisticated 21st century cyber-criminal operation hiding behind fake email accounts and anonymous internet addresses to steal from the innocent, a crime as old as time itself,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “BEC scams have become an epidemic with individuals and businesses suffering debilitating financial losses, while eroding society’s trust in digital communications and undermining overall economic stability. That’s why prosecutors and agents in two jurisdictions worked tirelessly to identify Adeagbo and reach across the Atlantic to bring him to justice.” 

“BEC schemes, like the ones perpetrated by Adeagbo and his co-conspirators, are sophisticated and devastating crimes that target the trust businesses and institutions place in their daily operations,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “By exploiting this trust, fraudsters steal millions of dollars from unsuspecting victims. This case demonstrates the commitment of my office and our law enforcement partners to pursue justice for those impacted by these schemes and to hold cybercriminals accountable, regardless of where they are operating from.”

“Oludayo Adeagbo thought he was pretty slick stealing other people’s money via this scam. His victims, however, strongly disagreed,” said Executive Assistant Director Michael Nordwall of the FBI. “Instead of enjoying the fruits of his illegal labors, Adeagbo will now be spending time in a federal prison. The BEC is one of the fastest growing and most costly scams and the only way to fight it is through cooperation, often international cooperation, and this case is a prime example of partnerships working.”

“Mr. Adeagbo’s multimillion-dollar BEC scheme inflicted substantial financial damage on trusted educational institutions, government municipalities, and innocent businesses within our community,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “In a world increasingly reliant on the digital landscape, yesterday’s sentencing serves as a powerful reminder that cybercrime has real consequences. FBI Houston will continue to investigate, attribute, and impose severe consequences on cyber criminals seeking to harm others through deceit and fraud.”

“As a North Carolina University planned for growth with a new construction project, Adeagbo worked on a scheme to defraud the school by stealing nearly two million dollars of its funding,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “When he and his conspirators first committed this BEC more than seven years ago, they likely never expected to get caught. This federal prison sentence shows the FBI will do everything possible to find and hold international financial fraudsters accountable.”

The FBI’s Houston Cyber Task Force and Charlotte Field Office investigated the case with assistance from the FBI’s Cyber and Criminal Investigative Divisions. The United Kingdom’s National Crime Agency, Metropolitan Police Service, City of London Police, and Crown Prosecution Service also provided substantial assistance. The Justice Department’s Office of International Affairs helped secure the arrest and extradition.

Trial Attorney Brian Mund of the Criminal Division’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Rodolfo Ramirez for the Southern District of Texas, and Assistant U.S. Attorney Graham Billings for the Western District of North Carolina prosecuted the case.

If you suspect you are a victim of a BEC scheme, you can file a complaint online with the FBI’s Internet Complaint Crime Complaint Center (IC3) at bec.ic3.gov. The IC3 staff reviews complaints to detect patterns or other indicators of significant criminal activity for potential criminal prosecution. The FBI provides a variety of resources relating to BEC scams through the IC3, which can be located at www.ic3.gov. For more information on BEC scams, visit www.fbi.gov/scams-and-safety/common-scams-and-crimes/business-email-compromise.

CHARLOTTE, N.C. –  A dual citizen of Nigeria and the United Kingdom was sentenced today to seven years in prison for his role in a multimillion-dollar business email compromise (BEC) scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina, and Alamdar S. Hamdani, U.S. Attorney for the Southern District of Texas.

According to court documents, Oludayo Kolawole John Adeagbo, 45, conspired with others to participate in multiple cyber-enabled BEC schemes that defrauded a North Carolina university of more than $1.9 million, and attempted to steal more than $3 million from victim entities in Texas, including local government entities, construction companies, and a Houston-area college.

Adeagbo, also known as John Edwards and John Dayo, arrived in the United States in August 2022 after he was extradited from the United Kingdom to face criminal charges filed in Charlotte and in Houston. On April 8, 2024, Adeagbo pleaded guilty to one count each of wire fraud and conspiracy to commit wire fraud for his criminal conduct in both cases, following the transfer of the case in the U.S. District Court for the Southern District of Texas to the U.S. District Court for the Western District of North Carolina.

“BEC schemes, like the one perpetrated by Adeagbo and his co-conspirators, are sophisticated and devastating crimes that target the trust businesses and institutions place in their daily operations,” said U.S. Attorney King. “By exploiting this trust, fraudsters steal millions of dollars from unsuspecting victims. This case demonstrates the commitment of my office and our law enforcement partners to pursue justice for those impacted by these schemes and to hold cybercriminals accountable, regardless of where they are operating from.”

“Adeagbo ran a sophisticated 21st century cyber-criminal operation hiding behind fake email accounts and anonymous internet addresses to steal from the innocent, a crime as old as time itself,” said U.S. Attorney Hamdani. “BEC scams have become an epidemic with individuals and businesses suffering debilitating financial losses, while eroding society’s trust in digital communications and undermining overall economic stability. That’s why prosecutors and agents in two jurisdictions worked tirelessly to identify Adeagbo and reach across the Atlantic to bring him to justice.” 

“Oludayo Adeagbo thought he was pretty slick stealing other people’s money via this scam. His victims, however, strongly disagreed,” said Executive Assistant Director Michael Nordwall of the FBI. “Instead of enjoying the fruits of his illegal labors, Adeagbo will now be spending time in a federal prison. The BEC is one of the fastest growing and most costly scams and the only way to fight it is through cooperation, often international cooperation, and this case is a prime example of partnerships working.”

“As a North Carolina University planned for growth with a new construction project, Adeagbo worked on a scheme to defraud the school by stealing nearly two million dollars of its funding,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “When he and his conspirators first committed this business email compromise more than seven years ago, they likely never expected to get caught. This federal prison sentence shows the FBI will do everything possible to find and hold international financial fraudsters accountable.”

“Mr. Adeagbo's multimillion-dollar BEC scheme inflicted substantial financial damage on trusted educational institutions, government municipalities, and innocent businesses within our community,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “In a world increasingly reliant on the digital landscape, this sentencing serves as a powerful reminder that cybercrime has real consequences. FBI Houston will continue to investigate, attribute, and impose severe consequences on cyber criminals seeking to harm others through deceit and fraud.”

A BEC scheme, also referred to as “cyber-enabled financial fraud,” is a sophisticated scam that often targets individuals, employees, or businesses involved in financial transactions or that regularly perform wire transfer payments. Fraudsters are usually part of larger criminal networks operating in the United States and abroad.

There are many variations of BEC scams. Generally, the schemes involve perpetrators gaining unauthorized access to legitimate email accounts or creating email accounts that closely resemble those of individuals or employees associated with the targeted businesses or involved in business transactions with the victim businesses. The scammers then use the compromised or fake email accounts to send false wiring instructions to the targeted businesses or individuals, to dupe the victims into sending money to bank accounts controlled by perpetrators of the scheme. Generally, the money is quickly transferred to other accounts in the United States or overseas.

The North Carolina BEC Scheme

According to court documents and court proceedings, from August 30, 2016, to January 12, 2017, Adeagbo, his codefendant, Donald Ikenna Echeazu, 42, a dual citizen of Nigeria and the United Kingdom extradited to the United States, and others defrauded a North Carolina university (the University) of more than $1.9 million via a BEC scheme.

Court records show that Adeagbo and his co-conspirators obtained information about significant construction projects occurring throughout the United States, including an ongoing multi-million-dollar project at the University. To execute the scheme, Adeagbo, Echeazu, and others registered a domain name similar to that of the legitimate construction company in charge of the University’s project and created an email address that closely resembled that of an employee of the construction company. Using the fake email address, the fraudsters deceived and directed the University to wire a payment of more than $1.9 million to a bank account controlled by an individual working under the direction of Adeagbo and his co-conspirators. Upon receiving the payment, Adeagbo and his co-conspirators laundered the stolen proceeds through a series of financial transactions designed to conceal the fraud.

The Texas BEC Scheme

According to information contained in court documents, from November 2016 until July 2018, Adeagbo conspired with others to participate in multiple cyber-enabled business email compromises in an attempt to steal more than $3 million from victim entities in Texas, including local government entities, construction companies and a Houston-area college. As with the scheme in North Carolina, Adeagbo and his co-conspirators registered domain names that looked similar to legitimate companies. They then sent emails from those domains pretending to be employees at those companies to clients or customers of the companies they impersonated and deceived those customers into sending wire payments to bank accounts the co-conspirators controlled.

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

On May 16, 2023, Echeazu was sentenced to 18 months in prison followed by a year of supervised release and was ordered to pay $655,408.87 in restitution for his role in the conspiracy. 

As part of his sentence, Adeagbo was sentenced to one year of supervised release following his sentence of incarceration and ordered to pay $942,655.03 in restitution for his role in the scheme. 

The FBI’s Houston Cyber Task Force and Charlotte Field Office conducted the investigation with assistance from the FBI’s Cyber and Criminal Investigative Divisions. The United Kingdom’s National Crime Agency, Metropolitan Police Service, City of London Police and Crown Prosecution Service also provided substantial assistance. The Justice Department’s Office of International Affairs helped secure the arrest and extradition.

Assistant U.S. Attorney Graham Billings for the Western District of North Carolina, Assistant U.S. Attorney Rodolfo Ramirez for the Southern District of Texas, and Trial Attorney Brian Mund of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.

If you suspect you are a victim of a BEC scheme, you can file a complaint online with the FBI’s Internet Complaint Crime Complaint Center (IC3) at bec.ic3.gov. The IC3 staff reviews complaints to detect patterns or other indicators of significant criminal activity for potential criminal prosecution. The FBI provides a variety of resources relating to BEC scams through the IC3, which can be located at www.ic3.gov. For more information on BEC scams, visit: www.fbi.gov/scams-and-safety/common-scams-and-crimes/business-email-compromise

CHARLOTTE, N.C. – Rashad Dominic Griggs, 36, of Hickory, N.C., was sentenced today to 70 months in prison followed by three years of supervised release for possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Reed Baer of the Hickory Police Department (HPD), join U.S. Attorney King in making today’s announcement.

According to court documents and the sentencing hearing, on August 20, 2022, HPD officers responded to a call for service following reports that Griggs was waving a gun at his girlfriend. The officers knew Griggs had active warrants for his arrest for violating a domestic violence protection order and carrying a concealed firearm. Upon arriving at the location, Griggs emerged from the residence and was arrested on the existing warrants. Following a search of the residence, HPD officers found a white powdery substance that was later lab tested and confirmed to be fentanyl. In addition, officers recovered multiple firearms from the residence, including an AR-15 type rifle, multiple magazines including a drum magazine with shotgun rounds, and multiple rounds of ammunition. The officers knew Griggs had prior convictions and was prohibited from possessing firearms or ammunition. Court records show that Griggs pleaded guilty to a state offense and was placed on probation.

According to court documents, on June 28, 2023, law enforcement conducted a search of the defendant’s home pursuant to his probation terms. During the search, law enforcement found a rifle magazine loaded with 30 rounds of ammunition, a pistol, and multiple rounds of ammunition. During an interview with law enforcement, Griggs acknowledged that he had obtained a pistol approximately seven to eight months prior and stated that he kept the firearm for protection.

On May 16, 2024, Griggs pleaded guilty to two counts of possession of a firearm by a felon. He remains in federal custody until he is transferred to the custody of the Federal Bureau of Prisons.

In making today’s announcement, U.S. Attorney King thanked the FBI and HPD for their investigation of the case, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the North Carolina Department of Adult Correction, Community Supervision, for their invaluable assistance.

Assistant U.S. Attorneys Regina Pack and Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

CHARLOTTE, N.C. – Dena J. King, U.S. Attorney for the Western District of North Carolina, is reminding the public to beware of emerging scams and price gouging in the aftermath of Hurricane Helene, and to report suspected fraud and price gouging to the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721, or online at www.justice.gov/DisasterComplaintForm.

“It is unfathomable that scammers will try to profit from the devastation caused by a natural disaster, but fraudsters will stop at nothing to fill their pockets,” said U.S. Attorney King. “I urge the public to be extra vigilant about potential scams related to Hurricane Helene, and to report suspected fraud and price gouging to the National Center for Disaster Fraud hotline at 1-866-720-5721, or online at www.justice.gov/DisasterComplaintForm. Reporting scams and price gouging will help law enforcement identify, investigate, and prosecute those who are attempting to exploit the devastation caused by Hurricane Helene for their benefit, and warn others about emerging disaster fraud schemes.”

Possible types of natural disaster scams include:

• Fraudulent charities soliciting donations for disaster victims that often mimic the names of well-known organizations or appearing linked to the disaster.
• Scammers impersonating government officials, offering disaster relief in exchange for personal information or money.
• Fraudsters posing as insurance representatives to collect payments or personal data.
• Scammers promoting non-existent businesses or investment opportunities related to disaster recovery, such as rebuilding or flood-proofing.
• Fraudsters promising expedient home repairs requiring upfront payment or down payment.
• Price gouging for essential goods and services needed by disaster victims.
• Theft from evacuated homes and businesses during or after the disaster.

How to protect yourself from disaster fraud scams:

• Donate only to well-known charities after verifying them through trusted sources.
• Do not respond to unsolicited requests for donations via email, phone, or text, and do not click on links in unsolicited messages.
• Do not assume that online or social media charity solicitations are legitimate. Verify first!
• Use credit cards or checks for donations, instead of sending cash, via wire transfers, or via peer-to-peer mobile payment apps.
• Always keep in mind that government agencies and legitimate organizations will not ask for money or personal information via phone or email. When in doubt, contact the agency directly using a verified phone number or website.
• For storm related repairs, hire contractors that are reputable and always verify references. Beware of contractors who knock on your door or make unsolicited contact, and/or make promises that are too good to be true. Avoid making a large down payment or paying in full before the repairs are finished.

To report disaster-related fraud, contact the NCDF at (866) 720-5721, or online at www.justice.gov/DisasterComplaintForm.

CHARLOTTE, N.C. – Marcus Terrell Halsey, 36, of Charlotte, was sentenced yesterday to 63 months in prison followed by three years of supervised release for possession of a firearm by a convicted felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Halsey’s sentence was enhanced for reckless flight from police officers and possession of a stolen vehicle in connection with the gun offense.   

Bennie Mims, 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 King in making today’s announcement.

According to documents filed with the court and the sentencing hearing, on May 15, 2023, a detective with CMPD’s Stolen Car and Recovery Law Enforcement Team (SCARLET) viewed an Instagram video where Halsey appeared on a live feed standing outside a tire shop in the area with an orange Dodge Charger. CMPD detectives determined that based on the tag displayed on the Dodge Charger the vehicle may have been stolen. Also, during the live video, Halsey got into the Dodge Charger and lifted up his shirt, revealing a firearm in his waistband. Based on the fictitious tag, the presence of the firearm, and Halsey’s criminal history, CMPD officers were dispatched to the tire shop.

According to court records, CMPD officers encountered Halsey as he drove away from the tire shop in the Dodge Charger and attempted to make a traffic stop. Halsey did not stop and instead recklessly fled at a high rate of speed, traveling over 80 mph in a 35 mph zone. Court records show that CMPD’s aviation unit followed Halsey to Charlotte Douglas International Airport and located the Dodge Charger in a parking deck at the airport. Halsey was apprehended shortly thereafter near the arrivals area at the airport. At the time of his arrest, Halsey was carrying a black backpack that contained a firearm and ammunition, multiple Dodge vehicle fobs, two fictitious 30-day vehicle tags, a screwdriver and hammer, a digital scale, and suspected controlled substances. The Dodge Charger was determined to be stolen. Halsey has prior criminal convictions and is prohibited from possessing firearms or ammunition.

On February 9, 2024, Halsey pleaded guilty to possession of a firearm by a convicted felon. Halsey will remain in the custody of the U.S. Marshals Service pending designation of a federal facility by the Federal Burau of Prisons.

In making todays’ announcement, U.S. Attorney King thanked the ATF and commended CMPD’s SCARLET unit for their investigation of the case.

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

CHARLOTTE, N.C. –The U.S. Attorney’s Office for the Western District of North Carolina will present a film screening and panel discussion on Thursday, September 26, 2024, from 6:30 p.m. to 8:00 p.m., at First Presbyterian Church of Charlotte. The U.S. Attorney’s Office is co-hosting the event as part of the Justice Department’s “United Against Hate” Week, taking place September 23 to 27, 2024.

The event will feature the documentary Repairing the World: Stories from the Tree of Life, which documents the Pittsburgh community’s response to the 2018 Tree of Life synagogue shooting. The documentary depicts the resilience, unity, and healing efforts of the community following the deadliest anti-Semitic attack in U.S. history. Through powerful storytelling and recollections shared by survivors, family members, and the community, the film explores the impact of hate crimes and the power of diverse people coming together after a devastating tragedy.

Following the film screening, representatives from the U.S. Attorney’s Office, the FBI in Charlotte, the Charlotte Mecklenburg Police Department, the Mecklenburg County District Attorney’s Office, and the Mecklenburg Metropolitan Interfaith Network will lead a panel discussion on hate crimes and the importance of reporting hate incidents to law enforcement. The panel will also share information on what individuals and communities can do to prevent and respond to acts of hate.

“Events like this help raise awareness about the impact of hate crimes,” said Dena J. King, U.S. Attorney for the Western District of North Carolina. “By sharing stories of loss, strength, and unity, we want to educate the public but also to facilitate a meaningful dialogue about hate crimes and taking a stand against hatred in all its forms. The United Against Hate initiative is part of my Office’s core mission to protect civil rights and increase the safety and security of individuals and communities across Western North Carolina.”

The Department of Justice launched the United Against Hate initiative in 2022, in response to the rising number of hate crimes across the country. The initiative brings together law enforcement, community organizations, and the public to address hate crimes through outreach and education and build trust with those most vulnerable to acts of hate.

In the Western District of North Carolina, the U.S. Attorney’s Office continues to actively engage with local communities since the initiative’s launch. Previous efforts have included a youth summit with Charlotte-Mecklenburg Schools, meetings with faith-based communities, and discussions focused on protecting houses of worship.

“While not all hate incidents rise to the level of a hate crime, the impact and trauma they can inflict is very real. Reporting these incidents allows law enforcement and prosecutors to investigate and take appropriate action when warranted,” said U.S. Attorney King. “My Office is committed to partnering with all communities to address their concerns. I also invite members of the community to join us in our efforts to make Western North Carolina a safer and more inclusive place for all.”

Event Details:

Date:         Thursday, September 26, 2024

Time:        6:30 PM to 8:00 PM 

Location:  First Presbyterian Church of Charlotte

                   Fellowship Hall

                   200 West Trade Street

                   Charlotte, North Carolina

The event is free and open to the public. Register at https://fpc.tiny.us/repairingtheworld.

For more information about the U.S. Attorney’s Office United Against Hate initiative please visit our website.

For immediate assistance or to report a hate crime please call 9-1-1. To file a report with the FBI please call 1-800-CALL-FBI or submit a tip at tips.FBI.gov. Also report suspected civil rights violations and hate crimes to the Civil Rights Division through the Justice Department’s toll-free line at 800-253-3931 or online at www.civilrights.justice.gov.

CHARLOTTE, N.C. – Aljihad Shabazz, 45, of Kernersville, N.C., was sentenced today to 52 months in prison followed by two years of supervised release for his role in a scheme that defrauded the North Carolina Medicaid Program (Medicaid) of more than $4.7 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Frank D. Whitney also ordered Shabazz to pay $4,711,159.88 in restitution.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Charlotte Field Office (IRS-CI), and North Carolina Attorney General Josh Stein, who oversees the North Carolina Medicaid Division (MID), join U.S. Attorney King in making today’s announcement.

According to court records and the sentencing hearing, Shabazz was the owner and operator of Reign & Inspirations, LLC (R&I), a clinic that provided outpatient behavioral services in Greensboro and surrounding areas. Between 2017 and 2020, Shabazz conspired with other individuals to carry out an extensive health care fraud scheme involving the fraudulent submissions of fake reimbursement claims to Medicaid, for services that were never provided to Medicaid beneficiaries. Court records show that Shabazz obtained the personal identifying information (PII) of Medicaid beneficiaries through community outreach programs, including football and mentoring programs, and misused the beneficiaries’ PII to create and submit hundreds of fraudulent reimbursement claims and to receive payment for services that were never in fact provided by R&I. Over the course of the scheme, Shabazz used the beneficiaries’ PII to submit more than 1,500 fraudulent reimbursement claims to Medicaid, some of which claimed that R&I provided services that exceeded 24 hours in a single day.

Court records show that the reimbursement payments made by Medicaid were deposited in bank accounts under Shabazz’s control. Shabazz used a portion of the fraudulent proceeds to pay kickbacks to his co-conspirators and to cover personal expenses, including to pay for personal travel, luxury items, and timeshares, and to make cash withdrawals.

On June 14, 2023, Shabazz pleaded guilty to health care fraud conspiracy and money laundering conspiracy. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.

In announcing Shabazz’s sentence, Judge Whitney stated that, “There are serious consequences for stealing from government funded programs such as Medicaid and Medicare.”

The FBI in Charlotte, IRS-CI, and NCDOJ’s Medicaid Investigations Division investigated the case.

Assistant U.S. Attorneys Michael E. Savage and Special Assistant U.S. Attorney Kristina Fleisch with the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – Jermond Santa Lowery, Jr., 29, of Charlotte, appeared in federal court today and pleaded guilty to brandishing an AR-15 rifle during a restaurant robbery, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.

According to plea documents and court proceedings, on October 31, 2023, Lowery entered a Waffle House restaurant located in Charlotte. Upon entering the restaurant, Lowery brandished an AR-15 rifle and told the employees, “You better get back.” As the employees began to flee out of the restaurant’s back door, Lowery ordered them to come back and open the register. He also threatened the employees, telling them, “I’ll kill you right now.” Lowery then removed the cash register from the restaurant and left. Law enforcement arrested Lowery on November 1, 2023.

Lowery pleaded guilty to brandishing a firearm in furtherance of a crime of violence, which carries a minimum penalty of seven years and a maximum penalty of life in prison. Lowery remains in federal custody. A sentencing date has not been set.

The FBI and CMPD investigated the case.

Assistant U.S. Attorney Shavonn Bennette of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.