Update: If you believe you might be a victim of the crimes Johnson committed, and/or have information relevant to this investigation, please visit https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/johnson-investment-investigation-questionnaire EL PASO, Texas – An El Paso man pleaded guilty in federal court to seven counts of wire fraud as part of a Ponzi scheme in which he represented to investors that he would use their funds to promote NBA preseason games, announced U.S. Attorney for the Western District of Texas, Justin R. Simmons.According to court documents, beginning around Feb. 9, 2009, and continuing through about May 14, 2020, Timothy France Johnson, 63, solicited investments from individuals and claimed to invest their money into NBA preseason games and game promotion. Johnson falsely represented that, as a third-party promoter, he would use the investment funds to obtain the venues and fund the marketing and promotion of the games. He provided investors with investment agreements that promised a guaranteed return on their investment, essentially representing that the investments had zero risk. Additionally, Johnson provided his victims with fraudulent investment statements and other fraudulent contracts and letters to substantiate his claimed connection to the NBA.An FBI investigation revealed that investments were not used to pay for preseason NBA games or game promotion but were instead used to make payments to earlier stage investors, were withdrawn as cash, or were spent on other non-business-related expenses.One victim of Johnson’s scheme invested for approximately five years, wiring $15,000 to Johnson on April 24, 2014. Johnson told the victim an investment between a minimum $12,500 and maximum $25,000 was required. At the end of the preseason, Johnson contacted the investor to tell them how much money they made on the games and to convince the investor to “roll the money over” into the next season’s games. Records show the investor made an additional $20,000 investment on June 28, 2018.On April 8, 2019, the victim signed an investment agreement with Johnson’s company, BOLO Sports & Entertainment LLC. The terms of the agreement stated the victim would invest $50,000 in an NBA preseason game played by a specific NBA team. The contract guaranteed the return of the initial $50,000 investment plus a percentage of the net revenue from the game.Records indicate the victim wired $50,000 on April 9, 2019, and further sought to invest an additional $50,000 in the preseason game just over a week later. Johnson and the investor-victim signed another investment agreement, and the funds were wired on April 17, 2019.Johnson told another victim that there would be a 33% return on investment and that there would be “zero risk” because the games were insured in case something went wrong or if the ticket sales did reach the breakeven point. He also claimed that he had been organizing the NBA games since the late 1980s to early 1990s. That victim invested $100,000 with Johnson in 2019 and signed an investment agreement guaranteeing 100% return on his investment plus any additional profit. Shortly after the first investment, Johnson offered an opportunity for the victim to invest in a second preseason game for $60,000. The victim agreed and wired the money.Following their investments, Johnson discussed with the victims the potential for them to acquire his business. Johnson provided the two victims with tickets to the NBA preseason game in which they had allegedly invested, and they were told that they would meet with NBA and team executives to discuss Johnson’s business and learn more about the sports and entertainment industry. Though they did attend the game with Johnson, the two investors did not meet with any executives.A third victim invested $75,000 with Johnson over the 2019 and 2020 NBA preseasons. A financial analysis of Johnson’s accounts showed that none of the invested funds used to pay the NBA, NBA teams, venues, or any other apparent promotion-related expenses.Johnson was charged in April 2024 with seven counts of wire fraud and three counts of engaging in monetary transactions in property derived from specified unlawful activity. He pleaded guilty on Friday to the seven wire fraud charges and faces up to 20 years in federal prison on each charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.The FBI is investigating the case.Assistant U.S. Attorneys Shane Romero, Chris Skillern and James Watson are prosecuting the case.###

CHICAGO — A Chicago chiropractor has been sentenced to nearly six years in federal prison for billing a private insurer more than $2 million in nonexistent services.CLARENCE W. BROWN III owned and operated Dr. CB3 Wellness, Inc. and Apex Integrated Medical Center, Ltd., both in Chicago.  From 2016 to 2020, Brown submitted more than 6,000 fraudulent claims to Blue Cross Blue Shield of Illinois for purported health care services that Brown knew were not actually provided to patients.  Some of the fraudulent claims were for services purportedly provided when Brown was on international vacations or while his medical license was suspended.Brown’s fraud scheme defrauded BCBS out of nearly $2.1 million.  Brown used the fraud proceeds to fund a lavish lifestyle, including a house, a $100,000 BMW X5 sport-utility vehicle, international vacations, and shopping at luxury stores such as Tiffany’s.In 2024, a jury in U.S. District Court in Chicago convicted Brown, 49, of Chicago, on all nine healthcare fraud counts against him.  Last week, on Nov. 19, 2025, U.S. District Judge John F. Kness sentenced Brown to five years and ten months in federal prison and ordered him to pay $2,088,884 in restitution to BCBS.The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.“Defendant was motivated by greed,” Assistant U.S. Attorney Andréa L. Campbell argued in the government’s sentencing memorandum.  “Defendant made the calculated decision to engage in a three-and-half-year fraud that benefited him and his lofty aspirations.”

CHARLOTTE, N.C. – United States Attorney Dena J. King announced that she will step down from her position as the Western District’s chief law enforcement officer effective today.“It has been a tremendous honor to serve the people of the Western District of North Carolina,” said U.S. Attorney King. “I’ve had the privilege of working alongside some of the most talented public servants who are dedicated to serving our communities with integrity, distinction, and excellence. Our collective mission is to serve and protect the people of Western North Carolina. I stand proud of our accomplishments and our efforts to support law enforcement, build strong partnerships with our communities, and uphold justice.”U.S. Attorney King is the first person of color to be appointed to the position in the Western District of North Carolina (WDNC). She was nominated by President Joseph R. Biden Jr. on September 28, 2021, and was confirmed by the United States Senate on November 19, 2021. U.S. Attorney King was officially sworn into the position on November 29, 2021.During her tenure, U.S. Attorney King led an office of nearly 100 federal prosecutors and support personnel, serving a district that covers 32 counties across the western part of the state. The WDNC also includes half of the Great Smoky Mountains National Park and the Blue Ridge Parkway. The Pisgah and Nantahala National Forests cover over one million acres of the Western District. The largest Native American Community in the eastern half of the United States, the Eastern Band of Cherokee Indians, is in WDNC.As the chief federal law enforcement officer, U.S. Attorney King was in charge of all criminal and civil matters filed in the U.S. District Court in the Western District of North Carolina. Under U.S. Attorney King, the Office focused its efforts on the protection of civil rights; enhancing public safety; recovering taxpayer dollars; combatting health care fraud, financial fraud and COVID-19 fraud; disrupting drug trafficking and gun trafficking networks; uncovering public corruption and financial fraud schemes; protecting vulnerable populations from exploitation including older adults and children; prosecuting human traffickers and supporting victims; pursuing repeat offenders and drivers of violent criminal activity; and overseeing affirmative civil enforcement actions and all other civil litigations.During her time in office, U.S. Attorney King formed WDNC’s first ever Civil Rights Team, to focus on the enforcement of civil rights laws, prosecute individuals who commit criminal civil rights violations, ensure equal access to justice and equal opportunities by pursuing civil enforcement actions, and protect voting rights and access and rights of the disabled. In addition to enforcement efforts, the Civil Rights Team has enhanced the Office’s engagement with the community to raise awareness and to encourage reporting of potential civil rights violations.U.S. Attorney King also reconstituted the Western District’s Health Care Fraud Task Force, a multi-agency team that comprises federal and state law enforcement agencies and regulatory entities. The goal of the task force is to identify and prosecute those who defraud public and private insurers, jeopardize the integrity of the health care system and waste taxpayer dollars. The work of the task force has led to an increase in criminal and civil matters, and has secured settlements with corporations and individuals, including hospitals, telemedicine companies and providers, durable medical equipment suppliers, physicians, therapists, and affiliated health care professionals. In addition, the task force has recovered millions in restitution for the government-funded programs, including Medicare and Medicaid.  U.S. Attorney King also prioritized the protection of vulnerable populations from exploitation and violence. Under her leadership, the Office successfully prosecuted numerous child predators, ensuring justice for victims and securing restitution for victims of sexual exploitation. The Office also took significant steps to protect older Americans from financial exploitation, by bringing to justice those who prey on the elderly and conducting educational and training events to raise public awareness about financial scams targeting older adults.U.S. Attorney King remained committed to enhancing public safety by focusing on identifying and dismantling extensive drug trafficking networks, which are often drivers of violent criminal activity. The Office also increased its efforts to reduce gun-induced violence by identifying and disrupting gun trafficking pipelines, prosecuting repeat offenders and felons in possession of firearms, and those involved in the illegal sale or purchase of firearms.Throughout U.S. Attorney King’s tenure, the Office also prioritized strengthening partnerships with federal, state, and local law enforcement agencies and community stakeholders through training seminars on Department of Justice priorities and U.S. Attorney’s Office initiatives, as well as in response to community needs to include violent crime, civil rights, and human trafficking.“Serving as U.S. Attorney has given me the privilege of working alongside our dedicated federal, state, and local law enforcement partners on prosecutions, crime prevention efforts, and outreach initiatives,” said U.S. Attorney King. “I am grateful for the support of these agencies, which will continue to serve and protect our communities long after my tenure. I also want to thank the countless agents, officers, and deputies whose commitment and extraordinary service enhance the safety of our communities and help bring offenders to justice.” In addition to overseeing federal cases and conducting trainings, U.S. Attorney King engaged in outreach and crime prevention efforts, including initiatives to enhance public safety and strengthen community engagement. Among them is Think Again, a campaign aimed at preventing illegal firearm purchases and reducing gun violence. U.S. Attorney King also prioritized the fight against hate crimes through the United Against Hate initiative, a Department of Justice-led effort designed to strengthen relationships between law enforcement and historically targeted communities.A key focus of U.S. Attorney King during her tenure was engaging with young people to prevent youth violence and foster positive youth development. U.S. Attorney King’s Office partnered with Charlotte-Mecklenburg Schools (CMS), Buncombe County and City of Asheville Schools, and Cherokee Central Schools to engage with students on important issues such as school violence, teen dating violence, effective leadership, and positive conflict resolution. U.S. Attorney King also participated in numerous public events and partnered with youth community organizations, where she spoke on topics of crime prevention, mentorship, and collaborating with law enforcement.“As U.S. Attorney, I’ve had the privilege of meeting and interacting with countless members from communities throughout the Western District, including young people. I am extremely grateful to all our community partners for their collaboration and partnership. None of this work would be possible without the support of our community partners and the citizens who stand behind these efforts. I am deeply grateful for their support and for their commitment to our outreach initiatives, particularly those that focus on helping our young people navigate their challenges in a positive and constructive manner.”In addition to serving as U.S. Attorney for WDNC, U.S. Attorney King served as Chair of the Civil Rights Subcommittee and Native American Issues Subcommittee of the Attorney General’s Advisory Committee (AGAC) of U.S. Attorneys, as well as the Juvenile Violence Subcommittee. “It’s been a privilege to serve as Chair on these two very important subcommittees and an incredible opportunity to provide input on key issues to Department of Justice leadership,” said U.S. Attorney King, who also served as a member of the AGAC’s subcommittees for Violent and Organized Crime; Law Enforcement, Victims and Community Relations; and Elder Justice. Since 2021, U.S. Attorney King successfully steered the office through significant challenges, including the COVID-19 pandemic and unprecedented budgetary cuts. In spite of these challenges, the Office maintained its ability to manage a large caseload and secure additional resources, including prosecutors and support personnel.Before her appointment, U.S. Attorney King served as WDNC’s Deputy Criminal Chief, overseeing the Violent Crimes and Narcotics Section, and as Lead Task Force Attorney for the Organized Crime Drug Enforcement Task Force program. U.S. Attorney King’s extensive prosecutorial experience also includes serving as an Assistant U.S. Attorney for the U.S. Attorney’s Office in the Eastern District of North Carolina, an enforcement attorney in the Securities Division of the North Carolina Department of the Secretary of State, and an Assistant District Attorney in Mecklenburg County.“Being U.S. Attorney is an incredible job,” said U.S. Attorney King. “It’s been an honor and a privilege to have served in this role and I will always be incredibly thankful for the opportunity.”Upon U.S. Attorney King’s departure, First Assistant U.S. Attorney Lawrence J. Cameron will serve as Acting U.S. Attorney until a replacement is named. 

CHARLOTTE, N.C. – A federal grand jury in Charlotte has indicted three individuals for conspiring to fraudulently obtain more than $1 million in COVID-19 relief funds administered by the Small Business Administration (SBA) through the Paycheck Protection Program (PPP), announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, and Mark H. Morini, Special Agent in Charge of the Treasury Inspector General for Tax Administration (TIGTA), Southeast Field Division, join U.S. Attorney King in making today’s announcement.

According to allegations in the federal indictment, between March and November 2021, Tamakia Elizabeth Harris, 43, Shavondra Michelle White, 39, and Cedric Lee Benton, 47, all of Charlotte, conspired with each other to fraudulently obtain more than $1 million in COVID-19 relief funds, by submitting fraudulent PPP loan applications to financial servicing companies outside North Carolina. The indictment alleges that the PPP loan applications contained false and misleading information and fraudulent supporting documentation, including fake federal tax filings and payroll reports.

As alleged in the indictment, Harris, who was employed by a nationally chartered bank in Charlotte, generally charged fees between $2,000 and $5,000 for her assistance in filing false and fraudulent PPP loans. Harris allegedly created counterfeit IRS forms for nonexistent businesses and inflated income to qualify the borrower for the highest amount of PPP loan. Harris then allegedly submitted the fraudulent PPP loan applications and supporting documents to the financial servicing companies. The indictment alleges that, in total, Harris assisted in creating and submitting over 30 fraudulent PPP loan applications totaling more than $900,000.

According to allegations in the indictment, White, who was also employed by a nationally chartered bank in Charlotte, electronically filed two PPP loans in her own name using forged and fictitious federal income tax documents prepared by Harris. arris The indictment alleges that White, Benton, and another individual received more than $100,000 in PPP loans that they were not entitled to receive.

The indictment further alleges that Benton, who is White’s boyfriend and has a prior criminal conviction, also submitted two fraudulent PPP loan applications with fictitious and forged IRS forms, or income he purportedly lost while in the custody of the Bureau of Prisons (BOP).

The defendants are each charged with one count of wire fraud conspiracy, which carries a maximum penalty of 20 years in prison. One or more of the defendants are also charged in 16 separate counts of wire fraud – each relating to a specific PPP loan – which also carry a maximum penalty of 20 years in prison per count.

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

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

Assistant U.S. Attorney Michael E. Savage, 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.

 

CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that New Hampshire-based North American Specialty Insurance Company (NAS IC) has agreed to resolve allegations that the company violated the False Claims Act by bonding a South Carolina general contractor that submitted false claims to the United States for services performed under fraudulently obtained contracts from the U.S. Department of Defense and the U.S. Department of Agriculture.  These contracts had been set aside for companies that qualified for the U.S. Small Business Administration’s (SBA) Section 8(a) Business Development Program.  NAS IC has agreed to pay $1,040,035.20 to resolve the government’s allegations. 

The 8(a) Business Development Program was created to help provide a level playing field for small businesses owned by socially and economically disadvantaged people or entities. A business owned and controlled by socially and economically disadvantaged individuals can apply for certification from the SBA as an 8(a) business.  An 8(a) business can obtain certain preferences during the contracting process, and can bid on contracts that the government has set aside for qualified 8(a) businesses.  A business can remain in the 8(a) program for up to nine years, but during that time, must provide information to the SBA, which is used to determine continuing program eligibility. 

The United States alleges that, among other things, South Carolina general contractor Claro Company, Inc. made materially false, fictitious, and fraudulent statements and representations, or material omissions, to gain entry into and to continue participation in the 8(a) program.  The United States also alleges that NAS IC knew or should have known that Claro was not eligible for 8(a) set-asides.  Specifically, the United States alleges that NAS IC knew or should have known that Claro Company was in violation of the regulations governing the 8(a) Program and the government’s contracting requirements.  Specifically, the United States contends that NAS IC knew or should have known, among other things, that: Claro Company was not controlled by a socially and economically disadvantaged individual, and that it was affiliated with and controlled by another entity and/or individuals that did not meet the SBA’s definition of being socially and economically disadvantaged; that neither the affiliation nor control were disclosed to the SBA; and that Claro Company made material false misrepresentations regarding its financial status to the SBA in order to avoid early graduation from the 8(a) program.  The United States contends that NAS IC nonetheless continued to do business with Claro Company, bonding its projects and therefore allowing it to continue to fraudulently bid for contracts under the preferences in the 8(a) program. 

“By enabling fraudsters, these companies play a key part in unlawfully usurping government contract opportunities from socially and economically disadvantaged individuals who the 8(a) Program is intended to assist,” said U.S. Attorney Murray.  “My office will pursue vigorously bonding companies and other entities that, by turning a blind-eye or willfully ignoring blatant indicia of program fraud or abuse, enable the submission of these false claims and cause harm to the government program.”

This settlement resolves allegations investigated by the government pursuant to the False Claims Act.  The settlement is the result of the coordinated effort between the Defense Criminal Investigative Service of the Office of Inspector General, U.S. Department of Defense, the U.S. Department of Agriculture Office of the Inspector General, the U.S. Small Business Administration Office of the Inspector General, and the United States Attorney’s Office for the Western District of North Carolina.

The claims resolved in this settlement are allegations only and there has been no determination of liability against NAS or any other entity.