District of Maryland
Press releases recorded for this federal judicial district.
Lexington Park Man Indicted Federally for Being a Felon in Possession of a FirearmRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Jerod Adam Taylor, age 39, of Lexington Park, Maryland, for being a felon in possession of a firearm. The indictment was returned on February 27, 2025. The defendant had an initial appearance on March 17, 2025, in U.S. District Court in Greenbelt before U.S. Magistrate Judge Gina L. Simms and was ordered detained.
The indictment was announced by United States Attorney for the District of Maryland Kelly O. Hayes with Special Agent in Charge Toni M. Crosby, of the Bureau of Alcohol, Tobacco, Firearms and Explosives- Baltimore Field Division (ATF).
According to the indictment, law enforcement executed a search of Taylor’s home on November 7, 2024, and recovered a firearm, including a Vulcan Arms Model AK47 7.62 caliber rifle. Taylor knew that he had a previous felony conviction which prohibited him from possessing a firearm and ammunition.
If convicted, Taylor faces a maximum sentence of 15 years in federal prison for being a felon in possession of a firearm. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Ms. Hayes commended the ATF and the St. Mary’s County Sheriff’s Office for their work in the investigation. Ms. Hayes thanked Assistant U.S. Attorneys LaShanta Harris and Chris Sarma, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
Maryland Man Sentenced to Federal Prison for Pandemic Relief Loan Fraud and Commercial Loan FraudRead the Press Release
Greenbelt, Maryland – U.S. District Judge Lydia K. Griggsby sentenced Andra Shirone Thompson, 48, of Silver Spring, Maryland, to a year and a day for two counts of conspiracy to commit wire fraud.
Thompson pled guilty to conspiring to defraud Coronavirus Aid, Relief, and Economic Security (CARES) Act loan programs and his role in a years-long scheme to defraud commercial equipment financing companies. He was also sentenced to three years of supervised released and ordered to forfeit $847,280, and pay $813,363.01 in restitution to the victims of his schemes.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, made the announcement with Supervisory Official Matthew Galeotti, Justice Department’s Criminal Division; Executive Special Agent in Charge Kareem Carter, IRS Criminal Investigation (IRS-CI) Washington, D.C., Field Office; Jeffrey D. Pittano, Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Mid-Atlantic Region; Special Agent in Charge Amaleka McCall-Braithwaite, Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region; and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI) – Baltimore Field Office.
According to his guilty plea, Thompson admitted to participating in a conspiracy to submit fraudulent applications for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans on behalf of companies he controlled. The companies included Alpha Bravo Tango LLC., Senergy Consulting Group Inc., and Novus Ordo Seclorum LLC. Through the scheme, Thompson fraudulently obtained $716,375. He spent a portion of the proceeds on vehicles, including a 2014 Lamborghini Aventador, and on renovating a home in North Carolina.
Thompson also joined a conspiracy to defraud equipment financing companies by submitting fraudulent invoices that falsely showed the sale of substantial quantities of computer servers and related equipment. Thompson and his co-conspirators caused borrowers to submit fraudulent invoices to lenders to support their loan applications to purchase items. After approval, lenders deposited loan proceeds into accounts controlled by Thompson and his co-conspirators. The lenders were unaware that the sales on the invoices never occurred. Thompson and his co-conspirators typically “kicked back” a portion of the proceeds to the borrower who submitted the application and kept the rest for themselves. Thompson personally participated in three executions of this scheme, causing approximately $813,362 in fraudulently induced lending.
Additionally, the co-conspirators caused more than $60 million of fraudulently induced lending across more than 350 separate loans through this scheme. Thompson’s principal co-conspirator, Craig David Davis, 49, of Venice, California, pleaded guilty to wire fraud in the U.S. District Court for the Eastern District of Virginia and was sentenced earlier this month to 93 months incarceration.
Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and other expenses, through the PPP, administered through the Small Business Administration (SBA). The SBA also offered an EIDL and/or an EIDL advance to help businesses meet their financial obligations.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the CARES Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Hayes commended the IRS-CI, FDIC-OIG, SBA-OIG, and the FBI who investigated the case. Ms. Hayes also thanked Assistant U.S. Attorney Joseph Wenner, along with Trial Attorney David A. Peters from the Department of Justice’s Criminal Division’s Fraud Section, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Man Sentenced to Federal Prison for Role in Maryland Unemployment Insurance SchemeRead the Press Release
Baltimore, Maryland – Today, U.S. District Judge Julie R. Rubin sentenced Devante Smith, 30, of Baltimore, Maryland, to 57 months in prison followed by three years of supervised release, in connection with his role in an unemployment insurance fraud scheme. Through the conspiracy, victims lost at least $298,685.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge Troy W. Springer, National Capital Region, U.S. Department of Labor’s Office of Inspector General (DOL-OIG), and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation – Baltimore Field Office.
According to the guilty plea, beginning in June of 2020, and continuing through at least May 2021, Smith engaged in a conspiracy to defraud and obtain money under fraudulent pretenses in connection with an unemployment insurance scheme. Smith obtained personal identifiable information of identity victims to fraudulently file claims for unemployment insurance with the Maryland Department of Labor (MD-DOL).
Smith and his co-conspirators used the unemployment insurance benefits, which were designated to assist persons who were unemployed or underemployed due to the COVID-19 national emergency, for their own personal use. Additionally, Smith sent co-defendant Tiia Woods, 47, of Jacksonville, Florida, text messages containing private information belonging to the identity victims such as identification cards and social security cards to use in support of the fraudulent claims for unemployment benefits.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act — a federal law enacted in March 2020 — provided emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. The CARES Act authorized increased unemployment insurance (“UI”) benefits. UI benefits have historically been a state and federal program that provided monetary benefits to eligible workers. The CARES Act expanded states’ ability to provide UI benefits for many workers impacted by COVID-19, including self-employed workers or independent contractors, who would not normally be eligible for UI benefits.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the CARES Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Hayes commended the DOL-OIG and FBI, along with Bank of America – Detection and Complex Investigations Fraud Rings and Analytics, for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorneys Evelyn Lombardo Cusson and Harry M. Gruber who prosecuted the federal case
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Harford County Sheriff’s Office Detective Facing Federal Charges for Sexual Exploitation of two ChildrenRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Ryan Christopher Hall, 50, of Woodstock, Maryland, charging him with Sexual Exploitation of a Child and Possession of Child Sexual Abuse Material. Hall is a former domestic violence detective who served 27 years with the Harford County Sheriff’s Office.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI) Baltimore; Carroll County State’s Attorney Haven N. Shoemaker, Jr.; Sheriff James T. DeWees, Carroll County Sheriff’s Office; and Sheriff Jeff Gahler, Harford County Sheriff’s Office.
According to the 10-count indictment, from May 2017 thru October 2024, Hall sexually abused two minor children. Authorities discovered that Hall installed cameras to produce child sexual abuse material and possessed child sexual abuse material.
If convicted, Hall faces a mandatory minimum of 15 years and a maximum sentence of 30 years in federal prison for each count of Sexual Exploitation of a Child. Actual sentences for federal crimes are typically less than the maximum penalties.
A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors. Hall’s initial appearance in federal court is set for Wednesday, March 19, before Magistrate Judge A. David Copperthite.
An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.
This case is 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 Attorney’s 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, visit www.justice.gov/psc. Learn more about Internet safety education by clicking on the “Resources” tab on the left of the page.
Know2Protect is a Department of Homeland Security national public awareness campaign to educate and empower children, teens, parents, trusted adults and policymakers to prevent and combat online child sexual exploitation and abuse; explain how to report online enticement and victimization; and offer resources for victims and survivors and their supporters. Learn more about Know2Protect at www.dhs.gov/know2protect.
U.S. Attorney Hayes commended HSI, the Carroll County State’s Attorney’s Office Special Victims Unit, and Carroll County Sheriff’s Office Crimes Against Children Unit for their combined effort and work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Colleen Elizabeth McGuinn who is prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Baltimore City Council Candidate Convicted of Bank Fraud and False Statements in Connection with Scheme to Obtain Nearly $1.7 Million in Economic Injury Disaster Loans and Paycheck Protection Program LoansRead the Press Release
Baltimore, Maryland – After a one-week trial, a federal jury found Nichelle Henson, age 38, of Baltimore, Maryland, guilty of making false statements and for bank fraud in connection with fraudulent applications Henson filed to obtain Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans in the names of multiple purported businesses that she had previously incorporated in the state of Maryland.
The trial conviction was announced by United States Attorney for the District of Maryland Kelly O. Hayes; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; and Brian D. Miller, Special Inspector General for Pandemic Recovery (SIGPR).
According to the evidence presented at trial, Henson incorporated several businesses with the State of Maryland, including Crowns Construction, LLC; Nichelle Henson Campaign, LLC; One Stop for Services, LLC; Your Friendly Tax Preparation Services, LLC; Women Entrepreneurs Can Succeed, LLC, and Peace of Mind Services, Inc. The Defendant opened bank accounts in the names of some of her businesses and obtained Tax Identification Numbers (TINs) from the Internal Revenue Service (IRS) for the businesses.
In 2020 and 2021, she submitted six fraudulent EIDL applications to the SBA for her various businesses that contained false information concerning each business’s gross receipts, costs of goods sold, and number of employees. At the time of the submissions, none of the businesses were operating, and none of the businesses had any employees. As a result of the applications, Henson received $18,000 in United States Treasury funds from the SBA.
Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the PPP, administered through the Small Business Administration (SBA). The SBA also offered an EIDL and/or an EIDL advance to help businesses meet their financial obligations. An EIDL advance did not have to be repaid, and small businesses could receive an advance, even if they were not approved for an EIDL loan. The maximum advance amount was $10,000.
During this same period, Henson submitted 12 fraudulent PPP loan applications to three SBA-approved lenders for her various purported businesses. Each of these applications contained false information about each business’s number of employees and average monthly payroll, and each was supported by purported IRS tax forms listing employees and wages that were, in fact, never filed with the IRS.
Between April 30, 2020 and June 29, 2020, Henson submitted six PPP applications for her various businesses. One of these businesses was called Nichelle Henson Campaign (the “Campaign”), an entity that was meant to fund Henson’s run for Baltimore City Council. However, at the time of the submission of the application for the Campaign on May 10, 2020, Henson had withdrawn her candidacy – approximately six months earlier, on November 19, 2019.
Another entity was called Crowns Construction, a purported construction business located in Baltimore City. This business did not exist in any capacity, and the address used on the PPP loan application was nothing more than a vacant lot. In support of the application for this business, Henson included a fabricated Baltimore Gas & Electric that purported to be for Crowns Construction but was in fact a bill belonging to a neighbor of Henson’s that she had scanned and then doctored using a PDF editing tool.
Henson ultimately obtained $998,590 as a result of these six fraudulent applications. On January 19, 2021, Henson submitted six more fraudulent PPP loan applications—this time to M&T Bank—for each of her six purported businesses. Each of these applications contained lies about the existence of each business, the number of their employees, and payroll paid. And each application was supported by fabricated tax documents never filed with the IRS. M&T funded five of the six loans, transferring $676,250 in PPP funds to Henson. Shortly thereafter Henson went to an M&T branch in Baltimore and withdrew $5,000 cash from each of her five M&T accounts where the PPP funds flowed. M&T thereafter froze Henson’s accounts and notified law enforcement about the suspected fraud.
Henson used the EIDL and PPP loan funds to support businesses other than the borrowers, such as Wyse Rides, a used car business Henson attempted to open in Dundalk, Maryland. The business never opened. Henson used the PPP funds she received in multiple ways impermissible under the PPP, including for cosmetic surgery, for extensive renovations to her home and a family member’s home, to pay a year’s rent for her personal home, to pay a year’s rent for a new business venture, and to fund other new business ventures, including a used car dealership—which never opened—and to create a cryptocurrency called Subina Coin and, relatedly, to fund an entity called the “Adageyhdi Indian Nation.”
In total, Henson obtained $1,694,451 in connection with her scheme to defraud.
Henson faces a maximum possible sentence of 30 years in federal prison for each count of Bank Fraud, and a maximum possible sentence of 5 years in prison for each count of False Statements. U.S. District Judge Matthew J. Maddox has scheduled sentencing for August 5, 2025 at 10:00 a.m. She will be required to pay restitution to the SBA and the victim financial institutions.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Kelly O. Hayes commended the FBI and the Office of the Special Inspector General for Pandemic Recovery, which conducted the investigation on behalf of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, for their work in the investigation. Ms. Hayes thanked Assistant U.S. Attorneys Paul Riley and Joseph Wenner, who are prosecuting the federal case, and Paralegal Specialist Julie Jarman.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Convicted Sex Offender Sentenced to 13 Years in Federal Prison for Coercion and Enticement of a Minor VictimRead the Press Release
Baltimore, Maryland – Today, U.S. District Judge James K. Bredar sentenced Daniel Valentin-Morales, 35, of Frederick, Maryland, to 13 years in prison and a lifetime of supervised release for one count of coercion and enticement. Judge Bredar also ordered that Valentin-Morales must register as a sex offender in places where he resides and is employed, upon his release from prison, pursuant to the Sex Offender Registration and Notification Act.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI), Baltimore Field Office, and Chief Jason Lando, Frederick Police Department.
According to the plea agreement, Valentin-Morales used the social media application Snapchat to induce a minor victim to send several videos of her performing sex acts. Valentin-Morales then distributed the videos and additional child sexual abuse material videos to others. The investigation revealed that Valentin-Morales was a substitute teacher in Frederick County, Maryland.
In August 2020, and again in March 2021, investigators executed search warrants on Snapchat for records and the contents of Valentin-Morales’ account. Investigators learned that Valentin-Morales’ Snapchat account contained more than 200 files of suspected child sexual abuse material.
Additionally, investigators uncovered hundreds of chat messages expressing a sexual interest in minors, including with his own students. Valentin-Morales further communicated with minors to entice them to perform sexual acts and/or send him sexually explicit material that he distributed to users.
During a subsequent search warrant executed at Valentin-Morales’ home, law enforcement located multiple electronic devices. During law enforcement’s review of a device, they found files containing child sexual abuse material, including images depicting a minor victim.
This case is 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 Attorney’s 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, visit www.justice.gov/psc. Learn more about Internet safety education by clicking on the “Resources” tab on the left of the page.
U.S. Attorney Hayes commended the FBI and Frederick Police Department for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Michael Aubin who prosecuted the case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Maryland Woman Convicted in $20M Insurance Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal jury has convicted a Maryland woman for conspiracy to commit insurance fraud, and related charges for wire fraud, money laundering, and filing false tax returns.
According to court documents and evidence presented at trial, Maureen Wilson, 77, of Owings Mills, conspired with her husband James Wilson to defraud insurance companies by obtaining more than 40 life insurance policies for applicants by mispresenting their health, wealth, and existing life insurance coverage. The total death benefits from these policies exceeded $20 million. Wilson also conspired to defraud individual investors to obtain funds that she used to pay premiums on fraudulently obtained life insurance policies.
After obtaining the policies, Maureen and James Wilson used forged signatures to make themselves, and other nominees they controlled, the owners and beneficiaries of the life insurance policies. Maureen Wilson also impersonated other people when speaking with the life insurance companies.
Maureen Wilson and her husband concealed the fraud by transferring the money they made from the fraud through multiple bank accounts, including accounts in the name of trusts. She also filed false individual income tax returns for 2018 and 2019, which did not report as income the approximately $5.7 million and $2 million, respectively she made from her fraud.
She was convicted of one count of conspiracy to commit mail and wire fraud, four counts of mail fraud, two counts of wire fraud, one count of conspiracy to commit money laundering, one count of money laundering and two counts of filing a false return. Maureen Wilson was acquitted of one count of mail fraud.
Sentencing is scheduled for June 20. Maureen Wilson faces a maximum penalty of 20 years in prison for each count of conspiracy, wire fraud, mail fraud and money laundering; and a maximum penalty of three years in prison for each count of filing a false tax return. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, made the announcement with Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, and Special Agent in Charge Kareem A. Carter of IRS Criminal Investigation’s Washington, D.C. Field Office.
IRS Criminal Investigation is investigating the case with assistance from the Maryland Insurance Administration and the Maryland Office of the Attorney General.
Assistant U.S. Attorneys (District of Maryland) Matthew Phelps and Philip Motsay, and Trial Attorneys Shawn Noud and Richard Kelley, Justice Department Tax Division, are prosecuting the case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Maryland Woman Convicted in $20M Insurance Fraud SchemeRead the Press Release
A federal jury convicted a Maryland woman yesterday for conspiracy to commit insurance fraud, and related charges for wire fraud, money laundering and filing false tax returns.
According to court documents and evidence presented at trial, Maureen Wilson, of Owings Mills, conspired with her husband James Wilson to defraud insurance companies by obtaining over 40 life insurance policies for applicants by mispresenting their health, wealth and existing life insurance coverage. The total death benefits from these policies exceeded $20 million. Wilson also conspired to defraud individual investors to obtain funds that she used to pay premiums on fraudulently obtained life insurance policies.
To conceal the fraud, Wilson and her husband transferred the money they made from the fraud through multiple bank accounts, including accounts in the name of trusts. Wilson filed false individual income tax returns for 2018 and 2019, which did not report as income the approximately $5.7 million and $2 million, respectively she made from her fraud.
Wilson was convicted of one count of conspiracy to commit mail and wire fraud, four counts of mail fraud, two counts of wire fraud, one count of conspiracy to commit money laundering, one count of money laundering and two counts of filing a false return. She was acquitted of one count of mail fraud.
Maureen Wilson is scheduled to be sentenced on June 20. She faces a maximum penalty of 20 years in prison for each count of conspiracy, wire fraud, mail fraud and money laundering; and a maximum penalty of three years in prison for each count of filing a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, U.S. Attorney Kelly O. Hayes for the District of Maryland and Special Agent in Charge Kareem A. Carter of IRS Criminal Investigation’s Washington, D.C. Field Office made the announcement.
IRS Criminal Investigation is investigating the case with assistance from the Maryland Insurance Administration and the Maryland Office of the Attorney General.
Trial Attorneys Shawn Noud and Richard Kelley of the Justice Department’s Tax Division and Assistant U.S. Attorneys Matthew Phelps and Philip Motsay for the District of Maryland are prosecuting the case.
Previously Convicted Felon Sentenced for Possession of a Firearm and AmmunitionRead the Press Release
Greenbelt, Maryland – On March 7, 2025 U.S. District Judge Paula Xinis sentenced Jesus Manuel, age 44, of Silver Spring, Maryland, to 58 months in federal prison, followed by three years of supervised release, for possession of a firearm and ammunition by a convicted felon.
The sentence was announced by Kelly O. Hayes, United States Attorney for the District of Maryland, with Special Agent in Charge Toni M. Crosby, of the Bureau of Alcohol, Tobacco, Firearms and Explosives- Baltimore Field Division (ATF).
According to the plea agreement, on October 28, 2023, at approximately 10:30 p.m., a Riverdale Park Police officer arrived at a restaurant in Riverdale Park, Maryland to begin work at his secondary employment position as a security guard.
Upon the officer’s arrival, a restaurant employee informed the officer that the defendant had attempted to enter the restaurant earlier in the evening wearing a fanny pack around his body that may have contained a firearm. The employee detailed the defendant’s physical description to the officer.
At approximately 2:30 a.m., the officer went to the restaurant parking lot after learning of an altercation taking place there. A male restaurant patron approached the officer and indicated that the defendant had threatened the patron with a firearm. Then, a second male patron approached the officer and indicated that the defendant had also threatened this second patron with a firearm. Both men pointed towards the defendant. The officer called for police dispatch and requested additional officers.
At approximately 3:10 a.m., officers saw the defendant standing near the restaurant’s kitchen door and approached him. The defendant was wearing the same fanny pack around his body. The defendant saw the officers approaching and began to walk, then run, away. Officers chased the defendant across the restaurant parking lot, across Baltimore Avenue, and into another parking lot behind a fast-food establishment. As he ran, the defendant fully removed the fanny pack from his body. The defendant threw the fanny pack away from him. The defendant was then placed in handcuffs. An officer retrieved from the ground the fanny pack that the defendant threw. As the officer picked up the fanny pack, he felt what he knew to be the muzzle of a handgun.
The officer then used a flashlight to see inside of the fanny pack and pulled out a firearm, specifically a Glock model 21 .45 caliber pistol, loaded with approximately 8 rounds of .45 caliber ammunition. The defendant was prohibited from possessing both the firearm and ammunition because he had at least one prior felony conviction.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Hayes commended the ATF and Riverdale Park Police for their work on the case. Ms. Hayes thanked Assistant United States Attorneys Brooke Oki and Dawn Williams who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Maryland Man Indicted for Theft of Government Property and Passport FraudRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Jorge Echeverri, 73, of Port Tobacco, Maryland, charging him with theft of government property, false statements, passport fraud, social security misuse, and false statement of citizenship.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the indictment with Michael S. McCarthy, Special Agent in Charge, Homeland Security Investigations (HSI); David Richeson, Special Agent in Charge Department of State, Diplomatic Security (DSS), Washington Field Office; and Collen Lawlor, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG) – Philadelphia Field Division.
According to the indictment, Echeverri, a Colombian national, illegally entered the United States in 1972. He was deported three times, but unlawfully re-entered the United States for a fourth time between 1985 and 1987. Echeverri, who used a fraudulent birth certificate from Puerto Rico to create a fraudulent identity, then began living as a U.S. citizen named Pedro Torres Rivera. Under the Rivera identity, Echeverri unlawfully applied for and received retirement benefits from the Social Security Administration from May 2010 thru January 2025. Additionally, Echeverri applied for a U.S. Passport, voted in the 2020 and 2024 presidential elections, and misused a Social Security number.
If convicted, Echeverri faces up to 10 years for passport fraud and up to 10 years for theft of government property. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors. An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.
U.S. Attorney Hayes commended HSI’s Document Benefit Fraud/El Dorado Task Force, DSS, and SSA-OIG for their work in the investigation. Ms. Hayes also thanked Special Assistant U.S. Attorney Kertisha Dixon who is prosecuting the case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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California Lawyer Sentenced to More Than Five Years in Federal Prison for Wire Fraud and Money LaunderingRead the Press Release
Greenbelt, Maryland – U.S. District Judge Lydia K. Griggsby sentenced Matthew C. Browndorf, 54, of Irvine, California, to more than five years in federal prison for money laundering and wire fraud.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI) Baltimore Field Office and Special Agent in Charge Edwin Bonano, Federal Housing Finance Agency, Office Inspector General (FHFA-OIG).
According to the guilty plea, the defendant served as an attorney licensed to practice law in New York, Pennsylvania, and New Jersey, and was a named partner at a law firm. Browndorf was also majority owner and CEO of Plutos Sama, LLC, which operated as a holding company for his various business endeavors.
Plutos Sama, with Browndorf signing the purchase agreement as a managing member, procured the Fisher Law Group. After Plutos Sama acquired the Fisher Law Group, it changed the name to BP Fisher which served as an organization that represented lending and loan servicing clients in foreclosure proceedings. The newly acquired company had agreements with its clients to facilitate the foreclosure of a property, take out its expenses, and then return the remaining money.
BP Fisher also maintained an Interest on Lawyer’s Trust Account (IOLTA) and operating account, which the defendant oversaw. An IOLTA is maintained in a financial institution for the deposit of funds received or held by an attorney or law firm on behalf of a client or third person. All funds received into an IOLTA account must be delivered in whole or in part to a client, unless received as payment for fees owed to the lawyer by the client or in reimbursement for expenses that the lawyer properly advanced on behalf of the client.
Over several years, the defendant led clients to believe that they had immediate access to the money in the two BP Fisher IOLTA accounts. But Browndorf was directing employees to transfer the clients’ money into Plutos Sama accounts and other accounts that he controlled. The scheme caused more than $2.4 million in losses to BP Fisher’s clients. Browndorf used the stolen funds to pay for expenses such as his American Express credit card bill, car-lease payment to Ferrari and Maserati of Newport Beach, and mortgage.
U.S. Attorney Hayes commended the FBI and FHFA-OIG for their work in this investigation. Ms. Hayes also thanked Assistant U.S. Attorneys Christopher Sarma, Joshua Rosenthal, and Matthew Phelps, who prosecuted the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Maryland Man Pleads Guilty to Preparing and Filing False Tax ReturnsRead the Press Release
Greenbelt, Maryland – Charles Anthony Keemer, age 64, of Upper Marlboro, Maryland, pleaded guilty, yesterday, to aiding and assisting the preparation and filing of a false and fraudulent tax return.
The guilty plea was announced by Kelly O. Hayes, United States Attorney for the District of Maryland, with Special Agent in Charge Kareem Carter, of Internal Revenue Service-Criminal Investigation Division, Washington Field Office.
During the timeframe covered by the indictment, Keemer prepared U.S. Individual Income Tax Returns, Forms 1040 (“income tax returns”) for clients in exchange for fees. Keeemer did so even though he was not registered as a tax preparer with any federal, state, or local regulator; had neither education nor work experience in the area of tax preparation; and did not report income earned from the tax preparation business on his own income tax returns.
According to the plea agreement, during the tax years 2013 through 2016, Keemer prepared and submitted to the IRS hundreds of income tax returns on behalf of his clients. He prepared and submitted his clients’ income tax returns electronically through online tax preparation software, typically from locations in Maryland. Keemer further met with clients at various locations in Maryland to receive payment for the tax returns that he prepared.
Keemer added materially false items to the income tax returns he prepared for his clients for the purpose of fraudulently increasing the size of the tax refund returned by the IRS to the clients. Such materially false items included, among other things, fictitious Schedule C businesses and false, fraudulent, and fictious expenses ostensibly incurred in connection therewith.
In total, the tax loss caused to the IRS as a direct result of Keemer’s actions for the relevant tax years was approximately $128,691.
Keemer faces a maximum sentence of three years in federal prison for aiding and assisting in the preparation and filing of false tax returns. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Lydia Kay Griggsby has not yet scheduled a sentencing date.
United States Attorney Hayes commended the Internal Revenue Service-Criminal Investigation Division for their work on the case. Ms. Hayes also thanked Assistant United States Attorneys Brooke Oki and Coreen Mao who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Nigerian National Pleads Guilty to Role in $8 Million Federal Emergency Benefits Fraud SchemeRead the Press Release
Greenbelt, Maryland – On Friday, February 28, Newton Ofioritse Jemide, 47, a Nigerian national, pled guilty to a federal charge for wire fraud conspiracy. Jemide, who was recently extradited from France, was involved in a scheme to fraudulently obtain federal benefits.
Kelly O. Hayes, United States Attorney for the District of Maryland, announced the plea with Joseph V. Cuffari, Inspector General for the Department of Homeland Security (DHS); Acting Special Agent in Charge (SAC) Colleen Lawlor, Social Security Administration Office of Inspector General (SSA-OIG) – Philadelphia Field Division; and Special Agent in Charge Matt McCool, U.S. Secret Service – Washington Field Office.
“Mr. Jemide and his co-conspirators’ greed and utter disregard for the suffering of those who need national emergency assistance, by stealing from the government, will not be tolerated,” said United States Attorney Hayes. “The District of Maryland U.S. Attorney’s Office and our partners will continue to hold those accountable who try to defraud our government through fraud, waste, and abuse during times of crisis.”
“Today’s guilty plea sends a clear message that individuals who defraud the federal government for their own personal gain will be identified and held accountable,” said U.S. Department of Homeland Security, Inspector General Joseph V. Cuffari, PhD. “DHS-OIG is grateful for our continued partnership with our law enforcement partners as we continue fighting waste, fraud, and abuse.”
During the timeframe covered by the indictment, the Federal Emergency Management Agency (FEMA) provided emergency benefits and compensation for damages to victims affected by declared national emergency disasters, such as hurricanes and wildfires. Among other benefits, an individual in an area affected was immediately eligible for Critical Needs Assistance (CNA) to purchase life-saving or life-sustaining materials. Victims could decide how to receive assistance payments, which included deposits on prepaid debit cards.
According to the guilty plea, in 2016 and 2017, Jemide and others from Nigeria directed co-conspirators living in the United States to purchase hundreds of Green Dot Debit Cards. Co-conspirators living in Nigeria then registered the cards with Green Dot using stolen personal information from identity theft victims around the United States. Jemide and his co-conspirators used an encrypted messaging application and other means to communicate.
In 2017, following Hurricanes Harvey, Irma, and Maria, and the California wildfires, Jemide, and other co-conspirators from Nigeria, used stolen personal information to apply online for FEMA and CNA benefits. FEMA dispersed $500 per claim on the Green Dot Debit Cards that co-conspirators purchased for a total of at least $8 million.
“Bringing these criminals to justice prevents further victimization of American taxpayers and abuse of the programs put in place as safety nets for the most vulnerable in our country,” said SAC McCool. “This investigation underscores the Secret Service’s global reach and steadfast commitment, in collaboration with our partner agencies, to combat cyber-enabled financial crimes and relentlessly pursue those committing them.”
In addition to filing false disaster-assistance claims with FEMA, Jemide and co-conspirators also submitted false online claims for Social Security benefits, IRS tax refunds, and other government benefits using stolen identities of multiple individuals, including names, addresses, social security numbers, and other personal identifiers.
“Newton Ofioritse Jemide and his co-conspirators misused Social Security numbers to steal government funds via SSA’s online services. The misuse of SSA’s e-Services to defraud SSA and rightful beneficiaries and recipients will not be tolerated at any level,” said Acting SAC Lawlor. “Our office will continue to investigate those who abuse SSA programs and operations, including its e-Services, for their own selfish gain. I thank our law enforcement partners for their assistance and the U.S. Attorney’s Office for prosecuting this complex case.”
As a result of fraudulent submissions, FEMA and the other federal agencies deposited benefits onto the Green Dot Debit Cards. The funds were deposited on the debit cards using multiple stolen identities, including identities different from the identities used to register the cards. Jemide and select co-conspirators informed other co-conspirators when the fraudulent funds became available on the debit cards and gave them information to cash out the funds from the cards in exchange for a commission. Additionally, the co-conspirators took steps to conceal their identities by enlisting others to make purchases and withdrawals; utilizing multiple store and bank locations and methods of withdrawal; and making money orders payable to other individuals and/or corporate entities.
Jemide faces a maximum sentence of 30 years in federal prison for conspiracy to commit wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is currently scheduled for July 1, 2025, at 9:30 a.m., before U.S. District Court Judge Deborah K. Chasanow.
United States Attorney Hayes commended DHS-OIG, SSA-OIG, and USSS for their work in the investigation and thanked the Justice Department’s Office of International Affairs and the United States Marshals Service for their valuable assistance in securing the extradition of Jemide to the United States. Ms. Hayes also thanked Assistant United States Attorneys Elizabeth Wright and Darren Gardner who are prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Baltimore County Man Sentenced to Federal Prison for Role in Elder Fraud SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher has sentenced Ambrose A. Obinna Warrior, 44, of Milford Mill, Maryland, to 42 months in federal prison. Warrior served as an unlicensed money transmitter in connection with various romance, business email compromise, and investment schemes.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI), Baltimore Field Office; Special Agent in Charge Mehtab Syed, FBI Salt Lake City Field Office; and Inspector in Charge Damon Wood, U.S. Postal Inspection Service – Washington Division.
According to the plea agreement, beginning in March 2018, and continuing through at least August 2021, Warrior received victims’ funds and transferred them to other scheme participants through federally insured financial institutions in exchange for a percentage. Warrior opened personal and business bank accounts and formed the limited liability company, The Golden Voice of Orientals, to conduct, control, manage, and direct his unlicensed money transmitting business.
Additionally, Warrior used WhatsApp to communicate bank account information to other scheme participants and his fee for receiving and transmitting funds from victims, which was usually 20 percent or more. After depositing the funds, Warrior retained a portion of the money as a fee and ensured others received a portion of the fraudulent funds. Warrior also transferred victims’ funds to scheme participants overseas.
In total, Warrior transmitted or attempted to transfer more than $700,000 in proceeds from various schemes. Victims lost at least $467,912.
Reporting from consumers about fraud and fraud attempts is critical to law enforcement’s efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older, and has been a victim of financial fraud, help is available. Call the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers through assessing the needs of the victim and identifying next steps, including identifying appropriate reporting agencies, providing information to callers to assist them in reporting or connecting them with agencies, and providing resources and referrals on a case-by-case basis. The hotline is staffed from 10 a.m.-6 p.m., Monday through Friday. English, Spanish, and other languages are available. Learn more about the Department’s Elder Justice Initiative at www.elderjustice.gov. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324.
U.S. Attorney Hayes commended the FBI and United States Postal Inspection Service for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorneys Evelyn Lombardo Cusson and Adeyemi Adenrele who prosecuted the federal case. The FBI's Baltimore and Salt Lake City Field Offices, along with the St. George Resident Agency, investigated this case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Hayes Appointed Interim U.S. Attorney for the District of MarylandRead the Press Release
Baltimore, Maryland – Today, Kelly O. Hayes was appointed and sworn in as Interim U.S. Attorney for the District of Maryland. Prior to her appointment, she served as the Chief of the Southern Division for the U.S. Attorney’s Office for the District of Maryland since 2021.
Ms. Hayes began serving the District of Maryland in 2013 as an Assistant United States Attorney. Additionally, she served as Principal Deputy Chief for the Southern Division, Deputy Chief for the Southern Division, and Deputy Appellate Chief for the District. As Chief of the Southern Division, Ms. Hayes oversaw all criminal investigations and prosecutions in the Southern Division, including prosecutions related to MS-13, violent crime and illegal firearm possession and trafficking offenses, human trafficking, child exploitation, fraud, and illegal immigration offenses.
“I have spent over a decade witnessing the incredible and impactful work my colleagues do every day, and I am beyond honored to lead this Office as we continue to serve and protect the people of Maryland and the United States,” Interim U.S. Attorney Hayes said. “In cooperation with our federal, state, and local partners, I am confident that the outstanding men and women of the U.S. Attorney’s Office will work tirelessly and zealously to combat criminal activity that harms the people of the United States and to steadfastly represent the interests of the United States. I thank the President and the Attorney General for placing their confidence in me. It is the honor of a lifetime to serve in this role.”
Raised in Montgomery County, Maryland, Ms. Hayes completed her undergraduate studies at the University of Maryland at College Park. She then earned her law degree from the University of North Carolina School of Law. Following law school, Ms. Hayes clerked for the Honorable Janis L. Sammartino in the Southern District of California.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Subcontractor Pleads Guilty to Bribing General Services Administration OfficialRead the Press Release
Greenbelt, Maryland – Today, a Washington, D.C., man pleaded guilty to bribing a United States General Services Administration (GSA) official.
According to court documents, James Tillman, 57, bribed a public official (Public Official A), a former GSA contracting officer representative. GSA is a federal agency that manages federal property. Tillman was the sole owner of a general construction company that performed subcontracting work on GSA projects.
Phil Selden, Acting United States Attorney for the District of Maryland; Supervisory Official Antoinette T. Bacon, Justice Department Criminal Division; GSA Deputy Inspector General Robert C. Erickson, GSA Office of Inspector General (GSA-OIG); Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office; Deputy Inspector General Kelly P. Mayo, Department of Defense Office of Inspector General (DOD-OIG), Defense Criminal Investigative Service; and Inspector General Joseph V. Cuffari Ph.D., U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
As outlined in court documents, in 2020 and 2021, Tillman provided approximately $59,800 worth of money and items of value to Public Official A in exchange for Public Official A’s role in directing GSA federal-project work to Tillman’s company. In 2020, Tillman paid Public Official A approximately $8,000 cash in a parking lot in Clinton, Maryland and in 2021, at Public Official A’s direction, Tillman purchased a sports car for Public Official A. Tillman and his company grossed more than $100,000 in profits from this scheme.
Tillman pleaded guilty to conspiracy to commit bribery of a federal public official and bribery of a federal public official. He faces a maximum penalty of 20 years in prison followed by up to three years of supervised release. U.S. District Judge Deborah L. Boardman has scheduled sentencing for June 2, 2025 at 2 p.m. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Phil Selden commended GSA-OIG, FBI Baltimore Field Office, DOD-OIG, and DHS-OIG for their work in the investigation. Mr. Selden also thanked Assistant U.S. Attorney Joel Crespo, and Department of Justice Trial Attorney Jonathan E. Jacobson, who are prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Maryland Man Convicted of Fentanyl DistributionRead the Press Release
Greenbelt, Maryland – After a seven-day trial, a federal jury returned a verdict against OJ Rashad Green, also known as “Ice” age 36, of Accokeek, finding him guilty of knowingly and intentionally distributing fentanyl, a controlled substance, on multiple occasions.
The guilty verdict was announced by Phil Selden, Acting United States Attorney for the District of Maryland; Ibrar A. Mian of the Drug Enforcement Administration - Washington Division; Chief Malik Aziz of the Prince George’s County Police Department, Sheriff Troy Berry of the Charles County Sheriff’s Office, and Colonel Roland L. Butler, Jr., of the Maryland State Police.
“As proven at Defendant Green’s federal trial he sold fentanyl that fueled the opioid crisis in Southern Maryland,” stated Acting United States Attorney Phil Selden. “Maryland has been deeply impacted by the opioid crisis, and the District of Maryland U.S. Attorney’s Office, in partnership with our federal, state and local partners, will continue our tireless efforts to prosecute drug traffickers responsible for this crisis.”Ibrar A. Mian, Special Agent in Charge of the DEA Washington Division stated that “to protect the American public, it is the mission of the DEA to investigate and take down violent drug traffickers like Mr. Green, that are preying on our citizens illegally distributing fake pills containing lethal amounts of fentanyl with no regard for human lives. Today’s guilty verdict emphasizes our commitment to the tireless work of investigating and prosecuting those responsible for fueling addiction and deadly overdoses and poisonings in our area – saving lives in our communities.”
According to the evidence presented at trial, from on or about January 21, 2022 through September 28, 2022 the Defendant, OJ Rashad Green, repeatedly distributed fentanyl in the Accokeek, Maryland area. These distributions happened at both a home he controlled in Accokeek and during in-person deliveries at various locations to users and other dealers. The Defendant employed individuals as both testers of the fentanyl that the Defendant mixed with various other substances, and as runners to meet customers outside the home.
A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Deborah K. Chasanow scheduled sentencing for a future date.
Acting United States Attorney Phil Selden commended the DEA and PGPD, for their work in the investigation. Mr. Selden thanked Assistant U.S. Attorneys Darren S. Gardner and Brooke Oki, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
Former Maryland State Trooper Pleads Guilty to Drug and Bribery ChargesRead the Press Release
Baltimore, Maryland – Justin Riggs, 35, of Smithsburg, Maryland, pleaded guilty, yesterday, to federal charges of Conspiracy to Distribute and Conspiracy to Possess with the Intent to Distribute Controlled Dangerous Substances, Use of a Communication Facility in Causing or Facilitating the Conspiracy to Distribute Controlled Dangerous Substances, and Travel Act-State of Maryland Bribery.
Phil Selden, Acting United States Attorney for the District of Maryland, announced the plea with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI) Baltimore Field Division.
“As a law enforcement officer, Justin Riggs violated his sworn duty to uphold the public trust and put a life in harm’s way,” stated Acting United States Attorney Selden. “The District of Maryland U.S. Attorney’s Office will relentlessly pursue corrupt law-enforcement officers who try to dishonor their badge as we also work to support the many honorable officers whose reputations they unfairly tarnish.”
“Not only did Riggs deliberately and willingly violate the oath he took as a sworn law enforcement officer, but he also put other lives at risk with his greed and deceit,” said SAC DelBagno. “The FBI is committed to working with our partners to thoroughly investigate such cases to protect the American people and preserve public trust in law enforcement.”
According to his guilty plea, in December 2022, Riggs — who was serving as a Maryland State Trooper — was part of a Maryland State Police team investigating drug-and-gun trafficking in Western Maryland. The team used at least one confidential human source during the investigation. Riggs created a fictitious Facebook account to contact a drug-distributor target. While corresponding with the drug distributor, Riggs informed the drug distributor that he worked “for a fed agency.” Riggs also told the drug distributor that he had “tons more info pertaining to your biggest informant.” The former Maryland state trooper initiated several electronic conversations with the drug distributor between 2022 and 2023, attempting to sell the informant’s identity.
The parties have agreed that if the Court accepts the plea agreement, Riggs will receive a sentence between 48 and 108 months in federal prison. U.S. District Judge Stephanie A. Gallagher will schedule sentencing for a later date.
Acting United States Attorney Selden commended the FBI, Homeland Security Investigations, Maryland State Police, and Bureau of Alcohol, Tobacco, Firearms and Explosives for their work in the investigation. Mr. Selden also thanked Assistant United States Attorneys Christine Goo and Sean Delaney who are prosecuting the case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Silver Spring Man Indicted for Producing and Possessing Child Sexual Abuse MaterialRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted David Alain Schmidt, 43, of Silver Spring, Maryland, charging him with producing and possessing child sexual abuse material.
Phil Selden, Acting U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge Michael McCarthy, Homeland Security Investigations (HSI) Baltimore, and Chief Marc R. Yamada, Montgomery County Police Department.
According to the indictment, in October 2024, Schmidt enticed a minor to produce child sexual abuse material and he also possessed sexually explicit images of a minor victim.
If convicted, Schmidt faces a mandatory minimum sentence of 15 years in federal prison for producing child sexual abuse material and a maximum of 10 years in federal prison for possessing child sexual abuse material. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.
Acting U.S. Attorney Selden commended HSI and the Montgomery County Police Department for their work in the investigation. Mr. Selden also thanked Assistant U.S. Attorney Megan S. McKoy who is prosecuting the case.
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 U.S. Attorney’s 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, visit www.justice.gov/psc. Learn about Internet safety education by clicking on the “Resources” tab on the left side of the page.
Know2Protect is a Department of Homeland Security national public awareness campaign to educate and empower children, teens, parents, trusted adults and policymakers to prevent and combat online child sexual exploitation and abuse; explain how to report online enticement and victimization; and offer resources for victims and survivors and their supporters. Learn more about Know2Protect at www.dhs.gov/know2protect.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Baltimore Department of Finance Employee Sentenced to Four Years in Connection with Bribery and Covid-19 Cares Act SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett, today, sentenced Joseph Gillespie, age 35, of Baltimore City, Maryland, to four years in federal prison and three years of supervised release in connection with a bribery scheme and conspiracy to commit wire fraud scheme involving COVID-19 CARES Act relief benefits.
Phil Selden, Acting United States Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI), Baltimore Field Office.
“Defendant Gillespie abused the public trust through a bribery scheme and took advantage of money meant to help during the COVID-19 pandemic,” stated Acting United States Attorney Selden. “When government employees take bribes and public funds, it harms the very communities they are meant to serve. The District of Maryland U.S. Attorney’s Office will relentlessly pursue those who try to compromise the public trust.”
“Gillespie’s extensive schemes and lies ultimately cost hardworking taxpayers. Instead of performing his job with honesty, he looked for illicit ways to line his own pockets. This sentence proves that corruption never pays,” said FBI Baltimore SAC William J. DelBagno. “The FBI and our partners remain committed to holding accountable those who try to cheat the system for their own benefit and profit.”
According to Gillespie’s plea agreement, beginning in 2016, and continuing to 2023, the Defendant engaged in a bribery scheme in which he abused his position of trust as a public official within the Baltimore City Department of Finance for his own personal gain.
As an employee of the Baltimore City Department of Finance, Revenue Collections Department, Gillespie routinely accepted bribes from various property owners in Baltimore City (“the City”) whose property was subject to certain financial obligations, and if the obligations remained unpaid, to a tax sale. He accepted these bribes — typically 10-15 percent of the amount owed to the City — in exchange for removing or extinguishing these financial obligations, including for citations, tax obligations, and water obligations – thereby causing losses to the City. Gillespie also accepted bribes in exchange for delaying or postponing — without approval or permission from other City officials — due dates for the payment of outstanding financial obligations, fines, and payments owed to the City, thus forestalling the placement of a lien on the property by the City.
Once Gillespie received the bribe payment, he would extinguish the financial obligation owed to the City by marking the obligations as paid in the City’s online records. After removing the obligation, the Defendant would, at times, send a photograph of a cashier slip from his office reflecting that a payment was made towards a financial obligation owed to the City when, in fact, no such payment was made.
Gillespie engaged in multiple covertly recorded telephone and video conversations with an FBI undercover agent (UC), in which the Defendant and the UC discussed the specifics of the bribery scheme outlined above.
For example, in a recorded phone conversation with the UC, the UC confirmed the size of the bribe payment with the Defendant: “[S]o you want 100 for each property?” Defendant said, “yeah that’s basically how I do.” Gillespie then informed the UC that he (Gillespie) had a “girl” in “water”— i.e., the Baltimore City Department of Public Works — that could “wipe some s*** out,” referring to financial obligations owed to the City.
During a covert video recording of the conversation with the UC, Gillespie told the UC that he had the ability to “wipe a bill off” the City’s record of outstanding obligations tied to a particular property or to “put paid next to ‘em,” even though the financial obligation had not in fact been paid. The Defendant further stated that he removed certain financial obligations linked to the properties that the UC told the Defendant were his, stating “[t]here was a couple, extra miscellaneous bills that y’all had that I wiped off . . . . That s*** gone now.”
Gillespie also extended the deadline for payment of financial obligations owed to the City on eight properties by three months. Gillespie asked for $800 in bribes in return — $100 for each of the eight properties, and, during the recorded meeting, the UC provided Gillespie $800 cash. Gillespie also stated that he had the ability to wipe out overdue water bills owed to the City, “Once I let you know [about a big water bill], I’ll give it to my girl, and I’ll tell you what you need to give me for her to knock it off.” Gillespie then stated:
"Going forward, I’m just your inside man . . . That’s what I do for a lot of different people around the City. You know what I mean – manage their s*** for them a little bit. . . . I’m gonna go look at your s***. Anyone with a high water bill I’m gonna text you the address, and I’m gonna tell you what I need, and we can knock them out going forward with that . . . . Any water bill that’s too high, I’ll get my girl to take care of that."
Gillespie’s bribery scheme continued for years thereafter, and he admitted that he enlisted the help of multiple co-conspirators in connection with his scheme. According to the plea agreement, Gillespie received more than $250,000 in connection with the bribery scheme and caused losses to the City in excess of $1,250,000.
Further, Gillespie also engaged in a scheme to fraudulent COVID-19 CARES relief funds. Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program (PPP), administered through the United States Small Business Administration (SBA).
For example, in 2021, Gillespie and co-defendant Ahmed (“Adam”) Sary submitted a fraudulent PPP loan application to Cross River Bank to obtain a PPP loan for JAG Investments (“JAG”), a company the Defendant owned. The PPP loan application contained numerous material misrepresentations, including that JAG, in 2019, had 19 employees and an average monthly payroll of more than $55,000. In support of the loan application, a fabricated 2019 Internal Revenue Service (“IRS”) Form 940 – Employer’s Annual Federal Unemployment Tax Return – was submitted, which falsely stated that JAG’s total payments to employees, in 2019, was more than $275,000.
Based on the false representations and fraudulent submissions made on behalf of Gillespie as the owner of JAG, the PPP loan was funded on March 6, 2021, and approximately $138,000 was distributed to a bank account controlled by Gillespie. Gillespie agreed to pay Sary kickbacks totaling $38,000 for his work in submitting the false application and obtaining the fraudulent PPP loan. In addition, after receipt of the PPP loan, Gillespie established payroll services for JAG to facilitate documentation that would later be used to substantiate a request for the PPP loan to be forgiven.
The District of Maryland COVID-19 Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information about the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Acting United States Attorney Phil Selden commended the FBI for their work in the investigation, the Small Business Administration’s Office of Inspector General and the Baltimore City Inspector General for assistance as well. Mr. Selden thanked Assistant U.S. Attorneys Paul A. Riley and Evelyn L. Cusson who are prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Man Sentenced to More Than Nine Years for Assaulting Federal Correctional OfficersRead the Press Release
Baltimore, Maryland – Today, U.S. District Judge Julie R. Rubin sentenced Igor Yasinov, 35, of Baltimore, Maryland, to 110 months in prison and three years of supervised release for four counts of Assaulting, Resisting, or Impeding Certain Officers or Employees, Inflicting Bodily Injury.
Phil Selden, Acting United States Attorney for the District of Maryland, announced the sentence with Clinton J. Fuchs, U.S. Marshal for the District of Maryland, and Carolyn J. Scruggs, Secretary of the Maryland Department of Public Safety and Correctional Services.
According to the evidence presented at his four-day trial, on November 16, 2021, Yasinov assaulted multiple correctional-staff members at the Chesapeake Detention Facility (CDF), causing several injuries. CDF is a pretrial detention facility located in Baltimore, Maryland. In November 2021, CDF exclusively housed federal inmates awaiting the disposition of criminal cases in the District of Maryland, pursuant to an intergovernmental agreement between the U.S. Marshal Service (USMS) and the Maryland Department of Public Safety and Correctional Services (DPSCS). DPSCS employs correctional officers to effectuate the goals and directives of USMS.
The assaults began with Yasinov breaking a control-center window within the facility with a broom stick that caused him to sustain minor injuries. As correctional staff transported Yasinov to the medical unit for treatment, he began threatening the escorting correctional officers. After receiving medical treatment, Yasinov was transported to a segregation unit. Although he was initially cooperative, Yasinov became irate and refused to follow the correctional officers’ orders after he learned that he was not returning to his original housing unit.
Yasinov refused to lock, or return, into his cell. As correctional officers attempted to escort him into the cell, he began to fight them. Yasinov swept the leg of one correctional officer, causing her and other officers to fall to the ground. Eventually, correctional officers were able to apply leg irons to Yasinov’s legs to prevent further attacks, enabling them to carry him to his cell. While in the cell, Yasinov continued fighting officers. Ultimately, Yasinov relented, and allowed officers to remove the leg irons. Staff ordered Yasinov to face the wall to allow the group to exit the cell individually. Yasinov was told to continue facing the wall until all officers exited and the door to the cell was closed.
As the last officer attempted to exit the cell, Yasinov charged the group, slamming his body into them. Yasinov continued to flail on the floor, kicking officers and attempting to strike them with his hands. As a result of Yasinov’s actions, several officers who sustained bodily injuries, including one officer, who suffered a fractured tibia, and three other officers who sustained injuries to their heads, necks, backs, and limbs.
Acting United States Attorney Selden commended the U.S. Marshal Service for their work in the investigation. Mr. Selden also thanked Assistant U.S. Attorney Michael Aubin and Special Assistant U.S. Attorney Jacob Gordin who prosecuted the case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md.
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Washington, D.C. Man Sentenced to 22 Years in Federal Prison for Role in Armed Robberies of Four Maryland Cell Phone StoresRead the Press Release
Baltimore, Maryland – Today, U.S. District Judge Matthew J. Maddox sentenced Xavier Jones, 26, of Washington, D.C., to 22 years in federal prison and three years of supervised release for his role in robbing four cell phone stores in Baltimore County, Howard County, and Prince George’s County, Maryland. Jones was also ordered to pay $74,141.26 in restitution.
Phil Selden, Acting U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, and Chief Robert McCullough, Baltimore County Police Department.
According to the parties’ plea agreement, Jones and his co-conspirators brandished firearms during the robberies, threatened to kill employees and customers, physically moved victims throughout the stores, and pepper sprayed victims during one of the robberies.
The final robbery occurred on December 23, 2020, at an AT&T store in Owings Mills, Maryland. Co-conspirator Rico Dashiell, 26, of Fort Washington, Maryland, entered the AT&T store pretending to be a customer. After Jones and co-conspirator Donte Herring, 25, of Washington, DC, entered the store, Dashiell brandished a firearm announcing a robbery. Jones and Herring stole $48,767 worth of Apple and Samsung Galaxy devices, 76 in total.
Additionally, Dashiell directed an employee to open the store’s cash register before stealing $322. The perpetrators forced three victims into a room containing a safe and then proceeded to pepper spray them. The robbers then fled the store in a stolen Kia Niro with registration tags from another vehicle. During the course of their conduct, the robbers inadvertently took a 3SI GPS tracker which was in one of the stolen cell phone boxes. As the perpetrators fled, the tracker was activated. Law enforcement tracked the stolen vehicle to a single-family residence in Catonsville, Maryland where a friend of Jones lived. Aviation units observed and filmed the robbers outside of the residence unloading the stolen AT&T merchandise and taking the items into the residence. Law enforcement also found a stolen Dodge Caravan from a previous robbery at the residence.
The initial robbery happened on October 23, 2020, at a Verizon store in College Park, Maryland. Jones and a co-conspirator forced victims into a backroom before directing an employee to open a safe. The robbers then proceeded to steal $21,440.93 in mobile devices.
Then on December 8, 2020, Jones and a co-conspirator robbed the Russell Cellular Verizon store in Columbia, Maryland. Jones and a co-conspirator initially posed as customers before pulling a firearm on an employee. The robbers then moved the employee into a backroom, ordering him to open the safe. Jones and his co-conspirator stole $22,000.33 worth of mobile devices — including numerous iPhones — and $1,273, from the safe.
On December 17, 2020, Jones and Herring robbed another Russell Cellular Verizon store – this time in Halethorpe, Maryland. The perpetrators again initially posed as customers before brandishing firearms and pointing them at an employee. Herring ordered the employee to open a safe and then they proceeded to steal various electronic devices — including multiple boxes of Apple cellular phones, watches, and iPads — worth approximately $27,940. Additionally, Herring forced the employee to give him $1,313 from the cash register. They then fled in a stolen Dodge Caravan.
Dashiell previously pleaded guilty for his role in the robbery and was sentenced to 12 years in federal prison. Herring was convicted at trial and has been sentenced to 20 years in federal prison.Acting U.S. Attorney Selden commended the FBI, Baltimore County Police Department, Howard County Police Department, and Prince George’s County Police Department for their work in the investigation. Mr. Selden also thanked Assistant U.S. Attorneys Paul A. Riley and Michael F. Aubin who are prosecuting the case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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U.S. Attorney Erek L. Barron Announces ResignationRead the Press Release
Erek L. Barron resigned as United States Attorney for the District of Maryland on February 12, 2025. Mr. Barron announced his resignation, effective today. Mr. Barron has served in the position since October 7, 2021.
Statement from U.S. Attorney Erek L. Barron:
“Serving as United States Attorney has been the honor of a lifetime. The office’s career attorneys and administrative staff are public servants of exceptional caliber. In support of our mission, they perform their responsibilities with excellence while maintaining the highest standards of professional conduct and working with them has been a great privilege. I am immeasurably proud of the justice we have done together.”
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Phobos Ransomware Affiliates Arrested in Coordinated International DisruptionRead the Press Release
8Base Seizure Banner
WASHINGTON — The Justice Department today unsealed criminal charges against Roman Berezhnoy, 33, and Egor Nikolaevich Glebov, 39, both Russian nationals, who allegedly operated a cybercrime group using the Phobos ransomware that victimized more than 1,000 public and private entities in the United States and around the world and received over $16 million in ransom payments. Berezhnoy and Glebov were arrested yesterday as part of a coordinated international disruption of their organization, which includes additional arrests and the technical disruption of the group’s computer infrastructure.From May 2019, through at least October 2024, Berezhnoy, Glebov, and others allegedly caused victims to suffer losses resulting from the loss of access to their data in addition to the financial losses associated with the ransomware payments. The victims included a children’s hospital, health care providers, and educational institutions.
According to court documents, Berezhnoy, Glebov, and others operated a ransomware affiliate organization, including under the names “8Base” and “Affiliate 2803,” among others, that victimized public and private entities through the deployment of Phobos ransomware.
As part of the scheme, Berezhnoy, Glebov, and others allegedly hacked into victim computer networks, copied and stole files and programs on the victims’ network, and encrypted the original versions of the stolen data with Phobos ransomware. The conspirators then allegedly extorted the victims for ransom payments in exchange for the decryption keys to regain access to the encrypted data by, among other things, leaving a ransom note on compromised victim computers and separately reaching out to victims to initiate ransom payment negotiations.
As alleged, the conspirators also threatened to expose victims’ stolen files to the public or to the victims’ clients, customers, or constituents if the ransoms were not paid. The conspirators are further alleged to have established and operated a darknet website where they repeated their extortionate threats and ultimately published the stolen data if a victim failed to pay the ransom.
After a successful Phobos ransomware attack, criminal affiliates paid fees to Phobos administrators for a decryption key to regain access to the encrypted files. Each deployment of Phobos ransomware was assigned a unique alphanumeric string in order to match it to the corresponding decryption key, and each affiliate was directed to pay the decryption key fee to a cryptocurrency wallet unique to that affiliate.
The charges unsealed today against Berezhnoy and Glebov follow the recent arrest and extradition of Evgenii Ptitsyn, a Russian national, on charges relating to his alleged administration of the Phobos ransomware variant.
In parallel with today’s arrests, Europol and German authorities have announced an international operation involving the FBI and other international law enforcement partners to disrupt over 100 servers associated with this criminal network.
Berezhnoy and Glebov are charged in an 11-count indictment with one count of wire fraud conspiracy, one count of wire fraud, one count of conspiracy to commit computer fraud and abuse, three counts of causing intentional damage to protected computers, three counts of extortion in relation to damage to a protected computer, one count of transmitting a threat to impair the confidentiality of stolen data, and one count of unauthorized access and obtaining information from a protected computer. If convicted, Berezhnoy and Glebov face a maximum penalty of 20 years in prison on each wire fraud-related count; 10 years in prison on each computer damage count; and five years in prison on each of the other counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Erek L. Barron, U.S. Attorney for the District of Maryland; Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division; and Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office, made the announcement.
The FBI Baltimore Field Office is investigating the case. The Justice Department extends its thanks to international judicial and law enforcement partners in the United Kingdom, Germany, Japan, Spain, Belgium, Poland, Czech Republic, France, Thailand, Finland, Switzerland, and Romania, as well as Europol and the U.S. Department of Defense Cyber Crime Center, for their cooperation and coordination with the Phobos ransomware investigation. The Justice Department’s National Security Division and Office of International Affairs also provided valuable assistance.
Assistant U.S. Attorney Thomas M. Sullivan for the District of Maryland and Senior Counsel Aarash A. Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Former CCIPS Trial Attorney Riane Harper and former Assistant U.S. Attorneys Aaron S.J. Zelinsky and Jeffrey J. Izant for the District of Maryland provided substantial assistance.
Additional details on protecting networks against Phobos ransomware are available at StopRansomware.gov, including Cybersecurity and Infrastructure Security Agency Advisory AA24-060A.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Phobos Ransomware Affiliates Arrested in Coordinated International DisruptionRead the Press Release
Note: View the superseding indictment here.
Phobos Ransomware Group Alleged to have Attacked Over 1,000 Victims Worldwide
The Justice Department today unsealed criminal charges against Roman Berezhnoy, 33, and Egor Nikolaevich Glebov, 39, both Russian nationals, who allegedly operated a cybercrime group using the Phobos ransomware that victimized more than 1,000 public and private entities in the United States and around the world and received over $16 million in ransom payments. Berezhnoy and Glebov were arrested this week as part of a coordinated international disruption of their organization, which includes additional arrests and the technical disruption of the group’s computer infrastructure.
From May 2019, through at least October 2024, Berezhnoy, Glebov, and others allegedly caused victims to suffer losses resulting from the loss of access to their data in addition to the financial losses associated with the ransomware payments. The victims included a children’s hospital, health care providers, and educational institutions.
8Base Seizure BannerAccording to court documents, Berezhnoy, Glebov, and others operated a ransomware affiliate organization, including under the names "8Base" and "Affiliate 2803," among others, that victimized public and private entities through the deployment of Phobos ransomware.
As part of the scheme, Berezhnoy, Glebov, and others allegedly hacked into victim computer networks, copied and stole files and programs on the victims' network, and encrypted the original versions of the stolen data with Phobos ransomware. The conspirators then allegedly extorted the victims for ransom payments in exchange for the decryption keys to regain access to the encrypted data by, among other things, leaving a ransom note on compromised victim computers and separately reaching out to victims to initiate ransom payment negotiations.
As alleged, the conspirators also threatened to expose victims’ stolen files to the public or to the victims’ clients, customers, or constituents if the ransoms were not paid. The conspirators are further alleged to have established and operated a darknet website where they repeated their extortionate threats and ultimately published the stolen data if a victim failed to pay the ransom.
After a successful Phobos ransomware attack, criminal affiliates paid fees to Phobos administrators for a decryption key to regain access to the encrypted files. Each deployment of Phobos ransomware was assigned a unique alphanumeric string in order to match it to the corresponding decryption key, and each affiliate was directed to pay the decryption key fee to a cryptocurrency wallet unique to that affiliate.
The charges unsealed today against Berezhnoy and Glebov follow the recent arrest and extradition of Evgenii Ptitsyn, a Russian national, on charges relating to his alleged administration of the Phobos ransomware variant.
In parallel with this week’s arrests, Europol and German authorities have announced an international operation involving the FBI and other international law enforcement partners to disrupt over 100 servers associated with this criminal network.
Berezhnoy and Glebov are charged in an 11-count indictment with one count of wire fraud conspiracy, one count of wire fraud, one count of conspiracy to commit computer fraud and abuse, three counts of causing intentional damage to protected computers, three counts of extortion in relation to damage to a protected computer, one count of transmitting a threat to impair the confidentiality of stolen data, and one count of unauthorized access and obtaining information from a protected computer. If convicted, Berezhnoy and Glebov face a maximum penalty of 20 years in prison on each wire fraud-related count; 10 years in prison on each computer damage count; and five years in prison on each of the other counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney Erek L. Barron for the District of Maryland, Assistant Director Bryan Vorndran of the FBI’s Cyber Division, and Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office made the announcement.
The FBI Baltimore Field Office is investigating the case. The Justice Department extends its thanks to international judicial and law enforcement partners in the United Kingdom, Germany, Japan, Spain, Belgium, Poland, Czech Republic, France, Thailand, Finland, Switzerland, and Romania, as well as Europol and the U.S. Department of Defense Cyber Crime Center, for their cooperation and coordination with the Phobos ransomware investigation. The National Security Division’s National Security Cyber Section and the Justice Department’s Office of International Affairs also provided valuable assistance.
Senior Counsel Aarash A. Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Thomas M. Sullivan for the District of Maryland are prosecuting the case. Former CCIPS Trial Attorney Riane Harper and former Assistant U.S. Attorneys Aaron S.J. Zelinsky and Jeffrey J. Izant for the District of Maryland provided substantial assistance.
Additional details on protecting networks against Phobos ransomware are available at StopRansomware.gov, including Cybersecurity and Infrastructure Security Agency Advisory AA24-060A.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Foreign National Extradited from Germany to Face Charge of Transmitting Threatening CommunicationRead the Press Release
Greenbelt, Maryland – Today, the Justice Department unsealed criminal charges against Igor Lira, 40, a Slovakia national, for allegedly transmitting a threat in interstate or international commerce containing a threat to injure. Lira made his initial appearance in the U.S. District Court for the District of Maryland today after he was extradited from Germany.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office.
According to the indictment, on August 10, 2022, the defendant threatened a senior investigator from the National Institutes of Health, by transmitting the following: “You f*cking animal abuser, I’ll find and kill you, b*tch. I’ll drill your f*cking brain off, and I’ll film it, so everyone can watch. You don't deserve anything else. Your days are counted.”
If convicted, Lira faces a maximum sentence of five years in federal prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. The individual charged by indictment is presumed innocent until proven guilty at a later criminal proceeding.
U.S. Attorney Barron commended the Public Prosecutor General's Office (Generalstaatsanwaltschaft) in Düsseldorf, which handled Lira’s extradition before the courts in Germany, and Germany’s Federal Office of Justice (Bundesamt für Justiz), its central authority for all international extraditions. Additionally, the U.S. Department of Justice’s Office of International Affairs (OIA) provided significant assistance in securing Lira’s extradition from Germany. Mr. Barron also recognized Assistant U.S. Attorney Thomas M. Sullivan, who is prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Maryland Man Facing Federal Felony Charges for Illegally Operating A Drone During the National Football League Wild Card GameRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Alexis Perez Suarez, 43, of Baltimore, Maryland, on federal felony charges related to flying a drone over M&T Bank Stadium during a National Football League Wild Card Game in Baltimore on January 11, 2025.
The federal charges were announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI), Baltimore Field Office; Special Agent in Charge Greg Thompson of the U.S. Department of Transportation Office of Inspector General (DOT OIG), Mid-Atlantic Regional Office; and Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police (MSP).
“We are very serious about temporary flight restrictions,” said U.S. Attorney Barron. “You will be charged and held accountable for any incursion into restricted airspace, including around sports and entertainment venues such as the Super Bowl.”
"If you are going to fly a drone, you are responsible for learning all the laws and requirements to responsibly operate it. Failing to do so will not excuse you from the consequences of breaking the law," said Special Agent in Charge William J. DelBagno of the FBI’s Baltimore Field Office.“Federal laws and regulations related to owning and operating drones are in place to protect the public and our nation's airspace,” said Greg Thompson, Special Agent in Charge of DOT OIG’s Mid-Atlantic Region. “We will continue to partner with law enforcement and prosecutors to pursue those whose actions jeopardize public safety.”
According to the affidavit filed in support of the criminal complaint, on January 11, 2025, the Federal Aviation Administration had put in place a temporary flight restriction (TFR) for M&T Bank Stadium in Baltimore during the NFL Wild Card game, which precluded the flight of any UAS, including flying a UAS under the Exception for Recreational Flyers. A TFR temporarily restricts certain aircraft, including an UAS, from operating within a three nautical mile radius of the stadium. This is a standard practice for stadiums or sporting venues where a regular or postseason Major League Baseball, NFL, or NCAA Division I Game is occurring; or a NASCAR Cup, Indy Car, or Champ Series Race is occurring. The TFR goes into effect one hour before the scheduled start time and lasts until one hour after the end of a qualifying event.
During the game, the incursion of an unidentified and unapproved drone was deemed a serious enough threat that NFL Security temporarily suspended the game. MSP Troopers and FBI Special Agents tracked the movement of the drone over the stadium and deployed it to the area where the drone landed in Baltimore, Maryland. Despite Suarez having left the scene, law enforcement was able to track down his whereabouts.
Suarez stated that he purchased a DJI UAS for recreation and also claimed he used it for work. The drone was not registered, nor did Suarez possess a Remote Pilot certificate to operate it. Suarez allegedly flew the drone approximately 400 feet or higher directly over the NFL stadium. According to the affidavit, while in flight, Suarez captured approximately seven photos of the Stadium while the game was going on and thousands of people were below his flight path.
There is a zero-tolerance policy regarding UAS/drone use anywhere within the No Drone Zone established by the FAA. Anyone who attempts to fly a UAS/drone in any prohibited manner may be subject to arrest, prosecution, fines, and/or imprisonment. Members of the public are encouraged to report all suspicious activity. Law enforcement will be actively monitoring the airways for illegal UAS/drones and is committed to identifying, investigating, disrupting, and prosecuting the careless or criminal use of drones in the area.
If convicted, Suarez faces a maximum sentence of three years in federal prison for knowingly operating an unregistered UAS and for knowingly serving as an airman without an airman’s certificate. Suarez faces a maximum of one year in federal prison for willfully violating United States National Defense Airspace.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors. An initial appearance and arraignment will be scheduled later this month.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent until proven guilty at a later criminal proceeding.
U.S. Attorney Barron commended the FBI, DOT OIG, and MSP for their work in the investigation, and thanked the FAA Office of Security & Hazardous Materials Safety and the U.S. Customs and Border Protection for their substantial assistance. Mr. Barron thanked Assistant U.S. Attorney Robert I. Goldaris, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Houston Man Indicted for Coercing, Enticing Minors and Sexually Exploiting a Minor to Produce Child Sexual Abuse MaterialRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment charging Dazhon Darien, 32, of Houston, Texas, with five counts of sexual exploitation of a child, two counts of coercion and enticement of a child, one count of receipt of child sexual abuse material, and four counts of possession of child sexual abuse material.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the charges with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, and Chief Robert McCullough, Baltimore County Police Department.
According to the indictment, between July 2023 and July 2024, the defendant persuaded, induced, enticed, and coerced a minor male to engage in sexually explicit conduct for the purpose of producing and transmitting child sexual abuse material. Additionally, the indictment alleges that the defendant enticed two minor males to engage in prohibited sexual conduct and Darien possessed child sexual abuse material in internet-based accounts and on one digital device.
If convicted, Darien faces a mandatory minimum sentence of 15 years and up to a maximum sentence of 30 years in federal prison for each of the five counts of sexual exploitation of a minor; a mandatory minimum sentence of 10 years and up to a maximum sentence of life imprisonment for each of the two counts of coercion and enticement of a child; a mandatory minimum of five years and up to a maximum of 20 years in federal prison for the single count of receipt of child sexual abuse material, and a maximum of 20 years in federal prison for each of the four counts of possession of child sexual abuse material.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.
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 Attorney’s 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, visit www.justice.gov/psc. For more information about Internet safety education, click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended the Baltimore FBI Field Office and the Baltimore County Police Department, for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Christine O. Goo and Paul E. Budlow who are prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Hagerstown Man Faces Federal Indictment for Sexually Exploiting a Minor and Producing Child Sexual Abuse MaterialRead the Press Release
Baltimore, Maryland – A federal grand jury indicted William Foster Alger, 75, of Hagerstown, Maryland, charging him with seven counts of sexual exploitation of a child, three counts of coercion and enticement of a child, and five counts of possession of child sexual abuse material.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI); Colonel Paul Joey Kifer, Chief of Police of the Hagerstown Police Department (HPD); and Washington County State’s Attorney Gina Cirincion.
According to the indictment, between November 2023 and December 2024, the defendant persuaded, induced, enticed, and coerced three minor females to engage in sexually explicit conduct for the purpose of producing and transmitting child sexual abuse material. Additionally, Alger allegedly enticed the minors to engage in prohibited sexual conduct. He also possessed child sexual abuse material in an internet-based account and on four digital devices.
If convicted, Alger faces a mandatory minimum sentence of 15 years and up to a maximum sentence of 30 years in federal prison for each of the seven counts of sexual exploitation of a minor; a mandatory minimum sentence of 10 years and up to a maximum of life imprisonment for each of the three counts of coercion and enticement of a child; and a maximum of 20 years in federal prison for each of the four counts of possession of child sexual abuse material.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.
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 Attorney’s 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.justice.gov/psc. For more information about Internet safety education, click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended HSI, HPD, and the Washington County State’s Attorney’s Office for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Temple Hills Man Found Guilty of Arson Conspiracy Targeting Convenience StoresRead the Press Release
Greenbelt, Maryland – After a 5-day trial, a federal jury found Stephen Kennedy, 33, of Temple Hills, Maryland, guilty of conspiracy to commit arson, arson affecting interstate commerce, commercial robbery, using or carrying a firearm during and in relation to a crime of violence, carrying and explosive device during the commission of a felony, and being a felon in possession of a firearm. The Defendant was found not guilty as to one count of arson affecting interstate commerce.
The verdict was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Acting Maryland State Fire Marshal Jason M. Mowbray; St. Mary’s County Sheriff Steven A. Hall; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Tiffany D. Green of the Prince George’s County Fire/EMS Department.
According to the 8-count superseding indictment, from at least January 2021 to January 2022, Kennedy and other conspirators, including co-defendant Donnell Kelly, conspired to commit arsons at 7-Eleven convenience stores so that they could later steal cash contained in ATMs in the stores. Specifically, the indictment alleges that Kennedy and Kelly traveled to 7-Eleven locations while they were open for business and deployed explosive devices to set fire to the buildings, and on at least one occasion, demanded the contents of the cash register. The defendants burned the stores to force their closure and shut off power to the security cameras, which enabled them to return to the unguarded locations to burglarize the ATMs. This resulted in losses to the ATM company of at least $90,000. To conceal the evidence of their crimes, one of Kennedy’s co-conspirators made false police reports regarding stolen license plates.
Kennedy faces a mandatory minimum sentence of five years and a maximum sentence of 20 years in federal prison for the arson conspiracy and for arson affecting interstate commerce; a maximum of 20 years in prison for commercial robbery; a mandatory minimum sentence of 30 years and up to life in federal prison for using a destructive device in furtherance of a crime of violence; a ten year sentence for carrying an explosive during the commission of another federal felony; and a maximum of 10 years in federal prison for being a felon in possession of a firearm. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Co-defendant Donnell Kelly pleaded guilty to conspiracy to commit arson and was sentenced to 10 years with supervised release for a term of 3 years, on October 2, 2024 before Judge Peter J. Messitte. U.S. District Judge Theodore D. Chuang has scheduled sentencing for Kennedy on May 30, 2025 at 2:30 p.m.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Barron commended the ATF’s Baltimore Field Division’s Arson & Explosive Investigations Group, the Office of the Maryland State Fire Marshal, the St. Mary’s County Sheriff’s Office, the Prince George’s County Fire/EMS Department, and the Prince George’s County Police Department for their work in the investigation and thanked the U.S. Attorney’s Office for the Eastern District of Virginia, the ATF Washington Field Division, the U.S. Marshals Service, and the Alexandria, Virginia Fire and Police Departments for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Joshua Rosenthal and Christopher Sarma, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.# # #
White Supremacist Leader Found Guilty of Conspiring to Destroy Regional Power GridRead the Press Release
Baltimore, Maryland – After a six-day trial, a federal jury found Brandon Russell, 29, a resident of Orlando, Florida, guilty of conspiracy to damage an energy facility.
Erek L. Barron, United States Attorney for the District of Maryland and Special Agent in Charge William J. DelBagno, of the Federal Bureau of Investigation, Baltimore Field Office announced the jury’s verdict.
“Hate-fueled violence has no place in a civilized society. Brandon Russell went well beyond his First Amendment rights, orchestrating a terrorist plot that would have harmed thousands of innocent people,” Barron said. “It won’t always be popular, but this office will do the right thing, the right way, for the right reason.”
“Brandon Russell, a self-proclaimed National Socialist, conspired to 'lay waste to the city of Baltimore’ through violence and destruction of critical infrastructure. Today's verdict reinforces there is no tolerance for those who seek to harm our communities and use violence to further hate-filled beliefs,” DelBagno said. "I am proud of the tremendous work by the FBI Tampa and Baltimore Joint Terrorism Task Forces which led this investigation. The FBI remains diligent in protecting Marylanders from national security and public safety threats every single day in conjunction with our dedicated law enforcement and private sector partners.”
According to evidence presented at trial, from at least November 2022 to February 3, 2023, Russell conspired to carry out attacks against critical infrastructure, specifically transformers located within electrical substations, in furtherance of Russell’s racially or ethnically motivated violent extremist beliefs. Russell posted links to open-source maps of infrastructure, which included the locations of electrical substations, and he described how a small number of attacks on substations could cause a “cascading failure.” Russell also discussed maximizing the impact of the planned attack by hitting multiple substations at one time.
Russell recruited a Maryland-based woman, Sarah Beth Clendaniel, to carry out the attacks in Baltimore and elsewhere. They planned to damage energy facilities involved in the transmission and distribution of electricity and to cause a significant interruption and impairment of the Baltimore regional power grid. The intended monetary loss associated with the planned attacks would have exceeded $75 million. Clendaniel identified five substations to target, and Russell attempted to secure a weapon for Clendaniel. Clendaniel stated that if they hit a number of substations all in the same day, they “would completely destroy this whole city,” and that a “good four or five shots through the center of them . . . should make that happen.” She further added, “[i]t would probably permanently completely lay this city to waste if we could do that successfully.”
Russell faces a maximum sentence of 20 years in federal prison for conspiracy to damage an energy facility. Senior United States District Judge James K. Bredar will determine the sentence after accounting for the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge James K. Bredar has scheduled sentencing for June 17, 2025 at 11 a.m. On September 25, 2024, U.S. District Judge Bredar sentenced Clendaniel, to 18 years in federal prison, followed by a lifetime of supervised release, for conspiring with Russell to damage or destroy an energy facility in violation of 18 U.S.C. § 1366(a), and a concurrent sentence of 15 years for being a felon in possession of a firearm, and 3 years of supervised release, in violation of 18 U.S.C. § 922(g)(1).
U.S. Attorney Barron commended the Baltimore and Tampa FBI Field Offices for their outstanding work in the investigation and praised the FBI’s Joint Terrorism Task Forces, the Maryland State Police, the Baltimore County Police Department, the Washington and New York Field Offices of the FBI for their valuable assistance. Mr. Barron also thanked the Department of Justice’s National Security Division and the United States Attorney’s Office for the Middle District of Florida for their assistance. Mr. Barron thanked the prosecution team for their hard work and diligence in the case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach. To report a Maryland-based hate crime, contact the FBI Baltimore field office at (410) 265-8080 or www.tips.fbi.gov.
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New Carrollton Man Sentenced to 20 Years in Federal Prison for Kidnapping Minors, Producing Child Sexual Abuse MaterialRead the Press Release
Greenbelt, Maryland – On January 31, 2025, U.S. District Judge Deborah L. Boardman sentenced Julian Everett, 41, of New Carrollton, Maryland, to 20 years in federal prison and 20 years of supervised release, for kidnapping minors and producing child sexual abuse material.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno, of the Federal Bureau of Investigation, Baltimore Field Office; Prince George’s County State’s Attorney Aisha N. Braveboy; and Chief Malik Aziz, Prince George’s County Police Department.
According to the guilty plea, in 2005, 2015 and 2016, Everett acknowledged sexually abusing and capturing sexual abuse material of several victims at his New Carrollton home – four were minors.
On July 11, 2005, Everett drove Victim 2 — who was16 at the time — from the Commonwealth of Virginia to his New Carrollton residence. While at his residence, Everett provided Victim 2 with a beverage, before engaging in sexual intercourse without her consent. Everett also took nude photographs of the victim without her consent.
Additionally, on August 23, 2015, Everett drove another victim — who was 18 at the time — from a Washington, D.C. night club to a gas station. While there, Everett created and provided Victim 3 with a beverage before driving her to his New Carrollton residence. Everett then engaged in sexual acts with Victim 3 without her consent.
Then on August 21, 2016, Everett drove Victim 1 — who was then 17 at the time — from her Washington, D.C. residence to a Northwest D.C. barbershop where he worked. While at the barbershop, Everett created and provided Victim 1 with a beverage. Victim 1 drank it and eventually lost consciousness before waking up at Everett’s home while he was performing a sexual act on her. Additionally, Everett recorded the sexual encounter and took naked pictures of the victim without her consent.
Authorities arrested Everett in Prince George’s County on March 21, 2019. Federal law enforcement obtained a search warrant for Everett’s electronic devices, revealing images of child sexual abuse material, including a video of Everett engaging in sexual intercourse with an unidentified fifth female victim. During the video, Victim 5 can be heard mumbling and is physically unresponsive with her eyes closed.
On March 26, 2019, a fourth victim reported a sexual-assault incident to the Prince George’s County Police Department’s Criminal Investigation Division. Between March and April 2015, Everett transported Victim 4 — who was16 at the time — from her Washington D.C. residence to his New Carrollton home. After arriving at his house, Everett mixed a drink for Victim 4 who drank it and became lightheaded. Everett then engaged in multiple sexual acts with Victim 4 without her consent, which he also digitally recorded. He also took nude photos of her.
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 Attorney’s 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.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended the FBI, Office of State’s Attorney for Prince George’s County, Maryland, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Timothy Hagan and Thomas Sullivan who prosecuted the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Maryland Life Insurance Broker Convicted in $20-Million Insurance Fraud SchemeRead the Press Release
Baltimore, Maryland – After a seven-day trial, a federal jury found James William Wilson, Jr., 77, of Owings Mills, Maryland, guilty of 13 counts of fraud, three counts of money laundering, two counts of filing false tax returns, and one count of aggravated identity theft.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the verdict with Acting Deputy Assistant Attorney General Stuart M. Goldberg, Department of Justice Tax Division, and Special Agent in Charge Kareem Carter, Internal Revenue Service-Criminal Investigation Division, Washington Field Office.
According to court documents and evidence presented at trial, Wilson defrauded life-insurance companies by securing more than 40 life-insurance policies. Wilson’s scheme included mispresenting policy applicants’ health, wealth, and existing life-insurance coverage. The total death benefits from these policies exceeded $20 million.
Additionally, Wilson defrauded individual investors to receive funds that he used to pay premiums on the fraudulently obtained life-insurance policies. Wilson concealed the fraud by transferring the proceeds to multiple bank accounts, including accounts in the name of trusts. He then filed false individual income-tax returns for 2018 and 2019, which concealed the fraudulent proceeds from each year, approximately $5.7 million and $2 million, respectively.
Wilson is scheduled to be sentenced at 9:30 a.m., on May 1, 2025, and faces a maximum penalty of 20 years in prison for each count of conspiracy, wire fraud, mail fraud, and money laundering; and three years in prison for each count of filing a false tax return. He also faces two years in prison for one count of aggravated identity theft. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
In addition, Wilson’s wife, Maureen, 76, has also been charged with fraud, conspiracy, money laundering, and filing false tax returns for 2018 and 2019. Her trial is scheduled for March 3, 2025.
IRS-Criminal Investigation investigated the case, with assistance from the Maryland Insurance Administration and the Maryland Office of The Attorney General.
U.S. Attorney Barron commended the IRS-Criminal Investigation Division for their work on the case. Mr. Barron also thanked Assistant U.S. Attorneys Matthew P. Phelps and Philip Motsay and Trial Attorneys Shawn Noud and Richard Kelley, who prosecuted the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Harford County Man Sentenced for Aggravated Identity Theft and Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin sentenced Victor Ojo, 30, of Belcamp, Maryland, to 72 months in federal prison, followed by three years of supervised release.
Victor Ojo received the sentence for aggravated identity theft and his role in an attempted bank-fraud scheme that had an intended loss amount of $1.5 million. Additionally, Victor Ojo admitted to participating in a fraudulent scheme to obtain $28,350 in unemployment insurance benefits. So, Judge Rubin ordered Victor Ojo to forfeit $20,014.03 and to pay $78,350 in restitution.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Andrew McKay, Special Agent in Charge of the Treasury Inspector General for Tax Administration’s (TIGTA) Mid-Atlantic Field Division, and Scott Moffit, Special Agent in Charge of TIGTA’s Cybercrime Investigations Division.
According to his guilty plea, from April 2016 through at least August 2019, Victor Ojo conspired with Damilola Ojo, Jamelia Thompson, Raissa Kaossele, and others, to commit bank fraud using the Internal Revenue Service’s (IRS) Modernized Internet Employer Identification Number (MODIEIN) system. The MODIEIN is the IRS system that allows users to register for a unique Employer Identification Number (EIN). It requires users to enter the valid name and Social Security Number of a real living person to obtain an EIN for a business.
The defendant and his co-conspirators created and used various EINs to carry out the scheme. They obtained many of the EINs from the IRS using stolen Personally Identifiable Information. These EINs, in conjunction with fraudulently obtained state business certificates, allowed the co-conspirators to open bank accounts at various financial institutions to deposit stolen and/or altered checks and to receive fraudulently obtained wire transfers and other funds. Many of the wire transfers were the result of Business Email Compromises. Once obtained, the co-conspirators rapidly withdrew the proceeds, transferring them to other bank accounts.
Victor Ojo and his co-conspirators victimized individuals through identity theft, businesses through financial account compromise, and banks through misdirecting wire transfers and making fraudulent transactions. After Victor Ojo’s arrest, law enforcement discovered evidence linking him to fraudulent activity. Law enforcement found numerous financial documents; a jacket, shirt, and hat that they saw Victor Ojo wearing in bank-surveillance footage while interacting with the fraudulent accounts; and a $14,000 check with someone else’s name on it. They also found passports in other people’s names and a Colorado ID with authentication features in someone else’s name.
In the plea agreement, Victor Ojo admitted that he engaged in additional fraudulent activities prior to his arrest for bank-fraud conspiracy. Specifically, Victor Ojo and co-conspirators fraudulently obtained $28,350 in unemployment insurance benefits from the State of California using a victim’s identification.
Around August 1, 2021, the California Employment Development Department (EDD) issued a Bank of America debit card in that victim’s name to an address in Lanham, Maryland. The card was linked to a Bank of America account that the EDD deposited a total of $28,350 in unemployment insurance benefits into.
The EDD made the first deposit on August 8, 2021. On August 10, 11, 24, and 25, Victor Ojo used the card to withdraw thousands of dollars from various ATMs in Harford County, Maryland. Victor Ojo was also captured on surveillance cameras making the withdrawals on August 10, 11, and 25.
U.S. Attorney Barron commended the TIGTA for its work in the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Joseph L. Wenner, Paul Riley, and John D’Amico who prosecuted the federal case. He also recognized Joanna B.N. Huber, Maryland COVID-19 Strike Force Paralegal Specialist, for her assistance.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Criminal Complaint Charges Baltimore City Man with Sexual Exploitation of a Child and Receipt of Child Sexual Abuse MaterialRead the Press Release
Baltimore, Maryland – Today, the U.S. Attorney’s Office for the District of Maryland filed a federal criminal complaint charging Dazhon Darien, 32, of Baltimore, with sexual exploitation of a child and receiving child sexual abuse material.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the complaint with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, and Chief Robert McCullough, Baltimore County Police Department.
According to the affidavit in support of the criminal complaint, investigators obtained search warrants for Darien’s phones and online accounts which contained child sexual abuse material. Additionally, the affidavit further describes how Darien used CashApp to pay a minor victim to send videos of himself engaged in sexually explicit conduct. Darien paid the victim for the videos between December 2023 and March 2024. The affidavit also shows that Darien received other child-sexual-abuse-material files, including some that depicted prepubescent minors.
A criminal complaint is not a finding of guilt. An individual charged by a criminal complaint is presumed innocent until proven guilty at a later criminal proceeding.
If convicted, Darien faces a mandatory minimum sentence of 15 years or a maximum sentence of 30 years in federal prison for sexual exploitation of a child. Additionally, Darien could receive a mandatory minimum sentence of five years or a maximum of 20 years in federal prison for receipt of child sexual abuse material. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 Attorney’s 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.
U.S. Attorney Barron commended the Baltimore FBI Field Office and the Baltimore County Police Department for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Christine Goo and Paul E. Budlow who are prosecuting the federal case.
For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click the “Resources” tab on the left of the page for more information about Internet safety education.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Glen Burnie Man Sentenced to Federal Prison in Connection with Multi-State Dogfighting ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Mario Damon Flythe, 50, of Glen Burnie, Maryland, to six months in federal prison and six months of home detention – followed by three years of supervised release; a $10,000 fine, and an additional $2,800 in a forfeiture money judgment, for his involvement in a multi-state dogfighting conspiracy.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Acting Special Agent in Charge Sean Ryan, Federal Bureau of Investigation, Washington Field Office- Criminal and Cyber Division; Special Agent in Charge Charmeka Parker, U.S. Department of Agriculture Office of Inspector General; Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General; Defense Criminal Investigative Service – Mid-Atlantic Field Office; Clinton Fuchs, U.S. Marshal for Maryland; and Amal E. Awad, Anne Arundel County Police Chief.
Flythe is affiliated with the same dogfighting enterprise as co-defendant Frederick Douglass Moorfield, Jr. The defendant also operated a kennel under the name “Razor Sharp Kennels,” and used his home to keep, train, and breed dogs for dogfighting for several years.
A review of Flythe’s cellphone records uncovered numerous message exchanges connected to dogfighting — primarily over the instant-messaging applications WhatsApp and Telegram — with members of a group known as the “DMV Board.” In addition to arranging dog fights and wagers, Flythe and the DMV Board discussed the breeding and training of fighting dogs, procuring supplies for the maintenance and feeding of fighting dogs, and law enforcement criminally prosecuting dogfighters. Additionally, Flythe and others discussed indictments of other members of the DMV Board and speculated about the identity of a potential “snitch.”
Flythe’s instant messages also revealed several exchanges arranging or “hooking” dogfights. During these conversations, Flythe identified the weight and sex of the dog he wanted to sponsor in a fight. Other dogfighters then proposed a fight against their own dog or matched Flythe with another contact who had a dog in the same weight class. The dogfighters then agreed on wagers and set a date for the fight, usually six to eight weeks after arranging the match. In addition to stating the winner’s fee for each fight, dogfighters agreed on forfeit or “fit” payments if a dogfighter backed out prior to the fight.
After hooking a fight, Flythe trained his dogs in a process known as a “keep.” Flythe’s typical keep schedule for a dog involved physical training — using treadmills, weighted collars, and other accessories — a diet plan, and steroids. Flythe obtained steroids and other veterinary drugs through various contacts in his dogfighting network instead of obtaining legitimate veterinary prescriptions.
When Flythe sponsored a dog, the fight only ended after a dog died or if the owner forfeited the match by the dog quitting the fight or the owner picking up the dog. Several times between 2019 and 2023, Flythe received monetary payments through CashApp in connection with dogfighting activities. Flythe also sent money to dogfighting contacts related to the dogfighting enterprise.
On September 6, 2023, during a search of Flythe’s home, investigators recovered a total of seven pit-bull type dogs from the premises. Authorities found four dogs chained to posts or poles in fenced-in cages in the property’s backyard, and three dogs in large metal cages in the basement. Flythe acknowledged that he bred and/or trained dogs for the purposes of sponsoring them for dogfights.
U.S. Attorney Barron commended the FBI; U.S. Department of Agriculture Office of Inspector General; Defense Criminal Investigative Service; U.S. Marshals Service; Anne Arundel County Police Department; Anne Arundel County Animal Control; and the U.S. Attorney’s Office for the Eastern District of Virginia for their valuable assistance in the investigation. Mr. Barron also thanked Assistant U.S. Attorney Alexander Levin who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Man Faces Federal Indictment for Sexual Exploitation of a Minor and Producing Child Sexual Abuse MaterialRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment, charging Jose Adan Lopez-Guevara, 37, of Baltimore, with five counts of sexual exploitation of a minor and possession of child sexual abuse material.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI); Colonel Roland L. Butler, Jr., Superintendent, Maryland State Police (MSP); Chief Robert McCullough, Baltimore County Police Department; and Prince George’s County State’s Attorney Aisha Braveboy.
According to the indictment, the defendant persuaded, induced, enticed, and coerced a minor male to engage in sexually explicit conduct so that a visual depiction could be produced and transmitted. Law enforcement allegedly found Lopez-Guevara in possession of child sex abuse material on December 12, 2024.
If convicted, Lopez-Guevara faces a mandatory minimum sentence of 15 years and a maximum sentence of 30 years in federal prison for each of the five counts of sexual exploitation of a minor. Additionally, he’s looking at a maximum of 20 years in federal prison for possession of child sexual abuse material. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt, so an individual charged by indictment is presumed innocent unless they are proven guilty at a later criminal proceeding.
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 Attorney’s 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.justice.gov/psc. For more information about Internet safety education n, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended HSI, MSP, the Baltimore County Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit https://www.justice.gov/usao-md/community-outreach.
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Former Gilman Teacher Sentenced to 35 Years in Federal Prison for Child Sexual AbuseRead the Press Release
Baltimore, Maryland – Today, U.S. District Judge James K. Bredar sentenced Christopher Kenji Bendann, 40, of Baltimore, Maryland, to 35 years in federal prison, followed by lifetime supervised release.
After a three-day trial, on August 28, 2024, a federal jury found the defendant guilty of five counts of sexual exploitation of a child, three counts of possession of child-sexual-abuse material, and one count of cyberstalking.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno, of the Federal Bureau of Investigation, Baltimore Field Office; Chief Robert McCullough, Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to the evidence presented at trial, from approximately September 16, 2017, to February 9, 2019, the defendant — a former teacher at The Gilman School in Baltimore — produced multiple videos of a minor male. Additionally, Bendann engaged in sexually explicit conduct with the minor male who was one of his students. The victim was 16 and 17 years old at this time.
Law enforcement found these same videos stored on the defendant’s iCloud, resulting in a possession of child-sexual-abuse-material charge. In addition, as detailed at trial, between May and December 2022, the defendant cyberstalked the same victim by sending him electronic cellphone messages. Bendann demanded that the victim remain in contact and send him explicit images of himself. The defendant threatened to make sexually explicit images of the victim public if he did not comply. Evidence at trial also established that on February 3, 2023, the date of the defendant’s arrest, he possessed multiple depictions of child-sexual-abuse material on multiple electronic devices.
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 Attorney’s 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.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended the FBI, the Baltimore County Police Department, and the Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron also thanked Assistant U.S. Attorneys Colleen Elizabeth McGuinn and Kim Y. Hagan, who prosecuted the federal case. He also recognized Paralegal Specialist Julie Jarman for her assistance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Maryland Man Convicted of Drug Trafficking and Multiple Firearms ChargesRead the Press Release
Greenbelt, Maryland – After a four-day trial, a federal jury returned a guilty verdict, convicting Thomas Emmanuel Williams, 52, of Laurel, Maryland, on 12 federal charges related to drug and firearms trafficking.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the conviction with Special Agent in Charge Toni M. Crosby, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
According to the evidence at trial, in January and February 2023, the defendant illegally sold 10 firearms, three machineguns, ammunition, and hundreds of oxycodone, codeine, and fentanyl pills to an undercover law-enforcement source. Williams sold several privately made firearms that didn’t have serial numbers, and so-called “Glock switches,” designed to convert semi-automatic Glock-style pistols into fully automatic firearms.
The Defendant arranged to sell the drugs and guns to the source on four different dates through FaceTime and phone calls. Williams met with the undercover source in shopping-center parking lots in Laurel and Hyattsville, Maryland, to sell guns, ammunition, and drugs in exchange for thousands of dollars in cash.
The firearms sold included a Hi Point 45 ACP Pistol and 9mm Rifle, Taurus 85 Ultra Lite .38 Special Revolver, two AR-style 5.56mm pistols, a Glock 21 .45 Auto Pistol, and a Glock 43 9mm Pistol, along with three “Glock switches” which are classified as machineguns under federal law.
Williams faces a minimum sentence of 30 years in federal prison. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Theodore D. Chuang scheduled sentencing for April 17, 2025.
U.S. Attorney Barron commended the ATF for their work in the investigation and ATF special agents Christopher Szakolczai and Katherine Rottman who conducted the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Darren S. Gardner and Dawn Williams who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Justice Department Files Nationwide Lawsuit Alleging Walgreens Knowingly Filled Millions of Prescriptions that Lacked a Legitimate Medical PurposeRead the Press Release
WASHINGTON – In a civil complaint filed yesterday in the U.S. District Court for the Northern District of Illinois, the Justice Department alleges that Walgreens Boots Alliance, Walgreen Co. and various subsidiaries (collectively, Walgreens) dispensed millions of unlawful prescriptions in violation of the Controlled Substances Act (CSA) and then sought reimbursement for many of these prescriptions from various federal health care programs in violation the False Claims Act (FCA). Walgreens is one of the country’s largest pharmacy chains, with over 8,000 pharmacies across the United States.
“This lawsuit seeks to hold Walgreens accountable for the many years that it failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our complaint alleges that Walgreens pharmacists filled millions of controlled substance prescriptions with clear red flags that indicated the prescriptions were highly likely to be unlawful, and that Walgreens systematically pressured its pharmacists to fill prescriptions, including controlled substance prescriptions, without taking the time needed to confirm their validity. These practices allowed millions of opioid pills and other controlled substances to flow illegally out of Walgreens stores.”
The government’s complaint alleges that, from approximately August 2012 through the present, Walgreens knowingly filled millions of prescriptions for controlled substances that lacked a legitimate medical purpose, were not valid, and/or were not issued in the usual course of professional practice. Among the millions of unlawful prescriptions that Walgreens allegedly filled were prescriptions for dangerous and excessive quantities of opioids, prescriptions for early refills of opioids and prescriptions for the especially dangerous and abused combination of drugs known as the “trinity,” which is made up of an opioid, a benzodiazepine and a muscle relaxant.
The complaint alleges that Walgreens pharmacists filled these prescriptions despite clear “red flags” that indicated that the prescriptions were highly likely to be unlawful. Walgreens allegedly ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from its own pharmacists and internal data.
The complaint further alleges that Walgreens systematically pressured its pharmacists to fill prescriptions quickly without taking the time needed to confirm each prescription’s validity. Walgreens also allegedly deprived its pharmacists of crucial information, including by preventing pharmacists from warning one another about certain prescribers.
The complaint alleges that by knowingly filling unlawful prescriptions for controlled substances, Walgreens violated the CSA and, where Walgreens sought reimbursement from federal health care programs, also violated the FCA. The complaint alleges that Walgreens’s actions helped to fuel the prescription opioid crisis and that, in some particularly tragic instances, patients died after overdosing on opioids shortly after filling unlawful prescriptions at Walgreens. If Walgreens is found liable, it could face civil penalties of up to $80,850 for each unlawful prescription filled in violation of the CSA and treble damages and applicable penalties for each prescription paid by federal programs in violation of the FCA. The court also may award injunctive relief to prevent Walgreens from committing further CSA violations.
“As alleged in the complaint, Walgreens continually disregarded its obligations under the Controlled Substances Act and False Claims Act by illegally dispensing powerful controlled substances and unlawfully seeking reimbursement from federal health care programs,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “These laws are critically important in protecting our communities from the dangers of the opioid epidemic. Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”
“The damage caused by the opioid crisis continues to reverberate in the Middle District of Florida and around the country,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “The filing of this civil complaint is a major step in our continued effort to confront those responsible for the harm they have done to our communities.”
“Pharmacies play a critical role in ensuring that only lawful controlled substance prescriptions are dispensed – Walgreens failed to do just that,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We are committed to holding Walgreens accountable for its role in the opioid epidemic that has devastated communities across the country, including in Maryland.”
“This country is in the midst of a serious opioid epidemic, and New York is no exception,” said Acting U.S. Attorney Carolyn Pokorny for the Eastern District of New York. “Walgreens, which operates one of the largest pharmacy chains in the United States, including nearly 300 pharmacies in the Eastern District of New York during the relevant time period, repeatedly ignored its obligations to ensure that these drugs did not fall into the wrong hands. My office will continue to work with others in the Justice Department to combat the opioid crisis by holding pharmacies that fill unlawful prescriptions accountable.”
“The Justice Department has prioritized both combating the opioid crisis and upholding corporate accountability, and the action we are announcing today affirms our resolve,” said First Assistant U.S. Attorney Maya D. Song for the Eastern District of Virginia. “My office is pleased to partner with our colleagues from across the nation to confront these issues and deter pharmacies and pharmacists from failing to honor their obligation to ensure that these dangerous drugs are only provided to those with a true medical need.”
“Walgreens and its pharmacists have an obligation to ensure that every prescription they fill is legitimate and issued responsibly. As this lawsuit alleges, Walgreens failed in this obligation, and many times ignored the red flags that warned of suspicious prescribing practices,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “Walgreens placed the public in danger by disregarding their responsibility. DEA will continue to pursue any individual or corporation that chooses profit over patient safety and we will hold them accountable.”
“Millions of Americans enrolled in Medicare, Medicaid, and other public health care programs count on pharmacies to dispense drugs responsibly. When pharmacies disregard federal laws and put profits ahead of patients, they endanger Americans’ health and compromise taxpayer dollars,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG remains diligent in pursuing entities involved in unlawful behavior that abuses the public’s trust in health care services.”
Four different whistleblowers who previously worked for Walgreens in various parts of the country filed whistleblower actions under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, as it has done here. The four cases have been consolidated and are captioned United States ex rel. Novak v. Walgreens Boots Alliance Inc. No. 18 C 5452 (NDIL).
The United States’ intervention in this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS, at 800-HHS-TIPS (800-447-8477).
The United States is represented in this matter by Assistant Director Amy DeLine, Senior Litigation Counsel Donald Lorenzen and Trial Attorney Nicole Frazer of the Justice Department’s Civil Division’s Consumer Protection Branch and Assistant Director Natalie Waites and Trial Attorney Joshua Barron of the Civil Division’s Commercial Litigation Branch, Fraud Section, as well as Assistant U.S. Attorney Valerie R. Raedy for the Northern District of Illinois, Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie for the Middle District of Florida, Chief of the Civil Division Thomas Corcoran for the District of Maryland, Assistant U.S. Attorney Elliot M. Schachner for the Eastern District of New York and Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia.
The U.S. Attorneys’ Offices for the District of Colorado and the Southern District of California, the DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General and FBI Chicago Field Office provided substantial assistance in the investigation.
The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law. In March 2023, the Associate Attorney General announced the creation of the Opioid Epidemic Civil Litigation Task Force, which formalizes and enhances coordination of the department’s existing work and will consider new initiatives. Because of the scope and duration of the crisis, the Task Force includes U.S. Attorneys’ Offices, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch, Fraud Section, DEA and other department components. The Task Force steers the department’s civil litigation efforts involving actors alleged to have contributed to the opioid epidemic, including by diverting prescription opioids.
The claims asserted against defendants are allegations only and there has been no determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
Additional information about the Fraud Section of the Civil Division and its enforcement efforts can be found at www.justice.gov/civil/fraud-section.
For information about the U.S. Attorneys’ Offices, visit:
- Middle District of Florida, www.justice.gov/usao-mdfl;
- Northern District of Illinois, www.justice.gov/usao-ndil;
- District of Maryland, www.justice.gov/usao-md;
- Eastern District of New York, www.justice.gov/usao-edny; and
- Eastern District of Virginia, www.justice.gov/usao-edva.
For information about the federal agencies involved in this investigation and their work to combat the opioid crisis and federal health care fraud, visit:
- DEA at www.dea.gov;
- FBI at www.fbi.gov;
- HHS at www.hhs.gov;
- DHA at www.health.mil/About-MHS/OASDHA/Defense-Health-Agency;
- OPM at www.opm.gov; and
- DOL at www.dol.gov.
Foreign National Facing Federal Charges Related to $6-Million-Plus Fraud SchemeRead the Press Release
Greenbelt, Maryland –James Aliyu, 29, the last of three defendants charged in a $6-million business email compromise (BEC) scheme, has been extradited from South Africa to the United States to face federal indictment.
A federal grand jury returned an indictment charging Aliyu, Kosi Goodness Simon-Ebo, 30, and Henry Onyedikachi Echefu, 31, with conspiracy to commit wire fraud and money laundering in connection with a BEC scheme that resulted in the loss of more than $6 million.
All three are Nigerian citizens that resided in South Africa at the time of the crimes. Federal authorities returned this indictment on June 24, 2019, and unsealed it on July 6, 2022, upon the defendants’ arrests outside the U.S.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI), Baltimore.
According to the seven-count indictment, from February 2016 until at least July 2017, the defendants conspired with others to perpetrate a BEC scheme. The indictment alleges that the defendants and their co-conspirators, some of whom resided in Maryland, gained unauthorized access to individual and business email accounts. Co-conspirators then allegedly sent false wiring instructions to the victims’ email accounts from spoofed emails, which are forged with sender addresses, to deceive the victims into sending money to bank accounts, known as drop accounts, that were controlled by perpetrators of the scheme.
The indictment also alleges that the defendants conspired to commit money laundering. They planned to disburse the fraudulently obtained funds to other accounts by initiating account transfers, withdrawing cash, obtaining cashier’s checks, and by writing checks to other individuals and entities, to hide the true ownership and source of the assets. Additionally, the defendants are charged with wire fraud, related to the BEC scheme. Specifically, Simon-Ebo is charged in three wire-fraud counts in which he wired $6,343,533.10 collected from victims to accounts controlled by conspirators.
Simon-Ebo and Echefu were previously extradited from Canada, pled guilty, and have been sentenced.
If convicted, Aliyu faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy, money laundering conspiracy, and for each count of money laundering and wire fraud.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. The individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
U.S. Attorney Barron commended HSI’s Mid-Atlantic El Dorado Task Force for its work in the investigation. Mr. Barron also thanked the South African Department of Justice and Constitutional Development, National Prosecuting Authority of South Africa, and the South African Police Service. Additionally, the U.S. Department of Justice’s Office of International Affairs (OIA) provided significant assistance in securing Aliyu’s extradition from South Africa. OIA and the Department of Justice Canada’s International Assistance Group also provided substantial assistance in securing the arrest and extradition of both Echefu and Simon-Ebo. Mr. Barron also recognized Assistant U.S. Attorney Kelly O. Hayes, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Maryland Attorney Charged with Tax Crimes and Making False Statements to Mortgage LendersRead the Press Release
Greenbelt, Maryland – Today, a federal grand jury returned a 22-count indictment, charging a Maryland attorney with tax evasion, assisting in the preparation of false tax returns, failing to pay taxes, and making false statements to two separate mortgage lenders.
U.S. Attorney Erek L. Barron announced the indictment with Deputy Assistant Attorney General David A. Hubbert, Department of Justice Department, Tax Division.
According to the indictment, between 2016 and 2023, Thomas C. Goldstein, of Chevy Chase, Maryland, and Washington, D.C., was the sole owner of Goldstein & Russell, P.C., a boutique law firm specializing in appellate litigation, including litigation before the United States Supreme Court. Goldstein was allegedly also a high-stakes poker player, frequently playing in games involving millions of dollars.
During that time, Goldstein allegedly engaged in a scheme to evade his taxes. Goldstein allegedly took various steps to carry out his scheme, including diverting legal fees that were due to the law firm to his personal bank account, and then using them to pay personal poker-related debts; using the law firm’s assets to satisfy his personal poker debts and falsely classifying those payments as “legal-fee” expenses on the firm’s books and records; and using firm assets to pay salaries and health insurance premiums for people with whom Goldstein had a personal relationship but who performed little or no work for the law firm and did not qualify for its health insurance.
Goldstein also allegedly did not report, or falsely understated, millions of dollars of gambling winnings on his tax returns. In addition, for 2016 through 2021, except 2018, Goldstein allegedly did not pay the taxes he self-reported were due on his returns, while simultaneously spending millions of dollars on personal expenses such as gambling debts, travel, vacation rentals, and luxury goods.
In 2021, Goldstein also allegedly submitted false mortgage applications to two separate mortgage lending companies, seeking financing to purchase a $2.6-million home in Washington, D.C. On those mortgage applications — which required Goldstein to list all his liabilities and debts — Goldstein allegedly omitted millions of dollars of liabilities, including more than $14 million he owed at the time on two promissory notes, as well as taxes he owed to the IRS. Goldstein’s false statements to one of the mortgage lenders allegedly enabled him to obtain a $1.98 million loan.
If convicted, he faces a maximum sentence of five years in prison for each of the tax evasion charges; three years for each count of assisting in the preparation of false tax returns; a maximum of one year on each of the five counts charging willful failure to pay taxes; and 30 years for each count of making false statements to mortgage lenders. He also faces a period of supervised release, monetary penalties, and restitution.
IRS Criminal Investigation and the Federal Bureau of Investigation are investigating the case.
Assistant U.S. Attorney Patrick Kibbe, of the District of Maryland, Senior Litigation Counsel Stanley Okula, and Trial Attorneys Emerson Gordon-Marvin and Hayter Whitman, of the Tax Division, are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Radiopharmaceutical Company Set to Pay $350,000 to Resolve False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – PharmaLogic Holdings Corporation, a radiopharmaceutical company headquartered in the State of Florida, has agreed to pay $350,000 to resolve allegations that it violated the False Claims Act. Nine of the corporation’s subsidiaries are accused of violating the False Claims Act by knowingly
filing to receive small-entity status to obtain a reduced U.S. Nuclear Regulatory Commission (NRC) annual fee.Erek L. Barron, U.S. Attorney for the District of Maryland, announced this settlement with Inspector General Robert J. Feitel, NRC.
The NRC, which regulates and licenses civilian use of radioactive materials, charges an annual fee to entities that grant licenses to handle, store, or possess radioactive materials. Entities that qualify as a small entity under 10 C.F.R. § 171.16(c) can obtain a reduced annual fee. The entity obtains the fee reduction by filing an NRC Form 526, Certification of Small Entity Status for the Purposes of Annual Fees Imposed under 10 CFR Part 171.
Beginning around March 31, 2015, thru December 31, 2023, nine entities acquired by PharmaLogic Holdings Corporation filed NRC 526 forms. Through these filings, each entity certified its small-entity status entitling them to a reduced NRC annual fee. Under false pretenses, the NRC certified the entities and reduced their annual fees. However, the entities exceeded the size limits to qualify for reduced annual fees.
“This settlement exemplifies that the United States Attorney’s Office will hold accountable companies that claim falsely their small entity status to obtain from the government a benefit to which the companies are not entitled,” said Erek L. Barron, United States Attorney for the District of Maryland. “We will never tire in our efforts to pursue those taking undue advantage of government programs.”
“This case demonstrates the OIG’s commitment to anti-fraud initiatives and is consistent with our office’s recent efforts to ramp up investigations on this front,” said NRC Inspector General Robert J. Feitel. “I also wish to express my sincere gratitude to the NRC staff, particularly the staff in the Labor Administration & Fee Billing Branch of the Office of the Chief Financial Officer, for their cooperation during the OIG’s investigation.”
U.S. Attorney Barron and Inspector General Feitel commended the NRC-OIG and the Special Agents on the OIG’s Anti-Fraud Team for their work in this investigation. Mr. Barron also thanked Assistant U.S. Attorney Tarra DeShields, who handled the case.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Convicted Child Sexual Abuse Offender Sentenced to Federal Prison After Illegally Reentering the U.S.Read the Press Release
Greenbelt, Maryland – U.S. District Judge Lydia Kay Griggsby sentenced Erbeth Gomez-Delgado, 48, of Hyattsville, Maryland, to 24 months in federal prison for illegally reentering the country after he was deported.
In November 2024, after a three-day trial, a federal jury found Gomez-Delgado, a convicted child sexual abuse offender, guilty of a sole count of Reentry After Deportation.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Matthew Davies, Acting Director of Field Operations, U.S. Customs and Border Patrol, Baltimore Field Office.
According to the evidence presented at trial, the U.S. Customs and Border Patrol first encountered the defendant on July 29, 2016, as he crossed the U.S. border through the Rio Grande, in Texas. The defendant entered the country without inspection. Gomez-Delgado was then removed from the U.S. and deported to Guatemala on July 29, 2016.
On February 15, 2019, law enforcement became aware that Gomez-Delgado was back in the U.S. after he was arrested and charged with sexually abusing a minor in Prince George’s County. During the reentry trial, the prosecution proved that Gomez-Delgado voluntarily and unlawfully reentered the U.S. prior to February 2019. Gomez-Delgado did not seek or receive permission from the Attorney General or the Secretary of the Department of Homeland Security to reenter the U.S.
U.S. Attorney Barron acknowledged the U.S. Customs and Border Patrol for their work throughout the investigation and the trial. Mr. Barron also thanked Assistant U.S. Attorney LaShanta Harris and U.S. Department of Justice Trial Attorney Shriram Harid who prosecuted this federal case.
U.S. Attorney’s Office Credits Multi-Jurisdictional Crime Reduction Collaborative for Sharp Decline in Violent Crime Across MarylandRead the Press Release
Baltimore, Maryland – Today, the U.S. Attorney’s Office for the District of Maryland announced that statewide violent crime continued to significantly decline in 2024. In Maryland, homicides and non-fatal shootings are down, and Baltimore City’s violent-crime rate dropped for the third year in a row.
Since 2021, statewide homicides have declined by 32 percent while Baltimore City, which saw 201 homicides in 2024, has recorded a 41-percent decrease during the same timeframe. The U.S. Attorney’s Office credits strategic collaboration between Federal, State, City law enforcement, and community partners for the positive direction.
“I’m very proud of the leadership that this office’s public servants have shown in coordinating law enforcement and community efforts throughout Maryland and beyond to protect our nation and promote safer communities,” said U.S. Attorney Erek L. Barron. “We will continue to be a force-multiplier for the work of our various Federal, State, and local law enforcement agencies, and community-based partners.”
These efforts are connected to the Department of Justice’s Project Safe Neighborhoods (PSN). This program brings together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make neighborhoods safer for everyone. Recent results show how the power of strong collaborations correlate with major declines in violence, as Baltimore City recorded its lowest homicide total since 2011. For example, in Baltimore City, the multi-jurisdictional collaborative has:
- Assembled the largest-ever, State-funded team of special federal prosecutors, and legal and investigative professionals to indict firearm offenses. In 2023, this enabled the U.S. Attorney’s Office to adopt a record-high number of gun cases from the Baltimore City State’s Attorney’s Office.
- Strategically investigated and federally prosecuted repeat violent offenders, who drive the most violence in our communities, by any legal means necessary. This tactic has led to impactful prosecutions. For example, the collaborative shut down an international Chinese money laundering and drug trafficking organization after investigating one of its ringleaders who was shot at twice within a two-week span of violence in Baltimore City.
- Leveraged the U.S. Attorney’s Office’s multi-agency taskforce to not only federally prosecute violent criminal organizations, but to also help local partners land impactful prosecutions. For example, through Operation Tornado Alley, the largest takedown in Baltimore in decades, the State’s Attorney’s Office charged 40 individuals with drug trafficking and firearm offenses.
Through these strategic, collaborative efforts, the office has reduced costly and unnecessary incarceration. The collaborative’s use of strategic law enforcement, along with various prevention and intervention methods, has resulted in a 40-percent decline in the federal pre-trial detention rate since 2018. For example, the U.S. Attorney’s Office actively supports reducing barriers to successful reentry and collaborative community-based outreach efforts aimed at youth and young adults, including by working with organizations such as ROCA Baltimore.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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- Assembled the largest-ever, State-funded team of special federal prosecutors, and legal and investigative professionals to indict firearm offenses. In 2023, this enabled the U.S. Attorney’s Office to adopt a record-high number of gun cases from the Baltimore City State’s Attorney’s Office.
Baltimore Man Sentenced to Federal Prison for Possessing an Illegal FirearmRead the Press Release
Greenbelt, Maryland – Today, U.S. District Judge Deborah K. Chasanow sentenced Montreal Proctor, 34, of Baltimore, Maryland, to three years in federal prison, followed by three years of supervised release, for federal charges of illegal possession of a firearm and ammunition.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge Toni M. Crosby, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Commissioner Richard Worley, Baltimore Police Department (BPD).
According to his guilty plea, on June 30, 2022, Proctor walked through the 500 block of Chateau Avenue, in Baltimore, while armed with a loaded firearm. While walking, Proctor encountered police officers as they were patrolling the area. He then took a loaded firearm from out of his waistband, resulting in a brief standoff. Proctor eventually dropped the firearm and began to flee before he was later arrested.
Law enforcement recovered the firearm and found that it was a Ruger .40 caliber pistol that was loaded with more than 10 rounds of ammunition. Proctor was previously convicted of several violent offenses, including attempted murder, first-degree assault, and attempted robbery. In addition to his federal sentence, Proctor is facing state charges for violating probation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Barron commended the ATF and BPD for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Jason D. Medinger and Adeyemi Adenrele, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Two Maryland Men Indicted for Unemployment Insurance Fraud Scheme of More Than $1 MillionRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging two Maryland men on federal charges related to a scheme to fraudulently obtain more than $1 million in unemployment insurance benefits. On February 1, 2024, a grand jury returned a sealed indictment of Daiwor Woah-Tee, age 51, of Belcamp, Maryland, and Dekwii Woah-Tee, age 46, of Rosedale, Maryland with conspiracy to commit wire fraud, and one count of aggravated identity theft, respectively, relating to a scheme to obtain more than $1,000,000 in unemployment insurance benefits. The indictment was unsealed upon the arrest of the defendants.
The defendants had an initial appearance on December 18, 2024, in the U.S. District Court in Baltimore before U.S. Magistrate Judge Charles Austin.
The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, Special Agent in Charge Troy W. Springer of the Department of Labor Office of Inspector General, Office of Investigations for the National Capital Region (DOL-OIG), and Inspector General Dr. Joseph V. Cuffari, Department Homeland Security - Office of Inspector General (DHS-OIG).
As detailed in the indictment, unemployment insurance (“UI”) was a joint state and federal program that provided monetary benefits to eligible beneficiaries. UI payments were intended to provide temporary financial assistance to lawful workers who were unemployed through no fault of their own. Beginning in or around March 2020, in response to the COVID-19 pandemic, several federal programs expanded UI eligibility and increased UI benefits, including the Pandemic Unemployment Assistance Program (PUA), Federal Pandemic Unemployment Compensation (FPUC), and the Lost Wages Assistance Program (LWAP).
In Maryland, those seeking UI benefits submitted online applications. Applicants had to answer specific questions to establish eligibility to receive UI benefits, including their name, Social Security Number (SSN), and mailing address, among other things. Applicants also had to self-certify that they met a COVID-19-related reason for being unemployed, partially employed, or unable to work. Maryland Department of Labor (MD-DOL) relied upon the information in the application to determine UI benefits eligibility. Once an application was approved, the MD-DOL typically distributed state and federal UI benefits electronically to a debit card, which claimants could use to withdraw funds and/or make purchases.
As alleged in the indictment, from March 2020 to September 2021, the defendants conspired to commit wire fraud defrauding State Workforce Agencies (SWA), including the MD-DOL, by impersonating victim individuals for the purpose of submitting fraudulent claims for unemployment insurance. The defendants used victim personal identifying information (PII), including name, date of birth, and/or SSN submit applications for UI benefits. The UI benefits obtained through the scheme was more than $1,000,000.
If convicted, the defendants face a maximum sentence of 20 years in federal prison for wire fraud conspiracy and aggravated identity theft carries a mandatory minimum sentence of two years in prison that runs consecutive to any other sentence. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Barron commended the DOL-OIG, DHS-OIG, and IRS-CI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney John D’Amico and Special Assistant U.S. Attorney Jared W. Murphy, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Convicted Sex Offender Sentenced to 37 Years in Federal Prison for Producing Child Sexual Abuse MaterialRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Brian Patrick Werth, 40, of Beltsville, Maryland, to 37 years in federal prison, followed by 25 years of supervised release, for two counts of producing child sexual abuse material.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations.
Werth was convicted of coercing and enticing a minor to engage in sexually explicit conduct and engaging with a minor as a registered sex offender. Upon his release from prison, Werth is required to register as a sex offender where he resides, is employed, and where he is a student under the Sex Offender Registration and Notification Act. Judge Chuang also ordered Werth to refrain from contact with children under 18 years old, without prior permission, and to submit to computer monitoring.
After a three-day trial, a jury found that from January 2021 through June 2021, Werth communicated with minor females, ages 11 and 15, through internet-based applications WhatsApp and Kik. During these interactions, Werth persuaded, coerced, and enticed the minor females to engage in sexually explicit conduct by producing sexually explicit videos of themselves. Additionally, Werth engaged in child sexual abuse as a member of the Maryland Sex Offender Registry for a previous sex offense conviction.
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 Attorney’s 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.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.U.S. Attorney Barron commended Homeland Security Investigations and the Maryland State Police Department for their work in the investigation and prosecution. Mr. Barron also thanked Assistant U.S. Attorney LaShanta Harris who led the prosecution of this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Maryland Man Pleads Guilty to Fraudulently Filing COVID-19 Cares Act Loans and Tax FraudRead the Press Release
Baltimore, Maryland – Today, Melvin Thompson Jr., 34, of Chestertown, Maryland, pleaded guilty to one count of wire fraud and one count of filing a false tax return in connection with submitting fraudulent loan applications.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the guilty plea with SAC Kareem A. Carter, Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office. Sentencing is scheduled for March 19, 2025, at 10 a.m.The Coronavirus Aid, Relief, and Economic Security (CARES) Act — a federal law enacted in March 2020 — provided emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. The CARES Act gives financial assistance including forgivable loans to small businesses for job retention and other expenses. Established by the CARES Act, the Paycheck Protection Program (PPP) — administered through the Small Business Administration (SBA) — along with the Economic Injury Disaster Loan (EIDL), helped businesses meet their financial obligations.
According to his plea agreement, beginning around March 2020, and continuing until approximately February 22, 2021, Thompson knowingly executed a scheme to defraud the U.S. Small Business Administration by obtaining fraudulent EIDLs and loans under the PPP. In addition, as part of his scheme, Thompson filed false corporate tax returns, under penalties of perjury, with the IRS on behalf of four businesses seeking EIDL money. These businesses reported false or fictitious revenue and expense amounts.
In support of these applications, Thompson submitted fraudulent, unfiled tax returns. Additionally, on a few occasions, Thompson filed fraudulent tax returns with the IRS in support of his CARES Act loan applications.
Thompson primarily used the small business relief loan proceeds to engage in high frequency trading of options contracts and other securities, mainly at TD Ameritrade, where during 2020 alone he purchased and sold more than $12 million in securities. Through this high frequency trading, Mr. Thompson lost the $791,004 that he gained through this scheme, with the exception of money he spent to purchase a 2020 Lincoln Navigator.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the CARES Act. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Barron commended the IRS-CI for its work in the investigation. Mr. Barron also thanked Assistant U.S. Attorney Sean R. Delaney who is prosecuting the case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Ellicott City Woman Pleads Guilty to Wire FraudRead the Press Release
Baltimore, Maryland – Today, Jennifer Tinker, 41, of Ellicott City, Maryland, pleaded guilty to a federal charge of wire fraud.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the guilty plea with Special Agent in Charge William J. DelBagno, of the Federal Bureau of Investigation, Baltimore Field Office.
According to the guilty plea, between January 2020 and November 2023, Tinker defrauded a real estate agency that she worked for by transferring more than $1 million of company funds through wire transfers, Zelle payments, checks, and ACH to her personal bank accounts. Tinker fraudulently embezzled funds from the real estate agency’s accounts – including its escrow, operating, and commission accounts.
Tinker hid the transfers by listing fictitious “recipients” on the wire transfer paperwork to make them appear legitimate. She then wired the stolen funds into her personal bank accounts. Between approximately February 2021 and November 2023, Tinker wired money to her personal accounts more than 90 times. Additionally, Tinker made false and fraudulent edits and entries into her employer’s internal accounting records to conceal the transfers.
The defendant used the funds that she stole from her employer to pay for luxury goods and personal expenditures such as vacations, Taylor Swift tickets, and five different vehicles.
Tinker faces a maximum of 20 years in prison followed by up to a lifetime of supervised release. U.S. District Judge Adam B. Abelson scheduled sentencing for April 10, 2025, at 10 a.m.
U.S. Attorney Barron commended the FBI for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorney Joseph L. Wenner who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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