District of Maryland
Press releases recorded for this federal judicial district.
St. Joseph’s Medical Center Agrees to Pay $4.9 Million for Medically Unnecessary Hospital AdmissionsRead the Press Release
Baltimore, Maryland - St. Joseph’s Medical Center, a hospital located in Towson, Maryland, has reached a settlement with the United States to pay $4.9 million in connection with its submission of false claims to Medicare, Medicaid, and other federal healthcare programs, the United States Attorney’s Office for the District of Maryland announced today.
This settlement resolves the hospital’s civil liability to the United States under the False Claims Act for the hospital’s voluntary disclosure that from 2007-2009 it engaged in a practice of admitting patients to the hospital unnecessarily. In particular, the hospital disclosed that it admitted patients for short stays - typically 1 or 2 days - that were not warranted by the patient's medical condition, and thereby generated a larger reimbursement than was proper for each patient. Of the $4.9 million to be paid by St. Joseph’s, $4.75 million will go the United States, and $152,406 will go to the State of Maryland, which is also a party to the agreement.
“Medical providers drain the resources of federal and state health care programs when they bill the government for unneeded medical procedures,” said the United States Attorney for the District of Maryland Rod J. Rosenstein.
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 more than $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.
Enacted during the Civil War, the False Claims Act is the government’s primary civil tool to combat fraud and abuse in federal programs and procurement. The Act allows the government to recover triple the amount of its actual damages, plus a civil penalty of $5,500 to $11,000 for each false claim.
United States Attorney Rod J. Rosenstein commended the Office of Inspector General of Department of Health and Human Services, the Department of Defense Criminal Investigative Services, the Inspector General for the Office of Personnel Management and the Justice Department’s Commercial Litigation Branch for their resolution of this matter. Mr. Rosenstein also thanked Assistant U.S. Attorney Thomas F. Corcoran, who handled the case.
Phoenix Man Pleads Guilty to Stalking a Woman in MarylandRead the Press Release
Baltimore, Maryland - David Charles Richards, age 49, of Phoenix, Arizona, pleaded guilty today to stalking a woman in Maryland.
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 Richards’ guilty plea, from December 2006 through November 2011, Richards used the internet, telephone, electronic mail and the U.S. mail to stalk a woman in Maryland, including threatening to kill the woman. Richards and the woman had a prior romantic relationship, which the woman described as both troubled and violent.
According to Richards’ plea agreement, after not having any contact with the victim for almost 15 years, in June 2006, Richards contacted the victim’s sister telling her that he still loved the victim but wanted to hurt her. Beginning in July 2006, and during each subsequent year, the victim sought and was granted protective orders forbidding Richards to contact her. On December 11, 2006, the victim discovered that a website had been created in her name, which included a countdown clock to the expiration of the protective order the victim had taken out against Richards and other threatening material. In March of 2008, Richards attempted to purchase a firearm in Arizona, but failed to disclose that he was subject to a protective order. He was denied purchase of a firearm by ATF due to his prohibited person status. In December 2009, Richards mailed a threatening note, along with torn and shredded pieces of the protective orders that had been served upon him, to the victim’s home. Through January 2010, Richards left the victim at least eight voicemails totaling one hour and 40 minutes in length. Richards continued to post threats on websites directed at the victim, including as recently as November 2011. Richards’ long campaign of harassment and threats placed the victim in fear of death and serious harm.
Richards faces a maximum sentence of five years in prison for stalking. U.S. District Judge Ellen L. Hollander has scheduled sentencing for June 24, 2013 at 11:00 a.m. Richards remains detained.
United States Attorney Rod J. Rosenstein praised the FBI agents in Baltimore and Phoenix for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Rachel M. Yasser, who is prosecuting the case.
St. Mary’s County Man Pleads Guilty to Sexually Exploiting Two Minor Girls to Produce Child PornographyRead the Press Release
Baltimore, Maryland - Cary Anderson, age 32, of Dameron, Maryland, pleaded guilty today to sexually exploiting minors to produce 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; St. Mary’s County Sheriff Tim Cameron; and St. Mary’s County State’s Attorney Richard Fritz.
According to that statement of facts that was part of his guilty plea, Anderson began sexually molesting a young girl when she was 11 years old. From February 17 to February 24, 2012, Anderson sexually exploited the girl, who was then 13 years old, and produced images documenting the abuse. Further, on February 24, 2012, Anderson also sexually exploited a 15 year old girl he met on the internet and brought to his home, and produced visual depictions documenting the abuse.
Anderson and the government have agreed that if the Court accepts his plea, a sentence of between 23 and 27 years in prison is the appropriate disposition of the case. U.S. District Judge J. Frederick Motz has scheduled sentencing for April 11, 2013.
As part of his plea, Anderson will also 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).
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, St. Mary’s County Bureau of Criminal Investigations and the St. Mary’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas, assigned from the U.S. Department of Justice, Child Exploitation and Obscenity Section, who is prosecuting the case.
Parkville Woman Pleads Guilty to Conspiracy to Produce Child PornographyRead the Press Release
Baltimore Maryland - Margaret Ellen Jones, age 37, of Parkville, Maryland, pleaded guilty today to conspiracy to produce 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; 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, Jones met John Andrew Blaes online and became involved in a sexual relationship involving bondage, discipline, sadism, and masochism (BDSM). Jones subsequently moved into Blaes’ home in Parkville. During this time, including in July 2011, Blaes used the Internet to contact other women and girls to recruit them into the BDSM lifestyle.
On July 5, 2011, Blaes contacted the victim, a minor female who was 15 years old at the time, and solicited her to engage in sexual conduct with him and Jones. Blaes and Jones knew that the victim was a vulnerable minor. As part of the solicitation process, Blaes and Jones sent pornographic pictures of themselves to the victim using the computer.
On July 22, 2011, Blaes and Jones traveled from Maryland 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 the victim in the back of their vehicle. The next day, Blaes and Jones rented a hotel room in North Carolina for the purpose of engaging in sexually explicit conduct 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 captured by Blaes and Jones include sadistic and masochistic conduct.
From approximately July 22, 2011 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. The victim was instructed to call Blaes “master” or “sir,” and to call Jones “mistress.” Blaes and Jones referred to the victim as their “slave.” Blaes and Jones instructed the victim to keep the sexual conduct and her age a secret and the victim was kept in their residence or in their control at all times and was not enrolled in school.
Blaes and Jones used a camera and cell phones to document their sexual abuse of the victim and to photograph her in sexually explicit poses. Blaes distributed the sexually explicit images of the victim online for the purpose of recruiting other individuals into his BDSM lifestyle with Jones.
As part of her plea agreement, Jones must register as a sex offender in the place where she resides, where she is an employee, and where she is a student, under the Sex Offender Registration and Notification Act (SORNA).
Jones faces a minimum mandatory sentence of 15 years and a maximum of 30 years in prison for conspiracy to produce child pornography, followed by up to lifetime of supervised release. U.S. District Judge James K. Bredar has scheduled sentencing for June 11, 2013 at 4:00 p.m.
John Andrew Blaes, age 49, also of Parkville, Maryland, previously pleaded guilty to the conspiracy and to transporting a minor to engage in sexually explicit conduct. Blaes is scheduled to be sentenced on February 19, 2013, at 2:00 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 are prosecuting the case.
Pimp Sentenced to 10 Years in Prison for Prostituting a Child OnlineRead the Press Release
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Melvin Douglas, a/k/a Melvin Longwood, age 32, of Washington, D.C., today to 10 years in prison, followed by 10 years of supervised release, for transporting a minor across state lines to engage in prostitution. Judge Chasanow ordered that upon his release from prison, Douglas 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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police, as part of the Maryland Child Exploitation Task Force; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to Douglas’ plea agreement, from September 5, 2011 to February 9, 2012, Douglas transported a minor female from Washington, D.C. to hotels in Maryland to engage in prostitution. The Maryland State Police Child Recovery Unit received a missing child alert from the National Center for Missing and Exploited Children for a 15 year old female, who had been reported missing from Prince William County, Virginia. The Maryland Child Exploitation Task Force located an ad on a website frequently used to advertise prostitution and escort services that featured the missing girl.
A “date” was made with the victim, using the telephone number from the advertisement. A law enforcement officer was instructed to meet the girl at a motel in College Park, Maryland on February 9, 2012. An agent saw Douglas and another individual exit the motel room a few minutes before the arranged time for the date, and approach an SUV. Douglas was stopped and searched. A room key and $3,000 were seized. The missing girl was found in the motel room and interviewed. She confirmed that Douglas kept all the money she earned by 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.
The case was part of the Maryland Child Exploitation Task Force efforts to combat child prostitution. The Task Force, created in 2010 is comprised of 15 members representing 10 agencies, both state and federal. Since October 2011, the TF has recovered 32 juveniles and investigated 25 cases that have resulted in state and federal prosecutions. 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.
United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police, Maryland Child Exploitation Task Force and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas and Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Pennsylvania Man Sentenced to 10 Years in Prison for Receipt of Child PornographyRead the Press Release
Took Videos of Boys in Public Restrooms in Maryland Without Their KnowledgeBaltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Brian Matthew Williams, age 28, of West Chester, Pennsylvania, today to 10 years in prison followed by 50 years of supervised release for receipt of child pornography.
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; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Cecil County State’s Attorney Edward D. E. Rollins, III; Harford County State’s Attorney Joseph I. Cassilly; and United States Attorney for the Eastern District of Pennsylvania Zane D. Memeger.
“This defendant egregiously violated the privacy of young boys by secretly recording them in public restrooms, a crime that gives every parent nightmares,” said U.S. Attorney Rod J. Rosenstein. “I am grateful to the vigilant citizen who noticed the unusual behavior and immediately called 9-1-1, and to the police and prosecutors who conducted an urgent investigation.”
According to his plea agreement, on May 6, 2012, Williams spent nearly five hours at the Maryland House and Chesapeake House rest stops on I-95, walking in and out of the men’s restrooms filming several minor males, most of whom were prepubescent, as they used the urinals. Williams positioned himself at an adjacent urinal and used his cell phone to create 21 videos. Williams would then leave the restroom and capture full length images of the young boys as they walked out, including their faces. After the parents of one of the victims reported Williams’ suspicious behavior to Maryland State Police, he was arrested, charged in Cecil County and released on bond the same day.
On June 13, 2012, a search warrant was executed at Williams’ residence and computers and other digital media were seized. A number of hard drives appeared to have been removed, and the operating system on the remaining hard drive had been reinstalled on May 28, 2012.
A subsequent background investigation of Williams revealed that he had been questioned by law enforcement on two previous occasions under similar circumstances. In 2007, law enforcement contacted Williams after they received several complaints that he had followed minors into the restroom at a college basketball game. In June 2010, Williams was questioned and released after an off-duty police officer saw him in the restroom of a movie theater pointing his cell phone at the genitals of young boys using the urinals.
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, Maryland State Police, Cecil County State’s Attorney’s Office, Harford County State’s Attorney’s Office and the U.S. Attorney’s Office for the Eastern District of Pennsylvania for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Oxon Hill Man Sentenced to 5 Years in Prison for Receipt of Child PornographyRead 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 Raymond Talley III, age 34, of Oxon Hill, Maryland, today to five years in prison, followed by six years of supervised release, for receipt of child pornography. Chief Judge Chasanow ordered that upon his release from prison, Talley 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 and Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation - Washington Field Office.
According to the plea agreement, on three occasions in August and September 2011, undercover law enforcement agents downloaded child pornography from files that Talley was sharing over the internet using a file sharing program. On October 7, 2011, two laptops, both with file sharing programs installed, were seized during a search of Talley’s home. Over 1,700 videos of children engaged in sexually explicit conduct had been downloaded and saved onto the laptops.
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 Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, who prosecuted the case.
Maryland Resident Pleads Guilty in Credit Card Fraud Scheme Involving over 50 VictimsRead the Press Release
Skimmed Data from Retail Customers’ Credit Cards Where He WorkedBaltimore, Maryland - Tri Tran, a/k/a “Tony,” age 35, a citizen of Vietnam unlawfully in the country and residing in Maryland, pleaded guilty today to mail fraud in connection with a scheme to skim credit card account data and re-encoding the data onto different credit cards used to buy merchandise at retail stores.
The plea agreement 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); Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office; Harford County Sheriff L. Jesse Bane; and Harford County State’s Attorney Joseph I. Cassilly.
According to his plea, beginning in 2009 through February 28, 2011, co-conspirator Nghia Nguyen, a Vietnamese citizen residing in Santa Ana, California, mailed an electronic skimming device to Tran in Maryland who used the device at the business where he was employed to access data from customer credit cards. During 2009, Tran mailed Nguyen the skimming device approximately twice a month, typically when the data of five to 15 credit cards was stored on the skimmer. This pace picked up slightly in 2010, and in 2011 there were about four to five exchanges prior to his arrest. Tran would also mail several credit cards bearing his name to Nguyen.
Nguyen would then extract the data from the skimmer and re-encode the magnetic strip of the other cards with the victims’ data. Nguyen would then send Tran three or four re-encoded cards in return, and Tran would use these cards, typically for one or two transactions at about $200 per transaction before the accounts were shut down. This process was repeated several times over the course of the scheme.
On January 14, 2011, the Harford County Sheriff’s Office began investigating a complaint related to credit card skimming activity at the retail location where Tran worked. Tran’s residence was searched on February 28, 2011. Computer equipment and peripheral devices used in the creation of the fraudulent credit cards were seized.
As a result of the scheme, over 50 victims incurred losses totaling over $70,000.
Tran faces a maximum sentence of 20 years in prison and a $250,000 fine for mail fraud. U.S. District Judge James K. Bredar scheduled sentencing for May 24, 2013 at 4:00 p.m.
Nghia Nguyen, age 35, previously pleaded guilty to his participation in the scheme and was sentenced on December 17, 2012 to six years in prison.
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 HSI Baltimore, USSS, Harford County Sheriff’s Office and the Harford County State’s Attorney’s Office for their work in the case. Mr. Rosenstein also recognized HSI Orange County, the Drug Enforcement Administration and U.S. Postal Inspection Service in California, City of Orange Police Department, Costa Mesa Police Department and the U.S. Attorney’s Office for the Central District of California for their assistance in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
Leader in Bank Fraud Scheme Sentenced to 12 Years in PrisonRead the Press Release
Deposited Altered and Counterfeit Checks Into Bank Accounts They ControlledGreenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Nathan A. Silla, age 39, of Glenn Dale, Maryland, today to 12 years in prison followed by five years of supervised release for conspiracy to commit bank fraud, two counts of bank fraud and aggravated identity theft, in connection to a scheme in which he and his co-conspirators created counterfeit checks and stole money using misappropriated bank account information and the personal identifying information of individuals. Judge Williams ordered Silla to forfeit $900,000 in cash, six flat panel TVs and other electronics, a 2004 Land Rover Range Rover, and jewelry, including a Cartier watch. Judge Williams also ordered Silla to pay restitution of $331,449 and to forfeit $100,000.
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.
Silla pleaded guilty after two days of trial. According to his plea agreement, Silla and co-conspirators Kodjo Kakra Duncan, Kodjo Panyin Duncan, Caleb K. Otsibah and Stephen L. Wise opened bank accounts at financial institutions in Montgomery and Prince George’s Counties in Maryland, and in Washington, D.C., in their own names, in false names, in family members’ names and in the names of shell corporations they controlled. Silla, the Duncans and Caleb Otsibah used stolen identifying information of individuals to open some of those accounts and obtain check cards.
Silla admitted that he and other conspirators obtained checks from victim individuals and corporations, which they washed to remove the actual payee’s names, then printed with the name of a conspirator, or one of the names being used by the conspirators. Silla and others also created counterfeit checks by printing the misappropriated name and bank account information of victim individuals and companies onto counterfeit checks. They wrote those checks payable to conspirators or companies controlled by conspirators. They deposited these altered and counterfeit checks into accounts they controlled.
Silla admitted that the intended loss from the scheme was at least $400,000.
Kodjo Kakra Duncan, age 39, of Capitol Heights, Maryland; Kodjo Panyin Duncan, age 39, of Lanham, Maryland; Caleb K. Otsibah, age 39, of Lanham; and Stephen L. Wise, age 23, of Washington, D.C., have previously pleaded guilty to their participation in the conspiracy. Each has been sentenced to between 37 and 66 months in prison, and ordered to pay restitution of at least $58,974.61 and up to $175,632.67.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service and U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christen A. Sproule, who prosecuted the case.
Leader in Baltimore Heroin Distribution Ring Sentenced to over 15 Years in PrisonRead the Press Release
LEADER IN BALTIMORE HEROIN DISTRIBUTION RING SENTENCED TO OVER 15 YEARS IN PRISON
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Danilo Garcia, age 43, of Bronx, New York, today to 188 months in prison followed by five years of supervised release for conspiracy to possess with intent to distribute heroin and four counts of 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 Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to testimony at Garcia’s 12 day jury trial, Garcia was a leader in a heroin trafficking organization, supplying heroin to distributors in Maryland and elsewhere. During the investigation, the FBI overheard phone calls in which Garcia arranged to sell heroin to co-defendants Walter Powell, Diego Amparo and others. For example, on July 22, 2011, agents set up physical surveillance in Philadelphia, after intercepting telephone calls in which Garcia brokered a deal for Powell to pick up heroin from Amparo in Philadelphia. Agents observed Powell arrive at the meeting place in Philadelphia and leave a short time later. Powell was stopped on I-95 while driving back to Maryland with approximately 144 grams of heroin in his possession. On four occasions between April 17, 2009 and August 5, 2011, law enforcement seized heroin from Garcia or one of his co-conspirators.
The jury found that Garcia was responsible for the distribution of at least one kilogram of heroin.
Walter Powell, age 61, of Baltimore, Maryland, was previously sentenced to 121 months in prison for the heroin conspiracy. Diego Amparo, age 48, was sentenced to seven years in prison for the heroin conspiracy, and for distribution of heroin.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Maryland State Police and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Capitol Heights Pimp Sentenced to over 12 Years in Prison for Sex Trafficking of MinorsRead the Press Release
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Dennis Smith, a/k/a Domo, age 31, of Capitol Heights, Maryland, today to 150 months in prison, followed by 10 years of supervised release, for transporting a minor to engage in prostitution and sex trafficking of a minor.
The sentence 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.
"The sexual victimization and trafficking of children is among the highest criminal investigative priorities for the FBI here in Maryland," said Stephen Vogt, Special Agent in Charge of the FBI's Maryland office. "This case highlights the exemplary work of the Maryland Child Exploitation Task Force and further validates the significant resources incorporated into working jointly with our law enforcement partners. The FBI pledges our firm commitment in finding, investigating and prosecuting individuals who prey on young victims."
According to Smith’s plea agreement, in October 2011, Smith met a 16 year old female on a social networking site. After a month of engaging in computer chats and text messaging, Smith drove to the girl’s home and picked her up. After picking up two adult women, Smith drove them all to Richmond, where the women engaged in prostitution. Smith had the girl collect the money made by the two women for two days. Smith then photographed and advertised the girl online for sexual services. The 16 year old engaged in commercial sex acts and provided the money she made to Smith. Smith then drove the three females back to Maryland, where he again advertised the 16 year old for sexual services. The next day the girl returned home.
In February 2012, Smith again picked up the 16 year old and another 15 year old female from their high school and took them back to his home. In March 2012, law enforcement was notified that Smith was prostituting the 15 year old girl at a hotel in New Carrollton, Maryland, through an online advertisement. An undercover law enforcement officer set up a “date” with the 15 year old girl. When the officer arrived at the hotel, he identified the 15 year old girl, as well as a 17 year old girl, who were engaged in prostitution. Smith was arrested at the hotel and his laptop and cell phone were seized along with tattoo equipment.
Smith admitted that he brought the 15 and 17 year old girls to his hotel where he photographed them and advertised them online for sexual services. Smith instructed the younger girl on how much to charge clients for sexual services and she provided the money she made from prostitution to Smith. There were text messages on Smith’s cell phone between Smith and the girls that related to the girls engaging in prostitution. Both the 15 and 16 year old girls were tattooed with Smith’s nickname,“Domo.”
This case is part of the Maryland Child Exploitation Task Force efforts to combat child prostitution. The Task Force, created in 2010 is comprised of 15 members representing 10 agencies, both state and federal. Since October 2011, the TF has recovered 32 juveniles and investigated 25 cases that have resulted in state and federal prosecutions. 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 for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, who are prosecuting the case.
ormer Maryland National Guard Employee at Aberdeen Proving Ground Pleads Guilty to Fraud Scheme with Losses of More than $107,000Read the Press Release
Baltimore, Maryland - Lynn Carol Williams, age 56, of Middle River, Maryland pleaded guilty today to wire fraud in connection with a scheme to misuse the corporate purchasing card and cause losses of more than $107,000 to the Freestate Challenge Academy, a Maryland National Guard program located at Aberdeen Proving Ground.
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; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office and Chief Chip Honan of the Aberdeen Proving Ground Police Department.
According to her plea agreement, from October 2007, through February 2011, Williams worked as an administrative aide at Freestate Challenge Academy, a Maryland National Guard youth training program located at Aberdeen Proving Ground. Williams was authorized to use the Academy’s corporate credit card to make purchases for the Academy, and was required to prepare a monthly expense report, which included the purchasing card billing statement, original receipts, copies of the approved requisition forms, and a log of activity on the purchasing card. Once her supervisor approved the expense report, it was forwarded to the State of Maryland Military Department, which paid the account balance on the corporate purchasing card.
Williams admitted that from February 2008, through October 2010, she used the corporate credit card to buy gift cards and items over the internet for her personal use. For example, on May 18, 2010, Williams paid for two airline tickets for her and a friend to travel to Los Angeles, California, with six gift cards purchased with the corporate credit card. To conceal her fraud, Williams prepared false logs of the card activity and fictitious receipts, purportedly for office supplies, snacks for program participants and other legitimate items purchased from local stores.
Williams faces a maximum sentence of 20 years in prison for wire fraud. U.S. District Judge Richard D. Bennett scheduled sentencing for May 6, 2013 at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised the FBI, Defense Criminal Investigative Service and Aberdeen Proving Ground Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting the case.
Kentlands Area Cocaine Dealer Sentenced to More than 17 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams Jr. sentenced Xavier Eccleston, age 35, of Bethesda, Maryland, today to 210 months in prison, followed by eight years of supervised release, for conspiring to distribute powder and crack cocaine, and four counts of possession with intent to distribute the drugs and use of a telephone to further the drug activity.
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; Acting Assistant Director in Charge Debra Evans Smith of the Federal Bureau of Investigation - Washington Field Office; Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; 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 evidence presented during the six-day trial, from June 2010 to September 2011, Eccleston purchased ounce quantities of powder cocaine from his suppliers in the Kentlands area of Prince George’s County, Maryland, including a crack house located at the Eaton Square apartment complex on Sheriff Road in Landover, Maryland. Eccleston socialized with co-conspirators who also sold crack cocaine and knew of such sales. The jury had found Eccleston responsible for re-distributing between 500 grams and five kilograms of powder cocaine and 28 grams of crack cocaine per month during the 16 month conspiracy, using a telephone at times to arrange the drug sales.
A cooperating witnesses testified that Eccleston had assaulted him and threatened the cooperator’s family unless the cooperating witness agreed to lie to the jury and testify that Eccleston was only a user of cocaine and not a distributor. Judge Williams also enhanced Eccleston’s sentence upon finding that he obstructed justice.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, IRS - Criminal Investigation, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Jonathan Lenzner, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Cumberland Man Pleads Guilty to Three Armed Bank RobberiesRead the Press Release
Baltimore, Maryland - John Allen Talerico, age 50, of Cumberland, Maryland, pleaded guilty late yesterday to three counts of armed 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; Cumberland Police Chief Charles H. Hinnant; Allegany County Sheriff Craig Robertson; Frostburg Police Chief Royce C. Douty; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Allegany County State’s Attorney Michael O. Twigg, of the Combined County Criminal Investigations Unit (C3I).
According to his plea agreement, between March 11, 2011, and September 13, 2011, Talerico committed three armed bank robberies in Cumberland, Maryland. During each robbery, Talerico entered the bank, approached the teller and asked about opening an account, then pointed what appeared to be a large black semiautomatic handgun at the teller and demanded money. After the tellers gave Talerico cash, he threatened them and demanded more money from the tellers, then fled the bank. On one occasion, when a customer entered the bank during the robbery, Talerico pointed the gun at the customer, telling the customer to “get out of the way.” During the robberies, Talerico wore distinctive clothing, including a knit hat with a brim, and large framed glasses. Talerico obtained a total of approximately $31,206 from the three bank robberies.
The robberies were captured on bank surveillance video. During a search warrant executed at Talerico’s home on March 30, 2012, numerous articles of clothing matching those worn by the bank robber in the surveillance photos were seized.
Talerico faces a maximum sentence of 25 years in prison, for each of three counts of armed bank robbery. U.S. District Judge Marvin J. Garbis scheduled sentencing for May 3, 2013. Talerico remains detained.
United States Attorney Rod J. Rosenstein praised the FBI, C3I, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Maryland State Police, and Allegany County State’s Attorney’s Office for their work in the investigation and thanked the Mineral County Sheriff’s Office (WV), Pennsylvania State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul E. Budlow and Mark W. Crooks, who are prosecuting the case.
Conspirator Pleads Guilty in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland - Kevin Pittman, now using the name “Breona Pittman,” age 33, of Chesapeake, Virginia, 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 her plea agreement, from November 2007, through February 2011, Pittman conspired with others in a scheme to use the stolen identifying information of others to fraudulently obtain money from financial institutions. Specifically, a co-conspirator provided Pittman with fake identification, counterfeit supporting business documents, and counterfeit checks, which contained the stolen personal identifying information of individuals and pictures of Pittman and other conspirators. Pittman used the fake documents to open business and personal bank accounts at various financial institutions. 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.
Pittman also used counterfeit documents and compromised identities provided to her by a co-conspirator to incorporate fraudulent businesses with the Maryland Department of Assessments and Taxation (“MDAT”) and other states’ departments of state, then established matching business checking accounts for those fraudulent businesses for use in the scheme. Finally, Pittman cashed counterfeit checks, which were drawn on real persons’ accounts, at retail supermarkets, using the fraudulent identification documents provided by her co-conspirator as proof of identity.
As a result of the scheme, more than 10 victims lost a total of between $30,000 and $70,000.
Pittman 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 May1, 2013.
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.
Baltimore Man Indicted on Gun and Drug Conspiracy Charges Resulting in Two MurdersRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Kyle Stevens, a/k/a “Cappo,” age 22, of Remington, Maryland, on two counts of use of a firearm in furtherance of a drug conspiracy related to two murders and one count of conspiracy to distribute and possess with intent to distribute heroin, cocaine, crack cocaine and oxycodone. The indictment was returned on January 17, 2013, and unsealed on January 29, 2013, upon Stevens’ 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; 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.
The three-count indictment alleges that beginning in 2005 Stevens was part of a conspiracy to distribute heroin, powder and crack cocaine, and oxycodone. Further, the indictment alleges that in furtherance of the drug conspiracy, on January 24, 2006, Stevens used a .45 caliber semiautomatic handgun to murder James Wright, a/k/a Ronnie Mo; and on September 21, 2007, used a .380 caliber semiautomatic handgun to murder Keith Ray, a/k/a Keithy.
Stevens faces a maximum sentence of life in prison for each of two counts of use of a firearm in furtherance of a drug conspiracy, and for the drug conspiracy charge. Stevens had his initial appearance on January 29, 2013 in U.S. District Court in Baltimore. Stevens is detained. A detention hearing is scheduled for Monday, February 4, 2013, at 11:30 a.m., before U.S. Magistrate Judge Beth P. Gesner, Courtroom 7B, 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.
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 Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Fraudster Sentenced to 9 Years in Prison for Schemes to Obtain Maryland Unemployment Benefits, Defraud More than 10,000 Credit Card Holders and DirecTvRead the Press Release
Also Ordered to Pay Over $202,000 in RestitutionBaltimore, Maryland - U.S. District Judge Ellen L Hollander sentenced Amiee Arora, age 32, of Washington, D.C., today to nine years in prison, followed by three years of supervised release, for conspiracy to commit and committing credit/debit card fraud, and aggravated identity theft in connection with a series of fraud schemes. Judge Hollander also ordered Arora to pay restitution of $161,782.23 to the State of Maryland for fraudulent unemployment benefits paid to Arora and his co-conspirators, and $41,209.82 to the merchant to cover his losses in the credit card scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent-in-Charge Michael Barcus, U.S. Department of Labor-Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division. Mr. Rosenstein thanked the Maryland Department of Labor, Licensing and Regulation (DLLR) for its assistance in this investigation and prosecution.
According to his plea agreement, Arora was the sole director and resident agent of Top Of The Line Marketing, Inc. (TOTL Marketing) and co-defendant Vivek Jain worked for him. From February 14, 2010 through February 14, 2011, Arora and Jain used identifying information that they obtained through TOTL Marketing to fraudulently apply for Maryland unemployment benefits. Arora instructed Jain as to how to fraudulently apply for Maryland unemployment benefits, which DLLR, who administered unemployment benefit programs in Maryland, provided to applicants on prepaid debit cards. Once the fraudulent benefits were approved, Arora and Jain changed the mailing address for the debit cards to mailboxes that they rented, then used the cards to withdraw cash from ATM machines. On February 14, 2011, law enforcement officers in Georgia recovered 42 debit cards issued through the Maryland unemployment insurance program, from Jain’s car. Police officers also located several pages and a computer file containing the personal identifying information of approximately 1,200 Maryland residents from the Eastern Shore, Hagerstown, Baltimore and Gaithersburg. Arora had obtained the list of individuals from AV Wireless, a telecommunications business that he operated from 2004 through March 2009, and supplied the list to Jain for his use in the scheme.
Arora and Jain obtained more than 45 unauthorized debit cards worth more than $340,000 in fraudulent unemployment benefits as a result of the scheme.
Vivek Jain, age 27, of Gaithersburg, Maryland, pleaded guilty to his role in the unemployment scheme and is awaiting sentencing.
Credit Card Fraud Scheme
From May 2011 through about August 2011, Arora made fraudulent representations to a merchant, that he was marketing a shopping club membership for a fee of $9.95. Arora obtained the credit card information of more than 30,000 individuals, which he planned to use to charge the membership fee. The merchant agreed to allow Arora to use his credit card processing account to “test” approximately 18,000 credit card numbers, and to actually charge the membership fee more than 10,000 times. The merchant forwarded Arora an agreed upon percentage of funds he received from each transaction. Eventually, the credit card and other companies began reversing the fraudulent charges and the merchant ended up being charged more than $40,000 in chargeback fees.
Pretrial Release Violations
Arora was placed on pre-trial release on August 26, 2011, under rigorous conditions, including that he stay at his parents’ home on 24/7 electronic home monitoring and that he not use a computer or other electronic device to access the Internet. Despite this, Arora arranged with a third party to purchase a cellular telephone in another name and have the phone delivered covertly to the basement door of his parents’ home. In this way, he was able to continue a scheme to defraud DirecTV.
DirecTV Fraud Scheme
Under federal regulations, DirecTV and its dealers are forbidden from engaging in unsolicited telemarketing pitches. DirecTV dealers receive a $200 commission from each new DirecTV subscription. In November 2011, Arora and others agreed to sell DirecTV subscriptions through unsolicited telemarketing, which DirecTV dealers would submit as their own sales, splitting the $200 commission with Arora. Arora and a co-conspirator also assumed the identities of dormant DirecTV dealer accounts to submit subscriptions that they intended to sell through telemarketing, in order to keep the full commission themselves.
On December 8, 2011, federal agents arrested Arora and executed a search warrant at his parents’ home in Potomac and recovered the cell phone Arora had illegally obtained, thereby preventing Arora from fully carrying out the DirecTV fraud.
United States Attorney Rod J. Rosenstein praised the U.S. Department of Labor-Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the U.S. Postal Inspection Service for their work in the investigation and thanked the Maryland DLLR, District Attorney’s Office, Atlantic Judicial District in Liberty County, Georgia and the Darien, Georgia, Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Tamera L. Fine, who prosecuted the case.
Conspirator Indicted in Bank Fraud SchemeRead the Press Release
Allegedly Used His Employment With a Residential Mental Health Program To Steal Identity Information of Clients to Open Fraudulent Bank Accounts for Personal UseBaltimore, Maryland - A federal grand jury today indicted Derrick Elrod, age 35, of Philadelphia, Pennsylvania in connection with a bank fraud scheme to use stolen, personal identifying information of individuals to open bank accounts and fraudulently obtain cash, merchandise and services.
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); Wicomico County Sheriff Michael A. Lewis; Acting Special Agent in Charge Sheila Olander 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 and bank fraud is often associated with refund fraud schemes, said Sheila Olander,” Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “The object of these schemes is to defraud the government, financial institutions and the taxpaying public. IRS Criminal Investigation welcomed the opportunity to lend its financial expertise in this investigation to assist in dismantling this criminal enterprise.”
Elrod worked for Resources for Human Development, Inc. (RHD), a nonprofit social services organization headquartered in Philadelphia. Elrod was an advisor at a residential program that supports individuals with mental health needs.
According to the five count indictment, from December 2008 through December 22, 2011, Elrod stole the personal identifying information of past or present residents of RHD. He provided the information to co-conspirators Christopher Devine, Quanishia Williamson-Ross, Lenee E. Williamson, Quashonna Williamson, and John Waters. In Maryland, Pennsylvania and elsewhere, Elrod and his conspirators allegedly used the stolen information to open accounts at banks, which Elrod’s conspirators then controlled. Elrod’s conspirators allegedly deposited fraudulent checks into the accounts and obtained check cards, then used the associated check cards at ATM machines to make cash withdrawals from the accounts.
The indictment further alleges that Elrod’s conspirators made fraudulent identification documents using the stolen personal information, 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 indictment further alleges that Elrod’s conspirators also used the check cards to obtain services, such as utilities, cable and cell phone service, and make purchases for their personal benefit at restaurants, drug stores, grocery stores, gas stations and video rentals and other businesses. Elrod and his conspirators allegedly would not pay for the services and merchandise, and the banks suffered a loss when the fraudulent checks deposited by the defendants were returned as unpaid.
Elrod faces a maximum sentence of: 30 years in prison for the bank fraud conspiracy; and two years in prison, consecutive to any other sentence, on each of three counts of aggravated identity theft. No court appearance has been scheduled.
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.
In related cases, co-conspirators Christopher Andre Devine, age 33; Quanishia Williamson-Ross, age 31; Quashonna Williamson, age 26, and Lenee E. Williamson, age 22, all of Salisbury, Maryland, Frederica, Delaware and Philadelphia, Pennsylvania, and John Waters, age 38, of Philadelphia, previously pleaded guilty to their participation in the conspiracy. Judge Blake has scheduled sentencing for Devine on March 1, 2013 at 9:30 a.m., and for Quashonna Williamson and Waters on March 29, 2013 at 10:30 a.m. and 2:00 p.m., respectively. Williamson-Ross and Lenee Williamson are scheduled to be sentenced on March 5 and March 6, 2013, respectively.
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 are prosecuting the case.
Bookkeeper Sentenced to Prison for Stealing over $150,000 from Employer and Evading TaxesRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Diane Michelle Pimble, age 41, of Washington, D.C., today to 14 months in prison, followed by three years of supervised release, for interstate transportation of stolen money and tax evasion. Judge Messitte also ordered Pimble to pay restitution of $152,918.03 to her employer and $26,697 to the IRS.
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; Chief Cathy L. Lanier of the Metropolitan Police Department; and Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“IRS Criminal Investigation views embezzlement schemes as a form of organized tax evasion,” said Shelia Olander, Acting Special Agent in Charge, IRS Criminal investigation, Washington DC Field Office. “Tax evasion undermines the integrity of our system of taxation. Today’s sentence ensures the public that offenders of these types of schemes are being caught and punished.”
According to her plea agreement, from early 2008 through late 2011 Pimble worked as a bookkeeper for an individual residing in Maryland. Pimble managed her employer’s accounts, paid bills, organized financial information using an accounting software program called QuickBooks, and prepared reconciliation reports of her employer’s bank accounts. In order to help fulfill these duties, at Pimble’s request, her employer gave her a stamp bearing her employer’s signature that Pimble would use to sign her employer’s checks.
Pimble, however, wrote over 100 unauthorized checks to herself, including grossly inflated salary checks for herself, that drew off her employer’s bank accounts. She stamped these unauthorized checks with her employer’s signature, and transported them from Maryland to the District of Columbia, cashing them at her local bank. Pimble concealed her fraud either by falsifying entries in her employer’s QuickBooks accounting program to show that the unauthorized checks had been made to other individuals or entities, or by failing to enter them at all. Pimble also created falsified balance reports so that her employer, when reviewing the documents, would believe that the accounts were balanced. Pimble transported across state lines a minimum of $152,918.03 of her employer’s money that was taken by fraud.
Finally, for the tax years 2008, 2009 and 2010, Pimble filed false federal individual income tax returns with the IRS by not reporting the income she received through her embezzlement, resulting in additional tax owed totaling $26,697.
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, Metropolitan Police Department and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Sujit Raman, who prosecuted the case.
Two Brothers Indicted for Tax Fraud and Identity TheftRead the Press Release
Allegedly Used Personal Information Stolen from Puerto Rican Residents To File False Tax Returns from Maryland Seeking RefundsGreenbelt, Maryland - A federal grand jury indicted Ewdy Jose Olivo, age 28, of Rockville, Maryland and his brother Juan Manuel Olivo, age 30, of Hyattsville, Maryland today for obtaining false tax refunds by stealing the identities of others to prepare and file false income tax returns.
The indictment 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.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” said Sheila Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “We are aggressively pursuing identify thieves and working with the U.S. Attorney’s Office in bringing to justice those who harm and steal from the American taxpayer.” The Olivo brothers owned and operated Oligil Tax Services located at 8549 Piney Branch Road in Silver Spring, Maryland.
The 18 count indictment alleges that from April 2007 to January 2010, the brothers stole personal identifying information such as social security numbers and birth dates of others, many of whom were residents of Puerto Rico and were not required to file federal income tax returns so long as all of their income was derived from Puerto Rican sources. The brothers allegedly prepared false income tax returns in the victims’ names and filed them electronically with the IRS from Maryland. They requested that the IRS mail tax refund checks to addresses controlled by them and deposited the checks into their bank accounts. The amount of individual refunds claimed ranged from $1,562 to $4,950.
The indictment seeks the forfeiture of $88,960 seized on April 10, 2012 from the defendants’ tax office and the home of Juan Olivo.
The defendants face a maximum sentence of 20 years in prison for conspiring to commit wire fraud and for each of 11 counts for wire fraud; and a mandatory minimum of two years in prison consecutive to any other sentence imposed on each of six counts of aggravated identity theft. Their initial appearance has not yet been scheduled.
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 IRS Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney Robert K. Hur, who is prosecuting the case.
Oxon Hill Man Exiled to 16 Years in Prison on Gun and Drug ChargesRead the Press Release
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Antonio Timothy Bailey, age 34, of Oxon Hill, Maryland, today to 16 years in prison followed by five years of supervised release for possession with intent to distribute crack cocaine base, and being a felon in possession of a firearm. Chief Judge Chasanow enhanced Bailey’s sentence upon finding that he is an armed career criminal based on three previous narcotics and gun 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; 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 Bailey’s plea agreement, on November 8, 2011, Bailey was sitting in his car, parked outside a known open air drug market, when he was approached by officers with the Prince George’s County Police Department (PGPD). As officers approached his vehicle, Bailey jumped out and ran away, followed by police. During the chase, Bailey threw a plastic bag containing 29 blue glassine baggies, containing a total of 3.06 grams of crack cocaine. Bailey was arrested and charged in the District Court for Prince George’s County, Maryland, with possession with intent to distribute crack cocaine, among other charges.
After additional investigation, on February 3, 2012, PGPD officers searched Bailey’s apartment in Oxon Hill. Bailey was found in the apartment and officers recovered: a loaded 9 mm caliber, semi-automatic pistol; 20.65 grams of crack cocaine, packaged in small glassine baggies; approximately 11 grams of marijuana; and drug distribution paraphernalia, including two electronic scales, empty glassine baggies, a cooking cup, baking soda, and a razor blade.
During a subsequent interview with police, Bailey admitted to purchasing two ounces of powder cocaine every two weeks, cooking it into crack cocaine at his apartment, packaging it for sale, and selling it at various locations in Prince George’s County. Bailey stated that he kept the gun in his apartment for protection.
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 this investigation. Mr. Rosenstein thanked Assistant United States Attorney Steven E. Swaney and Special Assistant U.S. Attorneys Jonathan Ophardt, assigned from the U.S. Department of Justice, and Paul Nitze, assigned from the Social Security Administration, who prosecuted the case.
Owings Mills Woman Indicted in Tax Fraud SchemeRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Karen Kimble, a/k/a âKaren Kimble-Mamah,â and âKaren Mamah,â age 38, of Owings Mills, Maryland, on charges of wire fraud, subscribing to a false tax return, aiding in the filing of a false tax return, aggravated identity theft and visa fraud. The indictment was returned on January 24, 2013. Kimble has an initial appearance scheduled today at 2:15 p.m. in U.S. District Court in Baltimore, Courtroom 7B before U.S. Magistrate Judge Susan K. Gauvey.
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 Enforcementâs (ICE) Homeland Security Investigations (HSI); Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.
âFraud schemes involving identity theft cause tremendous financial damage and can make honest taxpayers face a more difficult time obtaining their lawful refund,â said Shelia Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. âMs. Kimbleâs refund fraud scheme victimized innocent taxpayers and tampered with the integrity of our nationâs tax system. The IRS will remain vigilant in our investigation of these schemes and will continue to work with prosecutors to combat this type of criminal conduct.â
The 21-count indictment alleges that from February 2008 through at least April 2012, Kimble, who falsely held herself out to others as a âcertified tax preparer,â conducted a tax fraud scheme by submitting fraudulent tax returns for clients. Specifically, the indictment alleges that Kimble falsely inflated credits and deductions and clientsâ tax returns, as well as on her own tax returns, in order to fraudulently increase the tax refund. Kimble provided her clients with a tax return that did not reflect the false deductions and credits, nor did she inform them of the fraudulent deductions/credits. Kimble filed the fraudulent returns without her clientsâ knowledge or permission, using their personally identifiable information. Kimble directed that the tax refunds be mailed or directly deposited with all of the refund sent to Kimble, or with some of the refund sent to the taxpayer and some to Kimble. The indictment alleges that Kimble received a total of over $221,000 in fraudulent federal and tax refunds, none of which she reported as income on her own tax returns. The indictment seeks forfeiture of $221,698, alleged to be the proceeds of the scheme.
The indictment also alleges that on February 14, 2008, Kimble married a Ghanian citizen, knowing that the marriage was not valid because the Ghanian was not legally divorced from his first wife.
Kimball faces a maximum sentence of 30 years in prison for each of six counts of wire fraud; three years in prison for each of five counts of subscribing to a false tax return, and for each of five counts of aiding in the filing of a false tax return; a mandatory two years in prison, consecutive to any other sentence, for each of four counts of aggravated identity theft; and 10 years in prison for visa fraud.
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 HSI Baltimore, IRS-Criminal Investigation and the USCIS Baltimore District Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter M. Nothstein, who is prosecuting the case.
Baltimore Armed Robber Sentenced to over 15 Years in Prison for Robbing Two StoresRead the Press Release
Pointed a Gun at a Store Owner and Her Nine Year-Old SonBaltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Cedric Lamont Scott, age 39, of Baltimore, today to 183 months in prison, followed by three years of supervised release, for robbery and using a gun in relation to the robbery. Judge Blake also ordered Scott to pay restitution of $1,175.
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.
According to his plea agreement, on January 21, 2012, Scott entered a store in the 6700 block of Reisterstown Road in Baltimore and selected some items which he took to the cash register. The store owner’s nine year-old son asked his mother if he could ring up the sale. As the boy rang up the sale, Scott pointed a handgun at the boy and his mother and demanded all the cash. The boy and his mother handed Scott all the cash from the register. Scott also took an envelope filled with cash proceeds from the business, the coin drawer from beneath the register and the mother’s cell phone, before fleeing.
On February 16, 2012, Scott robbed a business in the 4600 block of W. Northern Parkway in Baltimore, pretending to want to purchase an item, then demanding money from the cashier. The store manager approached the cash register and realizing that a robbery was taking place, ran out the front door to get help. Scott chased the manager and during a struggle between the two, Scott fired his gun at least once. Scott reentered the store and fired a shot into the cash register drawer lock. When the register failed to open, Scott slammed it to the ground which caused the cash drawer to open. Scott took all the bills and some coins, and fled on foot.
Baltimore Police officers arrived, saw Scott running away and ordered him to stop. Scott continued running, but the officers were eventually able to capture and arrest Scott. Officers seized from Scott a loaded .22 caliber revolver, $282 stolen in the second robbery, and the cell phone Scott took from the store owner during the first robbery.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
Two Conspirators Each Sentenced to 32 Years in Prison for Six Armed Robberies of Dunbar Armored VehiclesRead the Press Release
Purchased “Throw Away” Cars and Used Shotguns, Rifles and Handguns to Steal $765,000 and Six Dunbar Employee HandgunsPurchased “Throw Away” Cars and Used Shotguns, Rifles and Handguns to Steal $765,000 and Six Dunbar Employee Handguns
Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced Erick Wilson, age 28, of Columbia, Maryland, today to 32 years and a day in prison, followed by five years of supervised release, for robbery and gun charges arising from a scheme to rob armored car employees who were transporting large amounts of cash. Judge Garbis sentenced David Marquise Howard, age 29, of Baltimore, yesterday also to 32 years and a day in prison, followed by five years of supervised release, for his participation in the scheme.
The sentences were 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 J. Thomas Manger of the Montgomery County Police Department; Howard County Police Chief William McMahon; Howard County State’s Attorney Dario Broccolino; and Montgomery County State’s Attorney John McCarthy.
According to their guilty pleas, on six occasions Howard, Wilson and other co-conspirators robbed employees of Dunbar Armored at gunpoint, in each instance stealing cash and a handgun from a Dunbar employee. The first robbery occurred in Washington, D.C. on May 22, 2008, and another robbery took place on December 27, 2010, in Ellicott City, Maryland. Four of the robberies took place in Silver Spring, Maryland, on April 29 and December 23, 2009, May 17, 2010 and April 4, 2011.
Howard and Wilson wore disguises and purchased “throw-away” cars to commit the robberies.
Additionally, Howard, Wilson and their co-conspirators: used disposable cell phones to communicate during the robberies; arranged for vehicles and drivers, including Wilson’s mother Regina McCullom, and Howard’s girlfriend Gloria Martino, to be near the robberies in order to quickly flee and help transport the stolen guns and money; and on several occasions rented hotel rooms on the days of the robberies where they met and divided the stolen cash and arranged for the disposal of the stolen
guns.
Howard hid some of the stolen cash from the April 4, 2011 robbery in a storage unit in Pennsylvania. After his arrest for the Montgomery County robberies in May 2011, Howard removed $2,000 in stolen new $20 bills from his person and took law enforcement to the corner of Eldorado Avenue and Carleview Road in Baltimore where he had buried a bag containing $10,000 of stolen money, along with a disposable cell phone box.
In the six robberies, Howard and Wilson stole a total of approximately $765,000.
Regina McCullom, a/k/a Regina Wilson, age 49, of Laurel, Maryland, and Gloria Martino, a/k/a Netty, aged 29, of Silver Spring, previously pleaded guilty to their roles in the armored car robberies and are scheduled to be sentenced on January 25 and 30, 2013, respectively.
United States Attorney Rod J. Rosenstein praised the FBI, Montgomery County Police Department, Howard County Police Department; Howard County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Mark Crooks and Paul Budlow, who prosecuted the case.
Former Postal Employee Sentenced to 2 Years in Prison for Stealing a Postal Money Order Purchased by a CustomerRead the Press Release
Also Set Fire to the Postmaster’s Office to Cover-up the TheftBaltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Dana Lind Nixon, age 27, of Baltimore, Maryland, today to two years in prison, followed by three years of supervised release, for stealing a postal money order purchased by a customer. Nixon also set fire to the Postmaster’s office in an attempt to cover up the theft. Judge Quarles ordered Nixon to pay restitution of $4,006.29.
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; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Maryland State Fire Marshal William E. Barnard.
According to Nixon’s guilty plea, she was an employee of the United States Postal Service working as a Sales and Distribution Associate at the Belcamp, Maryland Post Office. Nixon admits that early on the morning of May 15, 2012, she set fire to the Postmaster's office in an attempt to conceal her theft of a $1,000 postal money order. The fire was quelled, although damage was estimated at approximately $5,000. The Fire Marshal determined that the fire was intentionally set and identified seven different ignition points and other indicators of arson.
In the course of investigating the arson, Postal Inspectors interviewed the Belcamp Postmaster and learned that on May 14, 2012, the Postmaster left paperwork on her desk documenting a complaint from a customer who purchased a $1,000 postal money order on May 8, 2012. The customer alleged that, upon returning home, she realized that the postal clerk, later determined to be Nixon, failed to provide her with the purchased $1,000 postal money order. Further investigation revealed that shortly after the customer purchased the money order from Nixon, Nixon cashed the money order at her own bank in her own name.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service, ATF, and Maryland State Fire Marshal’s Office for their work in the investigation, with assistance from the U.S. Postal Service - Office of Inspector General,. Mr. Rosenstein thanked Assistant United States Attorney Rachel M. Yasser, who prosecuted the case.
Previously Convicted Child Pornographer Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Otha Royal Palmer, age 58, of Hagerstown, Maryland, today to 10 years in prison, followed by lifetime supervised release for possession of child pornography. Judge Bennett ordered that upon his release from prison, Palmer 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 and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the plea agreement, Palmer has two previous child pornography convictions, including a 2001 federal conviction for interstate transportation of child pornography, and was registered as a sex offender.
In the fall of 2011, law enforcement learned that Palmer was accessing and posting comments about child pornography, including his preference for four to seven year old girls, on an internet website. On December 20, 2011, law enforcement executed a search warrant at Palmer’s residence and seized his desktop computer. A subsequent forensic examination of the computer revealed over 600 images of children, including children under the age of 12, engaged in sexually explicit conduct.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), with members from10 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 and the Maryland Child Exploitation Task Force for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Antonio J. Reynolds and Michael C. Hanlon, who prosecuted the case.
Baltimore Man Indicted in Mortgage Fraud Scheme Allegedly Resulting in over $2.5 Million in Losses from Fraudulently Obtained LoansRead the Press Release
Baltimore, Maryland - A federal grand jury indicted Joshua S. Goldberg today on charges of conspiracy to commit and committing wire fraud in connection with a mortgage fraud scheme in which fraudulent loans were obtained on at least five properties.
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; Inspector General Steve A. Linick of the Federal Housing Finance Agency Office of Inspector General; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to three-count indictment, from 2004 through 2008, Goldberg controlled Worthington Mortgage Group, LLC, a mortgage brokerage company which operated from offices on Gough Street in Baltimore. The indictment alleges that beginning in 2004, Goldberg conspired with Kenneth Koehler, a former business partner, David Christian, a licensed appraiser, and others, to obtain loans for Worthington Mortgage clients, including the co-conspirators, by submitting false and misleading appraisals, false bank account information, fictitious employment information and false monthly income figures. The indictment alleges that the scheme resulted in multiple loan defaults, foreclosures and loan losses to mortgage companies and financial institutions of more than $2.5 million.
Specifically, the indictment alleges that Goldberg arranged with Koehler to falsely verify the employment or income information supplied on the loan application, if called upon by the lender. Goldberg also arranged for Christian to provide false and misleading appraisals by telling Christian the dollar value to place on a property and to change the appraisal if it was too low, as well as to misrepresent the condition and physical characteristics of the property. In addition, Goldberg had Koehler, who was selling three of his properties to other co-conspirators, conceal the true purchase price of properties from the lenders, by signing the HUD-1 stating that he had received a substantial down payment from the buyers, when in fact no such payments had occurred and by kicking back part of the sales proceeds from each loan to the buyers. By concealing the true sales price for the properties, the conspirators manipulated the lenders into funding more than 100% of the purchase price, which exposed the lenders to a greater risk of loss than they anticipated.
Goldberg faces a maximum sentence of 30 years in prison and a fine of $1 million for the conspiracy and for wire fraud affecting a financial institution. Goldberg is believed to be a fugitive.
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.
Kenneth Koehler, age 42, of Baltimore, and David C. Christian, age 62, of Catonsville, Maryland, each previously pleaded guilty to conspiracy to commit wire fraud and are awaiting sentencing.
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 commended the FBI, Federal Housing Finance Agency - Office of Inspector General, and U.S. Postal Inspection Service. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory R. Bockin, who is prosecuting the case.
IRS Employee Pleads Guilty to Falsely Certifying the Number of Hours He WorkedRead the Press Release
Baltimore, Maryland - IRS employee Antonio Keith Willabus, age 47, of Laurel, Maryland pleaded guilty today to falsely certifying on his time and attendance records that he worked 353.1 hours in 2012 when in fact he had not.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Robert Geary of the Treasury Inspector General for Tax Administration.
According to his plea agreement, Willabus was a full time management and program analyst with the information technology service of the IRS. His office was located in New Carrollton, Maryland. During part of 2012, Willabus was permitted to work from home on Mondays and Tuesdays.
In January 2012, the Treasury Inspector General for Tax Administration(TIGTA) began investigating Willabus’ time and attendance. The personal recording card Willabus was required to use to record his entry and exit at his office showed that Willabus rarely spent more than a few hours in the office on the days he was supposed to be there. Surveillance video of the building lobby showed that Willabus’ entries and exits were infrequent. People in adjacent offices rarely ever saw Willabus. His supervisors and coworkers frequently could not find Willabus, and were frustrated and perplexed when he did not respond to their emails during working hours.
On Monday and Tuesday of May 7 and 8, 2012, when Willabus was supposed to be working from home, TIGTA agents observed Willabus leave his house at 8:15 a.m. and then spend the day driving to locations in Baltimore. Agents believed Willabus was preparing to set up a bar business in Baltimore. He was seen moving a freezer from his truck into a bar building. Willabus did not return home or go into his office during his regular working hours on either day. On May 11, 2012, he entered data into his office time and attendance system claiming that he worked full days on May 7 and 8.
Cell site records from January through May 8, 2012 showed that Willabus frequently made calls on his cell phone from locations other than his home or office during the hours that he was supposed to be working. For work days between January 13 and June 8, 2012, Willabus falsely claimed to be working 353.1 hours that he did not actually work, for which he received a salary of $24,427.45. Willabus will be required to pay restitution in that amount.
Willabus faces a maximum sentence of five years in prison and a $250,000 fine for making and using a false writing in a matter within the jurisdiction of the executive branch. U.S. District Judge George L. Russell III scheduled sentencing for April 18, 2013 at 10:45 a.m.
United States Attorney Rod J. Rosenstein praised the Treasury Inspector General for Tax Administration for its work in the investigation and thanked Assistant U.S. Attorney Hollis Raphael Weisman, who is prosecuting the case.
Baltimore Police Officer Indicted on Gun and Drug Conspiracy ChargesRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Baltimore Police officer Kendell Richburg, age 36, of Baltimore, on gun and drug conspiracy charges. The indictment was returned on January 17, 2013, and unsealed today.
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 Commissioner Anthony W. Batts of the Baltimore Police Department.
“Corrupt police officers insult the many honorable officers who serve with integrity,” said U.S. Attorney Rod J. Rosenstein. “Any officers who may be tempted to abuse their authority should be on notice that we have the power and obligation to hold them accountable.”
“Today's criminal charges, the result of an investigation by Baltimore Police Internal Affairs Investigators and the FBI, are deeply disturbing and represent an egregious violation of the sacred trust citizens place in police officers,” said Baltimore Police Commissioner Anthony W. Batts. “This joint investigation underscores the BPDs unwavering commitment to accountability. Our promise to the people of Baltimore is that we will continue to work diligently to ensure every member of this Baltimore Police Department deserves the respect and trust of our community.”
The three count indictment alleges that from June 2011, through October 2012, Richburg was part of a conspiracy to distribute and possess with intent to distribute heroin, cocaine, crack cocaine and marijuana. Further, Richburg is charged with conspiring to and possessing firearms in furtherance of drug trafficking, including a .380 semi-automatic handgun and .40 caliber semi-automatic handgun.
Richburg faces a maximum sentence of 20 years in prison for the drug conspiracy, 10 years in prison for the firearms conspiracy count; and a minimum mandatory sentence of five years in prison and a maximum of life in prison for use of firearms in relation to a drug trafficking crime. An initial appearance was held today at 1:45 p.m. in U.S. District Court in Baltimore, before U.S. Magistrate Judge Timothy J. Sullivan. Richburg is detained pending a detention hearing scheduled for January 22, 2013, at 9:30 a.m.
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 Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Tonya N. Kelly, who are prosecuting the case.
Baltimore Heroin Supplier Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Daniel Blue, age 30, of Baltimore, Maryland, today to 10 years in prison followed by eight years of supervised release for conspiracy to possess and possession with intent to distribute heroin. Blue was convicted of those charges by a federal jury on June 22, 2012.
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 evidence presented at Blue’s three day trial, on June 29, 2011, Baltimore City Police Department (BPD) detectives were conducting a narcotics investigation in the 700 block of N. Curley Street in Baltimore City, after receiving information that Keith Townsend, who lived in that block, was selling narcotics. Detectives arranged for a confidential source to purchase 50 grams of heroin from Townsend. Townsend contacted the source and informed him that he would be ready to sell the narcotics in fifteen minutes. A short time later, detectives saw Townsend leave his residence and walk towards the corner of E. Madison and N. Curley Street, where Daniel Blue handed Townsend a brown object, which Townsend placed in his left front pants pocket. Townsend was arrested as he returned to his residence. Officers recovered a plastic bag with a piece of bread from Townsend’s left front pants pocket. Inside of the bread was approximately 50 grams of heroin in a plastic bag.
The entire transaction between Blue and Townsend was witnessed by BPD detectives and was also captured on video by a Baltimore City Police pole camera.
On July 13, 2011, BPD detectives executed a search warrant for a residence in Nottingham, Maryland, associated with Blue,. During the search, law enforcement officers recovered over 100 grams of heroin. Blue was subsequently arrested. At the time of his arrest, Blue was on supervised release from a 2007 federal drug conviction.
Co-defendant Keith Townsend, age 50, of Baltimore, pleaded guilty to possession with intent to distribute heroin and was sentenced to 37 months in prison.
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 Attorneys John W. Sippel, Jr. And Clinton J. Fuchs, who prosecuted the case.
Title Company Owner Sentenced in $1.5 Million Fraud SchemeRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Harriet M. Taylor, age 57, of Ellicott City, Maryland, today to two years in prison followed by five years of supervised release for wire fraud in connection with a scheme to use over $1.5 million in mortgage closing funds for her personal use and to operate her title companies. Judge Quarles also ordered Taylor to pay restitution of $1,256,635.70 to Old Republic and $253,750.84 to CAN Surety, the insurer on Taylor’s errors and omissions policies.
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; and Inspector General Steve A. Linick of the Federal Housing Finance Agency Office of Inspector General.
According to her plea agreement, Taylor co-owned and managed two title insurance companies, Regal Title Company, LLC and Loyalty Title Company, LLC, located in Columbia, Maryland. Pursuant to an agreement with a national title insurance underwriter, and as required by Maryland state law, escrow accounts for Regal and Loyalty were established, separate from company operating accounts, for the purpose of holding and disbursing funds received from lenders for real estate closings.
Beginning in 2009, however, Taylor caused some mortgage lenders to wire their funds entrusted for real estate settlements to Regal’s operating account, rather than to the escrow accounts. Taylor also caused funds in Regal’s and Loyalty’s escrow accounts to be transferred back and forth to the companies’ respective operating accounts. By using commingled funds throughout 2009, Taylor kept her two businesses afloat, while enriching herself with both company and escrow funds. From January through December 2009, Taylor paid herself $477,877.50 from three company operating accounts.
As shortfalls in the escrow accounts increased, Taylor failed to remit insurance premiums to the title insurance underwriter, Old Republic National Title Insurance Company (Old Republic), pay recording fees for deeds and pay off prior liens, including four of which belonged to the government sponsored entities, Fannie Mae and Freddie Mac.
Old Republic learned of the commingling of escrow and operating funds during a 2009 audit of Regal. They directed Taylor to stop the practice. Five months later during a further audit of both companies, Old Republic discovered that in nine cases Taylor used the payoff checks that were supposed to pay prior lien holders, and immediately terminated her as an agent. Old Republic was obligated to satisfy the prior liens against the properties affected by the misuse of settlement funds and to complete other transactions Regal and Loyalty failed to perform. Accordingly, in January 2010, Old Republic incurred a total loss of $1,518,532 which resulted from paying off prior liens, paying recording fees, and for insurance premiums collected by Regal and Loyalty but not forwarded to Old Republic.
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 FBI and the Federal Housing Finance Agency Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
Leader in Latrobe Homes Drug Conspiracy Exiled to over 10 Years in PrisonRead the Press Release
Distributed Up To a Ton of Marijuana During the ConspiracyBaltimore , Maryland - U.S. District Judge Catherine C. Blake sentenced Raymond Williams, age 36, of Baltimore, Maryland today to 121 months in prison, followed by four years of supervised release, for conspiracy to distribute and possess with the intent to distribute between 1,400 and 2,000 pounds of marijuana as part of a drug organization that operated in the Latrobe Homes area of East Baltimore and elsewhere. Judge Blake also ordered that Williams forfeit over $315,000, including $101,580 seized during a search of his home, and a Land Rover.
A total of sixty-six defendants were charged in March 2011 - 31 in federal court and 35 in state court – for dealing drugs at Latrobe Homes in East Baltimore, an area prone to violence and drug activity. The federal indictments alleged that the conspirators obtained heroin and marijuana from suppliers in New York and California, and that violent crimes were committed in furtherance of the conspiracy.
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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Williams’ plea agreement, from at least 2008 through March 10, 2011, Williams participated in a conspiracy to distribute drugs in the Latrobe Homes area of Baltimore and elsewhere, purchasing significant quantities of marijuana from suppliers in California, and selling marijuana to other conspirators for further distribution. Between June 2010 and March 2011, Williams, who lives in Maryland, maintained a residence in San Diego, California, which functioned as a distribution center for his drug trafficking operation. Williams used the home to receive large quantities of marijuana, which were then broken down into smaller quantities by Williams and others for shipment to purchasers around the country. Williams oversaw an operation in which he and his associates shipped boxes of marijuana weighing between 10 and 25 pounds each from California to locations in Maryland, New Jersey, and Pennsylvania for distribution in Maryland. Law enforcement agents have identified more than 500 pounds of marijuana shipments associated with accounts Williams maintained at a shipping company between December 2010 and March 2011.
Williams sent some of the proceeds of the marijuana sales back to California to purchase more marijuana for distribution. Williams mailed cash to associates in California, transferred drug proceeds deposited in Maryland bank accounts to individuals in California, and paid couriers to fly to California carrying large amounts of cash on their persons and in their luggage. During the investigation, U.S. Postal Inspectors seized a total of $214,280 in cash from packages mailed or received by individuals associated with the conspiracy, including $15,000 that was seized from a package that, during surveillance of Williams, law enforcement had seen being mailed on Williams’ behalf. In addition, $101,580 in cash was recovered on March 10, 2011, during a search of Williams’ San Diego house, along with trace amounts of marijuana and handwritten instructions on how to package marijuana for shipment. Williams admits that the money seized was the proceeds of drug trafficking.
All 31 federal defendants have pleaded guilty to their participation in the drug trafficking conspiracy, including Shawn Johnson, age 41, of Bronx, New York, who was sentenced to 160 months in prison; Dana Bowman, age 39 and Donald Wright, age 41; both of Baltimore, who were each sentenced to 151 months in prison; and Antonio McNeely, age 34, of Baltimore, sentenced to 136 months in prison. Another co-defendant, Melvin Thompson, age 31, of Baltimore, Maryland, was sentenced earlier this week to 10 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore City Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein praised Baltimore City Assistant State’s Attorney Christopher M. Mason who assisted in the federal prosecution, and Baltimore City Assistant State’s Attorneys Tony Gioia, Miabeth Marosy, Jeanne Canal and Anna Mantegna, who are prosecuting related state cases. Mr. Rosenstein thanked Assistant United States Attorney Benjamin M. Block, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Hyattsville Man Sentenced to 12 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Juan Alvizures Oliva, age 30, of Hyattsville, Maryland, today to 12 years in prison, followed by five years of supervised release, for production and possession of child pornography. Oliva 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). It is expected that Oliva will be deported upon his release from prison.
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 Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
“Crimes against children and others who are most vulnerable in our community are inexcusable,” said Prince George’s County Police Chief Mark Magaw. “I am proud of the work the Prince George’s County Police Department and our law enforcement partners did to arrest and prosecute Oliva to ensure he can’t harm anyone else.”
According to his plea agreement, on February 20, 2011, Oliva engaged in sexually explicit conduct with a four year old female, whom he was babysitting at the time. Oliva also had the child take off her clothes and expose her genitals and used his cell phone to take a photograph of the child in that state.
On April 4, 2011, Oliva was interviewed and admitted his conduct. Oliva’s cell phone and home computer were seized and forensically examined by law enforcement. The photo Oliva had taken of the victim was found on his cell phone and had also been uploaded onto the computer for availability to distribute.
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, Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas, assigned from the Department of Justice Child Exploitation and Obscenity Section, who prosecuted the case.
18 Defendants Charged with Operating a Large Scale Drug Organization in Anne Arundel and Howard CountiesRead the Press Release
Indictment Seeks a Money Judgment of at Least $10 Million, and the Forfeiture of Eight Properties, 22 Bank Accounts and 24 VehiclesBaltimore, Maryland - Eighteen defendants alleged to be part of a large drug trafficking organization operating in Anne Arundel and Howard Counties, Maryland; New Jersey; and California, have been charged in connection with distributing large amounts of marijuana, diverted pharmaceuticals, steroids, cocaine and other controlled substances. Approximately 250 law enforcement agents participated in the execution of today’s search and arrest warrants. Fifteen of the defendants have been charged by indictment with conspiring to distribute 1,000 kilograms or more of marijuana, and all of these defendants except Charles Thomson are also charged with conspiring to launder the drug proceeds:
- Kerem Dayi, a/k/a “Kenny” and “Cashmir,” age 40, of Gambrills, Maryland, and California;
- Robert Randall Glickman, age 61 , of Dallas, Texas;
- Scott Russell Segal, age 31, of Glen Burnie and Hanover, Maryland;
- Gabriel Gonzalez, age 26;
- Gokahn Bergal, age 29, of Clifton, New Jersey;
- Steven Neil Madden, age 43, of Randallstown, Maryland;
- Martin Dandy, age 31, of Arnold, Maryland;
- Patrick Russo, age 39 , of Fairfield, New Jersey;
- Ryan Burton Wheeler, age 32, of Annapolis, Maryland;
- Anthony Caesar Santoiemma, a/k/a “Bo,”age 43, of Annapolis;
- Anthony Evans Owings Seen, age 26, of Glen Burnie;
- Christopher John Garner, age 41, of Hanover;
- Frederick Blair Thomas, age 31, of Glen Burnie;
- Sae Hyong Hwang, age 33, of Odenton, Maryland; and
- Charles Michael Thomson, age 62, of Savage Minnesota.
The indictment was returned under seal on January 10, 2013. Three defendants are charged by complaint with the marijuana conspiracy:
- Alexandros Lineberry, age 36, of Arnold;
- Jeffrey Dennis Small, age 32, of Annapolis; and
- Donald Goodman, age 63, of Baltimore.
The complaint was filed yesterday under seal. The indictment and complaint were unsealed today upon the arrests of 15 defendants and the execution of search warrants at 17 residences and businesses of the defendants in Maryland, five in New Jersey and one in California. At least 30 vehicles, 60 pounds of marijuana, $300,000 in cash and 35 firearms have been seized.
The indictment and complaint were 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; Anne Arundel County Police Chief Larry W. Tolliver; Howard County Police Chief William McMahon; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
“The Drug Enforcement Administration, working in partnership with both federal and local law enforcement, including the U.S. Attorney's Office for the District of Maryland are bringing to justice18 members of a narcotic trafficking organization operating throughout the United States,” stated Acting Special Agent in Charge Robert Brisolari of DEA’s Washington Division. “As a result of this investigation numerous properties, vehicles and banks accounts have been seized totaling millions of dollars.”
The affidavits supporting the complaint and search warrants allege that the defendants operated a drug trafficking organization in Anne Arundel and Howard Counties, primarily dealing in marijuana, but also dealing in cocaine and diverted pharmaceuticals. The investigation began when defendant Frederick Thomas was in a single car accident on Route 100 at Quarterfield Road in Anne Arundel County on January 7, 2012. Inside his car, agents discovered a shrink-wrapped package of 590 grams of marijuana, a money counting machine, a talley sheet and 126 bank money bands for $2,000.
The affidavits allege that further investigation revealed that Dayi is the drug organization’s leader. Dayi obtains the marijuana from contacts in California and New Jersey. Dayi has 20 pounds or more of marijuana shipped, or 50 to 400 pounds of marijuana driven, to Maryland at a time. Dayi directs the storage of marijuana at houses rented and managed by him and members of the organization, and directs the movement of marijuana and cash between Maryland, California, Ohio and New Jersey.
According to the affidavits, Dayi supplies the marijuana to Segal who is the main wholesale distributer in Anne Arundel County. Segal maintained a stash house off of Interstate 97 in Anne Arundel County. Santoiemma allegedly brokers deals on behalf of Dayi and makes a commission. Marijuana proceeds were allegedly sewn into handbags and delivered to the source of supply in California. Santoiemma allegedly supplied young women to the organization who would fly from BWI to California with these handbags. Thomas allegedly worked at the direction of Dayi, Segal and Santoiemma.
The affidavits allege that Wheeler is a wholesale cocaine customer of Dayi, and supplies ounce and pound quantities of marijuana and cocaine to others for further distribution. Co-defendants Segal, Madden, Bergal, Gonzalez, Glickman, Hwang, Dandy, Seen and Russo are in Dayi’s innermost, trusted circle of lieutenants, who either buy/sell drugs, participate in the laundering of money and/or operate the daily business of Krush.
Glickman allegedly advises Dayi as to the laundering of drug proceeds. The drug organization allegedly launders the drug proceeds by: smuggling bulk cash in cars; sending cash through the mail and commercial delivery services; structuring deposits into bank accounts and removing it from banks in other states; and by investing money into, and removing money from, otherwise legitimate businesses operated by members of the conspiracy . The organization allegedly established an Ebay business named Krush, NYC, LLC for use as a front for marijuana distribution and the laundering of the proceeds. Krush conducts EBay sales of liquidated shoes, clothing and accessories, and uses a warehouse in Jessup, Maryland for business purposes and allegedly for distribution of marijuana.
The indictment seeks a money judgment of at least $10 million, and the forfeiture of eight properties, 22 bank accounts, 24 vehicles, and the assets and inventory of three businesses.
All of the defendants face a maximum sentence of life in prison for the drug conspiracy; and the 14 defendants charged in the indictment with the money laundering conspiracy face a maximum sentence of 20 years in prison. Initial appearances of the defendants arrested in Maryland began at 2:00 pm today in U.S. District Court in Baltimore.
“IRS Criminal Investigation’s unique role in major drug trafficking investigations is to provide financial expertise by targeting the profit and financial gains of narcotics traffickers, enabling increased criminal prosecutions and asset forfeitures,” said Sheila Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today’s successful execution of multiple arrests and search warrants is an important victory for the American public. IRS Criminal Investigation will continually collaborate on organized crime investigations along with its law enforcement partners to financially disrupt and dismantle those organizations and bring criminals to justice.”
An indictment and complaint are not a finding of guilt. An individual charged by indictment or complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, Anne Arundel County Police Department, Howard County Police Department, ATF, IRS - Criminal Investigation, HSI Baltimore, U.S. Postal Inspection Service, and the Maryland Financial Crime Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea Smith and Brooke Carey, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Two Baltimore Women Indicted in Scheme to Use Victims’ Personal Information to Steal Social Security BenefitsRead the Press Release
Allegedly Duped Victims into Providing Their Personal Identifying Information by Claiming That the Victims Had Won the Jamaican National LotteryBaltimore, Maryland - A federal grand jury returned a superseding indictment late yesterday charging Scerena Simpson Genus, age 35, and Doreen Spence, age 50, both of Baltimore, in connection with a scheme to steal social security benefits. The superseding indictment adds a conspiracy count to the original indictment, returned on October 11, 2012.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael Ryan of the Social Security Administration - Office of Inspector General, Office of Investigations, Criminal Investigations; and Brian Crane, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to the seven count superseding indictment, from August 2011 to February 2012, co-conspirators in Jamaica called social security beneficiaries (the victims) and informed them that they had won the Jamaican National Lottery. The co-conspirators elicited personal identifying information from the victims, including their names, addresses, social security numbers and dates of birth, by promising to wire lottery winnings to the victims once they provided their personal information. The Jamaican co-conspirators allegedly used the victims’ personal information to apply for Direct Express debit cards in the names of the victims and requested that the victims’ monthly social security benefits be loaded onto the debit cards. The Jamaican co-conspirators provided a mailing address for the cards on Finney Avenue in Baltimore.
The indictment alleges that Spence and Genus received the debit cards at the Finney Avenue house and used the cards to make purchases and cash withdrawals at ATM’s in Maryland. Immediately after Spence had made cash withdrawals from the victims’ debit cards, she allegedly wired funds to the Jamaican co-conspirators. The Jamaican co-conspirators instructed one or more of the victims to wire funds directly to Spence, who then rewired a portion of those funds to the Jamaican co-conspirators.
The defendants face a maximum sentence of five years in prison and a fine of $250,000 for conspiring to commit wire fraud; 10 years in prison and a fine of $250,000 for access device fraud; and a mandatory minimum sentence of two years in prison consecutive to any other sentence on each of five counts of aggravated identity theft. Initial appearances have been scheduled on January 18, 2013 in U.S. District Court in Baltimore. Both defendants are released under the supervision of U.S. Pretrial Services.
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 thanked the Social Security Administration - OIG and Department of the Treasury - OIG for their work in the investigation. Mr. Rosenstein praised Special Assistant U.S. Attorney Paul Nitze and Assistant U.S. Attorney P. Michael Cunningham, who are prosecuting the case.
Six Defendants Indicted in $4.5 Million Mortgage Fraud SchemeRead the Press Release
Defendants Used Sanford Title Services and Shell Companies to Fraudulently Disburse Settlement Proceeds to ThemselvesBaltimore, Maryland - A federal grand jury has indicted six defendants for conspiracy in a $4.5 million mortgage fraud scheme:
- Bonnie Kathleen Kreamer, a/k/a “Bonnie Meehan,” age 47, of Riva, Maryland;
- Niesha Williams, age 33, of Fort Washington, Maryland;
- Rhonda Scott, age 51, of Oxon Hill, Maryland;
- Emeka Udeze, age 37, of Bowie, Maryland;
- Demetrius Peete, age 45, of Manassas, Virginia; and
- Gregory Green, age 49, of Waldorf, Maryland.
The indictment was returned on December 18, 2012 and unsealed today upon the arrests of Kreamer, Peete and Green.
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; Special Agent in Charge Gene E. Morrison, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office; and Howard County State’s Attorney Dario Broccolino.
The indictment alleges that Kreamer worked at Sanford Title Services LLC located at 8900 Snowden River Parkway, Columbia, Maryland. In 2002, her Maryland license to issue title insurance policies was revoked. From June 2008 to January 2010, Kreamer, Williams, Scott, Udeze and Peete allegedly arranged for individuals, including Green, to buy and sell real estate so they could improperly obtain money from the transactions. Kreamer, Williams, Scott, Udeze and Peete are alleged to have created multiple versions of settlement statements to deceive lenders, lien holders, buyers and sellers; and arranged for proceeds from mortgage transactions to be disbursed to shell companies created by the defendants in order to disguise that the money was really for their benefit. Kreamer and Sanford Title failed to make required disbursements of settlement funds to pre-existing lien holders, funneling the money instead to themselves.
According to the indictment, Green, a former contract specialist with the Office of Justice Programs, U.S. Department of Justice, agreed to make false representations to lenders when applying for real estate loans, in return for secretly receiving a portion of the real estate proceeds to use as a down payment and for the monthly mortgage payments.
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.
The defendants face a maximum sentence of 20 years in prison and a $250,000 fine for the conspiracy. An initial appearance has been scheduled today at 3:30 p.m. in U.S. District Court in Baltimore for Kreamer, Peete and Green.
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, Department of Justice - OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Colleen McGuinn assigned to this case from the Howard County States Attorney’s Office for assisting in this case, and Assistant United States Attorney Harry Gruber, who is prosecuting the case.
Former Postal Service Employee Sentenced for Stealing MailRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Deborah Jean Gibson, age 57, of Windsor Mill, Maryland today to a year and a day in prison followed by three years of supervised relief for theft of mail by a postal service employee. Judge Hollander also ordered Gibson to pay restitution of $1,215.39.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General (OIG).
According to her plea agreement, Gibson was a U.S. Postal Service employee for approximately 13 years. Gibson worked as a mail processing clerk at the Linthicum facility, manually feeding mail into a delivery bar code sorter, and preparing mail for delivery to postal customers.
In November 2011, complaints were received that greeting cards containing gift cards that had been processed through the Linthicum facility were not delivered. In February 2012, a stack of opened greeting cards were found in the facility and identified as having been processed by the machine operated by Gibson. Thereafter, on two occasions, Postal Service OIG agents observed Gibson stealing gift cards from the mail and placing the contents into her pockets or purse.
After Gibson was seen stealing mail again on May 3, 2012, Postal Service OIG agents confronted her and recovered the stolen mail from her purse. Federal search warrants executed at Gibson’s car and residence recovered additional stolen mail. In all, 71 mail pieces and 50 gift cards/personal checks were recovered.
Gibson admitted that she stole from over 250 victims, resulting in an attempted loss of between $10,000 and $30,000.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Service, Office of Inspector General for its work in the investigation and thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case.
Harford County Oxycodone Dealer Sentenced to over 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Ronnie Stocks, age 34, of Bel Air, Maryland, today to 126 months in prison, followed by three years of supervised release, for conspiracy to distribute and possession with intent to distribute oxycodone.
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; Harford County Sheriff L. Jesse Bane; and Harford County State’s Attorney Joseph I. Cassilly.
According to Stocks’ guilty plea, in 2010 and 2011, Stocks was obtaining oxycodone from approximately 12 sources and was distributing those pills, in amounts no less than $100 at a time, to about 36 individuals. During an investigation by the Harford County Drug Task Force, several of Stocks’ customers provided information about the number and frequency of purchases of oxycodone made from Stocks, where those purchases occurred and how many pills would be purchased at one time. A wiretap of Stocks’ cell phone in early 2011 captured Stocks conducting dozens of drug transactions. In April 2011, law enforcement also learned that Stocks sold a firearm. On April 14, 2011, Stocks was arrested and his home and vehicle were searched, recovering over 40 oxycodone pills.
United States Attorney Rod J. Rosenstein commended the FBI, Harford County Sheriff’s Office, Harford County State’s Attorney’s Office and all the members of the Harfod County Narcotics Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Mushtaq Gunja, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Bank Robber Sentenced to over 12 Years in Prison for the Robberies and Attempted Robberies of Banks, Check Cashing Store and Liquor StoreRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Ralph Camper, age 33, of Baltimore, yesterday to 146 months in prison followed by three years of supervised release for bank robbery in connection with the robberies or attempted robberies of three banks, a check cashing store and a liquor store.
In a related case, Judge Bredar sentenced co-conspirator Christopher Horton, age 30, also of Baltimore, today to two years in prison followed by two years of supervised release for conspiring to commit robbery.
The sentences were 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 Police Commissioner Anthony W. Batts; and Chief James W. Johnson of the Baltimore County Police Department.
According to their plea agreements and evidence presented to the court at their sentencings, Camper and co-conspirator Evan Foreman robbed Worldwide Liquors at 5910 Pulaski Highway in Baltimore on June 8, 2010. Foreman put a gun to the head of a female victim while dragging her around the store by her hair. On August 31, 2010, Camper and Foreman robbed Hilltop Check Cashing at 5429 Reisterstown Road, Baltimore of more than $10,000. They placed a gun to the store owner’s neck and threatened to blow the victim’s head off if the victim resisted. Camper bound the victim with duct tape to facilitate their escape.
Camper conspired with Horton and others to rob the PNC Bank branch located in the Giant supermarket at 9730 Groffs Mill Drive in Owings Mills, Maryland on December 27, 2010. Horton, a PNC bank employee who lived next door to Evan Foreman, identified December 27 as the best day to commit the robbery and was present in the bank during the attempt. Co-conspirator Michael Foreman drove the get-away car. This robbery was not completed because after Camper approached the bank teller with a demand note, he became nervous and walked away. Horton also conspired with Evan and Michael Foreman to stage a robbery of this bank on February 14, 2011, in which Horton acted as the victim, while Evan and Michael Foreman brandished a firearm.
Thereafter, on January 14, 2011 Camper robbed the Bank of America branch at 100 South Charles Street in Baltimore of $1,309; and the Capitol One Bank at 135 East Baltimore Street in Baltimore on January 24, 2011 of $340.
In a related case, Evan Foreman, age 34, of Baltimore, previously pleaded guilty to his participation in the attempted December 27 robbery, as well as another attempted robbery and three other successful robberies. Evan Foreman was sentenced on January 4, 2013 to 294 months in prison. His brother Michael Foreman, age 45, also of Baltimore, previously admitted that he participated in the attempted December 27, 2010 robbery of the PNC Bank branch and the successful staged robbery of the bank on February 14, 2011, and was sentenced to 12 years in prison.
United States Attorney Rod J. Rosenstein praised the FBI , the Baltimore City Police Department and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Benjamin M. Block, who prosecuted the case.
Two Baltimore Brothers Sentenced for the Robberies and Attempted Robberies of Check Cashing Stores, Liquor Store and BankRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Evan Foreman, age 34, of Baltimore, late last Friday to 294 months in prison followed by five years of supervised release for robbery and using a gun in furtherance of a robbery in connection with the robberies or attempted robberies of two check cashing stores, a liquor store and a bank. Foreman’s sentence was increased under the Sentencing Guidelines because he was found to be a “career offender” based on two prior convictions for drug distribution. In imposing sentence, the judge described Foreman’s conduct as “urban terrorism” and ruled that he would have imposed the same sentence even without the finding that Foreman was a career offender.
Judge Bredar also sentenced Michael Foreman, age 45, also of Baltimore, to 12 years in prison followed by three years of supervised release for conspiring to commit robbery.
The sentences were 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 Police Commissioner Anthony W. Batts; and Chief James W. Johnson of the Baltimore County Police Department.
According to their plea agreements, from prior to August 2010 to at least June 20, 2011, Evan Foreman conspired with his brothers Michael and Brian Foreman, his neighbor Christopher Horton and others to rob commercial establishments in the Baltimore area. The robbers scouted the location of the store or bank, and borrowed a gun from a third party who would receive part of the stolen money.
Evan Foreman admitted that he and at least one other conspirator: robbed One Stop Shop, a liquor store located at 4905 Frankford Avenue in Baltimore, on July 27, 2010, in which he used a handgun to steal $600; robbed Gold’s Check Cashing store located at 10 West 22nd Street in Baltimore, on October 27, 2010, in which he used a pistol to steal $21,684.61 in cash and checks; attempted to rob a PNC Bank branch located within the Giant supermarket at 9730 Groffs Mill Drive in Owings Mills, Maryland on December 27, 2010, at which Horton worked; attempted to rob an ACE check cashing store located at 200 North Highland Avenue in Baltimore, on January 21, 2011, in which he beat a woman before giving up his attempted robbery; and used a firearm to rob the same PNC Bank of $10,600 on February 14, 2011 while Horton was working at the bank.
Michael Foreman admitted that he participated in the attempted December 27, 2010 robbery of the PNC Bank branch and the successful robbery of the bank on February 14, 2011.
Brian Foreman, age 39, and Christopher Horton, age 30, both of Baltimore, previously pleaded guilty to their participation in the scheme. Brian Foreman was sentenced to 51 months in prison. Christopher Horton is scheduled to be sentenced tomorrow, January 8, 2013 at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI , the Baltimore City Police Department and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Benjamin M. Block, who prosecuted the case.
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Founder of Violent “Dead Man Incorporated” Gang Sentenced to Life on Federal Racketeering, Murder and Drug ChargesRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Perry Roark, a/k/a Rock, “Pops,” “Slim,” “Saho the Ghost,” age 42, today to life in prison for conspiracy to participate in a violent racketeering enterprise known as the Dead Man Incorporated (DMI). Roark has been the “Supreme Commander” of DMI since it was originally created as a prison gang in Maryland in 2000. At the government’s request, Judge Bennett has recommended that Roark serve his sentence at USP Florence, Colorado, the most secure prison in the federal system.
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.
“Perry Roark was scheduled to be released from state prison, but instead he will spend the rest of his life in federal prison for leading the violent Dead Man Incorporated gang and arranging murders,” said U.S. Attorney Rod J. Rosenstein. “Federal racketeering prosecutions serve a critical role in the coordinated local, state and federal law enforcement strategy to reduce violent crime in Maryland.”
According to Roark’s plea agreement, DMI was created originally in 2000 as a prison gang in Maryland, and at its inception was closely allied to the Black Guerilla Family (BGF), another prison gang. By 2006, DMI expanded its membership by recruiting members outside prison, including women.
DMI members operated in and out of prisons throughout Maryland, as well as Pennsylvania, Louisiana and Texas. DMI is active in numerous prison facilities in Maryland. Units operating outside the prisons are identified by the region they cover, such as Brooklyn, South Baltimore, Southwest Baltimore, Southeast Baltimore, Dundalk, Westminster, Glen Burnie, etc.
Roark admitted that he conspired to conduct the affairs of DMI through a pattern of criminal activity from 2000 to the present, including: murder and threats to commit murder, armed robbery, drug trafficking and extortion. DMI members and associates smuggled drugs, tobacco, cell phones and other contraband into prisons, by concealing them on the persons of visitors to the prisons.
Gang members used contraband cell phones in prisons to coordinate the smuggling of contraband into prisons, disseminate information about arrests and releases of members and associates, to warn of investigations, to publicize the identities of persons believed to be cooperating with law enforcement, and to order assaults and murders of such persons, as well as enemies of DMI.
Specifically, Roark admitted that from November 2008 through June 2, 2009, he ordered and planned the June 2, 2009, murder of Tony Geiger, which was carried out by his co-defendants. Roark admitted that he ordered three other murders, which were never carried out, as well as numerous assaults. Roark was frequently involved in drug trafficking within the prisons where he was housed from 2000 to the present.
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 Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Former Bowie Union Trustee Sentenced for Stealing over $379,000 of Labor Union FundsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Ava L. Ramey, age 61, of Bowie, Maryland today to two years in prison followed by three years of supervised release for embezzling at least $379,000 from a labor union. Judge Titus also ordered that Ramey pay restitution and forfeiture of $379,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor - Management Standards.
According to her guilty plea, from December 2005 to October 2009, Ramey served first as an assistant trustee and then a trustee for the United Government Security Officers of America Local 21 based in Bowie, Maryland. During that time, for her personal use, Ramey: wrote more than $80,000 in checks from the union account either to herself or to “cash;” purchased more than $70,000 worth of merchandise with the union debit card; withdrew more than $60,000 from the union account at ATMs; withdrew in person or transferred to her personal account more than $100,000 of union funds; and wrote more than $60,000 in checks from the union account to her family members.
In all, Ramey embezzled a total of at least $379,000 from the union.
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. Department of Labor, Office of Labor - Management Standards for its work in the investigation and praised Assistant U.S. Attorney Sujit Raman, who prosecuted the case.
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Bank Robber Sentenced to 14 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Daniel R. McRae, age 55, of Beltsville, Maryland, today to fourteen years in prison followed by three years of supervised release for bank robbery. Judge Messitte also ordered that McRae pay restitution of $8,150.
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; and Chief Richard McLaughlin of the Laurel Police Department.
According to his guilty plea, on December 14, 2009 McRae entered the Chevy Chase Bank branch at 13600 Baltimore Avenue, Ste. 800, Laurel, Maryland and passed a note to a bank teller indicating that he was robbing the bank. McRae demanded large bills. The teller gave McRae $8,150 and he fled.
McRae’s estranged wife worked for the bank, overseeing 24 branches, including their security. When provided with surveillance photos of the robber, McRae’s wife immediately reported the individual as being McRae. The bank tellers who observed the robbery also identified McRae from a photo line-up.
United States Attorney Rod J. Rosenstein commended the FBI and Laurel Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James A. Crowell IV, who prosecuted the case.
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Solomons Man Pleads Guilty to Producing Child PornographyRead the Press Release
Greenbelt, Maryland - Joshua P. Blakenship, age 25, of Solomons, 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 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.
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 people under the age of 18 to send him pictures, and to creating a fake profile on the Internet to gain access to pictures and videos of girls.
As part of his plea agreement, 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).
Blakenship and the government have agreed that if the Court accepts the plea agreement Blakenship will be sentenced to 12 years in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for March 15, 2013.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.
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Final Three Conspirators Sentenced for Civil Rights ViolationRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced James Nowicki, age 29, of Baltimore, today to five months in prison followed by three years of supervised release, with five months of the supervised released to be served as home detention, for conspiring to deprive a person of civil rights and violating the Fair Housing Act, in connection with his involvement in hanging a raccoon on the porch of a family from Africa. Judge Hollander also sentenced Dena Whedbee, age 43, to seven months of home detention as part of two years probation, and sentenced her daughter Brittany Whedbee, age 21, today to six months of home detention. Judge Hollander also ordered the Whedbees, both of Baltimore, to each perform 100 hours of community service for their involvement in the conspiracy.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein: Assistant Attorney General Thomas E. Perez of the U.S. Department of Justice Civil Rights Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to their plea agreements, Nowicki conspired with Dena and Brittany Whedbee, Joshua Wall and Billy Pratt to hang a dead raccoon from a noose on the porch of an African family, in order to frighten the family and interfere with their housing rights. Dena and Brittany Whedbee encouraged their co-conspirators to hang the raccoon on the family’s porch. On April 29, 2010, Nowicki and Dena Whedbee found a dead raccoon and gave Wall a rope to make a noose. Later that night, Pratt acted as a look-out while Nowicki and Wall hung the raccoon on the porch of the home.Billy Ray Pratt, age 24, of Halethorpe, Maryland and Joshua Wall, age 21, of Essex, Maryland, previously pled guilty to their involvement in the conspiracy, and both were sentenced to four months in prison.
United States Attorney Rod J. Rosenstein and Assistant Attorney General Thomas E. Perez commended the FBI for its work in the investigation and thanked U.S. Department of Justice Trial Attorney AeJean Cha of the Civil Rights Division and Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.
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Ocean City Shop Owner Pleads Guilty to Selling Counterfeit MerchandiseRead the Press Release
Baltimore, Maryland – Liang Lin, age 34, a resident of Delaware, who owned and operated two shops on the boardwalk in Ocean City, Maryland, pleaded guilty today to trafficking in counterfeit goods.
The guilty plea 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 Acting Chief Kevin Kirstein of the Ocean City Police Department.
“Entrepreneurs are free to sell cheap clothing, shoes, handbags, perfume and other consumer items,” said U.S. Attorney Rod J. Rosenstein. “but they cannot use someone else’s trademark.”
“Counterfeit goods traffickers like Lin are looking to gain profit but in reality are committing a crime that results in American jobs lost, American business profits stolen and American consumers receiving substandard products,” said William Winter, Special Agent in Charge of HSI Baltimore. “Consumers now pay more for legitimate products to make up for the money being lost to counterfeits. HSI enforcement operations into Intellectual property theft protect not only the companies who have copyrighted products, but the consumers who believe they are legitimately buying those copyrighted products.”
According to his plea agreement, Lin owned and operated two stores in Ocean City, Maryland: Hot Topik, at 401 South Atlantic Avenue, and Everything $5.99 and Up (Hot Topik), at 806 South Atlantic Avenue #8, as well as operating stores in Delaware. Lin admitted that from at least June 2010 through at least September 2011, he sold, and attempted to sell counterfeit merchandise, including purses, handbags, shirts, jewelry perfume, hats, and shoes that bore trademarks such as Michael Kors, Nike, Monster, Coach, Gucci, Versace, Vera Wang, Louis Vuitton and Channel.
During the summer of 2011, undercover investigators observed large quantities of counterfeit merchandise in Lin’s stores in Ocean City, and several undercover buys of counterfeit merchandise were made, including the purchase of a counterfeit Coach purse.
On the morning of August 17, 2011, federal search warrants were executed at both of Lin’s stores in Ocean City and approximately 8,000 items of counterfeit merchandise were seized. Two days after the execution of the federal search warrant, an investigator again saw counterfeit merchandise for sale at Everything $5.99 and Up (Hot Topik), including merchandise of the same type seized during the search. On September 1, 2011, an investigator made an undercover buy of a counterfeit Coach purse at Everything $5.99 and Up (Hot Topik).
On January 30, 2012, Lin was stopped re-entering the United States after a one-day trip to Canada and declared that the only thing he purchased in Canada was liquor from a duty free shop. A border search of his vehicle recovered approximately 869 pieces of counterfeit jewelry bearing trademarks such as Chanel.
It is estimated by the manufacturers whose goods were counterfeited that the lost retail value (or the retail value of the infringed items) of the goods seized and sold is estimated to be between $200,000 and $400,000. The estimated retail value of the counterfeit merchandise, based on what Lin was selling the infringing counterfeit items for, is $153,585.
Lin faces a maximum sentence of 10 years in prison and a fine of $2 million. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for March 27, 2013 at 9:30 a.m.
Today’s law enforcement action is an example of the type of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to http://www.justice.gov/dag/iptaskforce/.
United States Attorney Rod J. Rosenstein praised HSI Ocean City, the Maryland State Police and Ocean City Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Justin Herring, who is prosecuting the case.
Hyattsville Man Sentenced for Selling Misbranded Prescription and Non-Prescription DrugsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Luis Alberto Jimenez, age 33, formerly of Hyattsville, Maryland, today to 10 months incarceration, with five months of that being home detention with electronic monitoring, followed by two years of supervised release, for selling misbranded, non-FDA approved prescription and non-prescription drugs. Judge Williams also ordered Jiminez to pay a $3,000 fine.
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; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Chief Mark A. Magaw of the Prince George’s County Police Department.
“The FDA - Office of Criminal Investigations is committed to working with the DEA and Prince George’s County Police Department to ensure the public is not endangered by pseudo medical practitioners dispensing and administering unapproved medications,” said Special Agent in Charge Antoinette V. Henry of the FDA Office of Criminal Investigations, Metro Washington Field Office.
According to his plea agreement, from 2007 to March 27, 2012, Jimenez purchased misbranded prescription and nonprescription drugs from conspirators who brought the drugs into the United States from El Salvador and elsewhere, and then sold the drugs from his residence. Jimenez is not a doctor licensed to administer prescription drugs, nor a pharmacist, and the drugs Jimenez sold had not been approved by the FDA.
Twice in 2012, Jimenez sold misbranded prescription and nonprescription drugs to an undercover law enforcement agent. According to court documents and testimony at today’s hearing, the undercover agent told Jimenez that she was pregnant and had a history of blood clots. Jimenez provided her medications such as Nomagest, even telling her it would help her blood clots. Nomagest cannot be legally sold in the U.S., can harm unborn babies, and in fact can increase the risk of blood clots. Pregnant woman and individuals with blood clots are warned not to take the active ingredient, Estradiol, found in Nomagest.
Agents executed a search warrant at Jimenez’s residence and seized more than $19,000 worth of prescription and nonprescription drugs, along with documents showing purchases and sales of over $30,000.
United States Attorney Rod J. Rosenstein commended the DEA, FDA - Office of Criminal Investigations and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Ann O’Brien, assigned from the Department of Justice’s Antitrust Division, who prosecuted the case.
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Baltimore Man Sentenced for Social Security and Medicare FraudRead the Press Release
Defendant Collected SSA Disability Benefits While Employed By SSA
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Christopher George Perry, age 50, of Baltimore, today to two years in prison followed by three years of supervised release for social security disability fraud, federal health benefit program fraud and health care fraud. Judge Bennett also ordered Perry to pay restitution totaling $154,234.54 to the Social Security Administration and Medicare.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.“Christopher Perry defrauded the Social Security Administration and Medicare by collecting disability benefits for more than a decade although he was able to work, and he continued his scheme even while he was working as a Social Security Administration employee,” said U.S. Attorney Rod J. Rosenstein.
According to evidence presented at the four day trial, Perry was receiving social security- long term disability benefits since 1996. In 1998, he began receiving Medicare benefits as a result of his disability. In 2007, Perry also applied for and received a low income subsidy for his prescription drug benefits under Medicare.
Perry returned to work in 1996. Perry worked at various jobs and attended college without disclosing his work activities to the disability section of the Social Security Administration (SSA) or to Medicare. In June 2007, Perry was hired to be a benefits authorizer with the SSA where he worked on cases pertaining to long term disability benefits. His salary was approximately $38,000. Perry continued to receive disability benefits, prescription drug benefits and the low income subsidy, and never disclosed that he was fully employed to the disability section of SSA or to Medicare. In 2002 and 2007, Perry purchased new automobiles while receiving disability benefits.
According to evidence introduced at trial, SSA and Medicare collectively overpaid Perry more than $150,000 in benefits.
United States Attorney Rod J. Rosenstein praised the Social Security Administration - OIG and Department of Health and Human Services - OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sandra Wilkinson, who prosecuted the case.Baltimore Man Exiled to 10 Years in Prison on Drug ChargesRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Corey Brian Barnes, age 28, 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. Judge Bredar also found that Barnes 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; 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 Barnes’ plea agreement, in January 2012, Corey Barnes and two co-conspirators, Edward Ellis and Dominic Thompson, 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. Barnes and his co-conspirators agreed to commit the robbery and to resell the stolen narcotics to customers in the Baltimore area.
On February 2, 2012, Barnes, Ellis and Thompson met with the undercover agent to make their final preparations to commit the robbery. Barnes knew that Ellis and Thompson 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, Barnes and his co-conspirators followed the agent to a location in Baltimore where they were subsequently arrested.. Barnes fled as an arrest team approached, but was quickly apprehended.
Ellis, age 37, and Thompson, age 22, both of Baltimore, previously pleaded guilty to their roles in the scheme. Thompson was sentenced to 78 months in prison on December 21, 2012. Ellis is awaiting sentencing.
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 Clinton J. Fuchs, who prosecuted the case.
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Baltimore Cocaine Trafficker Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Timothy Joseph Carr, age 29, of Baltimore, today to 10 years in prison followed by five years of supervised release for conspiring to distribute five kilograms or more of cocaine.
The sentence 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 Enforcements (ICE) Homeland Security Investigations (HSI).
According to his guilty plea, on November 10, 2011 Louisiana State Police seized approximately five kilograms of cocaine from a vehicle driven by co-defendant Daniel Bois in Louisiana, who was driving the cocaine from Texas to its destination of Baltimore. After arresting Bois, law enforcement continued its investigation into the cocaine organization based in Baltimore and conducted a controlled delivery of the cocaine the following day. The cocaine was replaced with “sham cocaine” and delivered to 3501 8th Avenue in Baltimore, where co-defendants Timothy Dennison and Anthony Taylor accessed the vehicle where law enforcement had concealed the sham cocaine. Law enforcement arrested Dennison and Taylor.
Further investigation revealed that Carr had also driven, in a separate rental car from Bois, another load of five kilograms of cocaine back to Baltimore from McAllen, Texas on November 10, 2011. According to travel records, Carr rented a car on November 7, 2011 after flying to McAllen from BWI Airport. Additionally, Carr and other members of the cocaine organization had made several trips between Baltimore and Texas in the past year to transport several additional kilograms of cocaine for distribution in the Baltimore area.
In all, Carr conspired to distribute between five and 15 kilograms of cocaine.
Timothy Lee Dennison, age 22, Daniel Bois, age 26, and Anthony Fraser Taylor, age 29, all of Baltimore, and two other co-defendants pleaded guilty to their participation in the conspiracy. Dennison was sentenced to 15 years in prison, and the other defendants remain to be sentenced.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore and the Louisiana State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Brooke Carey and Christopher Romano, who prosecuted the case.
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