Evergreen Reporter

Darnell William King, a 42-year-old resident of Clayton, North Carolina, has admitted guilt in connection with a series of crimes involving COVID-19 assistance fraud, aggravated identity theft, and illegal firearm possession. The plea was entered in Wilmington, where King confessed to engaging in conspiracies to commit bank and wire fraud as well as exploiting stolen identities for personal financial gain.

Acting United States Attorney Daniel P. Bubar highlighted the misuse of the Paycheck Protection Program (PPP) by King. "The Paycheck Protection Program was an essential tool used to support the economy against an unforeseen international health crisis and provide much-needed relief for small businesses," Bubar remarked. "Instead, King saw the PPP as an opportunity to commit serious fraud."

King's fraudulent activities extended beyond PPP exploitation. Special Agent in Charge Donald “Trey” Eakins from the Internal Revenue Service Criminal Investigation division explained that King's actions inflicted significant harm on victims by using stolen identities for loans he never intended to repay. "IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain vigilant in finding, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury," Eakins said.

According to court documents, King orchestrated schemes involving accomplices known as "mules" who helped secure fraudulent loans using fake identity documents crafted by King. These documents featured real photos of mules paired with stolen personal information. The resulting loan proceeds were handed over to King or his associates in exchange for monetary compensation ranging from $100 to $2,000.

In a separate conspiracy related to PPP funds, false documentation was submitted under King's name claiming employment as an Uber driver before the pandemic. This resulted in over $15,000 being disbursed under false pretenses.

During a search operation tied to these activities in Clayton, authorities discovered King illegally possessing a firearm equipped with a high-capacity drum magazine—a violation due to his status as a convicted felon.

Captain Vaughn from the North Carolina DMV License & Theft Bureau emphasized the investigation's scope: "This extensive investigation, known as Operation Overload, uncovered a sophisticated criminal enterprise that fraudulently utilized thousands of North Carolina driver licenses." He commended all agencies involved for their collaborative efforts in dismantling such complex fraud operations.

Sentencing for Darnell William King is scheduled later this year before U.S. District Judge Richard E. Myers II. The investigation was led by IRS Criminal Investigation with contributions from multiple federal and state agencies including Homeland Security Investigations and local law enforcement entities.

Further details on related legal proceedings can be accessed via official court resources using Case No. 5-24-CR-00156.