Tag Archive for: #usdepartmentofjustice

U.S. Department of Justice

Henderson Man Sentenced to 10 Years for Felon in Possession Charge

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-Press Release, U.S. Department of Justice

The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today ODELL LAMECHE OVERBY, 46, of Henderson, North Carolina, was sentenced by United States District Judge Louise W. Flanagan to 120 months imprisonment followed by 3 years of supervised release.

OVERBY was named in an Indictment on March 15, 2018, charging him with Possession of a Firearm by a Felon. On May 16, 2018, OVERBY pled guilty to the charge.

On December 18, 2017, members of the Granville County Sheriff’s Office responded to a home invasion in Oxford. Upon arriving at the residence, deputies observed a vehicle backed up to the residence with the engine running, the trunk open, and several items in the trunk of the vehicle. Deputies saw and secured OVERBY inside the house. Deputies observed an AR-15 assault rifle on the floor a short distance away from OVERBY. OVERBY was placed under arrest. Deputies determined that the firearm was loaded and that OVERBY had been taking items out of the home after breaking into it.

There was one person in the home that was able to call for help from a bedroom when OVERBY made entry into the house. OVERBY pointed the rifle at the person and tied them up.

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

In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.

The investigation of this case was conducted by the Granville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.

News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce. Follow us on Twitter @USAO_EDNC

U.S. Department of Justice

Edenton Man Sentenced for Armed Bank Robbery

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-Press Release, U.S. Department of Justice

The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that MICHAEL RANKINS, 55, of Edenton, was sentenced by United States District Judge Louise W. Flanagan for armed bank robbery and aiding and abetting. Judge Flanagan sentenced RANKINS to 135 months imprisonment followed by 5 years of supervised release.

RANKINS was charged in a one-count indictment on March 18, 2014, along with his co-defendant William Chadwick Twine. Twine pled guilty on July 9, 2014, and was sentenced on July 10, 2015, to 90 months imprisonment followed by five years of supervised release. RANKINS pled guilty on February 8, 2018.

On January 9, 2014, RANKINS and Twine entered a Wells Fargo Bank in Windsor, North Carolina. As he entered the bank, RANKINS pulled a toboggan over his face with eye holes cut out. He pointed a BB gun at the teller, and he and Twine threatened the teller and demanded money. The teller provided them with $10,465, and the two men ran from the bank to their nearby get-away car. Witnesses relayed to law enforcement the direction the suspects had driven, and officers were soon able to catch up to the suspect’s vehicle and attempt a traffic stop. RANKINS and Twine, however, continued to flee at a high speed, eventually losing control of the car and running off the road and into a field. Both men ran from the stopped car and were quickly apprehended. Officers recovered the stolen money, mask, and BB gun from the car.

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

The investigation of this case was conducted by the Windsor Police Department, the North Carolina State Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Jake D. Pugh represented the government in this case.

News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce. Follow us on Twitter @USAO_EDNC

U.S. Department of Justice

‘Operation Nor’easter’ Nets 13 Defendants

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-Press Release, U.S. Department of Justice

United States Attorney Robert J. Higdon, Jr. announced that “Operation Nor’easter,” a heroin and opioid centered Organized Crime and Drug Enforcement Task Force (OCDETF) Operation headed up by the Federal Bureau of Investigation resulted in the indictment of twelve (12) defendants for outstanding federal charges in a coordinated warrant enforcement operation. In addition, several defendants related to this operation were found to be in the custody of the State of North Carolina. Federal detainers have been filed against those subjects.

This operation was conducted as part of the Eastern District’s Take Back North Carolina Initiative designed to focus federal resources on the alarming level of opioid use and the deaths associated with it. This initiative is bringing the full weight of the federal court system in the fight against crime in Camden, Chowan, Currituck, Dare, Pasquotank, Perquimans, Tyrell, and Gates Counties in partnership with District Attorneys’ Offices and federal, state, and local law enforcement.

The following individuals were charged by way of Criminal Indictment. The individual charges for each defendant are contained in the parenthesis following the personal information.

• Rasheen Jerome Arnold 24, of Edenton, NC (Felon in Possession of Firearm; Possession of Stolen Firearm)

• Alvin Johnson, 41, Pasquotank County, NC, (Possession with the intent to distribute cocaine and cocaine base) (crack)

• Samuel Rawlins, 39, Elizabeth City, NC, (Possession of Firearm by Felon)

• Devon Lee, 36, Perquimans County, NC, (Conspiracy to distribute cocaine and possession with the intent to distribute cocaine)

• Willie Person, 54, Grandy, NC, (Possession with the intent to distribute cocaine and cocaine base) (crack)

• Glenn Mitchell, 49, Edenton, NC, (Possession with the intent to distribute cocaine and heroin)

• Clarence Chestnutt, 40, Hertford, NC, (Possession with the intent to distribute cocaine)

• John James Taylor, 37, Elizabeth City, NC, (Possession with the intent to distribute a quantity of cocaine and heroin; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by felon)

• Nathan Lamonte Silver, 44, Elizabeth City, NC, (Hobbs Act robbery)

• Mykel Levant Davis, 37, Elizabeth City, NC, (Possession of firearm by felon)

• Marvin Johnson, 41, Elizabeth City, NC, (Possession with the intent to distribute heroin)

• Ross Domina Spruill, 33, Dare County, NC, (Possession with the intent to distribute cocaine and cocaine base) (crack)

The charges and allegations contained in the Indictments are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.

The cases are being investigated by the Federal Bureau of Investigation along the Bureau of Alcohol, Tobacco, Firearms, & Explosives, (ATF), the United States Marshal Service, Internal Revenue Service Criminal Investigations, the North Carolina State Bureau of Investigations, Pasquotank County Sheriff’s Office, Chowan County Sheriff’s Office, Elizabeth City Police Department, Edenton Police Department, Perquimans County Sheriff’s Office, Camden County Sheriff’s Office, Currituck County Sheriff’s Office, Dare County Sheriff’s Office, Tyrell County Sheriff’s Office, Gates County Sheriff’s Office, Manteo Police Department, North Carolina First Judicial District Attorney’s Office, and the United States Probation Office.

News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce. Follow us on twitter: @USAO_EDNC

U.S. Department of Justice

Federal Court Awards Nearly $3 Million in Damages for N.C. Medicaid Fraud

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-Press Release, U.S. Department of Justice

The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced today that a federal court awarded a nearly $3 million judgment against Compassionate Home Care Services, Inc., Carol Anders, and Ryan Santiago for their participation in a fraud on the North Carolina Medicaid program in violation of the federal and North Carolina False Claims Acts.

The evidence at trial showed that between 2008 and 2013, Compassionate Home Care Services, Inc. billed the North Carolina Medicaid program $585,082.73 in fraudulent claims, including not only claims for services provided in violation of Medicaid policies but also claims for services that were never provided at all. Anders ran the company and was responsible for the false billings. Worse, when the government began investigating, Anders and her son, Santiago, falsified hundreds of documents in an effort to conceal the fraud.

The federal and North Carolina False Claims Acts mandate that the government recover three times the damages caused by the fraud, plus civil penalties for every false or fraudulent claim. Applying those provisions and other applicable law, Chief United States District Judge James C. Dever, III awarded the government a judgment of $2,921,248.19.

Before the trial, Chief Judge Dever found that the defendants were liable for their participation in the scheme, concluding that the defendants “knowingly billed for services not rendered, knowingly billed for certain services provided to patients by unlicensed, non-certified aides, and knowingly billed for services provided to patients by close family members.” Chief Judge Dever also found that the defendants “falsified documents to conceal their obligation to repay the government and used false documents to support false claims previously submitted.”

“These defendants,” U.S. Attorney Higdon stated, “defrauded taxpayers of this State and this Country out of more than $500,000. They bilked a Medicaid program that is designed to protect children, the elderly, and the poor.” Mr. Higdon warned that “we will not tolerate providers who seek to fill their coffers with funds allotted to help people in need. We will not allow providers to undermine the solvency of our government programs to satiate their greed. We will continue to use every tool in our arsenal to aggressively pursue health care fraud, and to recover the taxpayer dollars lost to it.”

“When North Carolina’s taxpayers pay into the Medicaid program, they expect that money to be used correctly for people’s health care,” said North Carolina Attorney General Josh Stein. “Instead, these defendants defrauded taxpayers by charging for services that were not provided. My office takes Medicaid fraud seriously, and we will continue to fight against misuse and waste.”

The investigation of this case was conducted by Financial Investigators and sworn agents of the North Carolina State Bureau of Investigation assigned to the Medicaid Investigations Division of the North Carolina Attorney General’s Office, and Special Agents with the U.S. Department of Health and Human Services, Office of Inspector General. The Robeson County Sheriff’s Department provided substantial assistance in the investigation. The investigation and prosecution of this matter were handled in a partnership between the United States Attorney’s Office of the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. Special Deputy Attorney General Stacy Race and Assistant Attorney General Lareena Phillips, both of whom also serve as Special Assistant United States Attorneys, and Assistant United States Attorney Michael Anderson, represented the United States of America and the State of North Carolina in this case.

News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce. Follow us on Twitter @USAO_EDNC

U.S. Department of Justice

Man Sentenced for Pretending to be U.S. Army General

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-Press Release, U.S. Department of Justice

Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that CHRISTIAN GERALD DESGROUX, age 58, of Raleigh, was sentenced by U.S. District Judge Terrence W. Boyle to 6 months imprisonment followed by 1 year of supervised release. On June 26, 2018, DESGROUX pled guilty to pretending to be a United States Army Lieutenant General in violation of Title 18, United States Code, Section 912.

On November 6, 2017, DESGROUX, while dressed in a military battle dress uniform (BDUs) with U.S. Army rank and insignia, disembarked a private helicopter that landed at the headquarters of Statistical Analysis Systems (SAS) located in Cary, North Carolina. SAS security officers approached DESGROUX who claimed that he was a Lieutenant General in the United States Army and was authorized by the President of the United States to land the helicopter there in order to pick up a female employee of SAS for a classified debriefing at Fort Bragg, North Carolina. After the female and the defendant entered the helicopter, they flew around the area, refueled at a local airport, and returned to SAS.

When questioned by law enforcement, the female stated she was unaware that DESGROUX would be picking her up via helicopter. She believed that although they were not in a romantic relationship, DESGROUX was trying to impress her by flying her around. Her understanding was she would be meeting with the defendant to assist with a design project, but she had no knowledge of DESGROUX’s claims of a debriefing or joint special assignment involving the U.S. President. An investigation revealed DESGROUX had never been in the U.S. military.

The case was investigated by the Department of Homeland Security and the Defense Criminal Investigative Service. Assistant United States Attorneys Jason Kellhofer and Eleanor Morales prosecuted the case for the government.

News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce. Follow us on Twitter @USAO_EDNC.

U.S. Attorney’s Office to Hold Press Conference on ‘Operation Nor’easter’ Indictment

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-Press Release, U.S. Department of Justice

WHEN: Wednesday, August 1, 2018, at 11 a.m.

WHERE: Pasquotank County Public Safety Building, 200 East Colonial Avenue, Elizabeth City, NC 27909

The United States Attorney’s Office announces a press conference to discuss the indictment of 12 defendants on narcotic distribution and gun charges in a coordinated warrant enforcement operation. This operation is part of the Take Back North Carolina Initiative that is targeting violent crime and drug distribution throughout the Eastern District of North Carolina.

United States Attorney Robert J. Higdon, Jr., 1st Judicial District Attorney Andrew Womble and law enforcement partners from federal, state, and local agencies will be present at this event.

Credentialed members of the media are invited to attend.

For additional information please e-mail Don Connelly at usance.PublicInfoOfficer@usdoj.gov. Please RSVP your intentions to attend the event.

U.S. Department of Justice

Stolen Equipment Leads to Charges of Mail/Wire Fraud for Employee

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-Press Release, U.S. Department of Justice

Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that a Federal grand jury in Raleigh has returned a twelve-count indictment charging BILL BAEZ, JR., age 28, of Raleigh, North Carolina, with six counts of Mail Fraud and six counts of Wire Fraud.

The indictment alleges that beginning in or around October 2017, and continuing until in or around January 2018, BAEZ engaged in a scheme to defraud his employer by stealing over $40,000 worth of its medical equipment and selling the items on eBay for his own profit. BAEZ mailed the stolen medical equipment to his buyers via the United States Postal Service. When law enforcement arrested BAEZ on January 30, 2018, they recovered several pieces of stolen medical equipment. Some of those items had been packaged for mailing.

If convicted of all counts, BAEZ could face a maximum penalty of twenty years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.

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

The case is being investigated by the United States Postal Inspection Service and local law enforcement.

News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce. Follow us on twitter @USAO_EDNC.

U.S. Department of Justice

U.S. Attorney Announces Appointment of Three New Federal Prosecutors

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-Press Release, U.S. Department of Justice

United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced today the appointment of three new Assistant United States Attorneys (AUSAs). Each was sworn in today by Mr. Higdon.

Gabriel J. Diaz is a former intern of the United States Attorney’s Office and was an Assistant District Attorney with the Alamance County (NC) District Attorney’s Office from 2015 until his appointment as AUSA. AUSA Diaz is a graduate of Florida International University and the Campbell University School of Law. AUSA Diaz will be assigned to the National Security Section within the United States Attorney’s Office.

Robert Dodson comes from the Federal Bureau of Prisons (BOP) where he has served as legal counsel since 2013. During his time with BOP, he served as a Special Assistant United States Attorney handling criminal prosecutions arising out of the Federal Correctional Complex in Butner, North Carolina. AUSA Dodson is a graduate of North Carolina State University and the North Carolina Central University School of Law. He will be assigned to the Violent Crime Section, handling a variety of cases in conjunction with Attorney General Jeff Sessions’ reinvigoration of the Project Safe Neighborhoods program which targets violent criminals in an effort to reduce violent crime. He will also become a part of the United States Attorney’s Office “Take Back North Carolina” initiative.

Lucy Partain comes from the Cherokee County (Georgia) District Attorney’s Office where she served as an Assistant District Attorney. Prior to that, she served as a law clerk to the Honorable Terrence W. Boyle, United States District Judge for the Eastern District of North Carolina. Ms. Partain is a graduate of the University of Virginia and the Duke University Law School. Ms. Partain will be assigned to the Organized Crime Drug Task Force Unit and will handle drug trafficking cases, including opioid prosecutions.

“It’s my privilege to lead an office filled with incredibly talented and dedicated people who work tirelessly to carry out our mission of justice and fulfill our promises to the people of the Eastern District to reduce violent crime and reduce drug trafficking levels,” said U.S. Attorney Higdon. “We are proud to welcome these fine individuals to our office. I know they will make an immediate impact in our District and serve the citizens of the United States with honor and distinction.”

News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce. Follow us on Twitter @USAO_EDNC

U.S. Department of Justice

U.S. Forfeits $700K+ in Proceeds Seized from Convenience Store Operators

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-Press Release, U.S. Department of Justice

The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced the forfeiture of $765,850.27 seized from Southern Pines residents Mukesh and Daxaban Patel and their company, Shree Zapesvari, Inc., doing business as Jay’s Food Mart 1 and 2. Under the terms of a Settlement Agreement filed on July 13, 2018, in the United States District Court in the Middle District of North Carolina, $100,000 of the total of $865,850.27 seized from the Patels will be returned to them, with the remainder forfeited.

In a Complaint filed on December 23, 2016, the United States alleged that the cash seized from the Patels’ convenience stores was the proceeds of illegal gambling in violation of state and federal law. As alleged in the Complaint, an undercover investigation revealed that the Patels operated several illegal electronic gaming machines and games of chance at both Jay’s Food Mart 1 and 2, machines owned by a third-party, with whom they split the proceeds. The machines, which contain a display similar to slot machines, contained gaming software provided by a gaming software provider. Patrons who won received payoffs on site.

“A segment of the gaming industry continues to foist illegal games of chance on the people of North Carolina,” says United States Attorney Robert J. Higdon, Jr., “particularly on those least able to afford this addictive and destructive habit – this in spite of clear directives from both the North Carolina General Assembly and Supreme Court of North Carolina barring such games. This case represents one way in which we will seek to limit the reach of this lucrative yet pernicious industry.”

Homeland Security Investigations Resident Agent in Charge Timothy P. Stone says that “as these segments of the gaming industry continue to pedal games of chance onto the public of North Carolina, an environment ripe for illegal behavior is created, one that preys on the livelihood of many while costing others their lives.” Stone says that “the success of the investigation would not have been possible without the hard work and dedication of North Carolina Alcohol Law Enforcement, Moore County Sheriff’s Office, the Internal Revenue Service Criminal Investigations Division, and the Office of the United States Attorney, all critical in helping bring the individuals and businesses of this industry to justice.”

Assistant United States Attorney Steve West represented the government in this matter.

News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce. Follow us on Twitter @USAO_EDNC.

U.S. Department of Justice

NC Dept. of Public Safety to Pay $190K in Civil Penalties for Violations

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-Press Release, U.S. Department of Justice

The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that the United States and the North Carolina Department of Public Safety have signed a civil settlement agreement resolving the State’s liability for civil penalties stemming from recordkeeping violations relating to the dispensing of controlled substances to inmates at the Central Prison Healthcare Complex and the North Carolina Correctional Center for Women. The State agreed to pay $190,000 rather than contest a potential fine that could have been as high as $880,000.

The Drug Enforcement Administration’s Diversion Unit conducted an audit of the Central Prison Healthcare Complex (CPHC) and the North Carolina Correctional Center for Women (NCCCW). Investigators found that on at least 88 occasions during the period of September 2, 2014, through October 4, 2016, medical staff at CPHC and NCCCW failed to properly document the dispensing and disposal of controlled substances at CPHC and NCCCW. While no unlawful use of controlled substances was detected, the substandard recordkeeping provided fertile ground for improper diversion.

In addition to payment of the civil penalty, because of the investigation, State officials initiated their own investigation and took remedial measures. Included among such measures were changes in existing policies and procedures, implementation of better and more effective employee education and training, and the development of better monitoring, reporting, and compliance processes.

“The handling of prescription controlled substances inside our prisons poses some unique challenges,” says U.S. Attorney Higdon, “and yet given the possibility of illegal diversion to inmates and others, scrupulous recordkeeping and tracking of controlled substances is essential. Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. This matter underscores the continued need for robust regulatory and enforcement measures against all medical providers to stop diversion of controlled prescription drugs and end the lax recordkeeping environments which may be fertile ground for diversion.”

Robert J. Murphy, the Special Agent in Charge of the DEA’s Atlanta Field Division stated, “DEA and its law enforcement partners will continue to expend time, energy and resources in an effort to stem the tide against the growing opioid epidemic. The spirited level of cooperation by the N.C. Board of Pharmacy and the N.C. State Bureau of Investigation, and the prosecution by the U.S. Attorney’s Office made this investigation a success.”

Assistant United States Attorney Steve West represented the government in this matter.

News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce. Follow us on Twitter @USAO_EDNC.