Tag Archive for: #usdeptofjustice

U.S. Department of Justice

Thomas Pleads Guilty to Multi-Million Dollar Fraud Scheme & Tax Evasion

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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 today, in federal court, TREYTON LEE THOMAS, age 62, pled guilty to wire fraud, affecting a financial institution, and income tax evasion. In pleading guilty, THOMAS, agreed to pay restitution to all the victims of his fraud scheme and to forfeit more than seven million dollars.

On November 22, 2016, THOMAS was charged in a 21-Count Indictment with wire fraud, bank fraud and money laundering. This Indictment charged THOMAS, who represented himself as a successful Harvard educated investment advisor, with defrauding his father’s used car warranty company, NC&VA Warranty of Roxboro, N.C., several of its customers, his wife, and his father-in-law. THOMAS claimed he was conservatively investing their money in U.S. Treasury Bills. Instead, through an on-line brokerage firm, THOMAS used these funds to conduct risky trades in the commodities and futures market.

To conceal this fraud scheme, THOMAS provided these victims and various financial institutions with false information and fabricated bank and brokerage statements. To obtain additional funds, the Indictment charged THOMAS with using the same false information and fabricated statements to defraud financial institutions out of approximately 1.9 million dollars in loan proceeds.

In addition to losing the victims’ money in risky trades, the Indictment charged THOMAS with spending more than 1.6 million dollars to pay personal expenses.

On March 15, 2018, THOMAS was charged in another Indictment with six counts of income tax evasions for the calendar years 2010 – 2015 and two counts of failing to disclose his interest in and authority over foreign bank accounts. In entering his guilty plea, THOMAS agreed that he concealed his income from the Internal Revenue Service by, among other things, concealing his interest in foreign corporations and using offshore bank accounts to pay his personal expenses.

The applicable total maximum statutory penalty for these crimes is 35 years imprisonment, a $1,100,000 fine, and 3 years supervised release.

Investigation of this case was conducted by the Federal Deposit Insurance Corporation, the Internal Revenue Service Criminal Investigations, and the United States Secret Service. Assistant United States Attorneys Melissa Kessler and Susan Menzer are representing the government in this case.

News releases are available on the U.S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.

U.S. Department of Justice

Henderson Sentenced to 42 Months for Felon in Possession of Firearm 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, HYKEEM HENDERSON, 27, of Henderson, North Carolina, was sentenced by Chief United States District Judge James C. Dever III to 42 months imprisonment followed by 3 years of supervised release.

HENDERSON was named in a one-count Indictment on December 20, 2017. On May 29, 2018, HENDERSON pled guilty to felon in possession of a firearm.

On June 1, 2017, officers with the Henderson Police Department conducted a traffic stop on a vehicle due to expired registration. Officers were told by one occupant that he had smoked marijuana prior to the stop. During the search of the vehicle, officers located a firearm along with a holster under the passenger seat. HENDERSON claimed ownership of the firearm. During further investigation, HENDERSON was found to be a convicted felon.

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.

This case is part of the Take Back North Carolina Initiative of the United States Attorney’s Office. 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 Henderson Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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

Terry Sentenced to 20 Years in Federal Prison

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-Press Release, U.S. Department of Justice

United States Attorney Robert J. Higdon, Jr. announced that CHARLIE O’BRYANT TERRY, 33, of Henderson, North Carolina was sentenced by Senior United States District Judge W. Earl Britt to 240 months imprisonment, 24 months on a revocation of supervised release followed by 3 years’ supervised release after the term of imprisonment.

TERRY was named in a six-count Superseding Indictment on June 15, 2017. On September 25, 2017, TERRY pled guilty to Obstruction of Justice and Possession of a Firearm by a Convicted Felon. At the time of the offense to which he pled guilty, TERRY was actively being supervised by the United States Probation Office for a prior firearm conviction.

On January 10, 2017, TERRY attempted to sell a vehicle to two people for $3,000.00. While driving the potential buyers to retrieve the money, the check engine light came on in the vehicle. After an examination of the car at AutoZone, the potential buyer advised TERRY that he did not want to purchase the vehicle because it had too many issues. Instead, of returning the man to his home, TERRY who was angry, drove the man and woman to a rural area in Vance County, stopped the car, pulled the male from the car and repeatedly hit him with a firearm. TERRY then pulled the female from the vehicle, and placed the pistol in her mouth. TERRY subsequently took the victim’s cellular telephone and $3,000 before leaving them both on the side of the road. The male victim was hospitalized as a result of the assault and required staples to close a laceration to his head. The victims reported the assault and robbery to law enforcement.

TERRY was arrested on April 3, 2017, by deputies with the United States Marshals Service based on a warrant issued for violating the conditions of his supervision. While making the arrest at TERRY’S girlfriend’s residence, officers observed his girlfriend’s 14-year old daughter with an odd bulge in her pants. A subsequent search of the juvenile revealed a .22 caliber Taurus semiautomatic firearm loaded with 9 rounds of .22 caliber ammunition.

Following his arrest on April 3, 2017, TERRY also was served with outstanding arrest warrants related to the assault and robbery of the two victims mentioned above. While detained at the Vance County Jail, TERRY encountered in the jail, one of the victims TERRY assaulted over the car incident. On April 6, 2017, while in custody, TERRY approached that individual and told him to change his statement. TERRY told him that he needed to meet with TERRY’s attorney and tell the attorney that TERRY did not pistol whip him, that they only got into a fight. The man refused because of the injuries TERRY inflicted on him. TERRY threatened him if he did not change his statement.

Following TERRY’s federal arrest, agents seized and subsequently executed a search warrant on TERRY’s cellular telephone. A review of the pictures on the phone revealed that TERRY had taken several “selfies,” or photographs of himself with a Smith and Wesson .223 caliber AR-15 semiautomatic firearm on April 2, 2017. The firearm had been reported stolen and subsequently was recovered on April 10, 2017, at a residence in Henderson.

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.

Investigation of this case was conducted by the Henderson Police Department, Vance County Sheriff’s Office, North Carolina Crime Laboratory, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the United States Marshal Service. Assistant United States Attorney S. Katherine Burnette prosecuted this case.

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

U.S. Department of Justice

CEO Spruill Sentenced to Eight Years in Prison for Healthcare Fraud

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-News Release, U.S. Department of Justice

United States Attorney Robert J. Higdon, Jr. announced that yesterday afternoon in federal court, SHEPHARD LEE SPRUILL, 47, of Greenville, North Carolina, was sentenced to 96 months in prison on the charge of Health Care Fraud Conspiracy, and 60 months in prison for Perjury, to be served concurrently. Spruill was also ordered to make restitution in the total amount of $5,998,874.86, payable to the North Carolina Medicaid Program, the South Carolina Medicaid Program, and another victim of the scheme. Spruill was further ordered to serve a three-year term of supervised release, and to forfeit an additional $939,989.50 in criminal proceeds. Under the terms of his plea agreement, Spruill is also banned from participation in Federal healthcare benefit programs for life.

Spruill’s case arose out of the investigation of Pitt County behavioral health provider Terry Lamont Speller, his biller, Donnie Lee Phillips, II; and another Medicaid provider named 2 Reginald Saunders. Each of these defendants were previously sentenced by Senior U.S. District Judge James C. Fox to 20 years, 9 years, and 3 years, respectively.

According to the Criminal Information and evidence discussed in open court, Spruill, then the leader of Carolina Support Services, an East Carolina behavioral health practice, supplied hundreds of patient names and identifiers to Speller, who in turn had Phillips bill the North Carolina Medicaid Program for millions of dollars in fictitious mental health services. Spruill, Speller, and Phillips split the fraud proceeds, with Spruill receiving his cut of the funds in the form of fictitious, no-document loan repayments. Spruill appeared before a federal grand jury and lied about his involvement with Speller, falsely claiming that he had no business relationship with Speller.

The continuing investigation into Spruill revealed that Spruill also engaged in a fraud upon the South Carolina Medicaid program, billing and being paid millions in fictitious services through another provider he owned.

United States Attorney Robert J. Higdon, Jr. stated, “As we continue to combat drug dealers and violent criminals in our district, do not for a moment believe that we have given a pass to those whose steal from taxpayers through fraud. This case shows our continuing resolve to bring all to justice, even CEOs who commit their crimes with lies instead of guns. This case also 3 sends a message about the integrity of our grand jury system. Those who choose to lie in the grand jury will be held fully accountable.”

“Health care fraud is not a road to easy riches, as this sentence demonstrates,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “Those who steal from taxpayers and vital government health care programs will be held accountable for their actions.”

In a related case, ATOYA BELLAMY, 45, of Morrisville, North Carolina, was sentenced to one year in prison for her role in Spruill’s fraud at Carolina Support Services. BELLAMY previously pleaded guilty to Conspiracy to Commit Health Care Fraud on November 29, 2017. BELLAMY was also ordered to make restitution to the Government.

The investigation of this case was conducted by agents of the North Carolina State Bureau of Investigation assigned to the Medicaid Investigations Division of the North Carolina Attorney General’s Office; The Internal Revenue Service – Criminal Investigation; and the United States Department of Health and Human Services Office of the Inspector General, with the assistance of the Federal Bureau of Investigation. The investigation and prosecution of this matter is being handled in a partnership between the United States Attorney’s Office for the Eastern 4 District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. Assistant United States Attorney William M. Gilmore and Special Assistant United States Attorney Daniel Spillman of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, each represented the United States.

If you suspect Medicaid or Medicare fraud please visit the HHS OIG website at https://oig.hhs.gov/ and click on the Report Fraud button. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320. # # #

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

Henderson Man Sentenced for Felon in Possession Charge

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-News Release, U.S. Department of Justice

The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, WENDELL ROUSE, JR., 32, of Henderson, North Carolina, was sentenced to 97 months imprisonment followed by 3 years of supervised release.

ROUSE was named in a two-count Indictment on July 25, 2017 charging him with two counts of Possession of a Firearm by a Felon. On January 29, 2018, ROUSE pled guilty to one of those two counts.

Investigation was initiated by the Henderson Police Department (HPD) on June 20, 2017, when officers responded to reports of a gunshot victim. The victim suffered a gunshot wound to the abdomen by a .380 caliber bullet. Seven shell casing of the same caliber were recovered from the scene. Further, the screen door of the residence had been shot out and there were three bullet holes in the side of the residence. Notably, the victim was shot from the outside while he was inside the residence. Three children were also in the residence at the time.

Later the same night, while continuing their investigation, officers heard a gunshot nearby and then observed ROUSE as he walked through the crime scene tape and headed to the victim’s residence. ROUSE was instructed to raise his shirt to reveal his waistband. After hearing those instructions, ROUSE turned away from the officers and started to reach for something on his person. ROUSE was then handcuffed and searched where officers recovered a .380 handgun from his waistband. Ballistics later matched the defendant’s handgun to the bullets recovered from the scene.

In summary, ROUSE is responsible for possessing ammunition as a convicted felon. At sentencing, the court determined that a cross reference to attempted murder under the sentencing guidelines was appropriate in this case.

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

The investigation of this case was conducted by the Henderson Police Department, the North Carolina Crime Laboratory, 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

OXFORD MAN SENTENCED FOR FELON IN POSSESSION AND POSSESSION OF A FIREARM IN FURTHERANCE OF A DRUG TRAFFICKING CRIME

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— press release courtesy of the U.S. Department of Justice

NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that yesterday afternoon in federal court, United States District Judge Louise W. Flanagan sentenced ROY LEE TERRY, 53, of Oxford to 101 months of imprisonment followed by 5 years of supervised release.

TERRY was named in a three-count Indictment filed on August 23, 2016. On November 16, 2016, TERRY subsequently pled guilty to one-count of Felon in Possession of a Firearm and one-count of Possession of a Firearm in Furtherance of a Drug-Trafficking Crime.

The investigation began when the Oxford Police Department (OPD) received information that TERRY was dealing in drugs. On August 26, 2015, the OPD received information from a confidential source (CS) indicating that TERRY was storing and selling cocaine base at his residence. With the assistance of the CS, authorities conducted four purchases of narcotics from TERRY.

On September 10, 2016, the OPD executed a search warrant at TERRY’S residence. A cooperating witness (CW) informed law enforcement that TERRY had been seen with a handgun and cocaine in his bedroom prior to OPD’s arrival. Present at the time, in addition to Terry was Terry’s mother, who was charged by the State of North Carolina, two females and juveniles. During the subsequent search of the residence, authorities located the following in TERRY’S bedroom: a stolen .380 semi-automatic handgun loaded with 8 rounds; approximately 9.34 grams of cocaine base; approximately 15.5 grams of off-white powder; a plastic bag with cocaine residue; $680 in U.S. currency, a digital scale, plastic baggies, and other related items. In a bedroom next to TERRY’S bedroom, a box containing 42 rounds of 9 mm ammunition was located. After waiving his rights, Terry confessed to knowingly possessing the firearm. Further investigation revealed that the firearm was stolen.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

The Oxford Police Department, the North Carolina State Crime Lab, and the Bureau of Alcohol Tobacco Firearms and Explosives (ATF) conducted the criminal investigation of this case. Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.

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