District of Maryland

Baltimore, Maryland – A New York business owner has been found guilty of recklessly transporting a dangerous probable carcinogen without proper documentation and knowingly selling an unregistered pesticide in Maryland.  

The conviction was announced by U.S. Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Allison Landsman, of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID).

Idrissa Bagayoko, 58, owner and operator of Maliba Trading LLC, was found guilty by a Baltimore jury in federal court of two counts related to his transporting and sale of the unregistered pesticide known as Sniper DDVP.  Charges were brought against Bagayoko under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Hazardous Material Transportation Act.

FIFRA provides for federal regulation of pesticide distribution, sale, and use to ensure that pesticides sold in the United States are safe, effective, and bear labelling containing true and accurate information.  The Environmental Protection Agency (EPA) has responsibility under FIFRA to regulate the distribution and sale of all pesticides shipped or received in interstate commerce.  All pesticides must be registered with the EPA before the pesticide can be sold or distributed, and no person may distribute or sell a pesticide that has not been registered with the EPA.

The Hazardous Material Transportation Act provides for federal regulation of hazardous substances transported in interstate commerce.  The Department of Transportation (DOT) has responsibility under the Hazardous Material Transportation Act to ensure private motor carriers maintain shipping papers with critical information about the relevant hazardous substance to safeguard police and first responders in the event of an accident or exposure.  

According to evidence presented at trial, on September 29, 2021, Bagayoko drove from New York to Maryland and sold two boxes of the unregistered pesticide Sniper DDVP to an individual in Maryland.  Police later stopped Bagayoko in Elkton, Maryland, with 18 additional boxes of Sniper DDVP.  The government’s investigation revealed that the defendant procured a total of 1,728 bottles of Sniper DDVP and drove from New York to Maryland to sell the unregistered pesticide.

Laboratory testing of samples taken from the bottles revealed each bottle contained the chemical dichlorvos, which has been classified by the EPA as a probable human carcinogen.  The defendant transported over 330 pounds of dichlorvos, without requisite shipping papers, which alert first responders that they are dealing with a probable carcinogen, in the event of an accident.

The illegal sale of an unregistered pesticide carries a statutory maximum prison sentence of one year and a fine of up to $25,000.  The illegal transport of dichlorvos without required shipping papers carries a statutory maximum prison sentence of five years and a fine up to $250,000.

U.S. Attorney Barron thanked Assistant U.S. Attorney Kimberly Phillips and Special Assistant U.S. Attorneys Kertisha Dixon and David Lastra, who prosecuted the case.  Mr. Barron also thanked Special Agent Christopher Michael with the U.S. Environmental Protection Agency, Criminal Investigation Division, Special Agent Charles Bradford with the U.S. Department of Transportation, Office of Inspector General, and the Elkton Maryland Police Department, for investigating 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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Baltimore, Maryland – On Friday, November 22, 2024, after a nine-day trial, a federal jury found Stephen L. Snyder of Baltimore, Maryland guilty of one count of Attempted Extortion and seven counts of the Travel Act. The guilty verdict was announced by 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.

The evidence at trial showed that Snyder, a plaintiffs medical malpractice attorney in the Baltimore area, represented two medical malpractice claimants who allegedly experienced injury following organ transplants at the University of Maryland Medical Center (“UMMC”). One of those claimants received a kidney transplant. From in or around January 2018 through September 2018, Snyder attempted to extort the University of Maryland Medical System (“UMMS”) by threatening to “destroy” the UMMC transplant department unless UMMS paid him $25 million personally, and separate from any settlement with his client.

Specifically, Snyder threatened a public relations campaign that would falsely accuse UMMC of tricking unsophisticated patients into accepting diseased organs. Snyder claimed that he would run a front-page ad in the Baltimore Sun, hold a press conference, and create an internet advertisement that would direct anyone searching for the UMMC transplant program to his law firm’s website. Snyder also threatened to release commercials that he created that conveyed his false message and accused UMMC of putting “profits over safety.” Snyder played these commercials during meetings with attorneys representing UMMS. Snyder claimed that the parties could enter into a sham consulting agreement that would provide cover for the $25 million payment.

Snyder made his extortionate demands and threats over a series of meetings and phone calls with attorneys for UMMS in 2018. One of those meetings, which occurred on August 23, 2018, was recorded by Federal law enforcement using hidden video cameras.

Snyder faces a maximum sentence of 20 years of incarceration for the Hobbs Act violation and up to 5 years of incarceration on each Travel Act violation. 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. Sentencing is currently scheduled for February 25, 2025 at 10:00 am.

U.S. Attorney Barron commended the FBI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Matthew P. Phelps and Evelyn L. Cusson, 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, Maryland – Today, the U.S. Attorney’s Office for the District of Maryland joined the Office of the State’s Attorney for Baltimore City (SAO) — and its Major Investigations Unit — the Mayor’s Office, Baltimore Police Department (BPD), U.S. Drug Enforcement Administration (DEA), and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to share details about the largest takedown in Baltimore in decades.

This investigation uncovered four separately operated criminal organizations whose primary enterprise was trafficking narcotics. Ivan Roman and Andre Berry are facing federal charges for firearm-related offenses and possession with the intent to distribute narcotics. The SAO announced charges against 40 individuals for drug trafficking and firearm offenses that occurred throughout southwest Baltimore City. This takedown is part of the City’s Group Violence Reduction Strategy (GVRS). Ongoing violence in these areas was the catalyst for the investigation. While examining violent feuds in these regions, law enforcement uncovered the existence of at least four separate criminal organizations that engaged in the daily street-level distribution of narcotics.

During the course of the nearly year-long investigation, law enforcement employed various investigative methods. This included executing search-and-seizure warrants and recovering approximately 65 firearms of varying calibers, including ghost guns and firearms equipped with rapid-fire trigger activators, which allow the firearms to operate as fully automatic weapons. Additionally, law enforcement recovered body armor, approximately 7.25 kilograms of suspected cocaine, approximately three kilograms of suspected heroin/fentanyl mixture, approximately 110 pounds of suspected cannabis, approximately $373,275.50 — believed to be proceeds from the sale of narcotics — and 15 stolen automobiles. 

“Operation Tornado Alley comes on the heels of our newly executed Baltimore Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force memorandum of understanding between the Maryland U.S. Attorney’s Office and our federal, state, and local law enforcement partners,” said U.S. Attorney Erek L. Barron. “This operation proves that we’ve taken the Strike Force to the next level in combating violent crime in the Baltimore region. Violent offenders better beware, we are a force-multiplier for the work of our state and local partners on the ground.”

These four criminal organizations conducted criminal activity in the surrounding areas of the 1700 block of Lemmon Street, 2000 block of W. Pratt Street, 500 block of Millington Avenue, and 2800 block of Edmondson Avenue. The SAO has secured 38 state indictments with 35 defendants, involving four conspiracies.

“The dismantling of multiple criminal organizations and the arrest of numerous individuals accused of committing violence in our city is a significant victory for the people of Baltimore. Simultaneously taking down this many criminal enterprises requires skilled collaboration across various levels of law enforcement, and this achievement underscores the exceptional effectiveness of our prosecutors, agents, investigators, detectives, police officers, and community partners working tirelessly to make our city a safer place,” said State’s Attorney Ivan J. Bates. “Dismantling these operations marks a significant step forward in our mission to protect our communities from the dangers of illegal drugs and violence. We are not only disrupting the flow of dangerous narcotics but also sending a strong message that Baltimore will not tolerate criminal operations that threaten the safety and well-being of our residents. Our office remains committed to fighting crime on all fronts and working with our community to create a safer, healthier Baltimore for all.”

“This takedown is a powerful example of what we can achieve through strong partnerships and focused investigations,” said Police Commissioner Richard Worley. “By removing dangerous individuals, illegal firearms, and drugs from our streets, we are taking significant steps toward making Baltimore a safer city. The hard work and dedication of our officers and partner agencies highlight our shared commitment to the Group Violence Reduction Strategy and working together to reduce violence and protect our communities. We remain relentless in our pursuit of those who bring harm to our neighborhoods.”

“We are battling an unprecedented drug poisoning epidemic that has claimed thousands of American lives. I’m talking about the Opioid/Fentanyl Poisoning Crisis. Together, we are sending a powerful and direct message to drug trafficking organizations, their leaders, and those who enable their illegal and violent activities:  We will not tolerate these actions and are committed to relentlessly pursuing justice against them,” said SAC Jarod Forget of the DEA’s Washington Division.

“ATF is proud to collaborate with our state and local partners to investigate these violent criminal organizations. These charges are a critical step forward in holding those who would commit violence in the city of Baltimore accountable. ATF remains dedicated to bringing those who illegally possess and use firearms to justice,” said SAC Toni Crosby, Baltimore Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

“This is what GVRS’s accountability component looks like. Working together, sharing intelligence, collaborating with prosecutors on law enforcement investigations, and leveraging our collective resources to hold those who violate the strategy’s mandate to put down the guns and make the decision to perpetuate harm and violence accountable,” said Mayor Brandon M. Scott. “I want to thank State’s Attorney Bates, US Attorney Barron, Governor Moore, GOCCP, our Federal partners at the ATF and DEA, BPD’s Group Violence Unit, Anne Arundel County Police, Baltimore County Police, and our team at MONSE for doing the investigative and enforcement work necessary to incapacitate violent groups plaguing our communities.”

Law enforcement identified multiple sources supplying fentanyl and cocaine, some of whom were importing large quantities of narcotics from outside of the state. This included approximately 3.4 kilograms of suspected cocaine couriered from New York into Maryland on behalf of the criminal organization operating in and around the 500 block of Millington Avenue. The criminal organization maintained caches of firearms to protect their supply of narcotics and secure their territory.

In March 2024, BPD executed search warrants in the 500 block of Millington Avenue, which resulted in the seizure of five rifles, three handguns, and body armor. A rival organization — operating in and around the 1700 block of Lemmon Street — engaged in drug trafficking, firearm trafficking, and car thefts to finance and further their enterprise. As a result of proactive enforcement during this investigation, law enforcement thwarted numerous violent incidents, including the prevention of an armed robbery and shutting down a violent territorial dispute.

On November 19, 2024, BPD executed 16 search-and-seizure warrants with the assistance of the DEA, the ATF, the Federal Bureau of Investigation (FBI), Maryland State Police (MSP), the Baltimore County Police Department, the Howard County Police Department, the Harford County Police Department,  the Baltimore City Fire Department, and the Baltimore City Health Department Animal Control, pertaining to the criminal organizations operating in and around the 2800 block of Edmondson Avenue, the 500 block of Millington Avenue, and the 1700 block of Lemmon Street. In total, law enforcement recovered approximately 525 grams of suspected heroin/fentanyl mixture, approximately 340 grams of suspected cocaine, six firearms varying in caliber, and $9,701, believed to be proceeds from the sale of narcotics.

Defendants have been charged with offenses such as Managing and Participating in a Criminal Organization, Conspiracy to Distribute Narcotics, Firearm Drug Trafficking, Unlawful Sale of a Regulated Firearm, Firearm Possession by a Prohibited Person, Distribution of Fentanyl, and Distribution of Cocaine. Some have also been charged with offenses such as Conspiracy to Commit Murder, Attempted Murder, and Armed Robbery. The investigation is ongoing concerning additional acts of violence committed by members of criminal organizations to further the interests of their enterprise. 

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.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location.  This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Baltimore Strike Force is to identify, disrupt, and dismantle violent drug trafficking, money laundering, and transnational criminal organizations to reduce drug-related and/or gang violence in the Baltimore metropolitan and surrounding areas.  The Baltimore Strike Force is comprised of agents and officers from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Homeland Security, the United States Marshals Service, the United States Secret Service, United States Postal Inspection Service, the Maryland State Police, the Baltimore Police Department, the Baltimore Sheriff’s Office, the Baltimore County Police Department, the Maryland Transportation Authority, and the Maryland Department of Public Safety and Correctional Services.

U.S. Attorney Erek L. Barron commended the DEA, ATF, and FBI for their work in the investigation.   Mr. Barron also thanked the Baltimore Police Department, other law enforcement agencies, the Assistant State’s Attorneys with the Office of the Baltimore City State’s Attorney, and Assistant U.S. Attorney Michael C. Hanlon, 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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The Justice Department unsealed criminal charges today against Evgenii Ptitsyn, 42, a Russian national, for allegedly administering the sale, distribution, and operation of Phobos ransomware. Ptitsyn made his initial appearance in the U.S. District Court for the District of Maryland on Nov. 4 after being extradited from South Korea. Phobos ransomware, through its affiliates, victimized more than 1,000 public and private entities in the United States and around the world, and extorted ransom payments worth more than $16 million dollars.

“The Justice Department is committed to leveraging the full range of our international partnerships to combat the threats posed by ransomware like Phobos,” said Deputy Attorney General Lisa Monaco. “Evgenii Ptitsyn allegedly extorted millions of dollars of ransom payments from thousands of victims and now faces justice in the United States thanks to the hard work and ingenuity of law enforcement agencies around the world — from the Republic of Korea to Japan to Europe and finally to Baltimore, Maryland. Together with our partners across the globe, we will continue to hold cybercriminals accountable and protect innocent victims.”

“The indictment alleges that Ptitsyn and his co-conspirators ran the Phobos ransomware group, whose members committed ransomware attacks against more than 1,000 public and private victims throughout the United States and the rest of the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Ptitsyn and his co-conspirators hacked not only large corporations but also schools, hospitals, nonprofits, and a federally recognized tribe, and they extorted more than $16 million in ransom payments. Ptitsyn’s indictment, arrest, and extradition reflect the Criminal Division’s commitment to leading the fight against the international scourge of ransomware. We are especially grateful to our domestic and foreign law enforcement partners, like South Korea, whose collaboration is essential to disrupting and deterring the most significant cybercriminal threats facing the United States.”

“It’s only a matter of time, cybercriminals will be caught and brought to justice,” said U.S. Attorney Erek L. Barron for the District of Maryland. “According to the indictment, Ptitsyn facilitated the worldwide use of a dangerous ransomware strain to target corporations and various organizations, including government agencies, healthcare facilities, educational institutions, and critical infrastructure. The U.S. Attorney’s Office for the District of Maryland is committed to bringing cybercriminals to justice and working with the private sector and the academic community to prevent and disrupt their activities.”

“The FBI is working tirelessly to ensure that ransomware actors, both developers and affiliates, face the consequences of their actions,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We know it takes strong partnerships to disrupt cybercriminal networks, and the FBI must thank our partners for the important roles they play in carrying out this mission. The extradition announced today would not have been possible without their assistance.”

As alleged in the indictment, beginning in at least November 2020, Ptitsyn and others conspired to engage in an international computer hacking and extortion scheme that victimized public and private entities through the deployment of Phobos ransomware.

As part of the scheme, Ptitsyn and his co-conspirators allegedly developed and offered access to Phobos ransomware to other criminals or “affiliates” for the purposes of encrypting victims’ data and extorting ransom payments from victims. The administrators operated a darknet website to coordinate the sale and distribution of Phobos ransomware to co-conspirators and used online monikers to advertise their services on criminal forums and messaging platforms. At relevant times, Ptitsyn allegedly used the monikers “derxan” and “zimmermanx.”

Affiliates would then allegedly hack into the victims’ computer networks, often using stolen or otherwise unauthorized credentials; copy and steal files and programs on the victims’ networks; and encrypt the original versions of the stolen data on the networks by installing and executing Phobos ransomware. Affiliates then extorted the victims for ransom payments in exchange for the decryption keys to regain access to encrypted data by leaving ransom notes on compromised victims’ computers and by calling and emailing victims to initiate the ransom payment negotiations. Affiliates also threatened to expose victims’ stolen files to the public or to the victims’ clients, customers, or constituents if the ransoms were not paid.

After a successful Phobos ransomware attack, criminal affiliates paid fees to Phobos administrators like Ptitsyn 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. From December 2021 to April 2024, the decryption key fees were then transferred from the unique affiliate cryptocurrency wallet to a wallet controlled by Ptitsyn.

Ptitsyn is charged in a 13-count indictment with wire fraud conspiracy, wire fraud, conspiracy to commit computer fraud and abuse, four counts of causing intentional damage to protected computers, and four counts of extortion in relation to hacking. If convicted, Ptitsyn faces a maximum penalty of 20 years in prison for each wire fraud count; 10 years in prison for each computer hacking count; and five years in prison for conspiracy to commit computer fraud and abuse. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Baltimore Field Office is investigating the case. The Justice Department’s Office of International Affairs worked with the International Criminal Affairs Division of the Korean Ministry of Justice to secure the arrest and extradition of Ptitsyn. The Justice Department extends its thanks to international judicial and law enforcement partners in South Korea, the United Kingdom, Japan, Spain, Belgium, Poland, Czech Republic, France, 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 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. Attorneys Aaron S.J. Zelinsky and Thomas M. Sullivan for the District of Maryland are prosecuting the case. CCIPS Trial Attorney Riane Harper and former Assistant U.S. Attorney 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.

Baltimore, Maryland – The Justice Department unsealed criminal charges today against Evgenii Ptitsyn, 42, a Russian national, for allegedly administering the sale, distribution, and operation of Phobos ransomware. Ptitsyn made his initial appearance in the U.S. District Court for the District of Maryland on November 4 after being extradited from South Korea. Phobos ransomware, through its affiliates, victimized more than 1,000 public and private entities in the United States and around the world, and extorted ransom payments worth more than $16 million dollars.

“It’s only a matter of time, cybercriminals will be caught and brought to justice,” said U.S. Attorney Erek L. Barron for the District of Maryland. “According to the indictment, Ptitsyn facilitated the worldwide use of a dangerous ransomware strain to target corporations and various organizations, including government agencies, healthcare facilities, educational institutions, and critical infrastructure. The Maryland U.S. Attorney’s Office is committed to bringing cybercriminals to justice and working with the private sector and the academic community to prevent and disrupt their activities.”

“The Justice Department is committed to leveraging the full range of our international partnerships to combat the threats posed by ransomware like Phobos,” said Deputy Attorney General Lisa Monaco. “Evgenii Ptitsyn allegedly extorted millions of dollars of ransom payments from thousands of victims and now faces justice in the United States thanks to the hard work and ingenuity of law enforcement agencies around the world — from the Republic of Korea to Japan to Europe and finally to Baltimore, Maryland. Together with our partners across the globe, we will continue to hold cybercriminals accountable and protect innocent victims.”

“The indictment alleges that Ptitsyn and his co-conspirators ran the Phobos ransomware group, whose members committed ransomware attacks against more than 1,000 public and private victims throughout the United States and the rest of the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Ptitsyn and his co-conspirators hacked not only large corporations but also schools, hospitals, nonprofits, and a federally recognized tribe, and they extorted more than $16 million in ransom payments. Ptitsyn’s indictment, arrest, and extradition reflect the Criminal Division’s commitment to leading the fight against the international scourge of ransomware. We are especially grateful to our domestic and foreign law enforcement partners, like South Korea, whose collaboration is essential to disrupting and deterring the most significant cybercriminal threats facing the United States.”

“The FBI is working tirelessly to ensure that ransomware actors, both developers and affiliates, face the consequences of their actions,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We know it takes strong partnerships to disrupt cybercriminal networks, and the FBI must thank our partners for the important roles they play in carrying out this mission. The extradition announced today would not have been possible without their assistance.”

“Ransomware not only disrupts lives and businesses, but it also threatens the health, safety and security of innocent Americans and others worldwide,” said FBI Baltimore Special Agent in Charge William J. DelBagno. “I am grateful for the dedication and thorough work of our FBI Baltimore cybercrime squad who worked diligently to bring Ptitysn to justice. Our valuable local and international partnerships played a pivotal role in successfully arresting and extraditing him. We will continue to prioritize the partnerships necessary to stop ransomware actors and hold them accountable for their crimes.”

As alleged in the indictment, beginning in at least November 2020, Ptitsyn and others conspired to engage in an international computer hacking and extortion scheme that victimized public and private entities through the deployment of Phobos ransomware.

As part of the scheme, Ptitsyn and his co-conspirators allegedly developed and offered access to Phobos ransomware to other criminals or “affiliates” for the purposes of encrypting victims’ data and extorting ransom payments from victims. The administrators operated a darknet website to coordinate the sale and distribution of Phobos ransomware to co-conspirators and used online monikers to advertise their services on criminal forums and messaging platforms. At relevant times, Ptitsyn allegedly used the monikers “derxan” and “zimmermanx.”

Affiliates would then allegedly hack into the victims’ computer networks, often using stolen or otherwise unauthorized credentials; copy and steal files and programs on the victims’ networks; and encrypt the original versions of the stolen data on the networks by installing and executing Phobos ransomware. Affiliates then extorted the victims for ransom payments in exchange for the decryption keys to regain access to encrypted data by leaving ransom notes on compromised victims’ computers and by calling and emailing victims to initiate the ransom payment negotiations. Affiliates also threatened to expose victims’ stolen files to the public or to the victims’ clients, customers, or constituents if the ransoms were not paid.

After a successful Phobos ransomware attack, criminal affiliates paid fees to Phobos administrators like Ptitsyn 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. From December 2021 to April 2024, the decryption key fees were then transferred from the unique affiliate cryptocurrency wallet to a wallet controlled by Ptitsyn.

Ptitsyn is charged in a 13-count indictment with wire fraud conspiracy, wire fraud, conspiracy to commit computer fraud and abuse, four counts of causing intentional damage to protected computers, and four counts of extortion in relation to hacking. If convicted, Ptitsyn faces a maximum penalty of 20 years in prison for each wire fraud count; 10 years in prison for each computer hacking count; and five years in prison for conspiracy to commit computer fraud and abuse. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Baltimore Field Office is investigating the case. The Justice Department’s Office of International Affairs worked with the International Criminal Affairs Division of the Korean Ministry of Justice to secure the arrest and extradition of Ptitsyn. The Justice Department extends its thanks to law enforcement partners in South Korea, the United Kingdom, Japan, Spain, Belgium, Poland, Czech Republic, France, 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 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. Attorneys Aaron S.J. Zelinsky and Thomas M. Sullivan for the District of Maryland are prosecuting the case. CCIPS Trial Attorney Riane Harper and former Assistant U.S. Attorney 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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First-grade teacher allegedly sold drugs on school property during work hours.

Greenbelt, Maryland – The U.S. Attorney’s Office for the District of Maryland has filed a criminal complaint against Sarah Katherine Magid, 34, of Burtonsville, Maryland. Magid is charged with distributing fentanyl that resulted in serious bodily injury and the death of a victim.  The criminal complaint was unsealed on November 13, 2024, as Magid appeared in the U.S. District Court in Greenbelt before U.S. Magistrate Judge Gina L. Simms.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the charge with Special Agent in Charge Jarod Forget, Drug Enforcement Administration, Washington Division, and Chief Marc R. Yamada, Montgomery County Police Department.

After the death of the victim in March 2024, law enforcement discovered text messages between the victim and Magid pertaining to the distribution of fentanyl.  Specifically, a forensic analysis of the victim’s cell phone revealed a text conversation and subsequent meeting between Magid and the victim. The messages uncovered a drug transaction involving pills that had been pressed to appear like oxycodone hydrochloride 30 mg pills but actually contained fentanyl.  After the meeting and transaction, the victim was found deceased.  The Washington, D.C., Office of the Chief Medical Examiner determined the victim’s cause of death was fentanyl toxicity.

Additionally, in July 2024, a complainant reported to law enforcement that Magid, a Montgomery County first-grade schoolteacher, exited her classroom to sell drugs to people outside of the school.  Law enforcement subsequently identified text messages from Magid’s phone indicating that she dealt drugs during work hours.

If convicted, Magid faces a mandatory minimum sentence of 20 years imprisonment up to a maximum sentence of life in federal prison for the distribution of fentanyl resulting in death or serious bodily injury.  Actual sentences for federal crimes are typically less than the maximum penalties.  A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

A criminal complaint is not a finding of guilt.  An individual charged by a criminal complaint is presumed innocent unless and/or until proven guilty at later criminal proceedings.

The law enforcement agencies involved in the investigation are all partners in the recently announced Maryland Fatal Fentanyl Overdose Task Force (“MFOTFF”).  Led and coordinated by the U.S. Attorney’s Office for the District of Maryland and the DEA’s Washington Division, the task force is focused on raising awareness of the dangers of fentanyl, as well as creating connections between local, state, and federal authorities to increase prosecutions of overdose-death cases in Maryland.  A Public Service Announcement created for MFFOTF is available online.

U.S. Attorney Barron commended the DEA and the Montgomery County Police Department for their work in the investigation and thanked the Metropolitan Police Department and the Montgomery County State's Attorney’s Office for their assistance.  Mr. Barron also thanked Assistant U.S. Attorneys Megan S. McKoy and Elizabeth Wright who are prosecuting this 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, Maryland – A federal grand jury returned an indictment charging Jerry John Mathins, age 50, of Laurel, Maryland, and Braysean Owens, age 23, of Baltimore, Maryland, with conspiracy to commit odometer tampering and three counts of securities fraud.

The indictment alleges that, along with other known and unknown co-conspirators, Owens purchased used vehicles with high mileages at auction and altered the titles of those vehicles to reflect a significantly lower odometer reading.  Then, Owens and Mathins caused the odometers of those vehicles to be falsely lowered, consistent with the altered titles.  Finally, on behalf of B-City Auto & Detailing, a Rosedale, Maryland vehicle dealership, Owens and others, sold hundreds of these vehicles to unsuspecting buyers.  These buyers paid, in some instances, thousands of dollars more than they would have if they knew the true mileage of these vehicles.

The indictment was 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 Baltimore Field Office, and Deputy Administrator Sophie Shulman of the National Highway Traffic Safety Administration.

“The U.S. Attorney’s Office prioritizes protecting consumers from deceptive practices,” said U.S. Attorney Barron.  “We will investigate and hold accountable those who fraudulently obtain individuals’ hard-earned money, including through odometer fraud, as alleged in this case.”

“This was an elaborate scheme that targeted hundreds of unsuspecting car buyers who trusted they were purchasing cars with accurate mileage. Our thorough investigation illustrates how Mathins and Owens deceived these buyers to illegally line their own pockets,” says FBI Baltimore Special Agent in Charge William J. DelBagno.  “This case exemplifies the FBI’s commitment to vigorously pursue criminals who orchestrate fraud schemes and bring them to justice.”

“Odometer fraud is a serious and costly crime, and NHTSA is dedicated to protecting American car buyers from these deceptive and dangerous practices,” NHTSA Deputy Administrator Sophie Shulman said. “The agency will continue to educate the public on how to detect odometer fraud and will keep working with the FBI and U.S. Attorneys’ offices to investigate and prosecute these cases.”

If convicted, Owens faces up to 10 years in prison for each securities fraud count and Mathins faces up to 5 years in prison for the conspiracy to commit odometer tampering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

This case was investigated by the Federal Bureau of Investigation and the Department of Transportation National Highway Traffic Safety Administration with the assistance of the Maryland Motor Vehicle Administration and the Baltimore County Police Department. It is being prosecuted by Assistant U.S. Attorneys Adeyemi Adenrele and Michael Hanlon.

NHTSA estimates that odometer fraud in the United States costs consumers more than $1 billion annually. NHTSA encourages the public to report odometer fraud by calling its Vehicle Safety Hotline at 888-327-4236.

More information on odometer fraud is available at https://www.nhtsa.gov/vehicle-safety/odometer-fraud, and tips on detecting and avoiding odometer fraud are available at www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Greenbelt, Maryland – A Maryland man who owns a retail store pleaded guilty to evading his income taxes by not reporting cash taken from his business.

The guilty plea was announced by U.S. Attorney for the District of Maryland Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. 

According to court documents and statements made in court, for over twenty years, William M. Bundy of District Heights owned and operated Bab’s Inc., a store located in District Heights, Maryland, that only accepted cash payments.  From 2017 through 2021, Bundy received wages from Bab’s but also took cash from the business without reporting that cash as income on his tax returns.  He used the cash for personal expenditures, including gambling.  Over a five-year period, Bundy gambled and lost over $3 million at two Maryland-area casinos, funded in part by $2.2 million in cash from Bab’s.

In total, for the years 2017 through 2021, Bundy owes federal income taxes of $672,558.

Bundy is scheduled to be sentenced on February 21, 2025.  He faces a maximum of five years in prison.  He also faces a period of supervised release, restitution, and monetary penalties.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Erek L. Barron commended the IRS Criminal Investigation for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Coreen Mao and Trial Attorney Michael C. Vasiliadis of the Tax Division 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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Defendant used mobile phones to lure two victims – including while on bail pending charges related to his arrest.

Baltimore, Maryland – Today, U.S. District Judge Richard D. Bennett sentenced Michael Vance Culpepper, 56, Walkersville, Maryland, to 10 years in federal prison, followed by 25 years of supervised release, for the enticement and coercion of a minor to engage in sexual activity.  Judge Bennett also ordered that upon his release from prison, Culpepper must register as a sex offender in the places where he resides, is employed, and/or is enrolled as a student, pursuant to the Sex Offender Registration and Notification Act (SORNA).

Erek L. Barron, U.S. Attorney for the District of Maryland; Inspector General Teri L. Donaldson,  United States Department of Energy’s Office of the Inspector General (DOE-OIG); Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI), Baltimore Field Office; Colonel Roland L. Butler, Jr., Superintendent, Maryland State Police (MSP); Paul Joey Kifer, Chief , Hagerstown Police Department (HPD); and State’s Attorney Anne Colt Leitess, Office of the State’s Attorney for Anne Arundel County, Maryland.

According to his guilty plea, in April and May 2023, Culpepper used mobile phones and online applications to persuade, induce, entice, and coerce two victims whom he believed to be 13- and 14-year-old females to engage in sexual activity. 

With the first victim — an undercover law enforcement officer posing as a 13-year-old girl — Culpepper used the internet and his phones to exchange sexually explicit messages and request sexually explicit images. Culpepper encouraged the victim to hide her conversations from her parents, writing, “you DEFINITELY need to delete these texts when we are done.” On May 8, 2023, Culpepper drove approximately 50 miles to meet the victim at a restaurant in Hanover, Maryland. When he arrived, he was arrested.

After Culpepper was released on May 9, 2023, with the condition that he have no further contact with minors, Culpepper initiated online contact with Jane Doe 1, a 14-year-old female.  Culpepper used the internet to entice Jane Doe 1 to engage in sexually explicit conversations.  Culpepper also sent Jane Doe 1 sexually explicit photos of himself and requested that Jane Doe 1 produce nude images of herself  to send  to him. Culpepper arranged a meeting with Jane Doe 1 for the purpose of engaging in unlawful sexual activity.  On May 28, 2023, Culpepper picked up Jane Doe 1 near her home, and then drove her around for approximately one hour before stopping at a park.  Culpepper used ice cream, money, a hotel room, and vaping devices to entice Jane Doe 1 to engage in sexual contact.  Jane Doe 1 refused, but following the meeting, Culpepper continued to use the internet to entice Jane Doe 1 to meet with him and engage in sex acts.

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, 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 DOE-OIG, HSI, ARMY CID, MSP, HPD, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Paul E. Budlow and Reema Sood, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

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Defendant and co-Conspirators submitted at least 150 fraudulent unemployment insurance applications.

Baltimore, Maryland – Tiia Woods, 46, Jacksonville, Florida, pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft in connection with an unemployment insurance scheme.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the guilty plea 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, Federal Bureau of Investigation, Baltimore Field Office.

According to the guilty plea, beginning in June 2020 through approximately May 2021, Woods and her co-conspirators submitted false and fraudulent Unemployment Insurance (UI) applications that contained the identity unsuspecting victims’ contact information, addresses, employment status, work history, occupation, and eligibility for benefits.

Woods’ fraud was facilitated by email and other internet communications when she applied for UI benefits, modified UI claims within the Maryland Department of Labor (MD-DOL) system, and checked the status of claims. In response, MD-DOL disbursed UI benefits via Bank of America (BOA) prepaid debit cards. Woods also engaged in ATM withdrawals, point-of-sale transactions, and other financial transactions, such as transfers to CashApp.

In total, Woods and her co-conspirators submitted at least 150 fraudulent applications in the names of purported claimants and identity theft victims. Through Woods’ actions, in the course of the conspiracy and scheme to defraud, the United States, MD-DOL, BOA, and multiple individuals lost at least $3,296,725. 

Through the CARES Act, small businesses are offered financial assistance — including forgivable loans for job retention and certain other expenses — through the Paycheck Protection Program, which is administered through the Small Business Administration (SBA). The SBA also offers an Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations.  An EIDL advance does not have to be repaid, and small businesses can receive an advance, even if they were not approved for an EIDL loan. The maximum advance amount is $10,000.

Financial assistance offered through the CARES Act also includes expanded eligibility for UI benefits and increased UI benefits through the Pandemic Unemployment Assistance Program (PUA), Federal Pandemic Unemployment Compensation (FPUC), and the Lost Wages Assistance Program (LWAP).

On Count 1, conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349, Woods faces a maximum of 20 years in prison followed by three years of supervised release. On Count 2, aggravated identity theft in violation of 18 U.S.C. § 1028A, Woods faces a minimum two-year consecutive prison term, followed by one year of supervised release. U.S. District Judge Julie R. Rubin has scheduled sentencing for March 26, 2025, at 10 a.m.

U.S. Attorney Barron commended the DOL-OIG and FBI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Evelyn Cusson and Harry Gruber, who are prosecuting the federal case. U.S. Attorney Barron also thanked Bank of America - Detection and Complex Investigations Fraud Rings and Analytics for their assistance with this matter.

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. 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 that use 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 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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Athena Services International, LLC and its Owner Also Agree to Pay More Than $1.6 Million to Resolve Related Allegations.

WASHINGTON – Herndon, Virginia-based contractor Paragon Systems Inc. (Paragon) has agreed to pay to the United States $52 million to settle allegations that the company violated the False Claims Act by knowingly causing purported small businesses that it controlled to fraudulently obtain small business set-aside contracts. The settlement further resolves allegations that Paragon violated the Anti-Kickback Act. Paragon is one of the Federal government’s largest providers of specialized security, fire and emergency response and mission support services, and the company provides security guards at federal buildings throughout the United States.

“This settlement sends a message that flagrant misuse of government contracts through kickback schemes will not be tolerated,” said U.S. Attorney Erek L. Barron for the District of Maryland. “The integrity of our contracting programs is essential, and we remain committed to rooting out fraud that compromises fair access and accountability.”

The settlement resolves allegations that Paragon, acting through former high-ranking corporate executives, knowingly engaged in a fraudulent scheme to use purported small businesses that it controlled to obtain U.S. Department of Homeland Security (DHS) set-aside contracts reserved for Woman-Owned Small Businesses (WOSBs), Service-Disabled Veteran Owned Small Businesses (SDVOSBs) and other small businesses. The former high-ranking Paragon officials who carried out this alleged scheme included the company’s President, Vice President of Business Development, Vice President of Operations, Compliance Manager and Contracts Manager. The United States contends the former Paragon executives engaged female relatives and friends to serve as figurehead owners of purported small businesses in order for those companies to obtain DHS set-aside contracts relating to the provision of security services at federal buildings, and that the Paragon-controlled companies then subcontracted substantially all of the work under the set-aside contracts to Paragon.

The settlement further resolves allegations that the purported small businesses surreptitiously paid substantial sums of money to the Paragon Executives in violation of the Anti-Kickback Act. In total, the United States contends that the purported small businesses controlled by Paragon made over 300 separate payments to the former Paragon executives, totaling more than $11 million, which they attempted to conceal as purported “consulting payments” made to various shell companies formed by the former executives.

One of the purported small businesses, Athena Services International LLC (ASI) and its joint venture with Paragon, Athena Joint Venture Services LLC (AJVS), along with their owner, Alisa Silverman, have collectively agreed to pay more than $1.6 million to resolve their liability in connection with the alleged small business contracting fraud scheme. The settlement further resolves allegations that ASI, through Silverman, improperly received a Paycheck Protection Program loan that SBA forgave in full based on false representations that ASI complied with all PPP rules. The settlement with ASI, AJVS and Silverman is based on their ability to pay. The United States has filed a complaint against another purported small business, Patronus Systems Inc. and its owner Mabel O’Quinn, for their role in the alleged misconduct.

As part of the settlements, Paragon, ASI, AJVS and Silverman have agreed to cooperate with the Department’s investigation of other parties and any related litigation.

“Those who fraudulently procure, or assist others to fraudulently procure, small business set-aside contracts will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible companies obtain contracts reserved for veteran owned or socially or economically disadvantaged businesses, they prevent the small business community from receiving the contracting opportunities that Congress intended.”

“This settlement is the largest civil recovery in over a decade by the Department of Homeland Security Office of Inspector General (DHS-OIG),” said Inspector General Joseph V. Cuffari Ph.D of DHS. “The settlement sends a clear message that the Federal Government will continue to investigate and prosecute fraud, waste, and abuse to protect small businesses owned by service-disabled veterans and other socially and economically disadvantaged individuals. I am grateful for the continued partnership with the Department of Justice and for the whistleblower who initiated the complaint.”

“Small Business Administration (SBA) programs must be preserved for truly small businesses,” said SBA General Counsel Therese Meers. “Fraud on SBA’s procurement programs deprives legitimate small businesses of important procurement opportunities, and fraud on the Paycheck Protection Program unconscionably undermines critical pandemic relief. The results in this matter reflect SBA’s and the government’s ongoing commitment to identifying and pursuing those who perpetrate such fraud.”

The settlements with Paragon, ASI, AJVS and Silverman resolve claims brought in a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The United States may intervene in the action, as it did in this case. The lawsuit is captioned United States ex rel. Pattison v. Paragon Systems Inc., et al., Case No. 21-3260 (DMD). As part of the settlement with Paragon, the whistleblower, Todd Pattison, will receive more than $9 million, and he will receive approximately $280,000 in connection with the settlement with ASI and Silverman.

This settlement was the result of a coordinated effort between the U.S. Attorney’s Office for the District of Maryland, the Civil Division’s Fraud Section, and the Department of Homeland Security’s Office of the Inspector General.  U.S. Attorney Barron thanked Assistant U.S. Attorney Sarah Marquardt for the District of Maryland and Senior Trial Counsel Alicia J. Bentley of the Civil Division’s Commercial Litigation Branch, who handled the matter.

The claims resolved by the settlement are allegations only. There has been no determination of liability as to those claims.

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, Maryland – Did you know that in 2023, more than 343 million people were victims of a cybercrime? Today, the U.S. Attorney’s Office for the District of Maryland and the University of Maryland hosted a cybersecurity conference to arm business and public sector leaders with vital information to help combat this worldwide issue.

According to Forbes Advisor, in 2023, data breaches increased globally by 72 percent. In response to this alarming trend, cybersecurity experts from government and the private sector educated attendees about emerging threats; best practices; and effective collaboration between federal, state, and local agencies, the private sector, and law enforcement.

“Cybercrime threatens our national security, our public safety, and our financial security,” said 
U.S. Attorney Erek L. Barron. “While we work to investigate and prosecute the perpetrators of these crimes, law enforcement must also collaborate with the private sector to effectively prevent and disrupt cyber incidents before they happen. The thoughtful discussions inspired by this conference sets the stage for continued collaboration and partnership between the government, business, and public sectors to protect our critical infrastructure. Many thanks to University of Maryland President Darryll J. Pines and our partners at the University for their co-sponsorship of this important conference.” 

Conference panelists taught attendees how to identify threats and weaknesses, manage a cyber incident, and coordinate with law enforcement. The conference also served as an opportunity for participants to network and continue conversations about enhancing cybersecurity across all sectors of Maryland.

"At the University of Maryland, our students and faculty work across campus to develop and deploy technologies to address the grand challenges of our time. We also recognize the importance of protecting our communities from the growing threat of cybercrime that comes when technologies are used for the wrong reasons," said University of Maryland President Darryll J. Pines. "We are grateful for the opportunity provided by this conference to engage with business and government leaders to tackle these critical issues."

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/cybersecurity.

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Baltimore, Maryland – Jason Edmonds, age 45 of North East, Maryland was sentenced yesterday to 51 months in federal prison and 3 years of supervised release for conspiring to commit bribery at the Aberdeen Proving Ground. In addition, the Court ordered Edmonds to forfeit $111,794.83, which is equal to the value of the bribes he received.

The sentence was 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, Baltimore Field Office, Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Mid-Atlantic Field Office, and Special Agent in Charge L. Scott Moreland of the Army Criminal Investigation Division. 

“Edmonds’ actions as a public official harmed government integrity.  Bribery spawns distrust of government and the work we do on behalf of the taxpayers, “said U.S. Attorney Barron.  “The sentence imposed today sends a clear message of intolerance to any public official who would abuse their position of trust for personal financial gain”.  

"Fair and free competition is essential to ensure taxpayer money is not wasted and to maintain the trust in our government contracts and programs," says FBI Baltimore Special Agent in Charge William J. DelBagno. "The FBI and our partners stand ready to root out fraudsters seeking to corrupt and falsely influence the process for their personal gain."

“Our government officials are entrusted to protect and ensure a fair procurement process. Edmond’s actions violated that trust.” said DCIS Special Agent in Charge Christopher Dillard. “DCIS is committed to working with our law enforcement partners to protect our tax dollars from fraud and corruption."

According to the guilty plea, Edmonds was employed by the United States Army as a Research Biologist at the U.S. Army Combat Capabilities Development Command (“CCDC”) Chemical Biological Center (“CB Center”) located at the Aberdeen Proving Ground (“APG”).  The CCDC CB Center was the nation’s principal research and development center for non-medical chemical and biological weapons defense.  The CB Center developed technology in the areas of detection, protection, and decontamination.  

From 2012 to 2019, Edmonds accepted cash and other financial benefits from John Conigliaro, the owner and CEO of EISCO, Inc. in exchange for favorable action on CB Center contracts.  For example, in July 2013, Edmonds directed a $300,000 CB Center project to EISCO.  Three months later, in October 2013, Conigliaro gave Edmonds $40,000 in cash so that Edmonds could purchase two rental real estate properties.  Once Edmonds purchased the rental properties, Conigliaro paid for thousands of dollars of renovations to the rental properties.

Relative to the cash exchange, Edmonds and Conigliaro executed a “Promissory Note,” which was subsequently amended by Edmonds on June 14, 2014.  In the amended “Promissory Note,” Edmonds credited himself $18,100 against the $40,000 in cash for past projects that Edmonds had directed to EISCO at the CB Center.  Edmonds also wrote that Conigliaro would provide him an additional $25,000 in exchange for future projects that Edmonds would direct to EISCO.

Between December 2016 and August 2017, Edmonds directed a series of government projects to EISCO in exchange for a stream of benefits from Conigliaro, including a kitchen remodel at Edmonds’s personal residence, the purchase of a granite countertop, a kitchen sink, and new siding to his home.

In June 2020, after federal agents attempted to interview Edmonds and Conigliaro, the co-conspirators met approximately three times to discuss the investigation.  During those meetings, Edmonds proposed that he and Conigliaro inform federal investigators that Edmonds had repaid Conigliaro with gold and baseball cards, knowing that it was false. At sentencing, the Court found that this behavior constituted obstruction of justice under U.S.S.G. § 3C1.1 and imposed a two-level enhancement.

U.S. Attorney Barron commended the FBI, the DCIS , and the Army Criminal Investigation Division for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Bijon A. Mostoufi, who is prosecuting the federal case, and Paralegal Specialist Joanna Huber.

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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Greenbelt, Maryland – U.S. Attorney Erek L. Barron announced today that the Justice Department will monitor compliance with federal voting rights laws in Prince George’s County, Maryland for the Nov. 5 general election.

The Justice Department enforces federal voting rights laws that protect the rights of all eligible citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country.

The Justice Department’s Civil Rights Division will coordinate the effort. Monitors will include Justice Department personnel, who will contact state and local election officials as needed throughout Election Day.

The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act and Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.

On Election Day, Civil Rights Division personnel will be available all day to receive questions and complaints from the public related to possible violations of federal voting rights laws. Reports may be made through the department’s website www.civilrights.justice.gov or by calling toll-free at 800-253-3931. [The U.S. Attorney’s Office will also be available to receive complaints on Election Day at NUMBER or ONLINE PORTAL WEB ADDRESS]

Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information hotline at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.

Complaints related to any disruptions at a polling place should always be reported to local election officials (including officials based in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.

More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

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Baltimore, Maryland – Six defendants have been charged for their roles in schemes to rig bids, defraud the government and pay bribes and kickbacks in connection with the sale of IT products and services to federal government purchasers, which resulted in overcharges of millions of dollars to the U.S. government, including the Department of Defense (DoD).

On Oct. 9 and Oct. 16, a federal grand jury in Baltimore returned indictments against two additional defendants. Four other defendants were also charged. These are the first charges in the Justice Department’s ongoing investigation into IT manufacturers, distributors and resellers who sell products and services to government purchasers, including to the intelligence community.  

“This office and our partners will use all available resources to hold accountable those who would undermine and distort the government’s procurement of goods and services, especially those related to our cybersecurity infrastructure,” said U.S. Attorney Erek L. Barron for the District of Maryland.

“Antitrust crimes can undermine competition for products and services that are vital to our national security,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “When fraudsters siphon taxpayer funds, the Antitrust Division and its Procurement Collusion Strike Force (PCSF) partners across the government will hold accountable those who collude to subvert competition, line their pockets with federal procurement dollars and compromise the integrity of our intelligence community programs.”

“This investigation demonstrates the vital need to protect the DoD procurement process, particularly within the Intelligence Community,” said Special Agent in Charge Christopher Dillard of the DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “The Defense Criminal Investigative Service is committed to identifying fraudsters who abuse public trust and enrich themselves through criminal schemes.”

“There is no place for fraudsters and crooks scheming to manipulate the government bidding process for personal gain,” said Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office. “The FBI remains steadfastly committed to identifying, investigating and bringing to justice those conspiring to enrich themselves by cheating taxpayers.”

“Investigating complex fraud schemes is a top priority of ours,” said National Security Agency Acting Inspector General Kevin Gerrity. “I commend our team, our law enforcement partners and the Justice Department for their work protecting the integrity of federal contracting.”

“Each part of the government must do its part to detect and prosecute instances of waste, fraud and abuse, and CIA’s Office of Inspector General was pleased to join its law enforcement partners in investigating this egregious case,” said CIA Inspector General Robin C. Ashton.

United States v. Victor Marquez

Victor M. Marquez, a Maryland resident and owner of two IT companies with significant government contracts, was charged in a four-count indictment with wire fraud conspiracy, wire fraud and major fraud against the United States for rigging bids and inflating the amount of money obtained from valuable IT contracts.

Antwann C.K. Rawls, an employee of one of Marquez’s companies, and Scott A. Reefe, an IT sales executive, have been charged for their respective roles in the conspiracy.

As alleged in the indictment, Marquez, Rawls, Reefe and their co-conspirators used their positions of trust to learn sensitive, confidential procurement information, including procurement budgets for large U.S. government IT contracts. The co-conspirators used that inside information to craft bids at artificially determined, non-competitive and non-independent prices, ensuring Marquez’s company would win the procurement.

According to court documents, the co-conspirators shared their bids in advance of submitting them to the government, with one co-conspirator emailing that he would submit a “high price third bid.” Marquez and his co-conspirators submitted their collusive bids despite knowing the government sought independent, competitive bids for the valuable contracts, and despite Marquez’s certification of independent bidding.

If convicted, Marquez faces maximum penalties of 20 years in prison for each conspiracy and wire fraud count and 10 years in prison for the major fraud charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

United States v. Breal L. Madison Jr.

Breal L. Madison Jr., a Maryland resident, was charged in a 13-count indictment with conspiracy, bribery of a public official, mail fraud and money laundering for orchestrating a years-long scheme to defraud his employer and the United States out of over $7 million in connection with the sale of IT products to various government agencies.

Brandon Scott Glisson, an IT contractor providing IT services to the U.S. government, and Glisson’s supervisor, Lawrence A. Eady, a former senior government employee, have also been charged for their respective roles in the scheme.

According to court documents, through multiple misrepresentations, Madison and his co-conspirators conspired to steal money from Madison’s employer and government agencies, illegally siphoning over $9 million in stolen proceeds to Madison’s shell company, Trident Technology Solutions, and another shell company. They used the money to purchase luxury items and to pay approximately $630,000 in bribes to Eady in exchange for Eady’s ensuring the purchase of additional products sold by Madison.

Madison used his ill-gotten gains to buy a Vanquish VQ58 yacht, 2020 Lamborghini Huracan and multiple other vehicles, all of which the United States seeks to forfeit in the indictment.

If convicted, Madison faces maximum penalties of five years in prison for the conspiracy count, 15 years in prison for each bribery count, 20 years in prison for each mail fraud count and 10 years for each money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The DCIS, the FBI Baltimore Field Office, CIA Office of Inspector General and NSA Office of Inspector General investigated the case.

Acting Assistant Chief Michael Sawers and Trial Attorneys Zachary Trotter and Elizabeth French of the Antitrust Division’s Washington Criminal Section and Assistant U.S. Attorneys Aaron S.J. Zelinsky, Sean M. Delaney and Darren Gardner for the District of Maryland are prosecuting the case.

Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.

An indictment is merely an allegation. 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.

View the Rawls information.

View the Eady information.

View Reefe information.

View the Glisson information.

View the Madison indictment.

View the Marquez indictment.

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Possessed more than 900 pills purporting to be Oxycodone Hydrochloride in his home, with the intent to distribute them. 

Greenbelt, Maryland – Today, the Honorable Lydia K. Griggsby sentenced Darnell Palmer, 23, Germantown, Maryland, to 84 months in federal prison, followed by three years of supervised release, for possession of a controlled substance with the intent to distribute and possession of a firearm and ammunition by a convicted felon.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the guilty verdict with Special Agent in Charge Jarod Forget, Drug Enforcement Administration (DEA), Washington Division, and Chief Marc R. Yamada, Montgomery County Police Department.

According to the guilty plea, in April 2022, law enforcement received information that Palmer was distributing fentanyl in Montgomery County, Maryland.  Law Enforcement officers observed Palmer selling 10 round blue pills purporting to be Oxycodone Hydrochloride, and actually contained fentanyl, to an individual in front of Palmer’s residence.  On June 1, 2022, law enforcement executed a search warrant at Palmer’s residence. 

In Palmer’s bedroom, law enforcement located approximately 918 fentanyl pills (appearing as Oxycodone Hydrochloride ), distributed within several zip-top bags; a plastic bag containing three bags of marijuana and a black digital scale; a loaded Glock 27 handgun; four firearm magazines, including an empty Glock magazine; a clear magazine containing six rounds of ammunition; a loaded drum magazine; and a packaged Glock magazine; and approximately $3,611 in U.S. currency, among other items.  Palmer possessed the fentanyl pills with the intent to distribute them.  The 928 fentanyl pills recovered in the investigation weighed more than 100 grams.  The pills Palmer distributed, and that were seized from his bedroom, purported to be Oxycodone Hydrochloride in that they were small light blue pills stamped with “M” and “30” to match legitimate Oxycodone Hydrochloride 30 milligram pills when in fact, they contained fentanyl instead of Oxycodone Hydrochloride.

U.S. Attorney Barron commended the DEA and the Montgomery County Police Department for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Elizabeth Wright and Christopher Sarma, 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, Maryland – On October 28, 2024, U.S. District Judge Julie R. Rubin sentenced Larry Benner, age 39, of Baltimore, Maryland to 75 months prison, followed by three years of supervised release, for possession of a firearm and ammunition by a convicted felon.

The sentence 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”), and Commissioner Richard Worley of the Baltimore Police Department (“BPD”).

According to the guilty plea, BPD officers were monitoring Citiwatch cameras in Baltimore city on January 21, 2023 when they observed Benner and two codefendants engaged in drug activity.  BPD officers arrived on scene and placed the defendants under arrest.  Officers recovered various controlled dangerous substances from Benner, including approximately 87 grams of cocaine, 5 grams of fentanyl, and quantities of heroin, Alprazolam, and Buprenorphine.  Officers also recovered from Benner a Smith & Wesson 9mm Luger pistol loaded with 15 rounds of 9mm ammunition and an additional drum magazine loaded with 35 live 9mm cartridges.

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 Erek L. Barron commended the ATF and BPD for their work in the investigation.  Mr. Barron thanked former Special Assistant U.S. Attorney Liane Kozik and Assistant U.S. Attorney James G. O’Donohue III, 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, Maryland – Today, Erek L. Barron, U.S. Attorney for the District of Maryland, and Special Agent in Charge,  Jarod Forget, U.S. Drug Enforcement Administration’s Washington Division, announced that their agencies have formed the Maryland Fatal Fentanyl Overdose Task Force (“MFFOTF”).

The alarming rate of overdoses in Maryland has continued, resulting in more than 2,000 deaths from July 2023 through June 2024 – more than 1,600 were fentanyl related.  

“This problem demands a reinvigorated, unified response throughout Maryland,” said Erek L. Barron, U.S. Attorney for the District of Maryland. “Devastated communities and families are urging us to do more, especially more education and intervention to prevent the needless loss of life.”

According to the DEA, fentanyl has reached every corner of Maryland.  It is cheaper and more readily available than ever before. 

The Maryland Fatal Fentanyl Overdose Task Force is a joint local, state, and federal task force consisting of sworn law-enforcement members from agencies throughout Maryland.  Led and coordinated by DEA’s Washington Division and the U.S. Attorney’s Office for the District of Maryland, task force participants remain with their departments conducting their normal duties and will serve on the task force as a collateral duty when needed.  The goal of task force is to raise awareness and increase the number of prosecutable overdose-death cases through proper evidence collection and preservation, while also conducting community outreach to educate vulnerable communities throughout Maryland. 

“The threat to our national security posed by illicit drugs extends beyond traditional challenges and directly impacts public health and safety. Every day, the DEA — alongside its local, state, and federal partners — works to preserve the safety and health of our citizens,” said Special Agent in Charge Forget. “As you can see, we recognize that it is essential to direct our resources to the most affected communities. This initiative is a clear example of our collective response to disrupt and dismantle criminal drug trafficking networks, both domestic and abroad, and provide training, operational resources, and engage directly with the communities to talk about drug prevention, fentanyl, and how only ‘One Pill Can Kill’.”

As of October 2024, MFFOTF is comprised of 17 state, local, and federal law-enforcement offices:

• Anne Arundel County Police Department
• Baltimore Police Department
• Baltimore County Police Department
• Calvert County Sheriff’s Office
• Cecil County Sheriff’s Office
• Drug Enforcement Administration
• Frederick City Police Department
• Hagerstown Police Department
• Maryland Department of Public Safety and Correctional Services
• Montgomery County Police Department
• Ocean City Police Department
• Queen Anne’s County Office of the Sheriff
• St. Mary’s County Sheriff’s Office
• U.S. Attorney’s Office for the District of Maryland
• Washington County Sheriff’s Department
• Wicomico County Sheriff’s Department
• Washington/Baltimore High Intensity Drug Trafficking Area Program

As part of this work, the U.S. Attorney’s Office and the DEA created the following: a Public Service Announcement, a training for first-responding law enforcement arriving to an overdose crime scene, and a training for community education and outreach.  As part of community outreach efforts, members of the task force have already delivered presentations on the dangers of fentanyl to more than 200 senior citizens across the state, including in Salisbury, Elkton, Hagerstown, Denton, and Prince Frederick.

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, Maryland –Erek L. Barron, U.S. Attorney for the District of Maryland, announced today that Assistant United States Attorneys (AUSAs) Bijon A. Mostoufi and Joseph Wenner will lead the efforts of his Office that support the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024 general election.  AUSAs Mostoufi and Wenner have been appointed to serve as the District Election Officers (DEOs) for the District of Maryland, and in that capacity, they are responsible for overseeing the District’s handling of election day complaints involving voting rights concerns, threats of violence to election officials or staff, and election fraud, all in consultation with the Justice Department in Washington, D.C.

The Department of Justice plays an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud, wherever they may occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they must be able to vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English). 
 

U.S. Attorney Barron stated: “Voting is a hallmark of our democracy and an essential right in our State and in this country. My Office is committed to protecting that right and to pursue and prosecute those who discourage or interfere with the exercise of it.  I am proud to lead the District of Maryland’s efforts to support the Justice Department’s nationwide Election Day Program.”  In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs Mostoufi and Wenner will be on duty in Maryland while the polls are open.  AUSAs Mostoufi and Wenner can be reached at 301-344-4433. Any allegation of election fraud or voting rights violations will be reviewed in consultation with state and federal authorities where appropriate, and we will pursue any case that warrants prosecution.”         

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached by the public at 410-265-8080.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .

Protecting the right to vote, prosecuting election fraud, and securing our elections are all essential to maintaining the confidence of all Americans in our democratic system of government. The department encourages anyone with information regarding concerns in these subject areas to contact the appropriate authorities.

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, Maryland – On October 23, 2024, Tomeka Glenn, a/k/a “Tomeka Harris” and “Tomeka Davis,” age 47, of Windsor Mill, Maryland, was sentenced by United States District Judge Richard D. Bennett to 65 months’ imprisonment and 3 years of supervised release in connection with her conviction on conspiracy to commit wire fraud relating to the submission of millions of dollars in fraudulent COVID-19 CARES Act Paycheck Protection Program and Economic Injury Disaster Loan applications.  Judge Bennett also directed Glenn to pay restitution in the amount of $3,016,275.62.

Glenn’s co-defendant Kevin Davis, age 43, also of Windsor Mill, Maryland, pleaded guilty on January 25, 2024 to being a felon in possession of a firearm and ammunition.  Judge Bennett on May 22, 2024 sentenced him to 24 months’ imprisonment.

The sentence was 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; and Chief Robert McCullough of the Baltimore County Police Department.

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, administered through the Small Business Administration (“SBA”).  The SBA also offered an Economic Injury Disaster Loan (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.

According to Glenn’s plea agreement, beginning in June 2020 and continuing through March 2021,  Glenn and various co-conspirators prepared numerous false and fraudulent EIDL and PPP loan applications for various businesses (including some that did not exist in any legitimate capacity)  that included false information concerning, among other things, number of employees, monthly payroll costs, and revenue.  The PPP applications also routinely included false and fraudulent Internal Revenue Service (“IRS”) tax forms and bank statements, which were submitted by Glenn to substantiate the false representations made in the applications. 

Glenn admitted that she received kickback payments from the loan borrowers in exchange for her assistance in connection with the submission of fraudulent PPP and EIDL applications, ultimately receiving more than $400,000 in kickbacks in connection with the scheme.  These kickbacks typically amounted to 10% to 20% of the loan amount.  In total, the kickback scheme resulted in the disbursement of at least $2,715,649.12 in fraudulently obtained PPP and EIDL funds in connection with 23 fraudulent PPP and EIDL loans.

According to Glenn’s plea agreement, Glenn and Davis, received $300,726.50 in PPP/EIDL funds for various entities that they controlled, and Glenn attempted to obtain $601,511.20 in additional fraudulent PPP and EIDL funds too. 

Glenn used the fraudulently obtained funds to pay for a luxury vacation at a resort in Jamaica, to purchase a 2021 Mercedes-Benz S580 sedan valued at $148,171.60, to buy thousands of dollars in luxury jewelry, as well as numerous other luxury goods, including items from Luis Vuitton, Neiman Marcus, Dior, Cartier, Gucci, Chanel, and Hermes.

At the time of her scheme, neither Glenn nor Davis had any legitimate source of income, and in May 2020, each applied for unemployment insurance benefits in the State of Maryland.  In addition, as detailed in Davis and Glenn’s plea agreements, on January 6, 2023, law enforcement executed a federal search warrant at their residence.  Davis and Glenn were present at the residence at the time of the search and were arrested in connection with the fraudulent COVID-19 CARES Act loans.  According to Davis’s plea agreement, during the execution of the search warrant, law enforcement found and seized four firearms loaded with ammunition—a 9mm firearm, and three .40 caliber firearms.  Later investigation revealed that  one of the .40 caliber firearms had earlier been reported stolen by its owner.  As further detailed in Davis’s plea, the firearms were hidden by Davis in the air ducts of the residence: two firearms were hidden in the main bedroom air duct where Davis slept and kept his personal effects; the other two firearms were in the air duct of the bathroom closets to the main bedroom.  Moreover, two of the firearms were further stuffed in socks in an attempt to hide them.  Davis admitted that he possessed and secreted the firearms in the air ducts of his home (and in the socks) in an attempt to conceal them from law enforcement after learning that federal agents had a warrant to search his home.  As admitted to at his plea, Davis’s concealment of the firearms constitutes attempted obstruction of the administration of justice with respect to the investigation.  Each of the four firearms recovered from Davis’s home on January 6, 2023 were later found to have his DNA on them.  A later review of Davis’s iCloud account revealed the existence of, among other things, a series of videos depicting Davis handling firearms, including a shotgun and an assault rifle.  Davis knew that his previous felony conviction prohibited him from possessing firearms or ammunition.

As part of their plea agreements, Glenn and Davis will be required to forfeit their interest in any assets derived from or obtained by them as a result of, or used to facilitate the commission of, their illegal activities. Specifically, Glenn is required to forfeit a money judgment in the amount of at least $700,726.50; the 2021 Mercedes-Benz; cash in bank accounts she controlled that were held in the names of business entities; and jewelry, including her 3.03 carat yellow diamond engagement ring, Rolex, Cartier and Breitling watches, and a Diamond Miami Cuban Link Chain with 31.5 carats of VS1 diamonds.  Davis must forfeit the firearms and ammunition.

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 FBI, the SBA-OIG, and the Baltimore County Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the case.  He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber and Paralegal Specialist Juliette 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.

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Greenbelt, Maryland – After a 9-day trial, a federal jury returned verdicts against Thaddeus Lamont Wills, age 51, and Keionta Shawn Hagens, age 44, both of Waldorf, Maryland, of interference with interstate commerce by robbery, conspiracy to interfere with interstate commerce by robbery, using, carrying, and brandishing a firearm during a crime of violence, carjacking, and of murder.

The conviction was 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, Baltimore Field Office; Chief Malik Aziz of the Prince George’s County Police Department; Chief Troy D. Berry of the Charles County Sheriff’s Office; and Chief Peter Newsham of the Prince William County, Virginia Police Department.

Evidence presented at trial established that on November 12, 2020, conspirators, including Wills and Hagens, while armed with firearms, robbed an employee of Business-1 of cash and merchandise, and a customer of Business-1 of personal property.  To facilitate their escape from Business-1, conspirators, including Wills and Hagens, forcefully, and using firearms, took a 2016 Dodge Ram pickup truck from the victim customer.

Trial evidence further established that on or about November 17, 2020, conspirators, including Wills and Hagens used a stolen 2014 Ford F-150 pickup truck to drive to Business-2 for the purpose of robbing Business-2.  Wills and Hagens thereafter, while using at least one firearm, robbed an employee of Business-2 of cash and merchandise as well as a customer of personal property.  During the robbery, Wills and Hagens zip tied the hands of the employee.  In addition, Between November 12, 2020, and November 26, 2020, conspirators, including Wills and Hagens, stored and concealed the stolen Dodge Ram pickup and stolen Ford F-150 pickup in the area of Brandywine, Maryland.  

On January 6, 2021, in Waldorf, Maryland, conspirators, including Wills, while armed with firearms, forcefully took a 2008 Honda Pilot Sport Utility Vehicle from a victim. On January 6 and January 7, 2021, conspirators, including Wills, used the 2008 Honda Pilot to travel from Maryland into Virginia.  Then, on January 7, 2021, in Woodbridge, Virginia, conspirators, including Wills, while armed with firearms, robbed customers, agents and employees of Business-3 of cash, merchandise, and personal property.  After driving the 2008 Honda Pilot back from Virginia to Maryland on January 7, 2021, Wills and a co-conspirator burned the vehicle in the area of Brandywine, Maryland. 

Finally, on January 18, 2021, conspirators, including Wills and Hagens, robbed Victim-8, the owner of Business-4, of merchandise while using at least two firearms, and shot and killed the business owner during the robbery.  In order to escape after the robbery and murder of the victim, Wills used a firearm to forcefully take a 2019 Lexus RX350 Sport Utility Vehicle from a separate victim.

Wills faces a maximum sentence of life in federal prison for the murder of victim-8 during the robbery on January 18, 2021; a mandatory minimum sentence of 7 years and a maximum sentence of life for each count of using, carrying, brandishing a firearm during the robbery on November 17, 2020, the carjacking on January 6, 2021, and the carjacking on January 18, 2021. Wills faces a maximum sentence of 20 years in federal prison each for conspiracy to interfere with interstate commerce by robbery and interference with interstate commerce by robbery related to the robberies on November 17, 2020 and January 18, 2021, as well as a maximum sentence of 15 years in prison for each carjacking.

Hagens faces a mandatory minimum sentence of 5 years and a maximum sentence of life in federal prison for using and carrying a firearm during the robbery on November 17, 2020.  Hagens also faces a maximum sentence of 20 years each for conspiracy to interfere with interstate commerce by robbery and interference with interstate commerce by robbery for the robberies on November 17, 2020 and January 18, 2021.

U.S. District Judge Theodore D. Chuang has scheduled sentencing for Wills on February 7, 2024 at 9:30 a.m. and for Hagens on February 14, 2024 at 9:30 am.  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.

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 FBI, PGPD, Charles County Sheriff’s Office, and the Prince William County, Virginia Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys William Moomau and Patrick D. Kibbe, 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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The Justice Department announced today that it will monitor compliance with federal voting rights laws in Prince George’s County, Maryland, during the early voting period and on Election Day.  

The Justice Department enforces the federal voting rights laws that protect the rights of all citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country. In addition, the department also deploys federal observers from the Office of Personnel Management, where authorized by federal court order.

The Civil Rights Division’s Voting Section, working with U.S. Attorneys’ Offices, enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Act and Uniformed and Overseas Citizens Absentee Voting Act. Pursuant to the Voting Rights Act, Prince George’s County must provide voting materials and assistance in both English and Spanish.

Complaints about any possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s internet reporting portal at www.civilrights.justice.gov or by telephone at 1-800-253-3931. More information about voting and elections, including guidance documents for language minority voters and other resources, is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.

El Departamento de Justicia anunció hoy que monitoreará el cumplimiento con las leyes federales electorales en Prince George’s County, Maryland, durante el período de votación temprana y en el día de las elecciones.

El Departamento de Justicia hace cumplir las leyes federales de derechos electorales que protegen el derecho de acceso a las urnas de todos los ciudadanos.  La División envía personal del departamento periódicamente a monitorear elecciones en comunidades a través de todo el país.  Además, la División envía observadores federales de la Oficina de Administración de Personal de EE. UU. según autorizado por una orden judicial federal.

La Sección de Votación de la División de Derechos Civiles, junto con las Oficinas de los Fiscales Federales, vela por el cumplimiento de las leyes federales civiles que protegen el derecho al voto, incluyendo la Ley del Derecho al Voto, la Ley Nacional de Inscripción de Votantes, la Ley Ayudemos a Estados Unidos a Votar, la Ley de Derechos Civiles y la Ley de Votación para los Uniformados y los Ciudadanos en el Extranjero. De acuerdo con la Ley del Derecho al Voto, Prince George’s County debe proporcionar materiales y asistencia electoral tanto en inglés como en español.

Denuncias sobre posibles vulneraciones a las leyes electorales federales pueden presentarse mediate el formulario en línea de la División de Derechos Civiles en https://civilrights.justice.gov/ o por teléfono al (800) 253-3931. Información adicional sobre la votación y las elecciones, incluyendo las Protecciones electorales para los ciudadanos con dominio limitado del inglés Sección 203 de la Ley de Derecho al Voto y otros recursos, está disponible en www.justice.gov/crt/voting/. Aprenda más sobre la Ley del Derecho al Voto y otras leyes federales electorales en www.justice.gov/crt/voting-section.

Baltimore, Maryland – After a four-day jury trial, a federal jury has convicted Igor Yasinov, age 35, of Baltimore, Maryland, of four counts of Assaulting, Resisting, or Impeding Certain Officers or Employees, Inflicting Bodily Injury.

The conviction was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Clinton J. Fuchs, United States 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 trial, on November 16, 2021, Igor Yasinov assaulted multiple members of the correctional staff at the Chesapeake Detention Facility (“CDF”) causing several injuries.  CDF is a pretrial detention facility located in Baltimore, Maryland, that, in November 2021, exclusively housed federal inmates awaiting the disposition of criminal cases in the District of Maryland, pursuant to an intergovernmental agreement between the United States 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 after Yasinov broke a control center window within the facility with a broom stick and sustained minor injuries.  Yasinov was transported to the medical unit for treatment by members of the correctional staff, during which time he made threats of violence to the escorting correctional officers.  After receiving medical treatment, Yasinov was transported to a segregation unit.  Though initially cooperative, Yasinov became irate and refused the orders of the correctional officers when he learned that he was not returning to his original housing unit.

Yasinov refused to lock into his cell.  As correctional officers attempted to escort him into the cell, he began to fight them and swept the leg of one correctional officer, causing her and other officers to fall to the ground.  During that time, correctional officers were able to apply leg irons to Yasinov’s legs to prevent further attacks and carried him to his cell.  While in the cell, Yasinov continued to fight the officers.  Eventually, Yasinov relented, and allowed officers to remove the leg irons.  They ordered Yasinov to face the cell wall to allow the group to exit the cell individually.  Yasinov was told to remain facing the wall until all officers had exited and the door to the cell was closed.

As the last officer attempted to exit the door, 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 of the officers sustained bodily injuries, including one officer sustaining a fractured tibia, and three other officers sustaining injuries to their heads, necks, backs, and limbs.

Yasinov faces a maximum sentence of 10 years in federal prison for each count of Assaulting, Resisting, or Impeding Certain Officers or Employees, Inflicting Bodily Injury.  Actual sentences for federal crimes are typically less than the maximum penalties and a federal district judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.  United States District Judge Julie R. Rubin has scheduled sentencing for February 20, 2025, at 11 a.m.

U.S. Attorney Barron commended USMS for their work in the investigation.  Mr. Barron thanked Assistant United States Attorney Michael Aubin and Special Assistant United States Attorney Jacob Gordin, 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 https://www.justice.gov/usao-md/community-outreach.

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Washington – The Justice Department announced today that Grace Ocean Private Limited and Synergy Marine Private Limited, the Singaporean corporations that owned and operated the Motor Vessel DALI, have agreed to pay $101,980,000 to resolve a civil claim brought by the United States for costs borne in responding to the catastrophic collapse of the Francis Scott Key Bridge.  

The settlement resolves the United States’ claims for civil damages for $103,078,056 under the Rivers and Harbors Act, Oil Pollution Act, and general maritime law. The settlement monies will go to the U.S. Treasury and to the budgets of several federal agencies directly affected by the allision or involved in the response.

“Nearly seven months after one of the worst transportation disasters in recent memory, which claimed six lives and caused untold damage, we have reached an important milestone with today’s settlement,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “Thanks to the hard work of the Justice Department attorneys since day one of this disaster, we were able to secure this early settlement of our claim, just over one month into litigation. This resolution ensures that the costs of the federal government’s cleanup efforts in the Fort McHenry Channel are borne by Grace Ocean and Synergy and not the American taxpayer.”

“This is a tremendous outcome that fully compensates the United States for the costs it incurred in responding to this disaster and holds the owner and operator of the DALI accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The prompt resolution of this matter also avoids the expense associated with litigating this complex case for potentially years.”

In the early morning hours of March 26, the Motor Vessel DALI left the Port of Baltimore bound for Sri Lanka. While navigating through the Fort McHenry Channel, the vessel lost power, regained power, and then lost power again before striking the bridge. The bridge collapsed and plunged into the water below, tragically killing six people. In addition to this heartbreaking loss of life, the wreck of the DALI and the remains of the bridge were left to obstruct the navigable channel, bringing all shipping into and out of the Port of Baltimore to a standstill. The loss of the bridge also severed a critical highway in the transportation infrastructure and blocked a key artery for local commuters.

The United States led the response efforts of dozens of federal, state, and local agencies to remove about 50,000 tons of steel, concrete, and asphalt from the channel and from the DALI itself. While removal operations were underway, the United States set up temporary channels to start relieving the bottleneck at the port and mitigate some of the economic devastation caused by the DALI. The Fort McHenry Channel was cleared by June 10, and the Port of Baltimore was once again open for commercial navigation.

On Sept. 18, the Justice Department filed a civil lawsuit in the U.S. District Court for the District of Maryland, seeking over $100 million in damages from Grace Ocean and Synergy. The Department’s claim was part of a legal action that the vessel companies filed shortly after the tragedy, in which they seek exoneration or limitation of their liability to approximately $43.7 million. Today’s settlement is in addition to $97,294 recently paid by Grace Ocean to the Coast Guard National Pollution Fund Center for costs incurred to abate the threat of oil pollution arising from the incident.  

The settlement does not include any damages for the reconstruction of the Francis Scott Key Bridge. The State of Maryland built, owned, maintained, and operated the bridge, and attorneys on the state’s behalf filed their own claim for those damages. Pursuant to the governing regulation, funds recovered by the State of Maryland for reconstruction of the bridge will be used to reduce the project costs paid for in the first instance by federal tax dollars.

The resolution of the civil matter was handled by attorneys from the Civil Division’s Aviation, Space & Admiralty Litigation Section and the U.S. Attorney’s Office for the District of Maryland, Baltimore Division.

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Baltimore, Maryland – U.S. District Court Judge Matthew J. Maddox sentenced Eugene Edward Golden, age 38, of Baltimore, Maryland, to 45 years in federal prison and lifetime supervised release, for conspiracy to commit sexual exploitation of a child and for two counts of sexual exploitation of a child in order to produce and transmit a visual depiction of the sexually explicit conduct. 

The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, and Special Agent in Charge Michael S. McCarthy of Homeland Security Investigations (“HSI”) Baltimore; Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police (MSP); Chief Gregory Der, Howard County Police Department; and Commissioner Richard Worley, Baltimore Police Department.

According to his guilty plea, beginning in at least 2019, Golden located several females, specifically six co-defendants — using dating or prostitution websites — and communicated with each of them individually using texts, messaging applications, and social media.  Golden requested for each woman to produce sexually explicit videos and images of children, citing his specific fetishes and directed them on what to do and say.  The defendant then had the women send him the files in exchange for financial compensation.

Golden’s co-defendants agreed to his requests and produced and distributed sexually explicit images and videos of at least 12 minor victims, using their cellphones.  The victims ranged in age from approximately one year old to 13 years old. Images and videos documenting the sexual abuse were found in Golden’s online accounts.  Golden produced and received well over 100 images and videos documenting the sexual abuse of children at his request.  The defendant had also amassed a large collection of commercially available child pornography.

In addition to Golden’s co-defendants, HSI and MSP were able to identify more females who produced and distributed sexually explicit images and videos of minors in their care and/or custody, resulting in two more separate child exploitation cases and the identification and rescue of two minor victims.  The victims were approximately one to four years old.

As detailed in Golden’s plea agreement, in accordance with the Sex Offender Registration and Notification Act (“SORNA”), upon his release from prison, Golden will be required to register as a sex offender in the places where he resides, is an employee, and/or is a student.

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, 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 HSI Baltimore, the MSP-led Internet Crimes Against Children Task Force, the Baltimore Police Department, and the Howard County Police Department for their work in the investigation.  Valuable assistance was provided by the U.S. Attorney’s Offices in the Districts of Mississippi and Tennessee; and HSI in Jackson, MS, and Memphis.  Mr. Barron thanked Assistant U.S. Attorney Colleen Elizabeth McGuinn, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – U.S. District Chief Judge George Levi Russell, III, sentenced Maimouna Bagayoki, age 54, of Owings Mills, Maryland, to 42 months in federal prison, followed by two years of supervised release, and $60,569.87 restitution, for Wire Fraud and Receipt of Stolen Motor Vehicles bound for illegal shipment to West Africa.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI) Baltimore; Port of Baltimore Director Adam Rottman of U.S. Customs and Border Protection; Baltimore Police Department Commissioner Richard Worley; and Baltimore County Police Department Chief Robert McCullough.

According to the plea agreement, in 2021, Bagayoko worked with others to bring stolen luxury vehicles into Maryland where they would be loaded onto large cargo shipping containers and taken to the Port of Baltimore.  Then, using fraudulent documentation and paperwork, Bagayoko concealed the containers’ contents – Bagayoko emailed and texted the fake documents to the shipping company.  The shipping containers were bound for West Africa.  The value of the vehicles that were recovered was over $650,000, most of which were stolen from the homes of victims living in New Jersey and New York. 

United States Attorney Erek L. Barron commended the HSI, CBP, Baltimore City Police and Baltimore County Police for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Colleen Elizabeth McGuinn, 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, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Ronald White, age 56, of Pikesville, Maryland, to eleven years in federal prison, followed by 5 years of supervised release, for a drug conspiracy and distribution charges related to his supplying cocaine, crack cocaine and fentanyl to drug traffickers operating in West and Northwest Baltimore as well as money laundering charges.

The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration and Commissioner Richard Worley of the Baltimore Police Department.

According to his guilty plea, in April 2020, investigators from the Drug Enforcement Administration began a drug investigation in West and Northwest Baltimore.  During the investigation, White was identified as a source of supply to members of the Drug Trafficking Organization (DTO) and was believed to also be involved in the laundering of drug proceeds obtained from the distribution of controlled dangerous substances.  Specifically, in March and April 2021, White engaged in at least seven large cash transactions.  These transactions included over $1,346,000 in drug proceeds that were to be laundered.

As part of his guilty plea, White admitted that he maintained stash houses to store his drug proceeds totaling approximately $549,000.  From one of the stash locations investigators recovered equipment used to package narcotics including: a hydraulic kilogram press, digital scales, and a powder commonly used as a cutting agent for heroin and fentanyl.  Investigators also recovered the following narcotics: 242 grams of cocaine base, 43 grams of cocaine, 3724 grams of cocaine separately packaged, and 3975 grams of fentanyl.  White’s vehicle was searched and officers recovered an additional 150 grams of fentanyl.

White admitted that it was reasonably foreseeable and within the scope of the conspiracy that he or other members of the conspiracy would distribute at least 1200 grams but less than 4 kilograms grams of fentanyl, as well as quantities of cocaine, cocaine base, and heroin in furtherance of the conspiracy.

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. This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Baltimore Strike Force is to identify, disrupt, and dismantle violent drug trafficking, money laundering, and transnational criminal organizations to reduce drug-related and/or gang violence in the Baltimore metropolitan and surrounding areas.  The Baltimore Strike Force is comprised of agents and officers from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Homeland Security, the United States Marshals Service, the United States Secret Service, United States Postal Inspection Service, the Maryland State Police, the Baltimore Police Department, the Baltimore Sheriff’s Office, the Baltimore County Police Department, the Maryland Transportation Authority, and the Maryland Department of Public Safety and Correctional Services. The prosecution is being led by the Office of the United States Attorney for the District of Maryland.

U.S. Attorney Barron commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys LaRai Everett, James O’Donohue and Stanton Lawyer 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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Baltimore, Maryland – U.S. District Judge Brendan A. Hurson sentenced William Rich, age 44, of Windsor Mill, Maryland, to one year of home confinement, followed by two years of  supervised release, for wire fraud and theft of government property.

The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, and Kim R. Lampkins, Special Agent in Charge, Mid Atlantic Field Office, United States Department of Veterans Affairs (“VA”).

In June 2024, at the conclusion of a four-day trial, a federal jury returned a guilty verdict  convicting Rich of wire fraud and theft of government property.   He was charged with  fraudulently obtaining more than $750,000 in veteran disability benefits by falsely claiming that he was paralyzed.  

Evidence at trial established Rich intentionally misrepresented his physical condition during VA disability compensation and pension exams and in other communications with the VA in  pursuit of VA disability benefits.  Rich claimed that he was paralyzed and unable to walk.  As a result, Rich received more than $750,000 in VA benefits that he was not entitled to including special monthly compensation, caregiver-assistance compensation, and medical equipment.

Rich served in the United States Army from September 1998 to February 2007, after sustaining injuries on August 23, 2005, during a bombing in Baqubah, Iraq.  Rich’s injuries included  temporary paralysis. Rich then applied to the VA’s disability compensation program, and according to the evidence presented at trial, approximately six weeks after Rich’s injuries, he made substantial progress toward recovery and was no longer paralyzed.  A subsequent medical report, indicated that Rich was able to perform certain essential daily activities with 
“complete independence” or “modified independence.” However, Rich was granted permanent disability from VA largely based on an exam conducted on October 11, 2007, where he  reported paralysis in his lower extremities and that he was confined to a wheelchair.

In 2018, the VA Office of Inspector General (OIG) launched a proactive investigation of  disabled veteran files and learned that Rich’s conduct was inconsistent with his purported physical condition.  For more than two years, VA OIG Special Agents (SAs) investigated Rich, including conducting video surveillance.  Footage presented at trial showed Rich walking,  going up and down stairs, entering and exiting vehicles, lifting, bending, and carrying items—all without visible limitation or assistance of a medical device, including a wheelchair.

Throughout the course of their surveillance, the only time agents observed Rich using a  wheelchair was when he attended VA medical appointments.  Between March 2019 and February 2021, VA OIG investigators observed Rich standing and loading his wheelchair into the trunk of his car before VA medical appointments, using a wheelchair at VA appointments, wheeling himself from a VA medical appointment to his car, and then standing to load his wheelchair back into his car.  A review of Rich’s publicly available social media accounts  revealed multiple images of Rich standing, with no indication that he was wheelchair bound, including an image Rich took of himself standing in front of a mirror at a gym, as well as videos of Rich lifting weights.

In addition to receiving more than $8,000 in monthly disability benefits from the VA, Rich also received grants from the VA for “Automobile and Adaptive Equipment,” and “Specially Adapted Housing.” Rich used funds intended for the purchase of a specially adapted vehicle to buy a BMW 645ci luxury sports coupe.

U.S. Attorney Barron thanked Special Assistant U.S. Attorney Kertisha Dixon and Assistant U.S. Attorney Colleen McGuinn, who prosecuted the case.  Mr. Barron also thanked former lead Special Agent Brian Maddox, currently a Special Agent with the Defense Criminal Investigative Service, and Patrick Prewitt, Senior Special Agent and National Fleet Manager, with the United States Department of Veterans Affairs, Office of Inspector General.

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, Maryland – Michael Sam Teekaye, Jr., age 21, of Hanover, Maryland has been charged by criminal complaint with attempting to provide material support to a designated foreign terrorist organization, in violation of 18 U.S.C. § 2339B.  The defendant has been detained since his arrest on October 14, 2024, and had an initial appearance before Magistrate Judge Erin Aslan on October 15, 2024.

The charges were announced by Erek L. Barron, U.S. Attorney for the District of Maryland and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office.

According to the affidavit in support of the complaint, between March and April 2023, Teekaye had multiple conversations with an Undercover Officer (“UCO”) in which he told the UCO that he wanted to travel to Africa to join and fight for ISIS.  Teekaye also told the UCO that his “plan B” was to carry out an attack in the United States against people who support Israel.  On three occasions in May and June 2024, Teekaye purchased ammunition and range time at a shooting range in Severn, Maryland, which he later told the UCO was partly in order to “train.”  In July 2024, Teekaye attempted to purchase a Kalashnikov K-9 9mm rifle, but the purchase was denied because Teekaye was on probation in a state criminal case.

In conversations with the UCO between August and October 2024, Teekaye told the UCO that he was in contact with a Somali ISIS fighter regarding his plans to travel to Somalia to join ISIS.  Teekaye explained that he would fly first to Turkey, then travel to Ethiopia and cross the border into Somalia.  Teekaye sent the UCO screenshots of an Ethiopian e-Visa he had obtained from the ISIS fighter. On October 4, 2024, Teekaye told the UCO that he received airline tickets from the ISIS fighter.  He also sent the UCO screenshots of his travel itinerary showing that he would depart from Baltimore Washington International Airport (BWI) on October 14, 2024 and fly to Istanbul, Turkey with a layover in London.

On October 10, 2024, Teekaye sent the UCO a photo of himself wearing a black mask and holding a large machete, along with the caption “Abdullah the islamophobe slayer.”  On October 11, 2024, the UCO asked whether Teekaye was “sure” he wanted to join ISIS.  Teekaye responded, “I am sure I did a lot of research and had to accept something’s [sic] that they are the only group that has the most true and sincere intentions.”

On October 14, 2024, FBI agents arrested Teekaye at BWI after he had checked in for his flight and proceeded through security. Following his arrest, Teekaye made the following unprovoked statements, among others: “I’ll just get out in 20 years and do something here.  Okay? Okay?  It will never stop.  Jihad will never stop. . . . I’ll be like 40 when I get out, then I’ll just do it.  I don’t care.  It will never stop.  Jihad will never stop.  I’ll come and I’ll kill your soldiers.  I’ll kill you, and I’ll kill . . . .”  While making these statements, Teekaye began kicking one of the arresting agents.

A complaint is not a finding of guilt.  All defendants charged by complaint are presumed innocent unless and until proven guilty at some later criminal proceeding.  If convicted, Teekaye faces a maximum sentence of 20 years in federal prison for attempting to provide material support to a designated foreign terrorist organization.  A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. 

U.S. Attorney Barron commended the FBI’s Baltimore Field Office for its outstanding work in the investigation and praised the FBI’s Joint Terrorism Task Force along with the FBI’s Newark and Richmond Field Offices, and the New York City Police Department (NYPD), for their valuable assistance.  Mr. Barron would like to thank the NYPD's Intelligence Division under the leadership of Deputy Commissioner Rebecca Weiner, Assistant Chief John Hart, and Deputy Chief Fernando Guimaraes.  Mr. Barron thanked Assistant U.S. Attorneys Christina Hoffman and P. Michael Cunningham, who are prosecuting this case. Mr. Barron also thanked the Department of Justice’s National Security Division for their 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. 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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Greenbelt, Maryland – A federal grand jury returned an indictment on September 26, 2024, charging Mark Edward Cobb, age 44, of Bowie, Maryland, for coercion and enticement of a child and for possession of child pornography.

The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Michael McCarthy of Homeland Security Investigations (“HSI”) Baltimore; and Chief Malik Aziz of the Prince George’s County Police Department.

According to the indictment, from approximately June 19, 2024, to approximately June 25, 2024, Cobb enticed and coerced a minor victim to engage in sexual activity and possessed sexually explicit images involving a prepubescent minor and a minor victim who had not yet attained 12 years of age.  The case arose when Cobb, a former Prince George’s County elementary school teacher, was accused of engaging in a texting relationship with a nine-year-old student, during which he allegedly requested and received explicit photos from the student.  During a search of Cobb’s home, sexually explicit images and videos of other children and a bag with several pairs of children’s underwear were found.

If convicted, Cobb faces a mandatory minimum sentence of 10 years in federal prison and up to life in federal prison for coercion and enticement of a child and a maximum of 10 years in federal prison for possession of child pornography.  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.  The defendant’s initial appearance on this indictment was held in the U.S. District Court in Greenbelt on October 16, 2024. 

An indictment is not a finding of guilt.  A defendant charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

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 HSI and the Prince George’s County Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Megan S. McKoy and Ranganath Manthripragada, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – U.S. District Judge Julie R. Rubin sentenced Chad Christopher Langgle, age 30, of Hagerstown, Maryland, to 10 years in federal prison, followed by lifetime supervised release, for possession of child pornography.

The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, and Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI).

According to his guilty plea, in December 2022, Langgle emailed more than 50 videos containing child pornography, possessed images of child pornography on his cell phone, and had additional videos stored in his email account.  Langgle was previously convicted of sex abuse of a minor and second-degree assault on a minor in the Circuit Court for Calvert County, Maryland.  Additionally, he was previously convicted of a second-degree sex offense in the Circuit Court for St. Mary’s County, Maryland.  

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States 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 HSI, the Maryland State Police, and the United States Marshals Service for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorney Reema Sood, 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 and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – On October 7, 2024, Sindy Paola Hernandez, age 38, of Hyattsville, Maryland, Johnsie Steven Reina Hernandez, age 20, of Hyattsville, Maryland, and Edwin Gonzalez Rodriguez, age 30, of Hyattsville, Maryland, were charged by criminal complaint with conspiracy to commit interstate transportation of stolen goods.  The charges involve a large-scale organized retail theft ring, wherein conspirators stole cosmetic and other products from various retail establishments and provided them to Hernandez, Reina Hernandez, and Gonzalez Rodriguez.  As outlined in the affidavit in support of the complaint, it is alleged that these individuals then shipped the stolen products to other countries, including Honduras. 

The charges are announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Michael S. McCarthy of Homeland Security Investigations (HSI); Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation (IRS-CI); and Chief Marc R. Yamada of the Montgomery County Police Department (MCPD).

According to the affidavit in support of the criminal complaint, in November 2022, retail investigators including Target, Ulta Beauty, CVS, and Walmart began an investigation after large-scale thefts occurred targeting premium skincare products, vitamins, and cold/cough medicine.  The investigation revealed that the thefts were committed by various individuals referred to as “boosters.” The boosters frequently indicated that they were selling the stolen products to Hernandez, who resided in Prince George’s County.  In turn, Hernandez, Reina Hernandez, and Gonzalez Rodriguez would store and sort the products at their residences and storage units, and then ship the stolen products to Honduras. 

A complaint is not a finding of guilt.  All defendants charged by complaint are presumed innocent unless and until proven guilty at some later criminal proceedings. 

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

U.S. Attorney Barron commended HSI, the IRS, MCPD, and the various retail establishments, for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kelly O. Hayes 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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Baltimore, Maryland – 17 individuals were indicted yesterday in a Drug Enforcement Administration and Department of Homeland Security investigation involving a sophisticated money laundering scheme and illegal marijuana distribution network resulting in the seizure of over $6,000,000 and over 2,000 pounds of marijuana in illegal proceeds to date.

The investigation – which was undertaken by the Drug Enforcement Administration-Washington Division and Department of Homeland Security-Baltimore Field Office (“HSI”), with support from DEA offices in New Jersey, New York, Washington, and Oregon - began in March 2023 with two separate non-fatal shootings of one individual in Baltimore, Maryland, that has subsequently revealed a sprawling network of individuals laundering millions of dollars generated from the illegal distribution of massive quantities of marijuana.  That network includes large-scale launderers operating a Chinese Money Laundering Organization (MLO) in New York city, and drug traffickers operating in Maryland, sending large quantities of bulk cash proceeds from Maryland to other states, including New York, New Jersey, and Oregon to obtain further shipments of marijuana and to conceal the source of the proceeds.

The Indictment charges the following individuals in count one with Conspiracy to Engage in Money Laundering, and in count two with Conspiracy to Distribute Controlled Substances: Qihai Tao; Michael Micklos; Can Xu; Praveen Morgan; Michael Tilmon, III; Emanuel Dukes; Steven Mack; William Brown, III; Malik Bridgers; David Hilliard; Derian Green; Huayi Zhong; Zebin Liu; Chunbing Qin; Peng Huang; Isaac Huynh, and Li Chen.  The maximum penalty for Conspiracy to Engage in Money Laundering is twenty years imprisonment and up to a $500,000 fine.  The maximum penalty for Conspiracy to Distribute Controlled Substances, as charged in the indictment, is up to twenty years imprisonment and up to $1,000,000, per defendant.  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.

Additionally, Michael Tilmon III, and Steven Mack are charged in one count each with Possession of a Firearm by a Prohibited Person. The maximum penalty for this offense is up to fifteen years imprisonment, and up to a $250,000 fine.

“When violence erupts in our communities, we will track it down to its core. This investigation demonstrates how organized international money laundering drives gun violence and illegal drug trafficking,” said Erek L. Barron, U.S. Attorney for the District of Maryland. “Through the coordinated efforts of our OCDETF Strike Force and law enforcement partners, our highest priority is protecting the nation’s safety and security.”

“This investigation is a clear example of how we use DEA’s collective resources to identify money laundering schemes and drug distribution networks in order to disrupt and dismantle their operations,” emphasized Jarod Forget, Special Agent in Charge of DEA Washington Division.  “The increasingly dynamic and complex nature of the illicit drug trade demands enhanced cooperation with local, state and federal partners that reflects the reality of a globalized supply chain for illegal drugs and its transnational money laundering activities.  We will pursue all enablers of these illicit activities by denying the criminal networks of their ill-gotten proceeds and interrupt their ability to transfer working capital to fund their range of illicit activities.”

“This investigation stands as a compelling example of the remarkable outcomes achieved when law enforcement agencies collaborate toward a common objective,” said Special Agent in Charge Michael McCarthy of HSI Baltimore. “What began as an inquiry into two seemingly unrelated shootings in Baltimore evolved into a comprehensive investigation that exposed a vast criminal enterprise engaged in drug trafficking and the laundering of millions of dollars. This nefarious network extended its reach from Maryland to New York and beyond, infiltrating multiple communities. HSI remains resolute in its commitment to safeguarding Maryland’s neighborhoods by working in close coordination with our law enforcement partners to dismantle and disrupt such criminal organizations.”

An indictment is merely an allegation of criminal conduct, not evidence.  All defendants are presumed innocent until proven guilty at some later criminal proceedings. 

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location.  This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.  The specific mission of the Baltimore Strike Force is to identify, disrupt, and dismantle violent drug trafficking, money laundering, and transnational criminal organizations to reduce drug-related and/or gang violence in the Baltimore metropolitan and surrounding areas.  The Baltimore Strike Force is comprised of agents and officers from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Homeland Security, the United States Marshals Service, the United States Secret Service, United States Postal Inspection Service, the Maryland State Police, the Baltimore Police Department, the Baltimore Sheriff’s Office, the Baltimore County Police Department, the Maryland Transportation Authority, and the Maryland Department of Public Safety and Correctional Services. The prosecution is being led by the Office of the United States Attorney for the District of Maryland.

U.S. Attorney Barron commended the DEA-Baltimore Field Office, the HSI-Baltimore Field Office, Baltimore County Police Department, Maryland Department of Public Safety and Correctional Services, and Maryland State Police.  Mr. Barron thanked the U.S. Attorney’s Office for the Eastern District of New York, the Southern District of New York, the District of New Jersey, the Western District of Washington, the District of Oregon, and the Eastern District of Texas for their vital cooperation in this investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Alex Kalim, Alex Levin, and James Wallner, 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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Baltimore, Maryland – 17 individuals were indicted yesterday in a Drug Enforcement Administration and Department of Homeland Security investigation involving a sophisticated money laundering scheme and illegal marijuana distribution network resulting in the seizure of over $6,000,000 and over 2000 pounds of marijuana in illegal proceeds to date.

The investigation – which was undertaken by the Drug Enforcement Administration-Baltimore Field Office and Department of Homeland Security-Baltimore Field Office (“HSI”), with support from DEA offices in New Jersey, New York, Washington, and Oregon - began in March 2023 with two separate non-fatal shootings of one individual in Baltimore, Maryland, that has subsequently revealed a sprawling network of individuals laundering millions of dollars generated from the illegal distribution of massive quantities of marijuana.  That network includes large-scale launderers operating a Chinese Money Laundering Organization (MLO) in New York city, and drug traffickers operating in Maryland, sending large quantities of bulk cash proceeds from Maryland to other states, including New York, New Jersey, and Oregon to obtain further shipments of marijuana and to conceal the source of the proceeds.

The Indictment charges the following individuals in count one with Conspiracy to Engage in Money Laundering, and in count two with Conspiracy to Distribute Controlled Substances: Qihai Tao; Michael Micklos; Can Xu; Praveen Morgan; Michael Tilmon, III; Emanuel Dukes; Steven Mack; William Brown, III; Malik Bridgers; David Hilliard; Derian Green; Huayi Zhong; Zebin Liu; Chunbing Qin; Peng Huang; Isaac Huynh, and Li Chen.  The maximum penalty for Conspiracy to Engage in Money Laundering is twenty years imprisonment and up to a $500,000 fine.  The maximum penalty for Conspiracy to Distribute Controlled Substances, as charged in the indictment, is up to twenty years imprisonment and up to $1,000,000, per defendant.  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.

Additionally, Michael Tilmon III, and Steven Mack are charged in one count each with Possession of a Firearm by a Prohibited Person. The maximum penalty for this offense is up to fifteen years imprisonment, and up to a $250,000 fine.

“When violence erupts in our communities, we will track it down to its core. This investigation demonstrates how organized international money laundering drives gun violence and illegal drug trafficking,” said Erek L. Barron, U.S. Attorney for the District of Maryland. “Through the coordinated efforts of our OCDETF Strike Force and law enforcement partners, our highest priority is protecting the nation’s safety and security.”

“This investigation is a clear example of how we use DEA’s collective resources to identify money laundering schemes and drug distribution networks in order to disrupt and dismantle their operations,” emphasized Jarod Forget, Special Agent in Charge of DEA Washington Division.  “The increasingly dynamic and complex nature of the illicit drug trade demands enhanced cooperation with local, state and federal partners that reflects the reality of a globalized supply chain for illegal drugs and its transnational money laundering activities.  We will pursue all enablers of these illicit activities by denying the criminal networks of their ill-gotten proceeds and interrupt their ability to transfer working capital to fund their range of illicit activities.”

“This investigation stands as a compelling example of the remarkable outcomes achieved when law enforcement agencies collaborate toward a common objective,” said Special Agent in Charge Michael McCarthy of HSI Baltimore. “What began as an inquiry into two seemingly unrelated shootings in Baltimore evolved into a comprehensive investigation that exposed a vast criminal enterprise engaged in drug trafficking and the laundering of millions of dollars. This nefarious network extended its reach from Maryland to New York and beyond, infiltrating multiple communities. HSI remains resolute in its commitment to safeguarding Maryland’s neighborhoods by working in close coordination with our law enforcement partners to dismantle and disrupt such criminal organizations.”

An indictment is merely an allegation of criminal conduct, not evidence.  All defendants are presumed innocent until proven guilty at some later criminal proceedings. 

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location.  This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.  The specific mission of the Baltimore Strike Force is to identify, disrupt, and dismantle violent drug trafficking, money laundering, and transnational criminal organizations to reduce drug-related and/or gang violence in the Baltimore metropolitan and surrounding areas.  The Baltimore Strike Force is comprised of agents and officers from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Homeland Security, the United States Marshals Service, the United States Secret Service, United States Postal Inspection Service, the Maryland State Police, the Baltimore Police Department, the Baltimore Sheriff’s Office, the Baltimore County Police Department, the Maryland Transportation Authority, and the Maryland Department of Public Safety and Correctional Services. The prosecution is being led by the Office of the United States Attorney for the District of Maryland.

U.S. Attorney Barron commended the DEA-Baltimore Field Office, the HSI-Baltimore Field Office, Baltimore County Police Department, Maryland Department of Public Safety and Correctional Services, and Maryland State Police.  Mr. Barron thanked the U.S. Attorney’s Office for the Eastern District of New York, the Southern District of New York, the District of New Jersey, the Western District of Washington, the District of Oregon, and the Eastern District of Texas for their vital cooperation in this investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Alex Kalim, Alex Levin, and James Wallner, 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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Baltimore, Maryland – On October 2, 2024, a federal grand jury returned an indictment charging Jeannette Gomez, age 54, of Perry Hall, Maryland, and Edgar Gomez, age 51, of Perry Hall, Maryland, with failure to report and pay over employment taxes accrued pursuant to their interest in SND Services, LLC and related entities.

The indictment was announced by Erek L. Barron, U.S. for the District of Maryland, and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office. 

As detailed in the indictment, the defendants owned and operated several companies engaged in providing temporary staffing services.  These companies included SND Services, LLC and SND Services Inc.  Under the direction of Jeannette Gomez, these entities issued Forms W-2 to employees and withheld federal income taxes and Social Security and Medicare (“FICA”) taxes from their wages but failed to pay over the total withheld to the IRS.  It is estimated that the defendants failed to pay over at least $10,476,696 in employment taxes.  

As further alleged in the indictment, the defendants diverted the funds withheld in trust for their personal use, including for the purchase of residences costing more than $1 million dollars and luxury vehicles costing in excess of $200,000. 

If convicted, the defendants face a maximum sentence of 5 years in federal prison.  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.

U.S. Attorney Barron commended Internal Revenue Service Criminal Investigation for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Adeyemi Adenrele and Special Assistant U.S. Attorney Melinda Dunmire, 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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Baltimore, Maryland – David Epstein, age 46, of Owings Mills, Maryland, pleaded guilty to one count of wire fraud, relating to the submission of fraudulent CARES Act loan applications.  The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. 

The guilty plea was announced by Erek L. Barron, U.S. Attorney for the District of Maryland and Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), Washington, D.C. Field Office.

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, administered through the Small Business Administration (SBA), as well as an Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations. 

According to his plea agreement, beginning in May 2020 and continuing through February 2021 in the District of Maryland, Epstein engaged in a scheme to defraud financial institutions, including Cross River Bank, Bluevine, Celtic Bank, and the United States Small Business Administration (SBA), to obtain fraudulent loans for his business PEI Staffing (PEI), a temporary staffing company, under the Paycheck Protection Program (PPP), and the Economic Injury Disaster Loan (EIDL) program.   

Specifically, on April 30, 2020, Epstein submitted a false and misleading PPP loan application in the name of PEI, seeking approximately $1,307,170 in PPP funds.  The application allegedly contained false statements and omissions relating to PEI including the number of employees, the wages paid to employees, and that any funds received would be spend on expenses such as payroll, business rent and business utilities.  For example, the application stated that PEI had 382 employees, when in fact, an IRS Form 941 for the second quarter of 2020 listed 79 employees for PEI.  Epstein also falsely stated that he did not have common management with any other business.  In fact, Epstein was a common manager of both PEI and Stafquik.

As detailed in the plea agreement, Epstein submitted a fictitious February 2020 bank statement for a SunTrust bank that purported to be a bank statement of PEI.  In truth, this account was not in the name of PEI but instead was in the name of Stafquik.  Epstein admitted that he had earlier altered the bank statement for the purpose of submitting it in connection with PPP applications for PEI.

According to the plea agreement, on May 4, 2020, approximately $1,307,170 in PPP loan proceeds were disbursed to the SunTrust Stafquik account.  Within four days, Epstein opened four personal bank accounts at two separate banks and subsequently transferred the PPP loan proceeds to those accounts to be used for personal and unauthorized expenses. 

Epstein admitted that he spent the fraudulently obtained PPP funds in multiple ways that were impermissible under the PPP. One day after receiving the PPP funds, on May 5, 2020, Defendant made an ACH transfer in the amount of $110,356.48 from the SunTrust account that received the PPP funds to Mercedes-Benz Financial in connection with a payment for a 2019 Mercedes-Benz GT43C4 automobile previously purchased by the Defendant.

Epstein also admitted that beginning on May 20, 2020, and continuing through in or about August 2020, he transferred approximately $138,522.22 in PPP funds to a contractor in connection with extensive renovations to the Defendant’s home and installation of a pool there.  He further admitted to using the PPP funds to pay $100,000 in connection a settlement agreement pertaining to a 2013 litigation involving unpaid insurance premiums and to pay off a $344,341.05 debt related to funds the Defendant misappropriated from a business partner and used for personal expenses.  None of these were permissible uses of the PPP funds.

According to the plea agreement, Epstein also used the PPP funds to pay various personal expenses (including a trip to a luxury golf resort) and provided PPP funds to various family members and associates for purposes unrelated to employment with PEI (including his family’s nanny), making withdrawals for himself, and paying off various personal debts.  Epstein also attempted to repeatedly add individuals whom he owed money to PEI’s payroll to make it appear as though they were employees when they were not.  He also attempted to hide the size of the PPP loan he received, concealing it from his family members, other employees of PEI, and various business partners whom he owed money.

Epstein faces a maximum possible sentence of 20 years in prison followed by up to three years of supervised release.  U.S. District Judge Richard D. Bennett has scheduled sentencing for January 14, 2025 at 11:00 a.m.

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 IRS-CI for its work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley who is prosecuting the case.  Mr. Barron also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber. 

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.

Greenbelt, Maryland – After a 5-day trial, a federal jury returned a verdict against Timothy Darren Proctor, age 40, finding Proctor guilty of felon in possession of a firearm, possession with intent to distribute fentanyl, and possession of a firearm in furtherance of his drug trafficking crime.  

The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and, Chief Malik Aziz of the Prince George’s County Police Department.

According to the evidence presented at trial, on July 10, 2021, at approximately 1:31 p.m., officers responded to a location in Temple Hills, Maryland due to a suspicious occupied vehicle that was parked in the area.  Upon arrival, officers observed Proctor unresponsive in the driver seat, behind the steering wheel, with the windows up, and the doors locked.  Officers banged on the windows to wake up Proctor and he eventually woke up and exited the vehicle. Law enforcement thereafter saw and retrieved a clear bag hanging from Proctor’s front pocket, which contained approximately 10 grams of fentanyl. Additionally, Proctor possessed a firearm, which was located inside the center console of the vehicle. The firearm was loaded with thirteen 40mm caliber cartridges in the magazine and one in the chamber. 

Once at the jail, officers located an additional clear zipped bag containing 29 small clear bags, which also contained fentanyl. Proctor possessed the firearm in connection with his fentanyl drug trafficking. At the time Proctor possessed the firearm, he was prohibited from doing so due to prior felony convictions. Proctor faces a maximum sentence of 10 years in federal prison for felon in possession of a firearm; a maximum sentence of 20 years in federal prison for possession with intent to distribute fentanyl; and a mandatory minimum sentence of 5 years and a maximum sentence of life in federal prison for possession of a firearm in furtherance of a drug trafficking crime.  U.S. District Judge Paula Xinis has not yet scheduled sentencing.

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 Erek L. Barron commended the ATF and PGPD for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Joel Crespo, and David I. Salem, 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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Baltimore, Maryland – A federal grand jury has returned an indictment charging a Maryland man on federal charges related to a scheme to fraudulently obtain more than $1 million dollars in unemployment benefits.  On May 22, 2024, a grand jury returned an indictment of Mervyn Fombe Abiko, a/k/a “Magic,” a 35-year-old Maryland man with conspiracy, wire fraud, and aggravated identity theft.  The indictment was unsealed today upon the arrest of the defendant. 

The defendant had an initial appearance on October 2, 2024 in U.S. District Court in Baltimore before U.S. Magistrate Judge Erin Aslan.

The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Damon E. Wood, Postal Inspector in Charge, U.S. Postal Inspection Service-Washington Division Michael S. McCarthy, Special Agent in Charge, Homeland Security Investigations, - Baltimore, Acting Special Agent in Charge Karl Mastantuno, Office of Investigations, Office of Inspector General, U.S. Department of the Treasury, Troy W. Springer, Special Agent in Charge, U.S. Department of Labor - Office of Inspector General, National Capital Region, John T. Perez, Special Agent in Charge of Headquarters Operations, Federal Reserve Board Office of Inspector General.

As detailed in the indictment, employment 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.  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 BOA debit card, which claimants could use to withdraw funds and/or make purchases.

According to the indictment, from March 2020 through January 2021, Abiko and others, including Martin Tabe and Gladstone Njokem, conspired to impersonate victim individuals in order to submit fraudulent UI claims.  To accomplish this, Abiko and others obtained the personally identifiable information (PII) of victims and used that information to file UI applications, which resulted in debit cards being issued in the names of victims that were loaded with benefits.  Abiko and others used those debit cards in point-of-sale transactions and at ATMs. Abiko and others collectively obtained more than $1 million through this scheme.

If convicted, the defendant faces a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud and for each of the three counts of wire fraud.  The defendant faces a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for each of the three counts of aggravated identity theft.  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. 

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 USPIS, the DOL-OIG and HSI for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorney Sean R. Delaney, 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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Baltimore, Maryland – U.S. District Chief Judge George L. Russell III yesterday sentenced Dolapo Lawal, age 34, of Baltimore, Maryland, to 60 months’ imprisonment and 3 years of supervised release for federal charges of access device fraud and aggravated identity theft.

The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to the guilty plea, Lawal knowingly and willfully participated in and executed a stolen identity tax refund fraud scheme to obtain fraudulent tax refunds using the identities of elderly victims, then load those refunds onto debit cards tied to bank accounts opened in the victims’ names, sent those cards to secure known addresses throughout the United States, and finally withdraw those refunds in cash. 

As outlined at his guilty plea Lawal’s involvement in the scheme can be grouped into two efforts.  In the first instance, Lawal intentionally trafficked and used 24 Green Dot Bank debit cards in elderly victims’ names in the spring of 2022.  These cards were fraudulently loaded with more than $200,000 in 2021 tax refunds, which were fraudulently obtained through identity theft.  On April 8, 2022, the Baltimore County Police Department lawfully stopped and searched Lawal’s Mercedes S-class sedan.  During the search, officers found approximately $18,900 in cash and these 24 debit cards in a bag left under Lawal’s seat.  Lawal admitted to officers on the scene that this was his bag.  The vehicle also contained multiple plastic bags filled with opened packaging for these or similar debit cards.  Cell tower pings, automated license plate reader data, bank records, and Lawal’s admissions to law enforcement show that Lawal had used these 24 cards to conduct more than 300 cash withdrawals at ATMs to obtain more than $80,000 in the preceding month.  Lawal later admitted that he used these fraudulent debit cards on multiple occasions to conduct cash withdrawals for his personal benefit – specifically to make payments on his Mercedes and to pay off personal credit card debt.

In the second instance, Lawal possessed over 300 additional unique Green Dot Bank debit cards in his home on or about June 21, 2023.  That day, law enforcement executed a search warrant on Lawal’s residence.  During the search, IRS-CI agents found, among other items, a box containing more than 300 additional unique Green Dot Bank debit cards.  Lawal’s iPhone – also seized pursuant to the same search warrant – contained photographs of several of these cards along with portions of the packaging for each of the cards that had the bank account number and routing number for the corresponding account associated with the card.  Approximately 200 of these cards were linked to bank accounts opened in the names of additional victims, which were listed as the direct deposit accounts for fraudulent 2021 and 2022 tax refund claims filed in the names of those same victims.  Many of these tax returns were filed after Lawal’s April 8, 2022 traffic stop.  The total amount of fraudulent tax refund claims associated with these cards was over $3 million.  The IRS had not issued these refund claims before law enforcement searched Lawal’s home.  

In total, Lawal’s offenses furthered a scheme to defraud the United States of over $3 million.

Reporting from consumers about fraud and fraud attempts is critical to law enforcements 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 the National Elder Fraud Hotline: 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 by 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 10:00 a.m. to 6:00 p.m. Monday through Friday. English, Spanish, and other languages are available.  More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, 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 Barron commended the IRS-CI for its work in the investigation and thanked the Baltimore County Police Department for its assistance.  Mr. Barron 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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Baltimore, Maryland – Fourteen people were arrested yesterday in a large-scale drug and gun bust throughout Annapolis, Anne Arundel County and Baltimore City. 

During the operation – which involved over 500 officers, agents and personnel from federal, state and local agencies – law enforcement seized distribution levels of narcotics including cocaine, heroin, fentanyl and oxycodone, one shotgun, three handguns, nearly $40,000 in cash and drug paraphernalia.  

“This operation is yet another example of how the teamwork among our law enforcement partners is stronger than ever,” said Erek L. Barron, U.S. Attorney for the District of Maryland, “If we work together, with our community-based partners, our neighborhoods will be safe and secure.”

"Thanks to diligent and comprehensive investigative work by the FBI’s Annapolis Safe Streets Task Force, a significant drug trafficking organization has been dismantled," said William J. DelBagno, Special Agent in Charge of the FBI Baltimore Field Office. “In a coordinated effort across three jurisdictions, the FBI and our law enforcement partners worked seamlessly to thwart the capabilities of this criminal enterprise that profited from peddling poison within our communities. We are working hard to identify and stop the most violent offenders and facilitators."  

14 people were arrested. 11 of the 14 are facing federal charges of conspiracy to distribute and possess with intent to distribute controlled dangerous substances. Additional charges could follow.  

A complaint is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.  

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.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

U.S. Attorney Barron commended the FBI-Baltimore Field Office, the Office of the State's Attorney for Anne Arundel County with the assistance of FBI national and regional assets, the Annapolis Police Department, Anne Arundel County Police Department, Baltimore Police Department, Anne Arundel County Sheriff’s Office, Maryland State Police, Maryland Army National Guard, the Drug Enforcement Administration and the United States Marshals Service. Mr. Barron thanked Assistant U.S. Attorneys LaRai Everett and Jonathan Tsuei, 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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Washington – The U.S. Attorney’s Office for the District of Maryland announced today that it has reached a settlement agreement with the Maryland Department of State Police (MDSP) to resolve the United States’ claims that MDSP’s hiring process for state troopers violates Title VII of the Civil Rights Act. Specifically, the United States alleges that MDSP uses a written test that discriminates against Black candidates and a physical fitness test that discriminates against female candidates. The agreement must still be approved by a federal judge.

The settlement agreement resolves a civil pattern and practice investigation the U.S. Attorney’s Office opened on July 15, 2022. As part of the investigation, the U.S. Attorney’s Office conducted an in-depth review of MDSP’s hiring practices, the composition of its sworn personnel, applicant data, and information received from the Maryland State Police, and concluded the State’s written and physical fitness tests do not meaningfully distinguish between applicants who can and cannot perform the position of Trooper. These tests also had the effect of disqualifying Black and female applicants from the hiring process at significantly disproportionate rates. The U.S. Attorney’s Office thus concluded that these tests violate Title VII.

“This settlement agreement is a reflection of our continued mission to protect the civil rights of all Marylanders, including those of our sworn law enforcement officers,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Law enforcement agencies have a responsibility to protect all citizens equally. We are pleased that MDSP is committed to ensuring that its hiring processes will not discriminate on the basis of race or gender.”   

“Equal employment opportunities in law enforcement are not just a core civil right but essential to ensuring that those who serve reflect the rich racial and gender diversity of the communities they are sworn to protect,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The underrepresentation of Blacks and women in law enforcement undermines public safety and runs contrary to the principle of equal opportunity which is central in our job market. This agreement requires the Maryland Department of State Police to institute meaningful reforms, remove unlawful barriers in its hiring process, and provide restitution and relief to those already harmed, ensuring that all qualified applicants have a fair chance to serve. The Justice Department will continue working to ensure equal access to employment opportunities for all Americans.”

The complaint, filed today in the District of Maryland, alleges that MDSP’s use of a written test called the Police Officer Selection Test (POST) disproportionately excludes Black candidates, and its use of a physical fitness test called the Functional Fitness Assessment Test (FFAT) disproportionately excludes female candidates, from employment as troopers. The United States alleges that MDSP’s uses of the POST and the FFAT are not job related or consistent with business necessity, and thus, violate Title VII.

Under the terms of the consent decree, MDSP will:

• Adopt written and physical fitness tests that do not discriminate in violation of Title VII;
• Provide data to the United States on the administration of the new tests to ensure compliance;
• Pay $2.75 million in back pay to applicants who were disqualified by MDSP’s use of the challenged tests; and
• Hire up to 25 applicants who were unfairly disqualified by those tests and who successfully complete MDSP’s new trooper screening and selection process.

Title VII is a federal statute that prohibits employment discrimination based on race, sex, color, national origin, and religion. Title VII prohibits not only intentional discrimination but also employment practices that result in a disparate impact on a protected group, unless such practices are job related and consistent with business necessity.

You can learn more about the contents of the agreement from this fact sheet.

The full and fair enforcement of Title VII is a top priority of the U.S. Attorney’s Office for the District of Maryland. More information about the U.S. Attorney’s Office for the District of Maryland can be found at https://www.justice.gov/usao-mdand more information about the Office’s Civil Rights and Special Victims Section can be found at https://www.justice.gov/usao-md/civil-rights.

This matter is being handled by Assistant United States Attorneys Kimberly Phillips and Sarah Marquardt for the District of Maryland and Senior Trial Attorneys Emily Given and Cheyenne N. Chambers of the Civil Rights Division’s Employment Litigation Section. 

Washington - Precision Toxicology, doing business as Precision Diagnostics, has agreed to pay $27 million to resolve alleged violations of the False Claims Act and similar state statutes for billing Medicare, Medicaid and other federal health care programs for medically unnecessary urine drug tests, and for providing free items to physicians who agreed to refer expensive laboratory testing business to Precision. Precision, headquartered in San Diego, is one of the nation’s largest urine drug testing laboratories.

“We aggressively pursue those who defraud these critical healthcare programs and take money meant for needy patients.  Taxpayers deserve nothing less, “said U.S. Attorney for the District of Maryland Erek L. Barron.  

“The Justice Department is committed to ensuring that laboratory tests are ordered based on each patient’s medical needs and not just to increase laboratory profits,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will not tolerate practices that unnecessarily increase the costs of federal health care programs and result in the misuse of taxpayer funds.”

In the settlement agreement, the United States alleged that Precision systematically billed federal health care programs for excessive and unnecessary urine drug testing from January 1, 2013, through December 31, 2022.  In particular, the United States contended that Precision caused physicians to order excessive numbers of urine drug tests, in part through the promotion of “custom profiles,” which were, in effect, standing orders that caused physicians to order a large number of tests without an individualized assessment of each patient’s needs.  This practice violated federal healthcare program rules limiting payment to services that are reasonable and medically necessary for the treatment and diagnosis of an individual patient’s illness or injury.

The United States also alleged that Precision’s provision of free point of care urine drug test cups to physicians—expressly conditioned on the physicians’ agreement to return the urine specimens to Precision for additional testing—violated the Anti-Kickback Statute.  The Anti-Kickback Statute generally prohibits laboratories from giving physicians anything of value in exchange for referrals of tests.

“When laboratories ignore medical needs and increase testing for their own profits, the Department of Justice will act to protect the taxpayers and the integrity of our vital federal health programs,” said Acting U.S. Attorney for the District of Colorado Matthew Kirsch.

In connection with the False Claims Act settlement, Precision has also entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).

“Today’s settlement demonstrates that investigating violations of the False Claims Act is a top priority,” said Maureen R. Dixon, Special Agent in Charge for HHS-OIG.  “HHS-OIG will continue to work with the Department of Justice to ensure the integrity of federal health care programs.”

Of the settlement amount, $18.2 million will be paid to the United States and the remainder will be paid to the states of Maryland, Illinois, Minnesota, Virginia, Georgia and Colorado for the states’ share of Medicaid.

The False Claims Act allegations resolved by this settlement were originally brought in three lawsuits filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery.  Two of the cases are captioned United States and Maryland ex rel. Hudak v. Precision Toxicology, LLC, ELH-18-1510 (D. Md.) and United States, Illinois and Minnesota ex rel. Buonauro v. Precision Diagnostics, LLC et al., ELH-21-3231 (D. Md).  The third qui tam case against Precision, brought in the District of Colorado, remains partially sealed.

Under the Act, the United States can elect to intervene in an action filed by a whistleblower, as it did here in part.  Bryce Hudak will receive $2,743,002 from the federal False Claims Act recovery.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare 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 the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The resolution obtained in this matter was the result of a coordinated effort between federal and state partners lead by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; along with the U.S. Attorney’s Offices for the Districts of Maryland, Colorado and Connecticut; the Department of Health and Human Services Office of Inspector General and Office of the General Counsel; the Office of Personnel Management Office of Inspector General; the Department of Veteran’s Affairs Office of Inspector General; the Defense Criminal Investigative Service; the Maryland Office of Attorney General; and the National Association of Medicaid Fraud Control Units.

Attorneys Vanessa Reed and Vince Vaccarella of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Roann Nichols for the District of Maryland, David Moskowitz for the District of Colorado and Rick Molot for the District of Connecticut handled the matter, with assistance from Assistant Attorneys General Raja Mishra of the State of Maryland, and Ian Garland of the State of Florida.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

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The Justice Department announced today that it has reached a settlement agreement with the Maryland Department of State Police (MDSP) to resolve the United States’ claims that MDSP’s hiring process for state troopers violates Title VII of the Civil Rights Act. Specifically, the United States alleges that MDSP uses a written test that discriminates against Black candidates and a physical fitness test that discriminates against female candidates. The agreement must still be approved by a federal judge.

The settlement agreement resolves a civil pattern and practice investigation the Civil Rights Division opened on July 15, 2022. As part of the investigation, the division conducted an in-depth review of MDSP’s hiring practices, the composition of its sworn personnel, applicant data, and information received from the Maryland State Police, and concluded the State’s written and physical fitness tests do not meaningfully distinguish between applicants who can and cannot perform the position of Trooper. These tests also had the effect of disqualifying Black and female applicants from the hiring process at significantly disproportionate rates. The department thus concluded that these tests violate Title VII.

“Equal employment opportunities in law enforcement are not just a core civil right but essential to ensuring that those who serve reflect the rich racial and gender diversity of the communities they are sworn to protect,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The underrepresentation of Blacks and women in law enforcement undermines public safety and runs contrary to the principle of equal opportunity which is central in our job market. This agreement requires the Maryland Department of State Police to institute meaningful reforms, remove unlawful barriers in its hiring process, and provide restitution and relief to those already harmed, ensuring that all qualified applicants have a fair chance to serve. The Justice Department will continue working to ensure equal access to employment opportunities for all Americans.”

“This settlement agreement is a reflection of our continued mission to protect the civil rights of all Marylanders, including those of our sworn law enforcement officers,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Law enforcement agencies have a responsibility to protect all citizens equally. We are pleased that MDSP is committed to ensuring that its hiring processes will not discriminate on the basis of race or gender.” 

The complaint, filed today in the District of Maryland, alleges that MDSP’s use of a written test called the Police Officer Selection Test (POST) disproportionately excludes Black candidates, and its use of a physical fitness test called the Functional Fitness Assessment Test (FFAT) disproportionately excludes female candidates, from employment as troopers. The United States alleges that MDSP’s uses of the POST and the FFAT are not job related or consistent with business necessity, and thus, violate Title VII.

Under the terms of the consent decree, MDSP will:

• Adopt written and physical fitness tests that do not discriminate in violation of Title VII;
• Provide data to the United States on the administration of the new tests to ensure compliance;
• Pay $2.75 million in back pay to applicants who were disqualified by MDSP’s use of the challenged tests; and
• Hire up to 25 applicants who were unfairly disqualified by those tests and who successfully complete MDSP’s new trooper screening and selection process.

Title VII is a federal statute that prohibits employment discrimination based on race, sex, color, national origin, and religion. Title VII prohibits not only intentional discrimination but also employment practices that result in a disparate impact on a protected group, unless such practices are job related and consistent with business necessity.

You can learn more about the contents of the agreement from this fact sheet and a statement from Assistant Attorney General Clarke here.

The full and fair enforcement of Title VII is a top priority of the Civil Rights Division. The Division has issued a new fact sheet on Combating Hiring Discrimination by Police and Fire Departments to help applicants for public safety jobs understand their Title VII rights to be free from discriminatory hiring processes. More information about the Civil Rights Division can be found at www.justice.gov/crt.

Senior Trial Attorneys Emily Given and Cheyenne N. Chambers of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Kimberly Phillips for the District of Maryland are handling this matter.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Dexter Nikoe Eaton, age 34, of Baltimore, to 14 years in federal prison, followed by 3 years of supervised release, for armed bank robbery, related to a series of bank and armed commercial robberies.

The sentence was 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, Baltimore Field Office and Commissioner Richard Worley of the Baltimore Police Department.

According to Eaton’s plea agreement, between June 3 and July 30, 2022, Eaton committed six separate robbery incidents-five robberies and one attempted robbery of banks and other businesses and used a firearm in four of the robberies.  Specifically, Eaton admitted that on June 3, 2022, he robbed a bank in the 3200 block of West North Avenue in Baltimore, providing a note to the teller that demanded money and threatened to kill the teller’s family if the teller did not comply with Eaton’s demands.  On June 9, 2022, Eaton attempted to rob a check cashing and financial services business located in the 1600 block of West North Avenue, again by passing a note to the teller.  The teller refused to read the note, instead activating an alarm, and Eaton fled.  Law enforcement collected the note passed by Eaton, which again demanded money and threatened to kill the family of the employee if Eaton’s demands were not met.

On June 10, 2022, Eaton, armed with a handgun, entered a bank in the 3200 block of West North Avenue wearing a black head covering and a surgical mask and pointed the gun at customers and employees stating, “Nobody move.  Give me $4,000 or everyone in this b***h is dead.”  Eaton forced a customer to the ground at gunpoint and took the customer’s wallet and cash.  With the gun still pointed at the customer’s head, Eaton demanded that an employee get him $4,000 or Eaton would shoot the customer.  The bank employee, fearing for her safety and the safety of others, gave Eaton cash, and Eaton fled the bank.  On June 27, Eaton, armed with a handgun, robbed a bank in the 4700 block of Liberty Heights Avenue in Baltimore, pointing a gun at the security guard’s head and forcing the security guard to accompany Eaton to the teller window, where a customer was conducting a transaction.  With the gun still at the security guard’s head, Eaton demanded that the teller give him $7,000-$8,000 and threatened to shoot the security guard and the customer if the teller did not give him money or pushed any alarms.  Fearing for her safety, the teller gave Eaton cash and he fled the bank.

Finally, on July 23, 2022, and July 30, 2022, Eaton robbed two businesses in the 3100 block of West North Avenue.  In both robberies, Eaton held employees at gunpoint and demanded money, threatening an employee in the second robbery for moving too slow.  The employees in both robberies gave Eaton cash and he left the stores.               

U.S. Attorney Barron praised the FBI and Baltimore Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Reema Sood and Paul E. Budlow, 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.

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Greenbelt, Maryland – Today, federal inmate Jonathan Henry, age 32, was sentenced to 97 months imprisonment followed by 3 years of supervised release and restitution in the amount of $1,894,971 for conspiracy to commit wire fraud and mail fraud and aggravated identity theft, relating to the submission of fraudulent CARES Act unemployment insurance benefits.  Henry’s co-defendant, Kenneth Dodd, was previously sentenced to 42 months imprisonment for his role in the offense, which he will serve consecutively to previous sentences he is currently serving as a result of prior federal felony convictions.  A third defendant, Jason Haddox, is scheduled to be sentenced on January 24, 2025.

The sentences are announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Troy W. Springer of the National Capital Region U.S. Department of Labor - Office of Inspector General (“DOL-OIG”); and, Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service (“USPIS”) - Washington Division.

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.  Financial assistance offered through the CARES Act included expanded eligibility for Unemployment Insurance (“UI”) benefits and increased UI benefits through the Pandemic Unemployment Assistance Program (“PUA”), Federal Pandemic Unemployment Compensation (“FPUC”), and the Lost Wages Assistance Program (“LWAP”).

According to their plea agreements, during the time of the conspiracy, from March 22, 2020 through at least June 2021, Henry, Dodd and Haddox were inmates at the Federal Correctional Institution, Fort Dix (“FCI Fort Dix”). Henry, Dodd Haddox and their co-conspirators (both inmates and outside individuals) submitted fraudulent online applications for UI benefits in Maryland and other states.  Henry and other conspirators used the personal identifying information (“PII”) of identity theft victims in many of the applications.  Based on the information in the fraudulent applications, the Maryland Department of Labor, which is responsible for processing applications for UI benefits in Maryland, issued prepaid debit cards in the names of the applicants and mailed them to addresses included on the applications, which were accessible to the conspirators.  The defendants and their co-conspirators used the prepaid debit cards to withdraw money from ATMs and to make retail purchases.

Henry admitted that he used the PII of identity theft victims to submit approximately 191 fraudulent claims, the majority in Maryland but also in Washington, D.C., Virginia and North Carolina.  Of the fraudulent claims submitted, 152 claims were paid, with an actual loss of approximately $1,894,971.

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 Barron commended the DOL-OIG and the USPIS for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Kelly O. Hayes, 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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Baltimore, Maryland – On September 30, 2024, U.S. District Judge Stephanie A. Gallagher sentenced William Zev Steen, age 46, of Baltimore, Maryland, to 23 years in federal prison, followed by lifetime supervised release, for sexual exploitation of a child.

The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Michael S. McCarthy of Homeland Security Investigations (HSI); and Commissioner Richard Worley of the Baltimore Police Department.       

According to his guilty plea, from 2005 to 2011, Steen sexually abused the minor victim, from the time she was two until she was eight years old.  Steen recorded two of the instances of sexual abuse in 2008 when the minor victim was 5 years old.

Steen also admitted that in 2022, he collected and shared files depicting the sexual abuse of prepubescent minors using a Peer-to-Peer file sharing network.  The files documenting Steen’s abuse of the minor victim were located on his digital devices after his arrest in November 2022.

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 HSI Baltimore, HSI Tel Aviv, and the Baltimore Police Department for their work in the investigation. Mr. Barron also thanked Assistant United States Attorneys Paul E. Budlow and Michael Aubin, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

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ALEXANDRIA, Va. – Today, the Justice Department announced actions coordinated with the Department of State, Department of the Treasury, and other federal and international law enforcement partners to combat Russian money laundering operations. The actions involved the unsealing of an indictment charging a Russian national with his involvement in operating multiple money laundering services that catered to cybercriminals, as well as the seizure of websites associated with three illicit cryptocurrency exchanges.

“Today's actions highlight the Department’s continued disruption of malicious cyber actors and their criminal ecosystem,” said Deputy Attorney General Lisa Monaco. “The two Russian nationals charged today allegedly pocketed millions of dollars from prolific money laundering and fueled a network of cyber criminals around the world, with Ivanov allegedly facilitating darknet drug traffickers and ransomware operators. Working with our Dutch partners, we shut down Cryptex, an illicit crypto exchange, and recovered millions of dollars in cryptocurrency.”

“Every step cybercriminals take in their pursuit of money leaves another track that leads us to their doorstep,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “And if you follow them on their path of greed, they will lead us to you. We will not stop, because while domains can always be seized, justice is unyielding.”

“The Secret Service is relentless in pursuing those engaged in criminal activity,” said Assistant Director Brian Lambert of the U.S. Secret Service. “I thank our domestic and foreign partners for their efforts on this case, as we continue our work bringing to justice those engaged in transnational criminal activity.”

According to court documents unsealed today in the Eastern District of Virginia, Russian national Sergey Ivanov, known online as “Taleon,” among other aliases, was charged with one count of conspiracy to commit and aid and abet bank fraud for providing payment processing support to the carding website Rescator, and one count of conspiracy to commit money laundering for laundering proceeds from the carding website Joker’s Stash. (“Carding” is the unlawful acquisition of and trade in stolen credit and debit card information for fraudulent purposes.) Ivanov allegedly operated for nearly two decades as a professional cyber money launderer, advertising his services to other cybercriminals on exclusive Russian-speaking criminal forums. Over the years, Ivanov’s laundering services and payment systems have catered to cybercrime marketplaces, ransomware groups, and hackers responsible for significant data breaches of major U.S. companies.

Ivanov allegedly created and/or operated Russian payment and exchange services UAPS, PinPays, and PM2BTC, which provided money transfer and laundering services directly to criminals. Cryptocurrency blockchain analysis revealed that, between July 12, 2013, and August 10, 2024, cryptocurrency addresses associated with Ivanov’s alleged money laundering services conducted transactions totaling approximately $1.15 billion in value. Approximately 32% of all traced bitcoin sent to these addresses originated from other cryptocurrency addresses associated with criminal activity. For example, more than $158 million of bitcoin flowing into Ivanov’s addresses allegedly represented fraud proceeds, more than $8.8 million allegedly represented proceeds from known ransomware payments, and approximately $4.7 million allegedly originated from darknet drug markets. The U.S. Secret Service has obtained court authorization to seize domains associated with the UAPS and PM2BTC websites.

The Rescator carding website allegedly sold stolen payment card data from U.S. financial institutions and personally identifiable information (PII) of U.S. citizens. For example, the website allegedly advertised the sale of data from up to 40 million payment cards and the PII of approximately 70 million people that had been stolen from a major U.S. retail victim in 2013. The breach cost the U.S. retail victim at least $202 million in expenses and caused damage to the U.S. retail victim’s customers, who became targets of identity theft by other cybercriminals. Ivanov allegedly provided payment processing support for the Rescator carding site through the UAPS and PinPays services for purchases made on the site using bitcoin.

Additionally, Russian national Timur Shakhmametov, known online as “JokerStash” and “Vega,” among other aliases, is charged in the same indictment with one count of conspiracy to commit and aid and abet bank fraud, one count of conspiracy to commit access device fraud, and one count of conspiracy to commit money laundering related to his work in operating the carding website Joker’s Stash and laundering the proceeds. Joker’s Stash offered for sale data from approximately 40 million payment cards annually, totaling hundreds of millions of payment cards overall, and was one of the largest known carding markets in history. Estimates of its profits range from $280 million to more than $1 billion. Shakhmametov and others allegedly promoted Joker’s Stash and its products by advertising the Joker’s Stash website and its stolen payment card data on numerous online cybercrime forums.

Separately, the U.S. Secret Service executed a seizure order from the District of Maryland against two website domain names used to support the cryptocurrency money laundering exchange “Cryptex.net.” According to court records unsealed today, Cryptex.net and Cryptex.one were associated with the administration and operation of Cryptex, which offers complete anonymity to Cryptex users by allowing them to register for accounts without providing know-your-customer compliance requirements. Like UAPS and PM2BTC, Cryptex advertised itself directly to cybercriminals.

According to a company that provides blockchain analytics services to law enforcement, there have been more than 37,500 transactions involving bitcoin addresses associated with Cryptex, amounting to a total value of approximately 62,586 bitcoin, or $1.4 billion at the time the transactions were made. Of that amount, about 31% of the bitcoin sent, or $441 million, originated from cryptocurrency addresses associated with criminal conduct, including $297 million of fraud proceeds and more than $115 million of proceeds from ransomware payments. Nine percent of all bitcoin sent to Cryptex, or $162 million, originated from cryptocurrency addresses associated with services often used by cybercriminals. Further, 28% of all bitcoin sent from Cryptex was sent to companies or darknet markets sanctioned by the United States.

The seizure of these domains by the government will prevent the owners and third parties from using the sites for money laundering. Individuals visiting those sites now will see a message indicating that the site has been seized by the federal government.

As part of the coordinated actions taken today, our Dutch partners seized the servers hosting PM2BTC and Cryptex. Those servers have been taken offline at various locations around the world, and the Dutch have seized cryptocurrency from those servers worth over $7 million.

In coordination with the department’s actions, other U.S. government agencies and foreign law enforcement partners are also taking related actions. The U.S. Department of State issued reward offers up to $11 million through its Transnational Organized Crime Rewards Program for information leading to the arrest and/or conviction of Ivanov and others involved in the operation of his money laundering services, and for Shakhmametov and others involved in the operation of Joker’s Stash. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an order that identifies PM2BTC as being of “primary money laundering concern” in connection with Russian illicit finance. Concurrently, Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Cryptex and Ivanov.

The U.S. Secret Service Cyber Investigative Section is investigating the case.

Assistant U.S. Attorney Zoe Bedell for the Eastern District of Virginia is prosecuting the case against Ivanov and Shakhmametov. Trial Attorney Jeff Pearlman and Senior Counsel Jessica Peck of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Thomas Sullivan for the District of Maryland are handling the investigation into Cryptex. The Justice Department’s Office of International Affairs also provided assistance in these matters.

The Netherlands Police, Dutch Fiscal Information and Investigation Service, International Cooperation Department of the Central Criminal Police of the State Police of Latvia, Europol, National Cyber-Forensics & Training Alliance, German Federal Criminal Police Office, and UK National Crime Agency provided invaluable assistance.

The text of FinCEN’s order can be found here.

More information on the individuals and entities that OFAC designated today can be found here.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.

The Justice Department today announced actions coordinated with the Department of State, Department of the Treasury, and other federal and international law enforcement partners to combat Russian money laundering operations. The actions involved the unsealing of an indictment charging a Russian national with his involvement in operating multiple money laundering services that catered to cybercriminals, as well as the seizure of websites associated with three illicit cryptocurrency exchanges.

“Today's actions highlight the Department’s continued disruption of malicious cyber actors and their criminal ecosystem,” said Deputy Attorney General Lisa Monaco. “The two Russian nationals charged today allegedly pocketed millions of dollars from prolific money laundering and fueled a network of cyber criminals around the world, with Ivanov allegedly facilitating darknet drug traffickers and ransomware operators. Working with our Dutch partners, we shut down Cryptex, an illicit crypto exchange and recovered millions of dollars in cryptocurrency.”

“Cryptex promised its cybercriminal customers a safe space to launder their illicit proceeds anonymously,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “But the coordinated actions announced today — including seizing the Cryptex domains, servers, and proceeds — should put cybercriminals on notice that there are no safe spaces for cybercriminals online. The Criminal Division will continue to work with its domestic and international partnerships to disrupt platforms that enable cybercrime and render those platforms unprofitable.”  

“Every step cybercriminals take in their pursuit of money leaves another track that leads us to their doorstep,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “And if you follow them on their path of greed, they will lead us to you. We will not stop, because while domains can always be seized, justice is unyielding.”

“The Secret Service is relentless in pursuing those engaged in criminal activity,” said Assistant Director Brian Lambert of the U.S. Secret Service. “I thank our domestic and foreign partners for their efforts on this case, as we continue our work bringing to justice those engaged in transnational criminal activity.”

According to court documents unsealed today in the Eastern District of Virginia, Russian national Sergey Ivanov, known online as “Taleon,” among other aliases, was charged with one count of conspiracy to commit and aid and abet bank fraud for providing payment processing support to the carding website Rescator, and one count of conspiracy to commit money laundering for laundering proceeds from the carding website Joker’s Stash. “Carding” is the unlawful acquisition of and trade in stolen credit and debit card information for fraudulent purposes. Ivanov allegedly operated for nearly two decades as a professional cyber money launderer, advertising his services to other cybercriminals on exclusive Russian-speaking criminal forums. Over the years, Ivanov’s laundering services and payment systems have catered to cybercrime marketplaces, ransomware groups, and hackers responsible for significant data breaches of major U.S. companies.

Ivanov allegedly created and/or operated Russian payment and exchange services UAPS, PinPays, and PM2BTC, which provided money transfer and laundering services directly to criminals. Cryptocurrency blockchain analysis revealed that between July 12, 2013, and Aug. 10, cryptocurrency addresses associated with Ivanov’s alleged money laundering services conducted transactions totaling approximately $1.15 billion in value. Approximately 32% of all traced bitcoin sent to these addresses originated from other cryptocurrency addresses associated with criminal activity. For example, more than $158 million of bitcoin flowing into Ivanov’s addresses allegedly represented fraud proceeds, more than $8.8 million allegedly represented proceeds from known ransomware payments, and approximately $4.7 million allegedly originated from darknet drug markets. The U.S. Secret Service has obtained court authorization to seize domains associated with the UAPS and PM2BTC websites.

The Rescator carding website allegedly sold stolen payment card data from U.S. financial institutions and personally identifiable information (PII) of U.S. citizens. For example, the website allegedly advertised the sale of data from up to 40 million payment cards and the PII of approximately 70 million people that had been stolen from a major U.S. retail victim in 2013. The breach cost the U.S. retail victim at least $202 million in expenses and caused damage to the U.S. retail victim’s customers, who became targets of identity theft by other cybercriminals. Ivanov allegedly provided payment processing support for the Rescator carding site through the UAPS and PinPays services for purchases made on the site using bitcoin.

Additionally, Russian national Timur Shakhmametov, known online as “JokerStash” and “Vega,” among other aliases, is charged in the same indictment with one count of conspiracy to commit and aid and abet bank fraud, one count of conspiracy to commit access device fraud, and one count of conspiracy to commit money laundering related to his work in operating the carding website Joker’s Stash and laundering the proceeds. Joker’s Stash offered for sale data from approximately 40 million payment cards annually, totaling hundreds of millions of payment cards overall, and was one of the largest known carding markets in history. Estimates of its profits range from $280 million to more than $1 billion. Shakhmametov and others allegedly promoted Joker’s Stash and its products by advertising the Joker’s Stash website and its stolen payment card data on numerous online cybercrime forums.

Separately, the U.S. Secret Service executed a seizure order from the District of Maryland against two website domain names used to support the cryptocurrency money laundering exchange “Cryptex.net.” According to court records unsealed today, Cryptex.net and Cryptex.one were associated with the administration and operation of Cryptex, which offers complete anonymity to Cryptex users by allowing them to register for accounts without providing know-your-customer compliance requirements. Like UAPS and PM2BTC, Cryptex advertised itself directly to cybercriminals.

According to a company that provides blockchain analytics services to law enforcement, there have been more than 37,500 transactions involving bitcoin addresses associated with Cryptex, amounting to a total value of approximately 62,586 bitcoin, or $1.4 billion at the time the transactions were made. Of that amount, about 31% of the bitcoin sent, or $441 million, originated from cryptocurrency addresses associated with criminal conduct, including $297 million of fraud proceeds and more than $115 million of proceeds from ransomware payments. Nine percent of all bitcoin sent to Cryptex, or $162 million, originated from cryptocurrency addresses associated with services often used by cybercriminals. Further, 28% of all bitcoin sent from Cryptex was sent to companies or darknet markets sanctioned by the United States.

The seizure of these domains by the government will prevent the owners and third parties from using the sites for money laundering. Individuals visiting those sites now will see a message indicating that the site has been seized by the federal government.

As part of the coordinated actions taken today, our Dutch partners seized the servers hosting PM2BTC and Cryptex. Those servers have been taken offline at various locations around the world, and the Dutch have seized cryptocurrency from those servers worth over $7 million.

In coordination with the department’s actions, other U.S. government agencies and foreign law enforcement partners are also taking related actions. The U.S. Department of State issued reward offers up to $11 million through its Transnational Organized Crime Rewards Program for information leading to the arrest and/or conviction of Ivanov and others involved in the operation of his money laundering services, and for Shakhmametov and others involved in the operation of Joker’s Stash. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an order that identifies PM2BTC as being of “primary money laundering concern” in connection with Russian illicit finance. Concurrently, Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Cryptex and Ivanov.

The U.S. Secret Service Cyber Investigative Section is investigating the case.

Assistant U.S. Attorney Zoe Bedell for the Eastern District of Virginia is prosecuting the case against Ivanov and Shakhmametov. Trial Attorney Jeff Pearlman and Senior Counsel Jessica Peck of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Thomas Sullivan of the District of Maryland are handling the investigation into Cryptex. The Justice Department’s Office of International Affairs also provided assistance in these matters.

The Netherlands Police, Dutch Fiscal Information and Investigation Service, the International Cooperation Department of the Central Criminal Police of the State Police of Latvia, Europol, the National Cyber-Forensics & Training Alliance, the German Federal Criminal Police Office, and the UK National Crime Agency provided invaluable assistance.

The text of FinCEN’s order can be found here.

For more information on the individuals and entities that OFAC designated today, click here.

Baltimore – On September 25, 2024, United States District Judge George L. Russell, III, sentenced Tavon Reid-El, age 25, of Baltimore City, Maryland, to fourteen (14) years in federal prison, followed by five years of supervised release, for committing two armed commercial robberies and three armed carjackings in Baltimore City, Maryland. 

The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and, Commissioner Richard Worley of the Baltimore City Police Department.

According to his plea agreement, on December 28, 2019, Reid-El robbed an employee of Safeway Lock & Key.  According to the employee, he was dispatched to the 1500 block of Fernley Road in Baltimore City to provide assistance with a vehicle lockout. When the employee arrived at the location, he was met by Reid-El, who indicated that he was locked-out of his vehicle, a white Nissan Sentra.  The Safeway employee then programmed a new key fob and requested payment from Reid-El. Reid-El provided partial payment, and the employee informed Reid-El that he owed a balance.  An unidentified co-conspirator, armed with a handgun, then approached the employee.  Reid-El demanded the employee empty his pockets and return the money that Reid-El had given to him.  Reid-El and the unknown suspect then took the employee’s wallet and cellphone, as well as work tools from the employee’s work van.  The men also attempted to abduct the employee but were unsuccessful.

On January 11, 2020, Reid-El committed three armed carjackings in Baltimore City.  During all three carjackings, Reid-El arrived at the scene in a white sedan and then approached the victims, brandishing a handgun.  Reid-El then stole the vehicles and personal items of the victims. Co-defendant Tyree Bethel operated the white sedan during some of the carjackings.

At approximately 12:00 p.m. on January 11, 2020, Reid-El robbed at gunpoint a locksmith for Jet Locksmith in the 1700 block of East 32nd Street in Baltimore City.  At the location, the victim met with Reid-El, who informed the locksmith that he had locked his keys inside his white 2016 Honda Accord.  The locksmith then unlocked the Honda and Reid-El retrieved the keys.  As the locksmith prepared a work order and asked Reid-El how he was paying for the service, Reid-El replied that he was paying with cash.  The locksmith then walked to his work vehicle and noticed Reid-El following him.  Reid-El then lifted the hemline of his sweatshirt and revealed a brown-handled revolver firearm and asked the locksmith for his money, wallet and cellphone. Reid-El also demanded that the locksmith open the safe contained in the locksmith’s work vehicle.  The locksmith complied and provided Reid-El with his wallet, cellphone, and cash from the vehicle’s safe.  Reid-El then entered the white Honda Accord and departed the area.

A cellular telephone tracking order was authorized for two cellular phone numbers.  Utilizing the tracking order, BPD officers were able to track one of the phones to a silver Honda Accord.  BPD officers stopped the vehicle and located inside were Reid-El, co-defendant Tyree Bethel and another individual.  The cellphone that was being tracked was recovered from Reid-El.  Officers also recovered from Reid-El the cellphone of one of the victims.  The other cellphone was tracked to the home address of co-defendant Bethel.

In mid-January 2020, several victims from the commercial armed robberies and carjackings responded to the BPD Citywide Robbery section and were each shown photograph arrays.  The victims each positively identified Reid-El as the perpetrator of the crimes.

On January 16, 2020, a search warrant was authorized for the residence of co-defendant Tyree Bethel.  During the search of the residence, law enforcement officers recovered, among other items, the Auto Pad Pro stolen from the employee of Safeway Lock & Key on December 28, 2019.

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 Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney John W. Sippel, Jr., 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 https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.