District of Maryland
Press releases recorded for this federal judicial district.
Baltimore Man Exiled to 15 Years in Prison on Gun and Drug ChargesRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Joseph McKinsey Brown, age 29, of Baltimore, Maryland, today to 15 years in prison followed by five years of supervised release for conspiracy to distribute and possess with the intent to distribute cocaine, and possession of a firearm in furtherance of a crime of violence, in connection with the planned robbery of a drug dealer.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Brown’s guilty plea, Brown, Donte Wise, and another co-conspirator, met with a confidential source of information (CS) and with an ATF undercover officer posing as a drug courier to plan the robbery of a drug dealer. Wise and his co-conspirators agreed to commit the armed robbery in exchange for half of the stolen cocaine, expected to be as much as seven kilograms, which they would then distribute. On August 15, 2012, the CS picked up Brown and his co-conspirators and drove to a location in Baltimore to meet the undercover officer, who was to provide a minivan for the conspirators to use to commit the robbery. After arriving at the meet location, ATF agents approached to arrest the conspirators. All three fled, discarding their weapons as they ran, but were caught and arrested. Brown and Wise each threw away a loaded 9mm handgun, which were recovered, along with the .45 caliber handgun thrown on a roof by the third conspirator. A search also recovered black rubber gloves and a black balaclava from Wise and black rubber gloves and a black ski mask from Brown.
Donte Wise, age 30, of Baltimore, Maryland, was previously sentenced to 15 years in prison on the same charges.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James T. Wallner, who prosecuted the case.
Temple Hills Drug Dealer Sentenced to 27 Years in PrisonRead the Press Release
Distributed At Least 3 Kilograms of PCP Over the Course of the Drug ConspiracyGreenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Samuel Braxton, age 44, of Temple Hills, Maryland, today to 27 years in prison followed by five years of supervised release for conspiracy to possess with intent to distribute phencyclidine (PCP), crack cocaine and heroin. Judge Titus found that Braxton was a career offender based on two previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation Chief Cathy L. Lanier of the Metropolitan Police; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Braxton=s guilty plea, from at least June 2010 through February 2012, Braxton was a part of a drug trafficking conspiracy based in and around Temple Hills, Maryland. Braxton regularly received multi-ounce to quarter-gallon quantities of PCP from his sources of supply and would then add starter fluid or other chemicals to the PCP to increase its quantity. Also during this time period, Braxton received heroin, and crack and powder cocaine from his sources of supply. Braxton converted a portion of the powder cocaine into crack. Braxton sold the PCP, heroin, and crack to regular drug customers in the Washington, D.C. metropolitan area, including Prince George’s County.
From November 2011 through January 2012, Braxton was intercepted, on a court-ordered wiretap of his phone, on over 600 drug-related telephone conversations during which he and other co-conspirators discussed the sale of and arranged drug transactions involving PCP, heroin, crack, cocaine, and marijuana. On at least two occasions, a cooperating source purchased PCP from Braxton at his apartment in Temple Hills. Law enforcement seized PCP that Braxton had supplied to co-conspirators, as well as from Braxton’s bowling alley locker and other locations where Braxton stored the PCP. Braxton was overheard by law enforcement on more than one occasion directing his minor son to put a bag or other receptacle containing PCP into his bowling alley locker. A witness also saw Braxton take PCP from his bowling alley locker and put it into his son’s lunchbox, directing his son to bring the lunchbox to Braxton’s apartment.
Over the course of the conspiracy Braxton was responsible for the distribution of at least three kilograms of PCP, 28 grams of crack cocaine and 100 grams of heroin.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Metropolitan Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule and Steven E. Swaney, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Salisbury Man Sentenced to over 10 Years in Prison in Bank Fraud SchemeRead the Press Release
Stole the Identity Information of at least 40 Clients of a Residential Mental Health Program to Open Fraudulent Bank Accounts and File False Tax Returns; Led the Conspirators by Using Violence
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Christopher Andre Devine, age 34; of Salisbury, Maryland; Frederica, Delaware; and Philadelphia, Pennsylvania, today to 121 months in prison followed by five years of supervised release for conspiring to commit bank fraud and aggravated identity theft in connection with a scheme to use the personal identifying information of individuals to open bank accounts and fraudulently obtain cash, merchandise and services.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Wicomico County Sheriff Michael A. Lewis; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
“Identity theft scheme participants like Mr. Devine wreak havoc on financial institutions as well as those whose identities are stolen,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Perpetrators of identity theft schemes are motivated by greed, acting as if they are above the law and with total disregard for the consequences to the victims, but today's sentence has brought an abrupt end to Mr. Devine’s criminal behavior. IRS Criminal investigation along with our federal law enforcement partners are equipped to dismantle criminal conspiracies designed solely to defraud and bring the law breakers to the table of justice.”
According to his plea agreement, from December 2008 through December 22, 2011, in Maryland, Pennsylvania and elsewhere, Devine and his co-defendants, Quanishia Williamson-Ross, Lenee E. Williamson and Quashonna Williamson opened or recruited others to open checking accounts at banks and obtain check cards, which the conspirators then controlled. The conspirators then deposited fraudulent checks into the accounts and used the associated check cards at ATM machines to make cash withdrawals from the accounts.
According to evidence presented to the court, conspirators Williamson-Ross and the Williamsons gave all of the proceeds from the scheme to Devine who provided them with little more than food and shelter. The women lived with Devine and were completely financially dependent on him. According to court testimony, Devine used a minor to further the scheme and led the group of conspirators with violence and intimidation, including punching and throwing a conspirator across a room.
Devine also obtained the identifying information of at least 40 individuals who were clients and 60 individuals who were current or former employees, of a residential program for adults with mental health needs (the Program), which he purchased from an individual who was employed at the Program. Devine used the personal identifying information of these victims to open checking accounts via the telephone and Internet that he then controlled for use in the scheme.
Devine and his co-conspirators had fraudulent identification documents made using the personal information of others but with photographs of Devine, Williamson-Ross and Lenee Williamson, which they used, along with the check cards, to make purchases at retail stores, later returning the purchased items for cash. The conspirators also used the check cards to obtain services, such as utilities, cable, and cellular phone service, and to make purchases for their personal benefit at restaurants, drug stores, grocery stores, gas stations and video rentals, and other businesses.
Devine also participated in a scheme to defraud the IRS by preparing and filing false tax returns in the names of individuals recruited for the tax fraud scheme and using the personal identifying information of clients in the Program. For the 2010 tax year, at least 34 false tax returns were filed, claiming $123,126 in false refunds. Refunds from many of the false tax returns were direct deposited into bank accounts controlled by Devine through the bank fraud scheme.
In December 2011, law enforcement searched a van and two residences in Salisbury used by the co-conspirators. Hundreds of pieces of evidence were seized, including: credit/debit cards; SSN cards; fraudulent driver’s licenses; and personal identifying information of approximately 300 individuals, at least 100 of whom were clients or employees at the Program.
Over the course of the scheme, Devine and his co-conspirators used the stolen identifying information of at least 24 individuals to open at least 73 checking accounts at financial institutions, resulting in a loss of at least $200,000.
Quanishia Williamson-Ross, age 31; and Lenee E. Williamson, age 22, both of Salisbury, Maryland, Frederica, Delaware and Philadelphia, Pennsylvania, previously pleaded guilty to the same charges and are awaiting sentencing.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked HSI Baltimore, the Wicomico County Sheriff’s Office, IRS-CI and the Social Security Administration - Office of Inspector General for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Paul E. Budlow and Kristi N. O’Malley, who prosecuted the case.
Ringleader Sentenced to 11 Years in Prison in Identity Theft Fraud Scheme Involving over 250 Individual VictimsRead the Press Release
Stole the Identities of Doctors Who Applied for Fellowships at Johns Hopkins Hospital Where His Girlfriend WorkedBaltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced ringleader Derrick Hill, age 53, of Woodlawn, Maryland, today to 11 years in prison followed by three years of supervised release for conspiring to commit wire fraud and aggravated identity theft. Judge Bennett also entered an order that Hill pay restitution of $191,180.26.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office and Anne Arundel County Police Chief Larry W. Tolliver.
According to his plea agreement, from August to October, 2009, Hill and his girlfriend Renee Cabell conspired with their co-defendants John Coffey and Tawney King to negotiate counterfeit checks drawn on victim bank accounts.
Hill received checks which had been designated for destruction by banks and stolen before they could be destroyed. He also received personal identity information and personal financial information from King who was employed by Highlandtown Community Health Center. According to King’s plea agreement, King accessed patient files and provided Hill with the patient identifying information either directly or through her friend Cabell. Hill used this information to create counterfeit checks using the victim’s financial account information and the identity information of other victims. He also obtained counterfeit identification cards and altered stolen Maryland driver’s licenses so that they displayed victim identity information, but with the photo of one of several co-conspirators, including Coffey.
Hill recruited Coffey to help him cash the checks at banks and retail establishments. If the counterfeit checks were cashed at a retail store, Hill told his co-conspirators what to buy. Proceeds, whether cash or merchandise, were given to Hill, who paid his co-conspirators a small percentage for each successful transaction.
Additionally, Cabell provided Hill with the names and identity information of doctors who applied for fellowships at Johns Hopkins Hospital where Cabell worked, processing the fellowship applications. Hill used the doctors’ identities to rent apartments, buy merchandise and obtain services. Indeed, shortly before Hill’s arrest, Hill was attempting to rent another apartment in a doctor’s identity because he and Cabell were about to be evicted for non-payment on the apartment they rented in the identity of another doctor.
The defendants obtained cash, merchandise and services worth over $188,000. The identities of over 250 individuals were compromised.
Renee Cabell, age 51, of Woodlawn, Maryland, John Coffey, age 43, and Tawney King, age 46, all pleaded guilty previously pleaded guilty to the same charges. Cabell and Coffey were sentenced last week to 30 months and 57 months in prison, respectively, and ordered to pay restitution of $191,180.26. Both were sentenced to three years of supervised release, with Cabell ordered to serve 12 months of her term of supervised release on home detention. King is scheduled to be sentenced later this week on March 28th.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Owner of Landover Business Pleads Guilty to Failing to Pay over $2.2 Million in Employment TaxesRead the Press Release
hile Failing to Pay Employment Taxes, Spent Hundreds of Thousands of Dollars of Corporate Money for His Personal BenefitGreenbelt, Maryland - U.S. District Judge George L. Russell III, sentenced Alphonso Tillman, age 44, of Fort Washington, Maryland today to two years in prison, followed by three years of supervised release, for failing to account for and pay over employment taxes. Judge Russell also ordered Tillman to pay restitution of $2,205,991.40.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Using money withheld from your employees’ compensation for personal gain is reckless,” said Sheila Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Business owners are responsible to withhold and pay over income taxes from their employees’ compensation to the IRS. Today’s sentencing shows failing to do so is a serious offense to which Mr. Tillman is being held accountable.”
According to his plea agreement, Tillman was the president and sole owner of Remote Surveillance Technology Solutions, Inc. (RSTS), and its successor, Remote Surveillance Technology Services, LLC, (RSTServ). The companies were headquartered in Landover, Maryland and provided security guards to protect commercial and residential properties in Maryland, Virginia, Pennsylvania and the District of Columbia.
RSTS and RSTServ withheld taxes from their employees’ paychecks, including federal income taxes, medicare and social security taxes (payroll taxes), which the companies were required to pay over to the IRS on a periodic basis. Tillman failed to file the required forms or pay the payroll taxes due for RSTS and RSTServ, with the exception of payments made by RSTS to the IRS as a result of IRS collection efforts.
Between 2005 and 2008, Tillman made hundreds of thousands of dollars of expenditures from the RSTS and RSTServ business accounts for his personal benefit while, at the same time, failing to pay over to the IRS payroll taxes withheld from employee paychecks.
The total amount of tax loss resulting from Tillman’s failure to pay taxes owed by RSTS and RSTServ is $2,205,991.40
United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Sean B. O’Connell, who prosecuted the case.Leader of PCP Distribution Conspiracy Exiled to over 15 Years in PrisonRead the Press Release
Arrested en Route to Robbing a Cocaine DealerGreenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Robert Lee Jones, age 26, of Capitol Heights, Maryland, today to 188 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), possession with intent to distribute crack cocaine; being a felon in possession of a firearm; and conspiracy to use and carry a firearm in relation to a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, from January 2008 through February 2012, Jones conspired to sell PCP at the Central Gardens Apartment complex in Capitol Heights. Jones periodically lived in the apartment complex. The conspirators used violence or threatened to use violence to control their territory and prevent competition from other drug dealers. Over the course of the conspiracy, Jones, either alone or with another conspirator, sold PCP to a confidential source on at least 18 occasions. Jones was responsible for the distribution of between one and three kilograms of PCP.
Jones and two co-conspirators, who were armed with firearms, were arrested on February 10, 2012 on the way to a planned robbery of a cocaine dealer. Law enforcement executed a search warrant at the Central Gardens apartment where Jones was living at the time and seized a 5.56 caliber semi-automatic rifle along with a 30 and 100 round magazine; 22 rounds of various caliber ammunition; approximately 98 grams of crack cocaine; at least 211 grams of PCP; and drug paraphernalia.
Jones was previously convicted of a felony and was prohibited from possessing firearms or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Steven E. Swaney, who prosecuted the case.
Leader of Marijuana Trafficking Organization Sentenced to Life on Racketeering ChargesRead the Press Release
Drug Courier Kidnapped and Dismembered in Bathtub; Another Gang Leader MurderedBaltimore, Maryland - U.S. District Judge William D. Quarles sentenced Jean Brown, age 43, of Jamaica, to life in prison in connection with a conspiracy to distribute marijuana as one of the leaders of the Brown Organization, a criminal organization whose members distributed narcotics primarily in Maryland, Pennsylvania, New York, Arizona and Jamaica.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.
“Jean Brown ran a lucrative drug organization that committed wanton and brutal acts of violence,” said U.S. Attorney Rod J. Rosenstein. “In 2009, after authorities seized $250,000 in drug proceeds from courier Michael Knight, Brown and her associates kidnapped Knight, dismembered him in a bathtub and threw his remains in the trash.”
“Today’s life sentence of Jean Brown for her drug conspiracy, kidnapping and murder in aid of racketeering is a victory for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and two countries. HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators, who used intimidation and violence to further their criminal activities,” said William Winter, special agent in charge of HSI Baltimore. “HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”
According to evidence presented at their seven-day trial, Jean Brown and Carl Smith led a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.
Brown employed the truck drivers, arranged for the distribution of the marijuana on the East Coast – principally in Baltimore and Pittsburgh, used couriers to smuggle the drug proceeds to Jamaica, and sent cash back to the Southwest to pay for the next load.
Witnesses testified that on December 16, 2009, Brown, Smith and co-defendants Peter Blake, Hubert Downer and Dean Myrie kidnapped Michael Knight, one of Brown’s money couriers. Knight was holding $1 million for the organization, but when the money was collected $250,000 was missing. Myrie drove Knight, who was bound with a telephone cable, Brown and other drug members to an apartment in White Marsh, Maryland, where Brown and others interrogated Knight. After Knight was not able to provide the location of the money, Brown ordered Downer and Blake to kill Knight. Knight was stabbed to death in the bathtub. Over the next few days Brown, Myrie, Downer and Blake dismembered Knight and disposed of his body in dumpsters in the Loch Raven and Liberty Road areas of Baltimore County.
In addition to the murder of Knight, the evidence showed that after threatening Smith on several occasions, in April 2010, Brown offered to pay co-conspirators to murder Smith in Tijuana, Mexico. Witnesses testified that one of the co-conspirators killed Smith, shooting him in the head.
Dean Myrie, a/k/a “Journey,” age 39, of Jamaica, pleaded guilty to kidnapping in aid of racketeering and was sentenced to 108 months in prison. Hubert Downer, a/k/a “Doc” and “Michael Reid,” age 51, of Jamaica; and Peter Blake, age 55, of Jamaica have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Fort Washington Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Wayne Glymph, age 46, of Fort Washington, Maryland, today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), cocaine base and heroin; and being a felon in possession of ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his guilty plea, beginning in January 2011, Glymph, co-defendant Samuel Braxton and other conspirators sold PCP, heroin and crack to drug customers in Prince George's County, Maryland, and in the Washington, D.C. metropolitan area. Glymph and others used Braxton’s apartment and a bowling alley in Temple Hills, Maryland to store and distribute narcotics. Glymph often pooled money with Braxton to obtain the drugs, which Glymph and Braxton then redistributed to their customers. Glymph was responsible for distributing between one and three kilograms of PCP, between 28 and 112 grams of crack, and between 400 and 700 grams of heroin.
On February 23, 2011, law enforcement agents executed a search warrant at Glymph’s residence and seized approximately 19 grams of heroin, 10 grams of crack, 25 grams of marijuana, a four-ounce bottle containing PCP residue, assorted drug paraphernalia, $23,626, a diamond engagement ring, a pouch containing two loaded 9mm pistol magazines, six loaded .40 caliber pistol magazines, an empty .40 caliber pistol magazine, a shotgun shell and 11 .40 caliber cartridges. Glymph had been previously convicted of a felony and was prohibited from possessing the guns and ammunition.
Samuel Braxton, a/k/a Fats, age 44, of Temple Hills previously pleaded guilty to his participation in the conspiracy and awaits sentencing. A total of 10 defendants have pleaded guilty to date to charges arising from the drug conspiracy.
United States Attorney Rod J. Rosenstein commended the DEA and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule and Steven E. Swaney, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Baltimore Men Exiled to 10 Years in Prison on Drug ChargesRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Blake Betters, age 23, of Baltimore, Maryland, today to 10 years in prison followed by five years of supervised release for conspiracy to possess with the intent to distribute five kilograms or more of cocaine.
On March 19, 2013, Judge Bredar sentenced co-defendant Brandon Harris, age 22, also of Baltimore, to 10 years in prison followed by five years of supervised release on the same charge.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to their plea agreements, in May 2012, Betters, Harris and a co-conspirator, were introduced to an undercover Bureau of Alcohol, Tobacco and Firearms (ATF) agent who proposed robbing a large scale drug trafficker of multiple kilograms of narcotics. Betters, Harris and their co-conspirator agreed to commit the robbery and to resell the stolen narcotics to customers in the Baltimore area.
On June 14, 2012, Betters, Harris and four co-conspirators met with the undercover agent to make their final preparations to commit the robbery. Betters, Harris and their co-conspirators were armed, and they all expected the weapons to be used to commit the robbery. After confirming that they were ready to rob the stash house, Betters, Harris and their co-conspirators followed the agent to a location in Baltimore where they believed they would be given the location of the robbery. As the arrest team approached, Betters and Harris fled, but were quickly apprehended and arrested.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and John W. Sippel, Jr., who prosecuted the case.
Baltimore Man Exiled to 10 Years in Prison for Drug Distribution and Possession of A Gun in Furtherance of A Drug CrimeRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Glenn Anthony Thompson, age 45, of Baltimore, today to 10 years in prison, followed by four years of supervised release, for possession with intent to distribute crack cocaine and heroin, and for possession of a gun in furtherance of drug trafficking.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to Thompson's plea agreement, on November 11, 2009, law enforcement executed a search warrant at Thompson’s home in the 2000 block of Westwood Avenue in Baltimore. During the search, officers recovered a loaded .357 revolver, .357 ammunition, a black semi-automatic pellet gun, a safe that contained crack cocaine and heroin, ten baggies of heroin from a sock in the bedroom, and .38 caliber ammunition. The total amount of narcotics recovered was 38.48 grams of crack cocaine and 50.80 grams of heroin.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Ayn B. Ducao, who prosecuted the case.
Baltimore Felon Exiled to over 19 Years in Prison in Murder-For-Hire SchemeRead the Press Release
Three-Time Felon Caught in FBI StingBaltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Antonio McKiver, age 47, of Baltimore, today to 235 months in prison followed by five years of supervised release for use of interstate commerce facilities in the commission of murder-for-hire, possession with the intent to distribute heroin and possession of a firearm by a convicted felon. Judge Blake enhanced McKiver’s sentence upon determining that McKiver is an armed career criminal based on three prior convictions for violent felonies and drug offenses.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
“There are other hit men like Antonio McKiver who commit drug-related murders in Baltimore,” said U.S. Attorney Rod J. Rosenstein. “Our challenge is to catch them before the next murder so we don't need to chase them afterwards.”
According to his plea agreement, on June 7, 2012 McKiver told a confidential informant that he was willing to be paid in cash and by drugs to carry out a murder. The next week McKiver met with an undercover FBI agent and agreed to commit a murder of a drug “associate” of the undercover agent for $15,000 and a kilogram of drugs. McKiver asked the undercover agent to provide the gun.
Thereafter, a cell phone used to arrange the murder and $600 were mailed to McKiver. On July 23, 2012, the undercover agent met McKiver in the parking lot of a hotel in Baltimore County, gave McKiver $5,000, a kilogram of heroin and a .9mm semi-automatic pistol. The undercover agent described the intended victim in detail to McKiver and pointed out the vehicle that the intended victim was using. After the undercover agent left and while McKiver waited in the parking lot for the victim, McKiver was arrested.
Agents executed a search warrant at McKiver’s house and seized a .40 caliber semi-automatic pistol and a 20 gauge shotgun. McKiver had previously been convicted of a felony and was prohibited from possessing the guns.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and James Wallner, who prosecuted the case.
Solomons Man Sentenced to 12 Years in Prison for Producing Child PornographyRead the Press Release
Typical of the Predators Children Routinely Encounter on the InternetGreenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Joshua P. Blakenship, age 25, of Solomons, Maryland, today to 12 years in prison followed by a lifetime of supervised release for producing child pornography. Judge Titus ordered that upon his release from prison, Blakenship must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Calvert County Sheriff Mike Evans; and the Rapid City South Dakota Police Department.
“Joshua Blankenship is typical of the predators children routinely encounter on the internet,” said U.S. Attorney Rod J. Rosenstein.
“Individuals that sexually exploit children think they can hide behind their computers and not be discovered by law enforcement,” said Special Agent in Charge of HSI Baltimore William Winter. “Think again. HSI special agents along with our domestic and international law enforcement partners have joined forces to aggressively investigate and apprehend these predators and ensure that they are prosecuted to the full extent of the law.”
According to his plea agreement, Blakenship “friended” a teenage girl on Facebook in January 2011. They exchanged text messages and by March 2011, Blankenship asked the girl for a nude photo of herself. The girl sent Blakenship a nude photo she took on her cell phone.
On July 4, 2011, Blankenship sent a text message to the girl demanding 10 nude pictures and said that if she did not produce and send the photos, she would go to jail because she had sent an illegal image on her cell phone. Between July 5 and 7, 2011, Blakenship sent numerous texts describing the images he wanted her to produce and threatening to call the police if she refused. The victim produced several dozen pictures and sent them to Blakenship.
Blakenship was identified and his residence searched on August 5, 2011. Blakenship admitted to forcing individuals to send him pictures, and to creating a fake profile on the Internet to gain access to pictures and videos of girls.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, Calvert County Sheriff’s Office and Rapid City, South Dakota Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, and Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Randallstown Man Convicted of Bankruptcy Fraud and Filing False Tax ReturnsRead the Press Release
Failed to Report Income and Assets Totaling Over $740,000 and Attempted to Fraudulently Discharge Debts of Over $1.1 million through BankruptcyBaltimore, Maryland - A federal jury today convicted Ricardo O. Curry II, age 42, of Randallstown, Maryland, on two counts of assisting in the filing of a false tax return, four counts of bankruptcy fraud, four counts of falsifying bankruptcy records and one count of false testimony under oath at a bankruptcy proceeding. After the jury returned its verdict, U.S. District Judge William D. Quarles, Jr. ordered that Curry be detained pending sentencing and he was taken into custody
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and the Baltimore Office of the United States Trustee Program, the Department of Justice agency that supervises bankruptcy cases and trustees.
According to evidence presented at his three day trial, Curry worked for Peerless Real Estate Services, Inc., a North Carolina corporation that oversaw the sale of property in North Carolina, including the Village of Penland development, which contained more than 2000 lots. Curry recruited at least 12 investors to purchase at least 23 lots in the Village of Penland and he received referral fees based on these sales. In 2005, 2006, and 2007, respectively, Curry earned referral fees of $41,455, $43,200, and $330,546. Although Curry reported the income he received as a sales representative for a pharmaceutical company on his 2005, 2006, and 2007 tax returns, he failed to report these referral fees, totaling $415,201.
On March 12, 2009, Curry filed for Chapter 13 bankruptcy in the United States Bankruptcy Court for the District of Maryland. On April 21, 2009, Curry filed a Statement of Financial Affairs with the bankruptcy court, which reported the income he earned as a pharmaceutical sales representative for tax years 2005, 2006, and 2007, but failed to report the $415,201 he earned in referral fees from Peerless. Curry also failed to disclose his ownership interest in a home worth approximately $325,000. On July 28, 2009, Curry filed an Amended Statement of Financial Affairs, which again failed to disclose the $415,201 in referral fees, and his ownership interest in the home. On October 20, 2009, Curry testified under oath at meeting of the creditors, falsely stating that all of his assets were listed in his bankruptcy filing, when in fact, Curry knew that he had not reported the referral fees, nor his home ownership. Ultimately, Curry never provided documents to the trustee overseeing his bankruptcy case regarding either the referral fee income or the home, and as a result, on April 12, 2010, Curry’s attempt to discharge his debts through bankruptcy was denied
Curry faces a maximum sentence of 20 years in prison on each count of falsifying bankruptcy records; five years in prison on each count of bankruptcy fraud and for false testimony; and three years in prison for each of the tax counts. Judge Quarles has scheduled sentencing for June 4, 2013, at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the IRS-CI, FBI and U.S. Trustee’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and David I Sharfstein, who are prosecuting the case.
Hospice of Arizona and Related Entities to Pay $12 Million to Resolve False Claims Act Allegations Filed in MarylandRead the Press Release
Allegedly Submitted False Claims for Patients Who Did Not Have Terminal PrognosisBaltimore, Maryland – Hospice of Arizona, L.C., along with American Hospice Management, LLC, and their parent corporation, American Hospice Management Holdings, LLC, have agreed to pay $12 million to resolve allegations that they violated the False Claims Act by submitting or causing the submission of claims to the Medicare program for ineligible hospice services provided by Hospice of Arizona.
The settlement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein; Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice’s Civil Division; and Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General’s region including Arizona.
The Medicare hospice benefit is available for patients who elect palliative treatment (medical care focused on providing patients with relief from the symptoms, pain and stress of a serious illness) for a terminal illness, and have a life expectancy of six months or less if their disease runs its normal course. Today’s settlement resolves allegations that Hospice of Arizona and its related entities submitted or caused the submission of false Medicare claims between September 1, 2002 and December 31, 2010 for Hospice of Arizona patients that did not have a terminal prognosis of six months or less, or that did but were not eligible for the level of care billed.
The government alleges that Hospice of Arizona and its related entities engaged in certain practices that resulted in the submission of false claims, including pressuring staff to meet admissions and census targets, adopting procedures that delayed and discouraged discharges of ineligible patients, and failing to timely implement an adequate compliance program. As part of the settlement, American Hospice Management Holdings, LLC has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to the settlement.
“The hospice industry relies on the Medicare Trust Fund, and payments for unnecessary services jeopardize its financial viability,” said U.S. Attorney Rod J. Rosenstein.
“This settlement is the result of the Justice Department’s efforts to prevent the misuse of the taxpayer-funded Medicare hospice program, which is intended to provide comfort and care to terminally ill persons in the final stages of their disease” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice’s Civil Division.
“Medicare and taxpayers depend on hospice agencies to provide medically appropriate services to terminally ill patients,” said Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General’s region including Arizona. “When providers place more importance on the bottom line than on the care of these vulnerable patients, they can expect to face serious penalties.”
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14 billion.
The allegations settled today arose from a lawsuit filed by a former Hospice of Arizona employee under the qui tam, or whistleblower provisions, of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery. The whistleblower in this case will receive $1.8 million. The case is United States ex rel. Momeyer v. Hospice of Arizona, L.C., et al., No. 1:10-cv-280 (D. Md.).
Hospice of Arizona, L.C., American Hospice Management, LLC, and American Hospice Management Holdings, LLC deny the allegations.
United States Attorney Rod J. Rosenstein commended the investigative work performed by the Department of Health and Human Services Office of the Inspector General. Mr. Rosenstein also thanked Assistant U.S. Attorney Roann Nichols and Christelle Klovers of the Department of Justice’s Civil Division, who handled the case for the government.
Talbot County Attorney Indicted in Real Estate Investment Fraud Scheme with over $747,000 in LossesRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Aaron G. Seltzer, age 36, of Trappe, Maryland, on nine counts of wire fraud in connection with a scheme in which he converted funds intended for real estate investments to his personal use. The indictment was returned on March 14, 2013, and unsealed today upon Seltzer’s arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the nine count indictment, Seltzer was a licensed Maryland attorney who handled real estate transactions and maintained an office in Crofton, Maryland. The indictment charges that from January 2008, through 2010, Seltzer offered victims fraudulent investment opportunities then diverted the money intended for the investments for his own benefit. The indictment alleges that Seltzer obtained a total of $747,860 through eight fraudulent transactions and seeks forfeiture of that amount as the proceeds of the scheme.
For example, Seltzer offered to sell an investor 45% of an Anne Arundel County real estate company, claiming that he owned 100% of the stock, assets and liabilities of the company, when in fact, he did not. The investor sent a total of $92,000 to Seltzer, which Seltzer allegedly used for his own benefit. During the summer of 2009, Seltzer contacted a lawyer in New York and represented that a client of Seltzer’s was seeking a business loan. According to the indictment, Seltzer proposed that the loan be secured by a mortgage on three commercial properties located in Virginia, purportedly owned by Seltzer’s client. The New York attorney assembled a group of investors to fund the loan. Seltzer presented the attorney with a fraudulent promissory note, which Seltzer falsely claimed was signed by a representative of his client. Seltzer further falsely represented that he had conducted the closing for the loan and presented the attorney with fabricated closing documents. On behalf of the investors, the attorney wired Seltzer $497,527 to fund the loan, which Seltzer allegedly diverted to his own benefit.
Seltzer faces a maximum sentence of 20 years in prison on each of the nine counts of wire fraud. Seltzer is scheduled to have his initial appearance at 3:45 p.m. today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today's announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, and the FBI and for their work in the investigation and recognized the Maryland Attorney Grievance Commission for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.
Loan Broker Pleads Guilty in Conspiracy to Fraudulently Obtain over $100 Million in SBA-backed LoansRead the Press Release
SBA Loan Underwriters Relied on False Representations by Borrowers and BrokersBaltimore, Maryland - Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 43, of Falls Church, Virginia, pleaded guilty today to conspiracy to commit bank fraud, in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration, with resulting losses of over $100 million. Joon Park and others were charged in a second superseding indictment that was returned by a federal grand jury on March 7, 2013.
The guilty plea and indictment were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“SBA underwriters approved $100 million in business loans brokered by Jade Capital based on fraudulent bank statements, checks, gift letters, resumes and tax returns that made it appear as if the borrowers had invested money in the businesses,” said U.S. Attorney Rod J. Rosenstein. “When borrowers and brokers submit false information and fraudulent documents, the underwriting process is defeated and the taxpayers bear the loss.”
“The scope of this audacious scheme to fraudulently secure SBA-backed loans is outrageous,” said Inspector General Peggy E. Gustafson. “The SBA OIG will relentlessly pursue individuals who falsify documents to obtain approval for loans designed to help hard-working Americans realize their dreams of opening a business or expanding their operations. The SBA OIG appreciates the leadership of the U.S. Attorney’s Office and its partnership with the FBI in bringing forth this plea agreement.”
According to his plea agreement, Joon Park and his brother, Loren Park, owned and operated Jade Capital, a loan brokerage company specializing in securing loans for individuals interested in purchasing or refinancing small businesses in the Mid-Atlantic area. According to the indictment, Joon and Loren Park and others under their direction encouraged prospective borrowers using the services of Jade Capital to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75% - 90% of qualified loans made by banks and other commercial lending institutions. Under this program, the principals of the small business seeking the loan were required to invest a certain amount of their own money, called an equity injection, before they qualified for a loan. The banks and other lending institutions making the loan bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.
Joon Park admitted that from 2003 until October 2011, he and others under his direction, including Nick Park (no relation), Joo Hyuk “John” Lee, Sang Hyun Kim, and In Jung Ham, submitted SBA loan applications and supporting documentation to loan originators and underwriters on behalf of their clients that contained fraudulent documents, including: bank statements for borrowers that were altered to make it look like the borrowers had more cash to inject into the business they were buying than they in fact did; counterfeit cashier’s checks and fake gift letters that made it look like the borrowers had more assets at their disposal to use as down payments than they did; fabricated resumes that made it look like the borrowers had more experience running the businesses they sought to purchase than they did; fake tax returns that made it look like the borrowers had greater income than they did; phony interim financial statements that made other businesses the borrowers owned look more profitable than they were; and a number of other misrepresentations.
The Parks charged a loan brokerage fee to both the financial institutions and the borrowers for assembling and submitting loan application packages that resulted in the issuance of SBA-guaranteed loans. The fees charged to borrowers were hidden from the financial institutions underwriting the loans. The Parks also had undisclosed ownership interests in businesses involved in some of the transactions and received loan proceeds, unbeknownst to the lenders, in a number of transactions. In one instance, the Parks did not have an ownership interest in a company involved in a transaction but persuaded the seller to assign some of the loan proceeds to them and then converted those proceeds to their own personal use.
According to his plea agreement, Joon Park also worked with a settlement attorney to facilitate loan closings for deals that would otherwise fail to meet the lending parameters of the banks making the loans, by misrepresenting to the banks and to the SBA the true amount of money involved in the transactions and/or the true names of the parties taking part in the transactions. In addition to conducting fraudulent closings, this settlement attorney wired money to Jade Capital clients to make it appear as though they qualified for loans, when they did not, and received, at Joon Park’s direction, loan proceeds to repay those loans.
Joon Park faces a maximum penalty of 30 years in prison. As part of his plea agreement, Joon Park will be required to pay a money judgment of $91,449,700 and forfeit all the property involved in the offense. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for May 28, 2013 at 1:00 p.m.
Nick Park, a/k/a Nochol Park, age 46, of McLean, Virginia, was sentenced to 33 months in prison; and Joo Hyuk “John” Lee, age 39, of Richmond, Virginia, and Sang Hyun Kim, age 35, of Fairfax, Virginia, were each sentenced to three years in prison, for conspiracy to commit bank fraud. Kim’s wife, In Jung Ham, age 30, also of Fairfax, was sentenced to a year and a day in prison, for her role in the scheme. Judge Quarles ordered Lee to pay restitution of $1,900,325 and ordered Ham to pay restitution of $216,472.92. Lee, Kim and Ham were also ordered to forfeit the proceeds of the scheme and pay money judgments of $18,764,900, $13,432,000 and $15,725,000, respectively.
In addition to Joon Park, Loren Young Park and Jade Capital & Investments, who were charged previously, the second superseding indictment included two new defendants, Seung E. Oh, a/k/a Sandy Oh, age 44, of Great Falls, Virginia; and Seung Hyun Shin, a/k/a/ Phillip Shin, age 39, of Villanova, Pennsylvania. Oh is an attorney with offices in Annandale, Virginia and the owner operator of Washington Settlement Group, a title company located in Annandale. From 2004 through 2008, Shin was the owner and operator of Cosmopolitan Title and Settlements, LLC, a title company located in Rockville, Maryland. The indictment alleges that the defendants engaged in a conspiracy to commit bank fraud, bank fraud and money laundering, resulting in losses of more than $102 million.
The defendants face a maximum sentence of 30 years in prison for the bank fraud conspiracy and for each count of bank fraud; and 20 years in prison for each count of money laundering. Seung Hyun Shin had his initial appearance on March 18, 2013, and Seung E. Oh is scheduled to have her initial appearance on April 5, 2013, in U.S. District Court in Baltimore. Loren Park is believed to be in Korea.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
These law enforcement actions are part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked the SBA Office of Inspector General, U.S. Postal Inspection Service and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who are prosecuting the case.
Baltimore Store Robber Exiled to over 12 Years in PrisonRead the Press Release
Robber Identified After Drinking a Red Slurpee Prior to the RobberyBaltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Anthony Griffin, age 44, of Baltimore, today to 151 months in prison followed by three years of supervised release for robbery. Judge Hollander enhanced Griffin’s sentence upon finding that Griffin is a career offender based on four prior convictions for robbery related crimes. His federal sentence will be served concurrent to a 15 year state sentence Griffin is currently serving for a 2010 robbery conviction in Baltimore County.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on February 5, 2007 Griffin selected several items at a lingerie store located at 1003 South Charles Street in Baltimore that he pretended to want to purchase. After the store owner placed the items in a bag, Griffin told her “this is a robbery” and demanded money from the register. The store owner placed approximately $200 in the bag with the items, and upon Griffin’s further demand, gave him her diamond engagement ring.
At this point, a customer entered the store. Griffin forced the store owner to tie the hands and feet of the customer with pantyhose, and then Griffin tied the owner’s hands and feet with pantyhose. A friend of the owner who was coming to meet her saw Griffin leave the store and suspecting something was wrong, alerted a nearby policeman who located the owner and customer. The owner told the policeman that the robber’s mouth was red, as if he had been drinking a red beverage. Griffin had discarded the Slurpee straw and cup at a nearby jewelry store soon before the robbery. A clerk at the nearby jewelry store identified Griffin in a photo lineup as the man who had drank and discarded the Slurpee at the jewelry store. DNA was recovered from the straw used by Griffin to drink the Slurpee. The lingerie store owner/victim also identified Griffin in a photo lineup.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Benjamin M. Block , who prosecuted the case.
Employee Sentenced to over 4 Years in Prison for Stealing from Non-Profit Organization and up to 72 of Its Disabled ClientsRead the Press Release
Stole Over $166,000 During Six Years
Greenbelt, Maryland - U.S. District Judge Alexander Williams Jr. sentenced Penny Parker Green, age 34, of Bowie, Maryland, today to 54 months in prison, followed by three years of supervised release, in connection with a scheme to steal over $166,000 from the ARC of Prince George’s County, which provides in-home support, daycare and employment services for people with intellectual and developmental disabilities and their families. Judge Williams ordered that Green pay restitution of $166,137, and forfeit two laptops, three desktop computers, a printer, XBOX, Wii, Playstation 3 and four HDTVs obtained as a result of the scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office; and Chief Mark A. Magaw of the Prince George's County Police Department.
Green was employed by the ARC of Prince George’s County and according to her plea agreement, from November 2006 to February 2012, Green stole $166,137 from ARC and up to 72 group home residents. Green used her ARC corporate credit card to: purchase airfare to Aruba, an island tour and a sunset sail; install custom closets in her home; and purchase computers, electronics, furniture and other merchandise and services. Green also directed other employees to withdraw cash from individual residents’ bank accounts for her personal use. Finally, Green stole petty cash that was intended for the benefit of individual residents to purchase items for herself. Green concealed the thefts by submitting paperwork that falsely described the expenditures, and then debited individual residents’ accounts for the purchases.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and Prince George's County Police Department for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Christen A. Sproule, who prosecuted the case.
Silver Spring Tax Preparer Pleads Guilty to Making A False Statement on A Tax ReturnRead the Press Release
Greenbelt, Maryland – Alejandro A. Salas, age 65, of Silver Spring, Maryland pleaded guilty today to making a false statement on a tax return.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Mr. Salas’ license to run his business was not a license to engage in fraud,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington, D.C. Field Office. “The defendant's misconduct of underreporting his income from his tax preparation business was purely fraudulent. IRS Criminal Investigation will use our investigative and financial expertise to detect and hold accountable individuals like Mr. Salas, who carry out these types of fraudulent schemes.”
According to his plea agreement, from 2004 to 2008, Salas ran a tax return preparation business in Silver Spring, Maryland, under the name of G&S Enterprises of Maryland (G&S). His business also offered translation services, provided accounting and bookkeeping services for local companies, facilitated international money transfers, brokered mortgage loans, and offered travel agency services. In 2009, after learning that he was the target of a criminal investigation, Salasmoved the location of his business and began preparing tax returns for clients under the corporate name TAX USA, a business which he incorporated under the name of another individual. Between 2004 and 2009, Salas’s business prepared over 15,700 tax returns for clients.
Salas admitted that for tax years 2003 through 2005, he underreported the income from his tax preparation business on his individual income tax returns; and underreported the income from the business on the corporate tax return he filed for the 2006 tax year. For example, on Schedule C of his 2005 income tax return, Salaslisted thegross income from his sole proprietorship as $295,537, when in fact, the gross income from his business substantially exceeded that amount. For tax years 2007 through 2009, Salas failed to file either corporate or individual tax returns. The total tax loss to the government as a result of Salas’ actions is at least $200,000.
Salas faces a maximum sentence of three years in prison and a fine of $250,000. U.S. District Judge Roger W. Titus has scheduled sentencing for June 10, 2013 at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised the IRS-CI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who is prosecuting the case.
Former Rosedale Resident Convicted of Robbing a Business Resulting in the Death of the Business OwnerRead the Press Release
Baltimore, Maryland - After a five day bench trial, U.S. District Judge William D. Quarles, Jr., convicted Pedro Rodriguez Garcia, age 34, formerly of Rosedale, Maryland, late yesterday of conspiring to commit an armed commercial robbery on July 29, 2009, armed robbery and brandishing a gun during a crime of violence.
The verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore City Police Department; Chief James W. Johnson of the Baltimore County Police Department; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore County State’s Attorney Scott Shellenberger; Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and Maryland Attorney General Douglas F. Gansler.
“Superb law enforcement coordination brought the defendant to justice for the armed robbery that resulted in the tragic death of Constantine Frank,” said U.S. Attorney Rod J. Rosenstein.
“The worldwide presence and investigative capabilities of the Diplomatic Security Service enables us to work with our law enforcement partners domestically and around the world to bring criminals to justice,” said Niall Meehan, Special Agent in Charge of the Washington Field Office of the Diplomatic Security Service.
According to evidence presented at the trial, Garcia participated in a robbery planned by Nikolaos Mamalis. Mamalis recruited Garcia, Daniel Chase and others to rob Constantine Frank, the owner of Precision Vending located on S. Lakewood Avenue in Baltimore. Mamalis knew the owner socially and from prior business dealings, and he was familiar with the physical layout and security at Precision Vending from previous visits with Mr. Frank. On July 29, 2009, after Mamalis advised his co-conspirators that Mr. Frank was alone inside, Garcia and Chase entered the business disguised as package delivery men. Chase took out a gun from a false package they had brought inside, brandished the weapon and then gave it to Garcia who used the gun to hold Mr. Frank captive. The two robbers also used zip-ties and duct tape to restrain the victim while Chase searched the business for cash, stealing over $11,000. Knowing that Mr. Frank would recognize him, Mamalis waited outside the building and received periodic reports from Chase using prepaid wireless phones which Mamalis and a co-conspirator had previously purchased.
The robbers left Mr. Frank bound, knowing that he was sweating profusely and in obvious discomfort. Shortly after leaving, Chase called one of Mr. Frank’s other businesses and said: “Your boss is in his office, and he is not doing so good.” Mr. Frank had suffered a stroke by the time officers found him conscious, but still in physical restraints and unable to speak. Mr. Frank was listed in critical condition when he arrived at the hospital and died less than two weeks later on August 11, 2009. The autopsy concluded that the cause of death was an intra-cerebral hemorrhage associated with stress resulting from the robbery and ruled the death a homicide.
After Mr. Frank’s death, Garcia fled the country and was captured by agents from the U.S. Border Patrol two years later.
Garcia was convicted of conspiracy, commercial robbery, and a corresponding firearms charge, and faces a mandatory minimum sentence of 57 years in prison and a maximum of life in prison. Judge Quarles has scheduled sentencing for June 18, 2013 at 1:00 p.m.
Nikolaos Mamalis, age 56, of Edgewood, Maryland, was sentenced to 77 years in prison, for conspiracy, three counts of commercial robbery and three corresponding firearms charges in connection with the Precision Vending robbery and two home invasion robberies in Maryland. Mamalis was convicted by a federal jury on February 3, 2011. Daniel Chase, age 67, of Browns Mill, New Jersey; pleaded guilty to his participation in a series of robberies planned by Mamalis and was sentenced to 141 months in prison.
United States Attorney Rod J. Rosenstein thanked: the Federal Bureau of Investigation; Baltimore City Police Department; Baltimore County Police Department; New Jersey State Police; the Baltimore City State’s Attorney’s Office; Baltimore County State’s Attorney’s Office; and U.S. Department of State’s Diplomatic Security Service, for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorneys Debra L. Dwyer and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who are prosecuting the case.
Lusby Man Sentenced after Pleading Guilty to Illegally Dumping Fill Material into the Chesapeake BayRead the Press Release
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced David Ector, age 55, of Lusby, Maryland, today to two years probation after Ector pleaded guilty to discharging fill material into the Chesapeake Bay without a permit, in violation of the Clean Water Act. As a special condition of his sentence, Chief Judge Chasanow ordered that the defendant remove, at his own expense, all fill material discharged into the Chesapeake Bay.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge David G. McLeod, Jr., of the Environmental Protection Agency’s Criminal Investigation Division - Philadelphia Area Office.
“This country's environmental laws are aimed at keeping our inland waterways free from materials that do not belong there,” said David G. McLeod, Jr., Special Agent in Charge of EPA's criminal enforcement program in Maryland. “By ignoring restrictions on fill material in and around Chesapeake Bay, the defendant interfered with the critical habitat of an endangered species. Today's guilty plea and sentencing demonstrates that those who illegally alter or destroy these essential natural resources will be prosecuted.”
According to his plea agreement, Ector owned a cliff-front property in Calvert County. From May 28 through May 30, 2010, Ector caused large rocks (rip rap) to be dumped over the cliff-face. Ector did not obtain a permit to put the rocks into the Chesapeake Bay, as required by the Clean Water Act. The rip rap also scraped away soil on the cliff-face as it slid down the slope, interfering with the critical habitat of an endangered species.
United States Attorney Rod J. Rosenstein praised the EPA Criminal Investigation Division and the U.S. Fish and Wildlife Service, Office of Law Enforcement, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney David I. Salem, who prosecuted the case.
PCP Dealer Sentenced to over 19 Years in PrisonRead the Press Release
Also Distributed Crack Cocaine and HeroinGreenbelt, Maryland - U.S. District Judge Roger W. Titus, Jr. sentenced Rashard Wilson, age 22, of Capitol Heights, Maryland, today to 235 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), crack cocaine and heroin. Judge Titus enhanced Wilson’s sentence upon finding that he is a career offender based on four previous convictions for 2nd degree assault, carjacking, assault on a police officer and possession with intent to distribute PCP.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Wilson's guilty plea, from August 2011 through February 2012, Wilson participated in a conspiracy to distribute PCP and other drugs in the Prince George’s County and Washington, D.C. area. During the conspiracy, Wilson bought PCP, cocaine and heroin from co-defendant Samuel Braxton, a/k/a “Fats.” Wilson then redistributed the drugs to his customers. Wilson and other members of the conspiracy used Braxton’s apartment in Temple Hills, Maryland, as a base of operations for storing and distributing narcotics. Wilson often met Braxton at the apartment to obtain drugs. Between November 2011 and January 2012, Wilson and Braxton were overheard by law enforcement using coded language to discuss their drug trafficking activities. On December 8, 2011, Wilson was stopped by law enforcement in Washington, D.C., after visiting Braxton’s apartment. As Wilson was pulling over, officers saw the front seat passenger throw a white plastic bag out the window. Officers found the bag, which contained two bottles with a total of approximately eight ounces of PCP.
Over the course of the conspiracy, Wilson was responsible for the distribution of between one and three kilograms of PCP, between 28 and 112 grams of crack cocaine, and between 20 and 40 grams of heroin.
Braxton, age 44, of Temple Hills, pleaded guilty to his role in the scheme and is scheduled to be sentencing on April 1, 2013.
United States Attorney Rod J. Rosenstein commended the DEA and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule and Steven E. Swaney, who prosecuted this Organized Crime Drug Enforcement Task Force case.
New York Man Sentenced to 10 Years in Prison for Transporting a Minor for SexRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Edgar Daniel Mazariegos-Cifuentes, age 40, a Guatemalan citizen illegally residing in Monroe, New York, today to 10 years in prison, followed by lifetime supervised release, for transporting a minor to engage in sexual activity. Judge Williams ordered that upon his release from prison, Mazariegos must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Chief A. Alex Melchiorre of the Monroe, New York Police Department.
According to his plea agreement, in November 2011, the 15 year old daughter of close family friends of Mazariegos moved from Guatemala to Monroe, New York, to live with her mother and stepfather. Mazariegos frequently visited the girl’s home and was treated as a member of the family. On several occasions, Mazariegos drove the girl and her family members to or from Boston to visit the girl’s uncle. Between November 2011 and August 2012, Mazariegos and the girl communicated by telephone and computer. Mazariegos also posted messages on the girl’s Facebook page professing his love for her.
On August 13, 2012, the girl had an argument with her mother and called Mazariegos because she was upset. Early the next day, Mazariegos picked up the girl and drove her to Silver Spring, Maryland, and checked them into a hotel so that he could engage in sexual intercourse with the girl. On August 15, 2012, Mazariegos rented a room in an apartment, presenting the girl as his girlfriend. On August 25, 2012, Maryland State Police Child Recovery Unit officers and Special Agents from the Department of Homeland Security located Mazariegos and the victim in the apartment.
When the victim was interviewed, she reported that when Mazariegos initially picked her up, she thought he was taking her to her uncle’s home in Boston. The victim stated that Mazariegos took her phone away when she said she wanted to call her uncle and told her that he was taking her to Silver Spring, Maryland so they could start a new life together. The victim advised that Mazariegos forced her to have sex with him at the hotel and several more times during the 11 days they were in Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
The case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human-Trafficking/index.html.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Maryland State Police Child Recovery Unit, and the Monroe, New York Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who is prosecuting the case.
Baltimore Police Officer Pleads Guilty to Drug Dealing and Gun Charge Uncovered by Federal WiretapRead the Press Release
Treacherous Officer Protected Drug Dealer, Filed False Police Reports, Planned Armed Robbery and Sold Stolen PropertyBaltimore, Maryland - Baltimore Police officer Kendell Richburg, age 36, of Baltimore, pleaded guilty today to conspiracy to distribute heroin and possession of a firearm in furtherance of drug trafficking.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Commissioner Anthony W. Batts of the Baltimore Police Department.
“Kendell Richburg’s treacherous conduct harms all police officers,” said U.S. Attorney Rod J. Rosenstein. “He helped a drug dealer avoid arrest while planning an armed robbery and filing false police reports about other suspects.”
“Kendell Richburg's unacceptable criminal actions are an affront to the law enforcement profession and the hard working men and women of the Baltimore Police Department,” said Baltimore Police Commissioner Anthony W. Batts. “Today's plea agreement is a victory for the citizens of Baltimore and a representation of this agency's unwavering commitment to accountability and the delivery of justice.”
According to his plea agreement, from June 2011 through October 2012, Richburg, who was assigned to the Violent Crimes Impact Section in the Northwestern District of the Baltimore Police Department, conspired with a street level drug trafficker to distribute heroin. Richburg’s co-conspirator was a registered confidential informant with the Baltimore Police Department. The co-conspirator sold drugs in the Pimlico area of Northwest Baltimore. Richburg provided information to the co-conspirator that permitted him to sell drugs without interference from law enforcement, telling the co-conspirator on a near daily basis when it was “safe” to go out to sell drugs. In return, the co-conspirator provided Richburg with information about his drug customers so that Richburg could arrest them. Richburg paid his co-conspirator, with official Baltimore Police Department funds for providing the information that resulted in the arrest of the drug customers. Richburg sometimes gave the co-conspirator back some of the drugs seized from the drug purchasers so that the co-conspirator could re-sell the drugs. Richburg falsified the arrest documents to eliminate the co-conspirator’s involvement, often falsely stating that Richburg had witnessed a drug transaction.
In early 2012, the FBI received information that Richburg was trafficking in stolen property, including iPhones, iPads and other electronics, and obtained a wiretap of Richburg’s cellphone. Intercepted conversations confirmed that Richburg was trafficking in stolen property and led to the discovery of Richburg’s drug trafficking.
Richburg and the co-conspirator were also overheard discussing the “planting” of evidence, and arranging an armed robbery. For example, on September 2, 2012, Richburg and the co-conspirator discussed having the co-conspirator plant a gun in an unlicensed cab, then having Richburg pull over and arrest the cab driver on a gun violation and pay the co-conspirator $350 to $400. On October 9, 2012, Richburg, armed with his service weapon, searched a person, without probable cause, and located a large amount of cash. The victim told Richburg that he had just received his paycheck. Richburg contacted his co-conspirator and arranged for the co-conspirator, whom Richburg knew was armed, to rob the victim, identifying where the victim was located.
Richburg faces a minimum mandatory sentence of five years in prison and a maximum of 40 years in prison for the drug conspiracy, and a minimum mandatory sentence of five years in prison, consecutive to any other sentence, and a maximum of life in prison for use of a firearm in relation to a drug trafficking crime. U.S. District Judge Richard D. Bennett scheduled sentencing for June 11, 2013, at 3:00 p.m. Richburg remains detained.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Peter M. Nothstein, who are prosecuting the case.
Leader of 4x4 Drug Organization Exiled to 20 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Dearius Forrester, a/k/a “D,” “Little D,” “Muffler” and “Chicken,” age 24, of Rosedale, today to 20 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with the intent to distribute powder and crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Forrester’s plea agreement, the indictment and other court documents, from at least June 2009 through August 2010, Forrester led a drug distribution organization that operated in the Northeast Baltimore neighborhood known as the “4x4." The “4x4” is a small, relatively closed neighborhood consisting of four streets running north-south and four streets running east-west. Ravenwood, Elmora, Lyndale and Elmley Avenues all run east and west and are one-way streets. Greenview, St. Cloud, Highview and Longview Avenues all run north and south and are two-way streets.
The area is bordered on the east and west ends by Edison Highway and Belair Road, respectively.
According to his plea and other court documents, law enforcement overheard Forrester and his co-conspirators discussing their drug activities. Forrester admitted that during the time of the conspiracy he distributed crack and powder cocaine, collected money from drug customers and distributors, and assisted the drug trafficking activities of other members of the drug conspiracy. During the time of the conspiracy, Forrester was responsible for the distribution of 280 grams or more of crack cocaine, and 5 kilograms or more of powder cocaine.
Co-defendants Raymond Moore, a/k/a “Money,” age 20, and Tony Robinson, a/k/a “Peterman,” and “Pete,” age 30, both of Baltimore, each pleaded guilty to the same charge and were sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein thanked ATF’s Violent Crime Impact Team, the Baltimore City Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorney Michael C. Hanlon and former Special Assistant United States Attorney Traci L. Robinson, a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.
Parkville Man Indicted in Plot to Export Industrial Products and Services to IranRead the Press Release
Allegedly Conspired to Violate the U.S. Embargo Against IranGreenbelt, Maryland - A federal grand jury has indicted Ali Saboonchi, age 32, a U.S. citizen residing in Parkville, Maryland, and Arash Rashti Mohammad (Rashti), age 31, a citizen and resident of Iran, on charges of conspiring to export, and exporting, American manufactured industrial products and services to Iran. The indictment was returned on March 4, 2013 and unsealed today upon Saboonchi’s arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
The International Emergency Economic Powers Act authorizes the President of the United States to impose economic sanctions on a foreign country when the President declares a national emergency. In 1995, the President issued a series of Executive Orders declaring that the actions and policies of the Government of Iran constituted a national emergency. In order to deal with that threat, the President imposed economic sanctions against Iran, to include a trade embargo (the Iran Trade Embargo). In order to implement the Iran Trade Embargo, the U.S. Department of the Treasury promulgated regulations that prohibit the export, sale or supply to Iran of any goods or services from the United States without prior authorization.
The five count indictment alleges that from November 2009 to the present, Saboonchi and Rashti conspired to evade the Iran Trade Embargo by exporting American manufactured industrial goods and services to Iranian businesses. Rashti, located in Iran, had Saboonchi in Maryland create and operate Ace Electric Company for the purpose of obtaining goods to be sent to Iran. Rashti, who operated businesses in Tehran, Iran and the United Arab Emirates (UAE), allegedly solicited purchase orders and business from customers in Iran for industrial parts and components manufactured in America, including:
- two cyclone separators, which are used in pipelines to separate impurities such as sand from liquids, for $2,114.53;
- six thermocouples, which are used to measure temperatures of liquids and gasses in industrial applications in the chemical and petrochemical fields, for $1,284;
- 10 stainless steel filter elements, which are used primarily in the oil and gas industry and can be used in water plants, hydrocarbon plants and nuclear plants, for $151.53;
- four bypass filters, for $1,911.03;
- three flow meters, which are used primarily in industrial applications to measure the flow of water but could be adjusted to measure other liquids and gasses, for $6,224.88;
- three actuator springs, which are used to control the flow rate of a liquid, for $112.07;
- numerous industrial parts, including hydraulic valves and connectors, for $7,067; and
- liquid pumps and valves, which have oil, gas, energy, aerospace and defense applications, for $2,320.48.
The indictment alleges that Saboonchi obtained price quotes and paid for these items, and took delivery of most of the goods, which he then shipped to co-conspirators in UAE and in at least one case, China. Rashti would repay Saboonchi for the goods and further arrange for the entities in the UAE and China to send the goods on to him and his customers in Iran. The Defendants did not obtain authorization to export the products.
Saboonchi faces a maximum sentence of 20 years in prison for the conspiracy and on each of four counts for illegal export to an embargoed country. Saboonchi has his initial appearance today in U.S. District Court in Greenbelt and is detained pending a detention hearing scheduled for Wednesday, March 13, 2013, at 2:00 p.m. Rashti is believed to be living in Iran.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory Welsh, who is prosecuting the case.
Baltimore Felon Exiled to over 11 Years in Prison for Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jermaine Miller, age 29, of Baltimore, today to 134 months in prison followed by three years of supervised release for possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on June 7, 2010 Baltimore police officers saw Miller exit an alley from the 1800 block of Rutland Avenue, Baltimore. When Miller saw the police officers, he popped an object into his mouth. The police officers ordered Miller to spit out the object, which was found to be a gel cap containing heroin. Miller was arrested and four additional gel caps containing heroin were seized from Miller. A search warrant was executed at Miller’s residence and police seized a plastic baggie containing nine individual baggies of cocaine along with a .357 revolver and ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorneys Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
Leader in a Sophisticated Bank Fraud Scheme Sentenced to 7 Years in PrisonRead the Press Release
Recruited Bank Employees and College Students to Participate in the SchemeGreenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Bolarinwa Adeyale, a/k/a “Bola,” age 23, of Greenbelt, Maryland, today to seven years in prison, followed by five years of supervised release, in connection with a scheme to use stolen credit card convenience checks and counterfeit checks to defraud financial institutions. Adeyale was convicted by a federal jury on February 27, 2012, of conspiracy to commit bank fraud, two counts of bank fraud and aggravated identity theft.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office.
According to evidence presented at the five day trial, in the fall of 2007 Adeyale; Okechukwo Otuya a/k/a Oke and Waffi; Oluwadamilola Feyisetan, a/k/a Dami (Dami); Adeniyi Adebiyi, a/k/a Niyi (Niyi); Alexander Diya and others devised a scheme to defraud Bank of America by depositing stolen credit card convenience checks into legitimate Bank of America accounts and withdrawing the money before the bank learned that the checks were not authorized. Adeyale, Otuya and Dami were among the leaders in the scheme. Adeyale, Otuya, Dami and Niyi obtained the convenience checks by stealing them from homeowners’ mailboxes in Montgomery, Howard and Prince George’s Counties. Adeyale and others also recruited college students to permit the use of the students’ bank accounts (the “compromised accounts”) to deposit stolen credit card convenience checks and make cash withdrawals from the accounts after the checks cleared. Adeyale and others also recruited bank employees to provide account information for “high end” bank customers, including the account name and numbers, customer’s signature cards or previously negotiated checks with appropriate signatures, and the customer’s address. Adeyale and others then used that information to create fraudulent checks for those accounts.
According to trial evidence, as a result of the scheme, the total amount of fraudulent deposits made by the conspirators from over 50 compromised bank accounts is over $1.2 million. The actual loss to Bank of America is over $600,000.
Otuya, age 31, of Laurel, Maryland, was sentenced to eight years in prison and was ordered to pay restitution, with the exact amount to be determined. Adebiyi, age 28, of Upper Marlboro, Maryland, was sentenced to four years in prison and ordered to pay restitution of $148,000. Feyisetan, age 24, of Laurel; Alexander Omotomiwa Diya, age 25, of Bowie; and Taiwo Akinyeke, age 28, of Laurel, were sentenced to 30 months, 28 months, and 15 months in prison, respectively, and were ordered to pay restitution of $33,135.58, $4,250, and $48,555.85.
In addition, co-conspirators Charles G. Richardson, Jr., age 26, of Capitol Heights, Maryland, was sentenced to 15 months in prison and ordered to pay restitution of $7,330.12; Oladipo Ayodeji, age 23, of Bowie, was sentenced to 14 months in prison in prison and ordered to pay restitution of $24,543.47; and Kennika Freeman, age 23, of Greenbelt, and Malia Forrester, age 31, of Millersville, Maryland, were each sentenced to five years’ probation. Marquis Borden, age 25, of Laurel, Maryland has pleaded guilty to his participation in the scheme and is awaiting sentencing.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked the U.S. Postal Inspection Service and U.S. Secret Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Robert K. Hur, who prosecuted the case.
Laurel Man Pleads Guilty to Producing Child PornographyRead the Press Release
Secretly Recorded a 13 Year Old Girl in a BathroomGreenbelt, Maryland – Frank Alan Klukosky, age 43, of Laurel, Maryland, pleaded guilty today to producing child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.
According to the plea agreement, in June 2012, a federal probation officer discovered images and videos of child pornography on the cell phone of a registered sex offender on federal probation. Further investigation revealed that on June 24, 2012 Klukosky drove to the registered sex offender’s home in Laurel with an SD card that contained at least 120 images and six videos of child pornography. Klukosky then helped the registered sex offender load those images and videos onto his computer and cell phone.
On October 23, 2012 the FBI executed a search warrant at Klukosky’s home and seized video cameras, key fob cameras, computers, an external hard drive and other computer accessories. The external hard drive contained approximately 2,000 images and 16 videos of child pornography, including 11 videos depicting a 13 year old girl in a bathroom. The videos were taken with hidden key fob cameras. The videos were recorded on at least 10 occasions and depict the victim in stages of undress. In at least one of the videos, Klukosky is recorded while setting up or taking down the camera.
As part of his plea agreement, Klukosky must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Klukosky and the government have agreed that if the Court accepts the plea agreement Klukosky will be sentenced to 20 years in prison followed by up to a lifetime of supervised release. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for May 20, 2013 at 1:00 p.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, the Laurel and Howard County Police Departments and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who is prosecuting the case.
Supplier to Eastern Shore Drug Dealer Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Andrew Jackson, age 39, of Baltimore, Maryland, today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute cocaine. Jackson remains detained.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; and Wicomico County State’s Attorney Matthew Maciarello.
According to Jackson’s plea agreement, on May 12, 2011,after intercepting calls from one of Jackson’s co-defendants, law enforcement watched Jackson meet the co-defendant in a store parking lot in Salisbury, Maryland. Jackson provided the co-defendant with a package containing over five kilograms of cocaine. The co-defendant then handed Jackson a shopping bag containing $163,105 in cash. Shortly after the meeting, law enforcement stopped the car being driven by Jackson and recovered the money. On June 8, 2011, Jackson met a co-defendant in Severn, Maryland, where he delivered narcotics to the co-defendant. A search of Jackson’s home on June 29, 2011, recovered $626 in cash from the master bedroom and cocaine residue on the kitchen counter. A subsequent search of Jackson’s car revealed a hidden compartment with two bags containing a total of $71,040 in cash inside. Cocaine residue was also recovered in and around the hidden compartment.
United States Attorney Rod J. Rosenstein commended the DEA and the Wicomico County Narcotics Task Force, comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department and the Wicomico County State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Joshua Kaul, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Laurel Bank Robber Pleads Guilty to Four Robberies in over Three MonthsRead the Press Release
Attempted to Rob Two More BanksBaltimore, Maryland – Jeffrey Wayne Malcolm, age 56, of Laurel, Maryland, pleaded guilty today to bank robbery.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Frederick County Sheriff Charles A. “Chuck” Jenkins.
According to his plea agreement, Malcolm robbed the following four banks: PNC Bank at 7451 VanDusen Road in Laurel of $1,327 on October 28, 2011; PNC Bank at 1621 West Liberty Road in Sykesville of $3,597 on January 17, 2012; and the Suntrust Bank at 11323 Fingerboard Road in Monrovia of $1,776 on January 25, 2012, and $4,388 on February 4, 2012.
Malcolm also attempted to rob the PNC Bank at 15290 Frederick Road in Woodbine on November 7, 2011, but the teller refused to hand over money. Two days later he attempted to rob the PNC Bank at its VanDusen branch, but when a teller saw him approach the bank wearing a ski mask, bank employees locked the front door, preventing him from entering.
Malcolm faces a maximum sentence of 20 years in prison and a $250,000 fine. U.S. District Judge James K. Bredar scheduled his sentencing for July 1, 2013 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Laurel Police Department, Howard County Police department, Maryland Police Department, Frederick County Bureau of Investigations and Frederick County State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.
Lusby Man Pleads Guilty to Possession and Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland - Shawn Fred Crawford, age 47, of Lusby, Maryland, pleaded guilty today to possession and distribution of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the plea agreement, on July 25, 2012, Crawford distributed six images and 16 videos depicting children engaged in sexually explicit conduct. After an investigation by the FBI, a search warrant was executed at Crawford’s home on September 18, 2012. A subsequent forensic examination of the computers and other digital media seized during the search revealed approximately 4,700 images and 1,100 videos of children engaged in sexually explicit conduct, including children under the age of 12.
As part of his plea agreement, Crawford will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Crawford faces a mandatory minimum sentence of five years and a maximum of 20 years in prison for distribution of child pornography; and a maximum of 10 years in prison for possession of child pornography, each followed by up to a lifetime of supervised release. U.S. District Judge Roger W. Titus has scheduled sentencing for May 14, 2013, at 9:00 a.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing and abused children.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who is prosecuting the case.
Arms Seller Pleads Guilty to Illegal Export of Night Vision EquipmentRead the Press Release
Sold Night Vision Goggles and Monocular on eBayBaltimore, Maryland – Anthony J. Torresi, age 34, of Coral Gables, Florida pleaded guilty late yesterday to unlawfully exporting night vision equipment.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“One of ICE’s Homeland Security Investigations top enforcement priorities is preventing U.S. military products and sensitive technology from falling into the hands of those who might seek to harm America or its interests,” said William Winter, special agent in charge for HSI Baltimore. “This investigation is an example of HSI’s good partnership with the U.S. Attorney’s Office in Maryland to combat this threat.”
According to his plea agreement, Torresi listed night vision goggles and night vision monoculars for sale on eBay. The items were designed to enable military ground troop personnel to conduct night operations. A license from the U.S. Department of State is required to export the items. Selling such items overseas without a license is a violation of the Arms Export Control Act.
On January 21, 2011 Torresi sold two of the night vision goggles for $7,039.99 to an undercover agent he believed to be located in New Zealand, but who was in fact located in Baltimore. Torresi exported the goggles on February 11, 2011 from Miami, Florida to New Zealand. The shipping label signed by Torresi showed the contents as a “gift” described as a “Rangefinder” valued at $70. Torresi never applied for a license to export these items.
Similarly, on March 29, 2011 Torresi sold a 6015-4 night vision monocular to the undercover agent he believed to be located in New Zealand for $6,099.89. On April 29, 2011, Torresi exported from Miami to New Zealand what he represented to be the 6015-4 night vision monocular that he sold for $6,099.98. In fact, Torresi shipped a different night vision monocular that he had purchased for $266 and which did not require a license to export.
Torresi faces a maximum sentence of 20 years in prison followed by five years of supervised release and a $1 million fine for unlawful export of arms and munitions. U.S. District Judge Ellen L. Hollander scheduled sentencing for June 21, 2013 at 2:00 p.m.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Counterproliferation Investigations Task Force, a multi-agency task force headquartered at the offices of HSI, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory Welsh, who is prosecuting the case.
Founder of Violent "Dead Man Incorporated" Gang Exiled to Life in Prison on Federal Racketeering ChargesRead the Press Release
Baltimore, Maryland - James Sweeney, age 36, of Baltimore, Maryland, was sentenced to life in prison, for conspiracy to participate in a violent racketeering enterprise known as the Dead Man Incorporated (DMI). Sweeney was a founder of DMI and became its “Supreme D.”
The sentence was imposed on February 25, 2013, by U.S. District Judge Marcia A. Crone in the Eastern District of Texas, where Sweeney is currently serving a 30 year Maryland sentence for a 1996 second degree murder conviction. As part of his Maryland plea agreement, at the conclusion of the sentencing, federal prosecutors in Texas dismissed an indictment charging Sweeney with the murder of an inmate at the federal prison in Beaumont, Texas.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Commissioner Anthony W. Batts of the Baltimore Police Department; Anne Arundel County Police Chief Larry W. Tolliver; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Gregg L. Bernstein; and Anne Arundel County State’s Attorney Frank R. Weathersbee.
According to his plea agreement, in 2000, Sweeney was a founding member of DMI, created originally as a prison gang in Maryland. By 2006, DMI expanded its membership by recruiting members outside prison, including women.
Sweeney admitted that prior to his transfer to federal custody he was incarcerated in state prison facilities in Maryland and oversaw the activities of DMI. In order to make money for the gang and to enable white prisoners to retaliate against black gangs and cliques, Sweeney announced that DMI was available to do “hits” for hire. Sweeney participated in the smuggling of drugs into prisons by, and on behalf of, DMI members, including heroin, powder and crack cocaine, marijuana, and prescription drugs. During his years in prison in Maryland and in the federal system, Sweeney ordered numerous “hits” in furtherance of DMI, as well as assaults.
Perry Roark, a/k/a Rock, “Pops,” “Slim,” “Saho the Ghost,” age 42, previously pleaded guilty and was sentenced to life in prison for the racketeering conspiracy. Roark had been the “Supreme Commander” of DMI since it was originally created as a prison gang in Maryland in 2000.
Mr. Rosenstein praised the FBI, ATF, Maryland Department of Public Safety and Correctional Services; Baltimore County Police Department; Anne Arundel County Police Department; Baltimore City Police Department; the Maryland State Police; Baltimore County State’s Attorney’s Office; Baltimore City State’s Attorney’s Office; and Anne Arundel County State’s Attorney’s Office for their assistance in this investigation and prosecution.
United States Attorney Rod J. Rosenstein thanked the U.S. Attorney’s Office for the Eastern District of Texas for their assistance and commended Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Prince George’s County Armed Career Criminal Sentenced to 18 Years in Prison After Pleading Guilty to Gun ChargesRead the Press Release
Stole the Identities of Doctors Who Applied for Fellowships at Johns Hopkins Hospital Where His Girlfriend WorkedGreenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Marco A. Williams, age 34, of Clinton, Maryland, today to 18 years in prison, followed by five years of supervised release, after Williams pleaded guilty to two counts of being a felon in possession of a firearm. Chief Judge Chasanow found that Williams is an armed career criminal based on at least three previous violent crime or drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Williams’ guilty plea, on August 20, 2009, Williams was involved in a car accident. Prince George’s County Police officers responding to the accident saw the handle of a .40 caliber gun sticking out from under the driver’s seat. Officers recovered the gun and 14 baggies of crack cocaine found during a search of the vehicle in a fake rock in the driver’s side door compartment. A later search of Williams’ residence recovered 10 grams of crack cocaine, 49.24 grams of ecstasy, 75.52 grams of marijuana, $1,084 in cash, $3,000 in blank money orders and a 12-gauge shotgun. Williams had previously been convicted of a felony and was prohibited from possessing firearms. Williams remains detained.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George's County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Antonio J. Reynolds and William Moomau, who prosecuted the case.
Owner of "Clean Green Fuel" Sentenced to over 12 Years in Scheme to Violate EPA Regulations and Sell $9 Million in Fradulent Fuel CreditsRead the Press Release
Rodney Hailey Falsely Claimed His Company Produced 23 Million Gallons of Renewable FuelBaltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Rodney R. Hailey, age 34, of Perry Hall, Maryland, today to 151 months in prison followed by three years of supervised release in connection with a scheme in which he sold $9 million in renewable fuel credits which he falsely claimed were produced by his company, Clean Green Fuel, LLC. Judge Quarles enhanced Hailey’s sentence upon finding that he obstructed justice by concealing, selling and spending assets that were protected by court order. Judge Quarles also ordered that Hailey pay restitution of $42,196,089.78 to over 20 companies, and forfeit $9.1 million in proceeds of the fraud including cars, jewelry, his home and bank accounts already seized by the government in partial satisfaction of such $9.1 million judgment.
Hailey was convicted on June 25, 2012, of eight counts of wire fraud, 32 counts of money laundering and two counts of violating the Clean Air Act. He has been detained since the guilty verdict.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge David G. McLeod, Jr. of the Environmental Protection Agency’s (EPA) Criminal Investigation Division; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Thomas Muskett of the EPA Office of Inspector General - Office of Investigations - Washington Field Office; U.S. Marshal for Maryland Johnny Hughes; and Chief James W. Johnson of the Baltimore County Police Department.
“Any government program that is based on trust is vulnerable to a fraudster like Rodney Hailey,” said U.S. Attorney Rod J. Rosenstein. “The only thing Rodney Hailey’s ‘Clean Green Fuel’ business produced was the dirty money he used to fund his lavish lifestyle.”
“Congress created the Renewable Fuel Standard program to ensure that transportation fuel sold in this country contains a requisite amount of renewable fuel to promote a cleaner and healthier environment,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program in Maryland. "The joint investigation into the defendant’s so-called biodiesel operation revealed no evidence that biofuel ever existed. Today’s sentence demonstrates that those who blatantly thumb their nose at the law in order to make money illegally will be prosecuted.”
“Ultimately, Mr Hailey’s greed has deprived him of his freedom as well as his personal property,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today’s sentence reaffirms that IRS Criminal Investigation, in cooperation with our law enforcement partners, is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to evidence presented at the six day trial, Hailey owned Clean Green Fuel, LLC, located in the Baltimore area. Hailey registered Clean Green Fuel with the EPA as a producer of bio-diesel fuel, a motor vehicle fuel derived from renewable resources. In order to encourage the production of renewable fuel and lessen the nation’s dependence on foreign oil, all oil companies that market petroleum in the U.S. are required to produce a given quantity of renewable fuel or to purchase credits, called renewable identification numbers (RINs), from producers of renewable fuels to satisfy their renewable fuel requirements.
Between March 2009 and December 2010, Hailey engaged in a massive fraud scheme, selling over 35 million RINs (representing 23 million gallons of bio-diesel fuel) to brokers and oil companies, when in fact Clean Green Fuel had produced no fuel at all and Hailey did not have a facility capable of producing bio-diesel fuel.
Federal law enforcement agents investigated the scheme after a Baltimore County police detective working with Maryland’s federal financial crimes task force received a report about a large number of luxury cars parked in front of Hailey’s house. The financial crimes task force contacted the EPA’s Criminal Investigation Division and initiated a criminal investigation.
Two civil inspectors from EPA’s Air Enforcement Division visited Clean Green’s headquarters on July 22, 2010, to inspect Hailey’s bio-diesel production facility, in response to a complaint alleging that Clean Green had been selling false RINs. Hailey was not able to provide an exact location for the bio-diesel fuel production facility, nor any records to support claims that Clean Green Fuel had produced bio-diesel fuel. When asked to explain his method of production, Hailey falsely stated that he paid employees and contractors to recover waste vegetable oil from 2,700 restaurants in the “Delmarva” area and bring it to his production facility where he converted it to bio-diesel fuel. Hailey claimed that only the drivers who picked up the oil knew the names of the restaurants, and Hailey could not provide the names of the drivers.
Hailey made over $9.1 million from selling the false RINs. The loss to the traders and major energy companies who purchased Hailey’s false RINs is over $40 million, but the loss also extends to small bio-diesel companies which, as a result of Hailey’s scheme, were unable to sell their RINs and have been forced out of business.
Hailey used the proceeds of the scheme to purchase luxury vehicles, including BMWs, Ferraris, Bentleys, a Mercedes Benz, a Rolls Royce Phantom, a Lamborghini, a Maserati and others, as well as real estate and more than $80,000 in diamond jewelry. In all of these transactions, Hailey generally used cash or checks drawn on accounts he controlled to make the purchase, including a check for $645,330.15 to buy his home in Perry Hall.
For their work in this investigation, United States Attorney Rod J. Rosenstein praised the members of the Maryland Financial Crimes Task Force, including the U.S. Marshals Service, the Baltimore County Police Department and IRS - Criminal Investigation; and the EPA Criminal Investigation Division, U.S. Postal Inspection Service, and EPA Office of Inspector General - Office of Investigations. Mr. Rosenstein thanked Assistant United States Attorneys Tonya N. Kelly and Stefan Cassella, who prosecuted the case.
Convicted Fraudster Sentenced to 8 Years in Prison in Scheme to Buy Merchandise Using Stolen Identifying Information to Open Instant Credit AccountsRead the Press Release
Convicted in a Similar Scheme in 2007Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Lavon Richard Caldwell, age 31, of Baltimore, today to eight years in prison followed by five years of supervised release for bank fraud and four counts of aggravated identity theft. Judge Bennett also ordered Caldwell to pay restitution of $16,024.70.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
Caldwell pleaded guilty after four days of trial to using the personal identifying information of individual victims, without their knowledge, to obtain credit accounts in the victims’ names. According to evidence introduced at trial, from September 2011 to February 3, 2012 Caldwell used the fraudulently obtained credit accounts to purchase high priced merchandise from retail stores, including designer clothing, electronics and other personal items, without intending to pay for the merchandise. Caldwell used fake driver’s licenses and other identifying information to assume the identity of the victims.
Caldwell stole the personal identifying information of five individual victims to purchase and attempt to purchase merchandise, including luxury items, such as Hermes sweaters and Gucci bags, electronics and other personal items, totaling at least $70,677.52.
On February 3, 2012 the defendant was arrested at the Neiman Marcus in Washington, D.C., while attempting to purchase $4,000 in merchandise using a fraudulently obtained account and fake driver’s license.
At the time Caldwell engaged in this fraud scheme, he was on supervised release after having served 61 months in federal prison for conspiracy to commit bank fraud and aggravated identity theft in connection with a similar scheme. Judge Bennett also sentenced Caldwell today to 21 months in prison, followed by two years of supervised release, to be served concurrent to the eight year sentence, for violating his supervised release.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul Budlow and Michael Cunningham, who prosecuted the case.
Baltimore Felon Sentenced to 15 Years in Prison for Possession of AmmunitionRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Robert Hubbard, age 37, of Baltimore, late yesterday to 15 years in prison, followed by five years of supervised release, for being a felon in possession of ammunition. Judge Bennett enhanced Hubbard’s sentence upon finding that he is an armed career criminal based on two previous convictions for carjacking and two previous robbery convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to testimony at Hubbard’s three day trial, on November 10, 2011, Baltimore Police Department officers executed a search warrant at Hubbard’s residence after a confidential informant purchased drugs from Hubbard at his home. During the search Hubbard was located in the front bedroom and told the officers that his gun was in the safe and the drugs on the bed belonged to him. During a search of the front bedroom, officers found a safe containing a .32 caliber revolver loaded with 5 rounds of ammunition, 1 box of ammunition (containing 47 .32 rounds), $150 cash, 1 clear ziplock bag with marijuana, and a copy of Hubbard's rental agreement. Officers also recovered 1 clear plastic bag containing seven ziplock bags of heroin and another clear bag containing cocaine.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, and Assistant U.S. Attorney Michael C. Hanlon, who prosecuted the case.
Parkville Man Sentenced to 27 Years in Prison for Sexual Bondage of a 15 Year Old GirlRead the Press Release
Recruited Women and Girls Online Into a Bondage and Sadistic Lifestyle; Took the 15 Year Old Girl from Her Home and Kept Her ConfinedBaltimore Maryland - U.S. District Judge James K. Bredar sentenced John Andrew Blaes, age 49, of Parkville, Maryland, today to 27 years in prison followed by a lifetime of supervised release for conspiracy to produce child pornography and transporting a minor to engage in sexually explicit conduct. Judge Bredar ordered that upon his release from prison, Blaes must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.
According to the plea agreement, at some time prior to March 2010, Blaes and 37 year old co-conspirator Margaret Jones met online and became involved in a sexual relationship. Blaes used the Internet to recruit other women and girls into a bondage and sadistic sexual lifestyle.
On July 5, 2011, Blaes solicited a 15 year old girl to have sex with him and Jones. Blaes and Jones knew that the victim was a vulnerable minor. Blaes and Jones sent pornographic pictures of themselves to the victim using the computer.
On July 22, 2011, Blaes and Jones traveled to the victim’s home in North Carolina to bring her to live with them in Parkville. After picking the victim up in North Carolina, Blaes and Jones sexually abused her in the back of their vehicle, including using bondage with ropes, chains and clamps. The next day, Blaes and Jones rented a hotel room in North Carolina to have sex with the victim. Blaes and Jones used a camera to document the sexual abuse of the victim in the van and the hotel. The images include sadistic and masochistic conduct.
From July 22 to November 20, 2011, Blaes and Jones engaged in sex acts with the victim multiple times a week. Blaes also cut the victim and held lemons to her injuries. Blaes and Jones instructed the victim to keep the sexual conduct and her age a secret. The victim was kept in their residence or in their control at all times, and was not enrolled in school.
Blaes and the co-conspirator used a camera and cell phones to photograph the victim in sexually explicit poses and their sexual abuse of the victim. Blaes distributed the sexually explicit images online to recruit other individuals.
Margaret Ellen Jones, of Parkville, Maryland, pleaded guilty to conspiracy to produce child pornography and is scheduled to be sentenced on June 11, 2013 at 4:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Judson T. Mihok, who prosecuted the case.
Leader in Marijuana Distribution Organization Convicted on Racketeering ChargesRead the Press Release
Charges Include Kidnapping and Murder in Aid of RacketeeringBaltimore, Maryland - A federal jury today convicted Jean Brown, age 43, of Jamaica in connection with a conspiracy to distribute marijuana as one of the leaders of the Brown Organization, a criminal organization whose members distributed narcotics primarily in Maryland, Pennsylvania, New York, Arizona and Jamaica. Co-defendant Gabriel Campa-Mayen, age 45, of Tijuana, Mexico, was acquitted of all charges.
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.
“Today’s conviction of Jean Brown for drug conspiracy and kidnapping and murder in aid of racketeering is a victory for Homeland Security Investigations (HSI) special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and two countries. HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators that used intimidation and violence to further their criminal activities,” said William Winter, special agent in charge for ICE HSI Baltimore. “HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”
According to evidence presented at their seven-day trial, Jean Brown and Carl Smith were the leaders of a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. The evidence showed that they transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.
Brown employed drivers to drive the trucks, arranged for the distribution of the marijuana on the East Coast – principally in Baltimore and Pittsburgh, used couriers to smuggle the drug proceeds to Jamaica, and sent cash back to the Southwest to pay for the next load.
Witnesses testified that on December 16, 2009, Brown, Smith and co-defendants Peter Blake, Hubert Downer and Dean Myrie kidnapped Michael Knight, one of Brown’s money couriers. According to trial testimony, Knight was holding $1 million for the organization, but when the money was collected $250,000 was missing. Myrie drove Brown and Knight, who was bound with a telephone cable, and other members of the organization to an apartment in White Marsh, Maryland, where Brown and others interrogated Knight. After Knight was not able to provide the location of the money, Brown ordered Downer and Blake to kill Knight. Knight was stabbed to death in the bathtub. Over the next few days Brown, Myrie, Downer and Blake dismembered Knight and disposed of his body in dumpsters in the Loch Raven and Liberty Road areas of Baltimore County.
In addition to the murder of Knight, the evidence showed that after threatening Smith on several occasions, in April 2010, Brown offered to pay Campa-Mayen and Leo Alvarez Tostado-Gastellium to murder Smith in Tijuana, Mexico. Witnesses testified that Tostado-Gastellium killed Smith, shooting him in the head. Brown also assaulted a former partner in the drug organization with a baseball bat and a woman and her infant child with boiling water and a with a knife.
Brown faces a maximum of life in prison for the drug conspiracy, for kidnapping in aid of racketeering, and for murder in aid of racketeering; and a maximum of 10 years in prison for conspiracy to commit murder in aid of racketeering.
Hubert Downer, a/k/a “Doc” and “Michael Reid,” age 51, of Jamaica; Dean Myrie, a/k/a “Journey,” age 39, of Jamaica; and Peter Blake, age 55, of Jamaica have all pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Leo Alvarez Tostado-Gastellium, a/k/a “Superman,” is a fugitive.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit, and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Baltimore Man Exiled to 15 Years in Prison on Gun and Drug ChargesRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Donte Wise, age 30, of Baltimore, Maryland, today to 15 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with the intent to distribute cocaine, and possession of a firearm in furtherance of a crime of violence, in connection with the planned robbery of a drug dealer.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Wise=s guilty plea, Wise, Joseph Brown and another co-conspirator, met with a confidential source of information (CS) and with an ATF undercover officer posing as a drug courier to plan the robbery of a drug dealer. Wise and his co-conspirators agreed to commit the armed robbery in exchange for half of the stolen cocaine, expected to be as much as seven kilograms, which they would then distribute. On August 15, 2012, the CS picked up Wise and his co-conspirators and drove to a location in Baltimore to meet the undercover officer, who was to provide a minivan for the conspirators to use to commit the robbery. After arriving at the meet location, ATF agents approached to arrest the conspirators. All three fled, discarding their weapons as they ran, but were caught and arrested. Wise and Brown each threw away a loaded 9mm handgun, which were recovered, along with the .45 caliber handgun thrown on a roof by the third conspirator. A search also recovered black rubber gloves and a black balaclava from Wise and black rubber gloves and a black ski mask from Brown.
Joseph McKinsey Brown, age 29, of Baltimore, previously pleaded guilty and is scheduled to be sentenced on March 27, 2013.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James T. Wallner, who prosecuted the case.
Beltsville Business Owner Sentenced to Prison for Evading over $522,000 in Federal and State TaxesRead the Press Release
Failed to Report Over $1.8 Million in Revenues Deposited in Overseas AccountsBaltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Bae Soo “Chris” Chon, age 49, of Beltsville, Maryland late yesterday to a year and a day in prison, followed by one year of supervised release for income tax evasion. Judge Quarles also ordered Chon to pay a fine of $15,000, and restitution of $412,404 to the IRS and $110,245.70 to the Maryland Office of the Comptroller. Chon was also required to pay a civil penalty of $441,482.50 for failing to disclose his foreign bank accounts. Chon tendered two checks to the IRS on September 11, 2012 for $111,069.72 and $679,775.78, reflecting the agreed restitution and his counsel’s calculation of the amount of the applicable interest and penalties, for the tax years 2008 and 2009 respectively.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“The license to run a business is not a license to evade paying taxes, said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. All Americans have to pay their fair share of taxes for the various government services and protections that we all enjoy. Mr Chon’s sentence serves as a reminder that IRS Criminal Investigation is committed to maintaining the integrity of our tax system and will continuously direct its efforts at the portion of individuals who willfully choose to evade their tax obligations.”
According to his plea agreement, Chon owned and operated Mirage Cosmetics, Inc., which manufactured cosmetics products at its facility on Tucker Street in Beltsville. Mirage marketed its products domestically through Walgreens, Target, Costco and other chain stores, as well as in Canada, Australia, United Kingdom, Australia, Estonia, Dubai, Kuwait, Lebanon, South Africa, Germany, Japan, New Zealand, China and Vietnam. As a subchapter S corporation, the net profits Mirage earned were required to be reported as taxable income by Chon.
In the fall of 2008, Chon started a tax evasion scheme whereby he caused the proceeds from Mirage’s transactions with many of its foreign distributors to be diverted into foreign bank accounts in Hong Kong and Seoul, South Korea. The funds deposited into these foreign accounts were not reflected on Mirage’s official records. Accordingly, Chon substantially understated Mirage’s income on his 2008 and 2009 personal income tax returns. Chon continued making deposits into these undisclosed foreign accounts until November 2010, when IRS investigators learned of the accounts.
On March 23, 2009, the IRS announced the agency’s Overseas Voluntary Disclosure Program, which offered taxpayers who maintained previously undisclosed foreign bank accounts incentives to disclose those accounts and bring themselves into compliance with the law. This highly-publicized program remained open until October 15, 2009, and nearly 15,000 taxpayers took advantage of it to make voluntary disclosures about foreign bank accounts in more than 60 foreign countries. Chon did not disclose the existence of his foreign bank accounts under this program.
On November 16, 2010, IRS agents executed a search warrant at Mirage’s offices and seized a laptop computer on which the records of the foreign accounts were kept. Thereafter, Chon timely filed his 2010 federal and state personal and corporate tax returns, in which he reported the amounts that had been deposited in the overseas bank accounts during the 2010 tax year. Chon paid the tax due for the tax year 2010 in 2011, after he became aware of the investigation.
As a result of the scheme, approximately $1,818,895 in revenues from Mirage’s foreign clients that were diverted into the overseas bank accounts resulted in understating Chon’s federal and state tax liability by $522,649.70 for the tax years 2008 and 2009.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
Baltimore Felon Exiled to 9 Years in Prison for Possessing a Gun and AmmunitionRead the Press Release
Maryland Task Force Aggressively Pursues Federal Charges for Child ProstitutionBaltimore, Maryland - U.S. District Judge James K. Bredar sentenced Justin Harris, age 28, of Baltimore, Maryland, today to nine years in prison followed by three years of supervised release for being a felon in possession of a gun and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Harris’ plea agreement, on January 17, 2012, an undercover Baltimore Police officer saw a woman offering crack cocaine for sale in the 1800 block of N. Collington Avenue in Baltimore. The undercover officer provided the woman with pre-recorded buy money, and saw the woman walk into a home on N. Collington Avenue where she obtained the drugs. The home was Harris’ residence. A search warrant was executed on January 30 at the home. Harris was present. Law enforcement seized a handgun with an obliterated serial number, and 10 cartridges, along with 4.7 grams of cocaine, marijuana and drug trafficking paraphernalia.
Harris had previously been convicted of a felony and was prohibited from possessing a gun or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Kenneth S. Clark, who prosecuted the case.
Leader Pleads Guilty in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland - Lemoyne Veney, age 44, of Clarksville, Maryland, pleaded guilty today to bank fraud conspiracy and aggravated identity theft.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office; and Harford County Sheriff L. Jesse Bane. According to his plea agreement, from November 2007, through February 2011, Veney conspired with Theresa Smithrick, Kevin Pittman, and others in a scheme to use stolen personal identifying information (PII) to fraudulently obtain money from financial institutions. Specifically, in 2010 Veney met Smithrick, who was employed as a clerk at the Baltimore City District Court. Veney asked Smithrich to help him to gather personal identifying information, which she agreed to do. On approximately eight occasions, Veney gave Smithrick a sheet with eight to 10 names and accompanying PII, with some blank PII fields missing, such as driver’s license number, date of birth, or middle name. Smithrick completed the missing fields by accessing a secure Maryland Motor Vehicle Administration database and faxed the completed sheets to another co-conspirator, as directed by Veney. The co-conspirator who received the completed sheets bartered with Veney and agreed to provide driver’s licenses to Veney in exchange for the PII. In turn, Veney and other co-conspirators used the stolen PII, as well as the counterfeit driver’s licenses, to perpetuate the scheme.
Veney also created false businesses and supporting business documents, which he shared with his co-conspirators, including Kevin Pittman, so that he and his co-conspirators might incorporate some of the fraudulent businesses with the Maryland Department of Assessments and Taxation (“MDAT”) and other states’ departments of state. Veney and a co-conspirator would either sell the business information to others, or keep the information and attempt to establish related business checking accounts.
For example, Veney provided Pittman with fake identification, counterfeit supporting business documents, and counterfeit checks that Veney made in his home, which contained the stolen PII of unwitting victims but the pictures of Veney, Pittman and other conspirators. Pittman then used the counterfeit documents and compromised identities provided by Veney to incorporate fraudulent businesses. Veney also established matching business checking accounts for those fraudulent businesses for use in the scheme. Veney drove Pittman to various financial institutions in Frederick, Columbia and other locations in Maryland, where Pittman used the fake documents to open business and personal bank accounts. Pittman deposited the counterfeit business checks into these fraudulently opened bank accounts, then withdrew the funds before the checks could be identified as fraudulent. Pittman was paid a commission for each transaction. Veney also drove Pittman to supermarkets, where they cashed counterfeit checks, or purchased gift cards and other merchandise, with counterfeit checks drawn on real persons’ accounts, using the fraudulent identification documents provided by Veney as proof of identity.
As a result of the scheme, more than 50 victims lost a total of at least $70,000.
Veney faces a maximum sentence of 30 years in prison for the bank fraud conspiracy and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge Richard D. Bennett scheduled sentencing for May 22, 2013 at 3:00 p.m.
Theresa Smithrick age 47, of Baltimore, and Kevin Pittman, now using the name “Breona Pittman,” age 33, of Chesapeake, Virginia, both previously pleaded guilty to their roles in the scheme and are scheduled to be sentenced on April 29, 2013 and May 1, 2013, respectively.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and Harford County Sheriff’s Office for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.
Four Men Initially Arrested and Charged in Worcester County Now Facing Federal ChargesRead the Press Release
Baltimore, Maryland - Federal criminal complaints have been filed charging four men, initially arrested and charged in Worcester County, with gun and drug violations. Tony Lamont Mills, age 32, of Berlin, Maryland, has been charged with possession with intent to distribute heroin and possession of a firearm by a felon. The second criminal complaint charges Ramon M. Diamos, age 47, and Arlon J. Macatangay, age 51, both of Jersey City, New Jersey and Ricky Ibanga, age 38, of Bayonne, New Jersey, with conspiracy to distribute and possess with the intent to distribute in excess of 50 grams of crystal methamphetamine
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Worcester County State’s Attorney Beau Oglesby; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Worcester County Sheriff Reggie T. Mason, Sr.; Chief Arnold Downing of the Berlin Police Department; and Acting
Chief Kevin Kirstein of the Ocean City Police Department.
The State’s Attorney for Worcester County, Beau Oglesby said, “I applaud the combined efforts of Worcester County Sheriff’s Office, the Maryland State Police, the Ocean City Police Department, the Berlin Police Department, ATF and HSI for their investigations in these cases. The adoption of these cases by the United States Attorney’s Office demonstrates the strength of the relationship between local and federal authorities as we work together to pursue the eradication of controlled dangerous substances from our streets and to remove the criminals who are armed with illegal firearms from our communities.”
According to the affidavit filed in support of the arrest of Diamos, Macatangay and Ibanga, the three were pulled over by Maryland State Police on Route 13, near the Virginia State line for a traffic stop. The Trooper learned that Diamos was wanted on a New Jersey warrant and he was arrested. A clear glass pipe and a small amount of methamphetamine were recovered from Diamos’ front pants pocket. During a subsequent search of the car, the Trooper discovered a manilla envelope that contained 240 grams of crystal methamphetamine, and a receipt in Macatangay’s name. Macatangay and Ibanga were then arrested and additional methamphetamine was recovered from Macatangay’s jacket pocket.
Diamos, Macatangay and Ibanga face a minimum mandatory sentence of 10 years in prison and a maximum of life in prison for conspiracy to distribute methamphetamine. Diamos, Macatangay and Ibanga had an initial appearance this afternoon in U.S. District Court in Baltimore and are detained. Ibanga is scheduled for a detention hearing on February 15, 2013. Diamos and Macatangay consented to detention.
According to Mills’ criminal complaint, on at least two occasions in August 2012, an undercover police detective conducted two hand to hand purchases of heroin from Mills, meeting Mills in his vehicle. On August 31, 2012, law enforcement executed a search warrant at Mills’ residence. Mills was discovered hiding in a bedroom closet, where officers also located a loaded .32 caliber revolver and a box of .32 caliber ammunition. During the search, officers also recovered heroin, marijuana and drug packaging material.
Mills faces a maximum sentence of 20 years in prison for possession with intent to distribute heroin and up to life in prison for being a felon in possession of a firearm. Mills also had an initial appearance today in U.S. District Court in Baltimore and is detained.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF, HSI Baltimore, Worcester County Sheriff’s Office, the Maryland State Police, the Ocean City Police Department and the Berlin Police Department for their work in these investigations. Mr. Rosenstein thanked Assistant United States Attorneys Michael C. Hanlon and Christopher J. Romano, who are prosecuting the Mills and Diamos cases, respectively.
Bowie Realtor Pleads Guilty to $2 Million Mortgage Fraud SchemeRead the Press Release
Greenbelt, Maryland - Michael Abobor, age 38, of Bowie, Maryland, pleaded guilty late yesterday, on what would have been the first day of his trial, to wire fraud in connection with a mortgage fraud scheme involving intended losses of at least $2 million.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Inspector General Jon T. Rymer of the Federal Deposit Insurance Corporation; Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office; and Special Agent in Charge Joe Clarke of the Housing and Urban Development Office of Inspector General - Office of Investigations.
According to his plea agreement, in the Spring and Summer of 2007, Abobor, a licensed realtor, submitted fraudulent loan applications for the purchase of homes in Maryland. Abobor purchased two homes in his own name, and purchased the rest of the homes using the names, and credit, of various friends and family members. Each loan application contained fraudulent information about the borrower’s earnings (including their monthly income and their assets) and employers, of which Abobor had full knowledge. Some of these applications contained fake documents, like doctored W-2s and paystubs; and all of them alleged that the borrower made much more money than he or she really did. Based on these fraudulent application materials, the victim lending institutions funded loans that totaled hundreds of thousands of dollars, resulting in substantial commission payments to Abobor. Eventually, each of these loans fell into default, causing large losses to the victims. Abobor also collected large amounts of money in additional payments funded by the mortgages that were disguised as “renovation payments.”
For example, on July 25, 2007, Abobor facilitated the purchase of a home in Bowie, and while serving as the buyer’s real estate agent, knowingly submitted a false loan application on the buyer’s behalf. The loan application, among other things, vastly inflated the buyer’s monthly income figures. Relying upon these false representations, the lending institution funded a loan of $375,000. As part of this transaction, Abobor received a commission payment of $5,499, and also received over $37,000 in “renovation” payments.
In all, Abobor arranged at least seven fraudulent real estate transactions, caused more than $2,000,000 in intended losses to victim financial institutions, took in excess of $20,000 in fraudulent real estate commissions, and collected over $270,000 in extra money from the transactions in the form of third party disbursements for renovations that were never completed.
Abobor faces a maximum sentence of 30 years in prison and a fine of $1 million. As part of his plea agreement, Abobor will be ordered to forfeit$2,026,205, and the order of forfeiture may include assets directly traceable to his offenses, substitute assets, and/or a money judgment equal to the value of the property derived from, or involved in, the scheme. U.S. District Judge Peter J. Messitte scheduled Abobor’s sentencing for April 18, 2013.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage-Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FDIC Office of Inspector General, U.S. Secret Service and the Department of Housing and Urban Development Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sujit Raman and Sean B. O’Connell, who are prosecuting the case.
Baltimore Drug Supplier Exiled to over 19 Years in Prison on Gun and Drug ChargesRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr., sentenced Barry Thomas, age 51, of Baltimore, Maryland, today to 235 months in prison followed by five years of supervised release for possession of a firearm in furtherance of drug trafficking. Judge Quarles enhanced Thomas’ sentence upon finding that he is a career offender based on two previous drug trafficking convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Robert Brisolari of the Drug Enforcement Administration - Washington Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Thomas’ plea agreement, in November 2009, Thomas supplied heroin and cocaine to co-defendant LaKeisha Holloway. Co-defendant Darryl Chase assisted Thomas. For example, on November 6, 2009, Holloway called Thomas and arranged to obtain heroin and cocaine from Thomas and Chase. Thomas and Holloway again spoke by phone later in the day to finalize the order and make arrangements to meet in Baltimore the next day.
On November 7, 2009, Thomas’ vehicle was stopped by law enforcement in the 700 block of North Longwood Street in Baltimore, near the location at which Holloway and Thomas had agreed to meet. The car was being driven by Thomas and Darryl Chase was in the front passenger seat. A search of the Toyota Avalon recovered two bags of heroin and one bag of cocaine in the center console, with a 9mm handgun found directly next to the bags of drugs. A subsequent lab analysis confirmed that two bags contained a total of 44.73 grams of heroin, and the third bag contained 7.42 grams of cocaine.
LaKeisha Holloway, age 32, and Darryl Chase, age 53, both of Baltimore, pleaded guilty to their roles in the drug trafficking scheme and were sentenced to 12 years in prison and 37 months in prison, respectively.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Ayn B. Ducao, who prosecuted the case.
Corey Moore Convicted on Federal Drug and Gun ChargesRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. convicted Corey Moore, age 37, of Takoma Park, Maryland, today after a one week bench trial, of possession with intent to distribute controlled substances, specifically cocaine and phencyclidine (PCP); possession of firearms in furtherance of a drug trafficking crime; and being a felon in possession of guns and ammunition.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Alan Goldberg of the Takoma Park Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“Corey Moore will no longer sell drugs and foment violence on the streets of Maryland and D.C.,” said U.S. Attorney Rod J. Rosenstein.
According to evidence presented at trial, on September 25, 2010, Moore possessed with intent to distribute powder cocaine, which was recovered by Takoma Park police after a chase. In addition, on September 27, 2010, police executed a search warrant at Moore’s residence and seized one kilogram or more of PCP, which Moore intended to distribute, as well as a .44 caliber, semi-automatic pistol, a.38 caliber revolver, and six rounds of .38 caliber ammunition. Trial testimony showed that Moore possessed the guns to further his drug trafficking and that Moore was prohibited from possessing the guns and ammunition due to a previous felony conviction.
Moore faces a maximum sentence of 20 years in prison for possession with intent to distribute cocaine; a minimum of 10 years and a maximum of life in prison for possession with intent to distribute one kilogram or more of PCP; five years in prison, consecutive to any other sentence imposed, for possession of a firearm in furtherance of a drug trafficking crime; and a maximum of 10 years in prison for being a felon in possession of guns and ammunition. Moore remains detained pending his sentencing, which has been scheduled for May 30, 2013.
United States Attorney Rod J. Rosenstein praised ATF, the Takoma Park Police Department, Montgomery County Police Department and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Jonathan Lenzner, Steven E. Swaney, and Mara Zusman Greenberg, who are prosecuting the case and Assistant U.S. Attorney Jonathan Biran, who assisted with the prosecution.
Baltimore Man Exiled to over 11 Years in Prison for the Armed Robbery of Jewelry Store in Columbia MallRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Reginald D. Dargan, Jr., age 21, of Baltimore, Maryland, today to 135 months in prison followed by five years of supervised release for the March 30, 2011 armed robbery of a jewelry store in the Columbia Mall. Judge Blake also ordered Dargan to pay restitution of $33,255.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department; and Howard County Police Chief William McMahon; and Howard County State’s Attorney Dario Broccolino.
“This is the kind of cooperative effort that results in positive outcomes,” said Howard County Police Chief William McMahon. “The case is a great example of how a collaborative team can take a potentially dangerous criminal off the streets. We appreciate the efforts of all our partners.”
According to the testimony at Dargan’s three day trial, on March 30, 2011, Dargan and two co-defendants, Deontaye Harvey and Aaron Pratt drove to Columbia Mall to commit the armed robbery. Dargan was armed with a knife and Harvey and Pratt were each armed with a gun. They entered a jewelry store in the Mall and brandishing their weapons demanded that store employees open the display cases. One employee tried to run out into the Mall to get help, but Dargan and Harvey went after him and brought him back into the store at gunpoint, while Pratt stayed in the store with the other employees. Dargan then had a store employee empty the men’s watch display into a bag that Dargan was carrying and the three robbers left the Mall.
Dargan and his co-defendants stole 35 men’s Rolex watches valued at approximately $275,475.
Pratt and Harvey, both age 22, of Baltimore, previously pleaded guilty to their roles in the scheme and were sentenced to 87 months and 162 months in prison, respectively.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Howard County Police Department and the Baltimore City and Howard County State’s Attorney’s Offices for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Benjamin M. Block, John W. Sippel, and A. David Copperthite, who prosecuted the case.
Baltimore “Financial Advisor” Pleads Guilty to Defrauding over 22 Clients of $890,000Read the Press Release
Targeted Older, Retired Homeowners, Some of Whom Lost Their Life SavingsBaltimore, Maryland - Casey Charles, age 33, of Baltimore, pleaded guilty today to mail fraud in connection with a scheme in which he promised to help clients make safe investments when in fact he diverted their money for his personal benefit.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Maryland Attorney General Douglas F. Gansler.
"When something sounds too good to be true, it usually is," said Postal Inspector in Charge Gary R. Barksdale of the US Postal Inspection Service - Washington Division. “Investors should always be wary of unrealistic claims. Postal Inspectors will continue to pursue those criminals who use the mail to further their fraudulent investment schemes."
According to his plea agreement, beginning in 2007, Charles owned a company named Infinite Equity Strategies, LLC which he promoted as a financial strategies company that had not “lost a dime in the recession.” Charles held himself out as a financial specialist and safe money advisor, who could help his clients put their retirement funds into products that would provide “high returns without high risk.” Charles solicited potential clients by using direct mailings, newspaper ads and TV commercials. For these mailings, Charles targeted clients who were retired and/or between the ages of 55 and 80, married, owned their home and had an annual income over $25,000. Charles was not registered with the State of Maryland, nor the Securities and Exchange Commission as an investment adviser.
Charles executed his scheme by using two methods. Under the first method, Charles told his clients to liquidate their current investments and provide him with the funds, so that he could place the money into safer investment accounts with higher returns. However, Charles instead deposited the funds into his own accounts. He used some of the fraudulently obtained funds to invest in risky and unauthorized investments on behalf of his clients, and for his own personal and business expenses, including credit card and mortgage payments. To conceal his scheme, Charles created fraudulent letters and account statements purporting to be from well-known financial products and services providers, in order to lead his clients into believing that he had in fact deposited their money into safe investment products as promised.
The second method used by Charles to defraud his clients involved recommending that his clients open accounts with a reputable self-directed IRA custodian where, he told them, they would be able to have more control over where to invest their funds. After his clients transferred their investment funds, however, Charles submitted forged documents to the trust company, directing it to transfer his clients’ funds to a bank account that he controlled. Charles used most of these funds for his own personal and business expenses.
Charles also concealed his scheme by using new client funds to make “lulling payments” to existing clients who requested to liquidate, or receive distributions from, the investments they thought Charles had set up for them.
As a result of his scheme, Charles defrauded over 22 clients of approximately $890,000 of their retirement funds, which in some cases were their life savings.
Charles faces a maximum sentence of 20 years in prison and a $1 million fine. U.S. District Judge Catherine C. Blake scheduled his sentencing for May 21, 2013, at 9:00 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division and the Securities Division of the Maryland Attorney General’s Office for their work in the investigation, and thanked Assistant U.S. Attorney Tonya N. Kelly, who is prosecuting the case.