District of Maryland

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, 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.

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, 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, 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.

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.

Distributed Up To a Ton of Marijuana During the Conspiracy

Baltimore , 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.

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.

Indictment Seeks a Money Judgment of at Least $10 Million, and the Forfeiture of Eight Properties, 22 Bank Accounts and 24 Vehicles

Baltimore, 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.

Allegedly Duped Victims into Providing Their Personal Identifying Information by Claiming That the Victims Had Won the Jamaican National Lottery

Baltimore, 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.

Defendants Used Sanford Title Services and Shell Companies to Fraudulently Disburse Settlement Proceeds to Themselves

Baltimore, 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.

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.

 

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.

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.

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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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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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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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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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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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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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.

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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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, 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, 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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