Darnell William King, a 42-year-old resident of Clayton, North Carolina, has been sentenced to 70 months in prison followed by five years of supervised release. This follows his guilty plea in May to charges including conspiracy to commit bank and wire fraud, aggravated identity theft, and possession of a firearm by a convicted felon. King was also ordered to pay restitution to the Small Business Administration and private lenders he defrauded.
King was involved in conspiracies related to Paycheck Protection Program (PPP) fraud and using stolen identities to secure personal lines of credit from lenders around Wake County. "This sentence sends a clear message: those who seek to exploit pandemic relief programs and steal individuals’ identities for personal gain will be held accountable," said Acting U.S. Attorney Daniel P. Bubar.
Acting Special Agent in Charge Richard Gaskins from the IRS Criminal Investigation Charlotte Field Office commented on the case: "Criminals cause immeasurable hardship to innocent victims and businesses by lying and stealing their identities." He noted that King recruited others to help obtain fraudulent loans using stolen information.
ATF Special Agent in Charge Alicia Jones stated, "Stealing critical resources aimed at protecting communities and citizens is inexcusable," highlighting King's illegal possession of a firearm during these activities.
The investigation revealed that King created fake driver’s licenses with real photos but stolen information. Recruited "mules" used these documents to secure loans which were then handed over to King or his associates for kickbacks ranging from $100 to $2,000.
Captain Vaughn of the North Carolina DMV License & Theft Bureau described the investigation as uncovering a sophisticated criminal enterprise impacting multiple states through fraudulent use of thousands of North Carolina licenses. The operation involved various agencies working together against complex fraud schemes.
Sheriff Willie Rowe acknowledged the thorough investigation following complaints from Wake County residents about identity theft and fraud. The efforts led to multiple arrests and identified hundreds of victims across North Carolina.
In another scheme, King falsely claimed employment as an Uber driver before the pandemic when applying for a PPP loan, securing over $15,000 guaranteed by the Small Business Administration. During a search warrant execution related to identity theft investigations, authorities found King illegally possessing a firearm with a high-capacity drum magazine despite being prohibited due to prior convictions.
King's co-defendants Loretta Clarice James and Lakesha Bowles received sentences of eight years and 30 months respectively for their involvement in these conspiracies.
The announcement was made by Acting U.S. Attorney Daniel P. Bubar after Chief U.S. District Judge Richard E. Myers II delivered the sentence. The investigation was led by IRS Criminal Investigation with support from Homeland Security Investigations; Wake County Sheriff’s Office; Bureau of Alcohol, Tobacco, Firearms and Explosives; North Carolina Department of Motor Vehicles License & Theft Bureau; Clayton Police Department; among other local agencies. Assistant U.S. Attorneys David G. Beraka and Ashley H. Foxx prosecuted the case.
