Darnell William King, a 42-year-old from Clayton, has been sentenced to 70 months in prison with an additional 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. According to court documents, King was involved in conspiracies related to Paycheck Protection Program (PPP) fraud and the use of stolen identities for obtaining personal credit lines around Wake County. Restitution was ordered to be paid to the Small Business Administration and defrauded private lenders.
“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,” stated Acting U.S. Attorney Daniel P. Bubar. He added that King’s actions undermined a program meant for struggling businesses in Eastern North Carolina.
Acting Special Agent in Charge Richard Gaskins from the IRS Criminal Investigation Charlotte Field Office commented on the impact of such crimes: “Criminals cause immeasurable hardship to innocent victims and businesses by lying and stealing their identities.” He highlighted how King recruited others for fraudulent loans using stolen information.
ATF Special Agent in Charge Alicia Jones condemned King’s exploitation of assistance programs while illegally possessing a firearm: “Stealing critical resources aimed at protecting communities and citizens is inexcusable.”
The investigation revealed that King used fake driver’s licenses with stolen personally identifying information. These were then used by “mules” to obtain loans, delivering proceeds back to King or his co-conspirators.
“This extensive investigation, known as Operation Overload, uncovered a sophisticated criminal enterprise,” said Captain Vaughn from the North Carolina DMV License & Theft Bureau. He praised the interagency cooperation that was crucial in combating these fraud schemes.
Sheriff Willie Rowe explained how the investigation began with complaints about identity theft and fraud from Wake County residents. It led to multiple arrests over nearly a year with support from various law enforcement agencies, uncovering hundreds of thousands of dollars in fraud across North Carolina.
In another conspiracy, King falsified records claiming he worked as an Uber driver pre-pandemic, securing over $15,000 through PPP funds guaranteed by the Small Business Administration. A search warrant execution also found him possessing a firearm illegally due to his felony status. Co-defendants Loretta Clarice James and Lakesha Bowles received sentences of eight years and 30 months respectively for their roles.
Daniel P. Bubar announced King’s sentencing following Chief U.S. District Judge Richard E. Myers II’s decision. The case was investigated by multiple agencies including IRS Criminal Investigation and Homeland Security Investigations, prosecuted by Assistant U.S. Attorneys David G. Beraka and Ashley H. Foxx.
