King, WILMINGTON — A Clayton man has confessed to his role in fraudulent activities involving stolen identities and fraudulent loan applications, including a Paycheck Protection Program (PPP) loan. Darnell William King, 42, entered a guilty plea earlier this month to conspiracy to commit bank and wire fraud, aggravated identity theft, and possession of a firearm by a felon.
Prosecutors revealed that King was implicated in two distinct fraud schemes. In one, he and accomplices exploited stolen identities to secure personal loans from private lenders. King fabricated counterfeit driver’s licenses and other forged documents, using authentic photos of individuals he recruited, referred to as “mules.” Utilizing the stolen personal information, these mules then applied for loans and subsequently transferred the funds to King and his associates in exchange for kickbacks ranging from $100 to $2,000.
Donald “Trey” Eakins, the special agent in charge of the Charlotte field office of the Internal Revenue Service’s Criminal Investigation division, commented on the case. “The defendant inflicted immeasurable hardship on innocent victims and businesses by stealing identities and using them to borrow money he never intended to repay,” Eakins stated.
The second scheme involved King and his co-conspirators applying for a PPP loan under his name. They submitted falsified bank and tax records to falsely claim he had been employed as an Uber driver prior to the COVID-19 pandemic. This fraudulent application resulted in the disbursement of over $15,000 in federal COVID relief funds.
Acting U.S. Attorney Daniel P. Bubar emphasized the importance of the PPP. “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 said. “Instead, King saw the PPP as an opportunity to commit serious fraud.”
The investigation, known as Operation Overload, exposed widespread fraud related to North Carolina driver’s licenses. Capt. Talaya Vaughn of the N.C. DMV License & Theft Bureau noted the scale of the operation. “This extensive investigation … uncovered a sophisticated criminal enterprise that fraudulently utilized thousands of North Carolina driver licenses,” Vaughn said.
King’s sentencing is scheduled for later this year before U.S. District Judge Richard E. Myers II. During a search of a Clayton residence, investigators discovered King in possession of a firearm equipped with a high-capacity drum magazine. As a convicted felon, he is legally prohibited from owning firearms.
The investigation was conducted by the IRS Criminal Investigation division, along with Homeland Security Investigations, the Wake County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the N.C. DMV License & Theft Bureau. Additional support was provided by other agencies, including Clayton police.
