TEMPORARY RESTRAINING ORDER
DAVID C. KEESLER, Magistrate Judge.
This matter having come before this Court on the motion of the United States of America for a temporary restraining order pursuant to 21 U.S.C. § 853(e)(2), which provides courts with jurisdiction to enter restraining orders and take such action in connection with any property or other interest subject to forfeiture to ensure its availability for forfeiture, and pursuant to this Court's inherent power to make orders necessary and proper to the orderly carrying on of litigation brought within the Court's jurisdiction; and
IT APPEARING TO THE COURT THAT:
There is probable cause to believe that all assets related to Walter Clifton Martin, WMJ Enterprises, and Michael Faulkenberry are subject to forfeiture pursuant to 21 U.S.C. § 853(a)(1) and (2) as property constituting proceeds or facilitating property related to violations of 21 U.S.C. §§ 841 and 846, and
That providing prior notice of the Government's request for a temporary restraining order would jeopardize the availability of the property for forfeiture,
NOW, THEREFORE, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED, PURSUANT TO 21 U.S.C. § 853(e)(2) THAT:
1. First Bank and all agents, associates, employees or others acting on behalf, be and are hereby ENJOINED AND RESTRAINED from selling, transferring, assigning, pledging, distributing, giving away, encumbering, or otherwise participating in the disposal of or removal from the jurisdiction of this Court of the property described below, without prior approval of the Court upon notice to the United States and an opportunity for the United States to be heard, except as specified in this Order. The property to which this Order is pertinent is described as: any and all assets related to Walter Clifton Martin, WMJ Enterprises and Michael Faulkenberry.
2. Further, any and all individuals and entities are ENJOINED AND RESTRAINED from disposing of any assets or making any withdrawals or transfers of any assets held in the name of, by, on behalf of, or for the benefit of Walter Clifton Martin, WMJ Enterprises, and Michael Faulkenberry.
3. Any financial institution that is served with a copy of this Order shall inform the Government agents who serve certified copies of this Order of the account name and balance in affected accounts on the date of service. The respective financial institutions are further DIRECTED to continue to receive and credit monies to any and all affected accounts.
4. The United States is authorized and directed to serve a copy of this Order on the persons and entities named in this Order, their counsel, and any other entity or individual the Government believes may be in control or possession of the property to be restrained.
5. This Order will expire 14 days after the date on which it is entered unless A) it is extended further by further order of this Court for good cause shown; or B) the party whose property is restrained consents to an extension for a longer period. The Government seeks restraint that prevents any and all individuals and entities from disposing of any assets or making any withdrawals or transfers of any assets held in the name of, by, on behalf of, or for the benefit of Walter Clifton Martin, WMJ Enterprises, and Michael Faulkenberry.
AFFIDAVIT IN SUPPORT OF APPLICATION FOR RESTRAINING ORDER
I, Eric J. Pelletier, being duly sworn, declare under penalty of perjury that the following is true and correct to the best of my knowledge and information:
1. I have been a Special Agent for the FBI since July of 2009. I am therefore an officer of the United States who is empowered to conduct investigations of, and to make arrests for, the offenses enumerated in Title 18, United Stated Code, Section 2516. I attended the basic agent training program in Quantico, Virginia during 2009. Prior to my employment with the FBI, I was employed in the financial sector for eight years. I am currently assigned to the Public Corruption squad at the Charlotte Division of the Federal Bureau of Investigation. In my current capacity, I am assigned to investigations involving public corruption, money laundering, conspiracy and Hobbs Act violations. Additionally, I have received training in the investigation of illegal narcotics activities and the laundering of the proceeds of specified unlawful activities at the FBI Academy at Quantico, Virginia. My training has continued through numerous in-service training seminars. I have participated in various methods of investigation, including, but not limited to, undercover operations and the use of undercover agents, consensual monitoring, physical surveillances, interviews of witnesses and defendants, the use of search warrants, the use of seizure warrants, the use of confidential informants, the use of pen registers, and the use of intercepted wire communications.
2. I am also familiar, through my training and experience, with the habits and practices of persons engaged in violations of controlled substance laws. Additionally, I am familiar with practices used by controlled substance traffickers involving the collection of money proceeds of narcotics trafficking and associated money laundering methods used to conceal the nature of these proceeds, including the language and terms used to disguise the source and nature of the profits of illegal narcotics dealing.
3. The facts and information contained in this Affidavit are based upon my knowledge and observations, interviews of witnesses, review of documents and law enforcement databases, information communicated to me by other law enforcement personnel with knowledge of this investigation, and knowledge gained through training and work experience. Because this Affidavit is being submitted for the limited purpose of establishing probable cause for a requested Restraining Order, your Affiant has not included every detail learned over the course of this investigation.
4. Your Affiant makes this Affidavit in support of the Government's Application for a Restraining Order, whereby the Government request that this Court restrain any and all individuals and entities from disposing of any assets or making any withdrawals or transfers of any assets held in the name of, by, on behalf of, or for the benefit of WALTER CLIFTON MARTIN, JR. (MARTIN), MICHAEL FAULKENBERRY (FAULKENBERRY), and WMJ ENTERPRISES. Your Affiant submits that there is probable cause that such assets constitute fraud proceeds and substitute property subject to criminal forfeiture pursuant to Title 21 United States Code Section 853 based on violations of 21 United States Code Section 841 (possession with intent to distribute Schedule I & II controlled substances and 846 (conspiracy to possess and distribute Schedule I & II controlled substances and are subject to a Temporary Restraining Order pursuant to 21 U.S.C. § 853(e)(2).
5. Your Affiant is familiar with the criminal Complaint in the Western District of North Carolina Case 3:17 mj 334, charging MARTIN, and FAULKENBERRY with violations of Title 21, United States Code Section 846: Conspiracy to possess and distribute Schedule I & II controlled substances and Title 21, United States Code Section 841 (a)(1): Possession with intent to distribute Schedule I & II controlled Substances. Your Affiant incorporates the facts set forth in the Affidavit in support of that Complaint for purposes of the instant Application for Restraining Order.
6. From on or about January of 2015 to the present, WALTER CLIFTON MARTIN and MICHAEL FAULKENBERRY have been involved in a drug trafficking organization in the Western District of North Carolina. MARTIN owns a trailer rental company called WMJ Enterprises, 17 W. Polk Street, Polkton, North Carolina. FAULKENBERRY is a narcotics dealer working for MARTIN and also an employee of WMJ Enterprises.
7. The investigation of MARTIN involved authorized interception of wire and electronic communications over the cellular phones of both MARTIN and FAULKENBERRY from at least June 12, 2017. The investigation also encompassed controlled narcotics purchases and consensual recordings. On September 26, 2017, FAULKENBERRY was arrested and found to be in possession of credit cards bearing MARTIN's name. Wire intercepts showed FAULKENBERRY used these cards to assist MARTIN as an employee of WMJ Enterprises and the drug trafficking organization.
8. There exists probable cause that the assets in First Bank and UBS Bank constitute proceeds traceable to the exchange of a controlled substance and/or substitute property furnished or intended to be furnished in exchange for a controlled substance. The following are examples of MARTIN using personal assets, WMJ Enterprises' assets, and assets under the control of FAULKENBERRY as a source for narcotics funds and operation. The following are also examples of MARTIN comingling the legitimate business activities of WMJ Enterprises with the drug trafficking organization MARTIN operated.
9. On January 19, 2017, in a controlled narcotics purchase from FAULKENBERRY of two ounces of cocaine, FAULKENBERRY was paid $2,700 in cash. FAULKENBERRY placed the money in his pocket and was surveilled by FBI agents driving to the First Bank of Polkton, 7996 Highway 74 West, Polkton, North Carolina where he approached the drive-thru teller handing the teller an item. Your affiant believes FAULKENBERRY made a deposit of the drug proceeds into an account at that location.
10. Credit records indicate that MARTIN uses First Bank as his primary bank for possible personal and business accounts. During the wire intercepts banking officials from First Bank would call MARTIN and if he could not be reached, call FAULKENBERRY to relay messages to MARTIN. Also during the wire intercepts, MARTIN would indicate he needed to go to the bank on several occasions and also direct FAULKENBERRY to the bank for various deposits.
11. An employee of WMJ Enterprises, Pam Medlin, stated to SA David Drew that she believed MARTIN used First Bank for the business and both MARTIN and FAULKENBERRY were the ones who picked up money from the business on a routine basis. Your affiant believes MARTIN and FAULKENBERRY were using accounts at First Bank to further the drug trafficking organization.
12. On multiple intercepted calls MARTIN reference money he needed to collect from his business, WMJ Enterprises, which he would utilize in narcotics transactions. Additionally, in an interview of MARTIN on September 25, 2017, he confessed to using WMJ Enterprises as a source for narcotics funds and operation. Your affiant believes that MARTIN comingled the legitimate business activities of WMJ Enterprises with the drug trafficking organization MARTIN operated.
13. In addition to First Bank, MARTIN utilized UBS Financial services as a possible asset manager. In an intercepted call on August 17, 2017, MARTIN spoke to a representative of UBS and the call reference a monetary transfer to an account at First Bank.
14. On September 14, 2017, in an intercepted call with a representative of UBS, MARTIN discusses his portfolio and their assistance in selling stocks for MARTIN.
15. On September 14, 2017, in an intercepted call with GRAY THREATT, an "Ice" methamphetamine supplier, THREATT want to know if MARTIN wanted to "go in with him" to purchase narcotics. MARTIN told THREATT he sold stock for $30,000 and would have the money on Monday morning, and that he needed to go to the bank.
16. On September 14, 2017, in an intercepted call with TIMOTHY BOWENS, a known "Ice" methamphetamine and cocaine dealer, MARTIN told BOWENS he sold stocks and would also have money by Monday.
17. On September 15, 2017, in an intercepted call with Sarah Roman, MARTIN told her he was going to make a $10,000 deposit in the bank, believed to be First Bank, and he discovered the balance was $32,000. MARTIN confirmed the money was transferred from UBS.
18. Accordingly, your Affiant submits that there is probably cause that restraint of disposal of any assets or withdrawals or transfers of any assets held in the name of, by, on behalf of, or for the benefit of MARTIN, FAULKENBERRY, or WMJ ENTERPRISES is appropriate so as to temporarily secure such assets — which constitute proceeds and/or substitute property — for forfeiture pending further investigation of Bank records and information. Therefore, your Affiant submits that there is probable cause for issuance of a Restraining Order in the form submitted herewith.
Respectfully submitted this the 28th day of September, 2017.
Eric J. Pelletier, Special Agent, FBI
Sworn to and subscribed to before me this the 28th day of September, 2017.
Hon. David C. Keesler
UNITED STATES MAGISTRATE JUDGE
