Attorney General Jeff Jackson, State Auditor Dave Boliek, US Attorney for the Eastern District of North Carolina Ellis Boyle, US Attorney for the Middle District of North Carolina Dan Bishop, and representatives from Western District US Attorney Russ Ferguson’s office joined other state officials across the Southeast on Thursday for the launch of the Southeast Fraud Enforcement Federal-State Partnership.
In addition to North Carolina, the partnership includes Alabama, Florida, Georgia, Louisiana, Mississippi, and South Carolina.
The officials met at a roundtable in Columbia, South Carolina, hosted by the US Department of Justice’s National Fraud Enforcement Division, where they discussed strengthening working relationships between federal and state agencies to root out fraud involving taxpayer money. They also discussed a series of significant fraud enforcement actions taken across seven states involving 17 cases.
“Defeating the fraud epidemic in our country requires all-hands-on-deck from our federal and state partners nationwide,” Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division said in a press release. “Whether it’s sharing intelligence, data, personnel, or priorities, partnering with state agencies directly strengthens our ability to identify those stealing taxpayer dollars. When federal prosecutors work alongside state agencies to root out fraud, fraudsters lose and the American people win.”
Cases in North Carolina include two Romanian brothers illegally in the United States pleading guilty to wire fraud. They were charged with orchestrating a fraud scheme involving SNAP benefits affecting victims across multiple states, causing nearly $766,000 in loss in the case United States v. Dumitru, led by US Attorney Ferguson.
A case, United States vs. Adedayo Afolabi Fateru, led by US Attorney Bishop, involved Fateru pleading guilty as a member of a money laundering ring involving proceeds of various fraud schemes including false applications for Economic Injury Disaster Loans (EIDL) and false applications for unemployment benefits. He caused nearly $1.7 million in loss.
In the United States vs. Mitchell et al, led by Boyle, a Robeson County woman (along with seven co-conspirators) who was the owner of a North Carolina tax return preparation business pleaded guilty to conspiring to prepare false returns, claiming fraudulent refunds based on COVID-19 tax credits, causing nearly $25 million in loss.
The division separately announced the formation of federal-state anti-fraud task forces in North Carolina, Mississippi, and Florida.
“This is what a united front looks like,” Jackson said in a press release. “The acceptable level of fraud is zero, and as these fraudsters become more sophisticated, we have to step up our enforcement actions, use new tools, and work across jurisdictions to take them down.”
The attorney general leads state anti-fraud efforts through the Department of Justice’s Medicaid Investigations Division (MID), which ensures taxpayer dollars in the Medicaid program go to fund patient care, not fraud. MID works closely with the US Attorney’s Offices for the Eastern, Western, and Middle Districts of North Carolina.
“State leaders across the Southeast have come together in an effort to hold fraudsters accountable for taking advantage of American taxpayers,” Boliek said in a press release. “The Office of the State Auditor is committed to tracking down taxpayer dollars directed to programs like Medicaid and unemployment benefits to ensure they are used as intended. I’m honored to represent North Carolina in this state-federal partnership that will undoubtedly be a fraud crackdown that this country needs on a national level.”
