North Carolina Department of Corrections Officer Pleads Guilty in COVID-19 Fraud Scheme

RALEIGH, N.C. – Sean Tracy Dillard, 55, pled guilty today pursuant to a criminal information to theft of government funds for fraudulently submitting North Carolina Housing Opportunities and Prevention of Evictions (NC HOPE) loan applications for emergency rental assistance.  As part of his fraud scheme, the defendant, a correctional officer with the North Carolina Department of Corrections (NCDOC), submitted fictitious tenant lease agreements for multiple properties in Hertford County as part of his NC HOPE loan applications.  He faces up to 10 years in prison. 

On March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was designed to provide emergency financial assistance to millions of Americans who were suffering the economic effects caused by the Covid-19 pandemic.  One source of relief provided by the CARES Act was the authorization of $5 billion in Community Development Block Grant (“CDBG”) programs as flexible federal funding to states and localities earmarked to prevent, prepare for, and respond to the coronavirus pandemic. The United States Department of Housing and Urban Development (“HUD”) administers the Community Development Block Grant (“CDBG”) program as a source of flexible federal funding for economic and community development, as well as to direct long-term recovery funding to states and localities in response to disasters and emergencies.

The State of North Carolina’s Office of Recovery and Resiliency (“NCORR”), a division of the North Carolina Department of Public Safety, utilized federal funds made available in the CARES Act to assist North Carolina renters stay in their homes during COVID-19 by preventing evictions and the loss of utility services.  The NC HOPE program, utilized an initial $51.5 million allocation of CDBG funds from the CARES Act to provide housing and utility assistance.  The State of North Carolina also received CRF funds from the CARES Act, of which $66 million was allocated to pay administrative costs associated with the NC HOPE program. 

Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after United States Magistrate Judge Robert B. Jones, Jr.  accepted the plea.  Sentencing will occur before United States District Judge Louise W. Flanagan later this year.  The FBI is leading the investigation, and Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.

Guilty Plea: Ex-Portsmouth Officer Admits Violating Civil Rights in Sexual Assault Case

Former Portsmouth Police Officer, Cleshaun A. Cox, has pleaded guilty to violating the civil rights of a minor victim by forcibly sexually assaulting her. The disturbing incident occurred on or about May 27, 2019, when Cox, in his official capacity as a police officer, encountered Victim 1, a 17-year-old high school student, during a noise complaint call in Portsmouth, Virginia.

As per court documents, after a senior officer instructed Victim 1 to drive home, Cox secretly followed her in his marked police vehicle. Instructing her to meet him in a parking lot, Cox then drove her to an isolated area where he forced her to engage in sexual intercourse against her will. Shockingly, Cox knew Victim 1's age and was fully aware of her unwillingness to participate in any sexual act.

The case was brought to the attention of the U.S. Attorney's Office, Eastern District of Virginia, leading to Cox's guilty plea. Jessica D. Aber, the U.S. Attorney, emphasized that police officers have a duty to protect and safeguard the community, especially vulnerable children, and those who abuse their positions to commit such abhorrent acts must be held accountable.

Assistant Attorney General Kristen Clarke of the Civil Rights Division reinforced the federal government's stance, asserting that law enforcement officials who commit acts of sexual assault and abuse will not be tolerated. The survivors of these heinous crimes will find justice, and accountability will be sought.

Brian Dugan, Special Agent in Charge of the FBI Norfolk Field Office, condemned Cox's actions, stating that sworn police officers are entrusted with upholding the constitution and protecting the community's safety. Cox's violation of trust and abuse of power have been met with a thorough investigation, highlighting the collaboration between departments and agencies.

Cox is now scheduled for sentencing on November 28, facing a prison term of at least 15 years and up to 20 years, along with five years of supervised release. He will also be required to register as a sex offender under the Federal Sex Offender Registration and Notification Act.

In August 2021, Cox had previously pleaded guilty to charges of carnal knowledge and abduction in Portsmouth Circuit Court, resulting in a 15-year prison sentence, of which 10 years were later suspended by the court.

The case is being prosecuted by Assistant U.S. Attorney E. Rebecca Gantt for the Eastern District of Virginia and Special Litigation Counsel Kathryn E. Gilbert of the Civil Rights Division's Criminal Section.

The U.S. Attorney's Office for the Eastern District of Virginia, along with Assistant Attorney General Kristen Clarke and Special Agent Brian Dugan, made the announcement after U.S. District Judge Elizabeth Wilson Hanes accepted Cox's plea.

More information on the case and related court documents can be found on the U.S. Attorney's Office for the Eastern District of Virginia's website or by searching for Case No. 2:23-cr-84 on PACER.