District of Maryland
Press releases recorded for this federal judicial district.
Temple Hills Felon Pleads Guilty to Illegal Possession of A Firearm and AmmunitionRead the Press Release
Greenbelt, Maryland – Today, Damante Christian Dozier, age 26, of Temple Hills, Maryland pleaded guilty to being a felon in possession of a firearm and ammunition.
The guilty plea 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); Chief Demetrious Harris of the City of Seat Pleasant Police Department, and Chief Malik Aziz of the Prince George’s County Police Department.
According to his guilty plea, on June 6, 2023, an officer with the Seat Pleasant Police Department who suspected that Dozier had shoplifted from a retail store in Oxon Hill, Maryland, approached Dozier and observed the shape of a firearm in Dozier’s pants. The officer frisked Dozier’s waistband area and felt a solid rectangular mass consistent with the shape of a firearm. Following the frisk, and after requesting backup, the officer asked Dozier to turn around to be handcuffed, and Dozier attempted to flee. A few seconds later, law enforcement officers from the Seat Pleasant Police Department and the Prince George’s County Police Department gained control of Dozier and retrieved a firearm with an extended magazine from his pants. The recovered firearm was a black Glock 45 .9mm semi-automatic pistol loaded with one round of ammunition in the chamber and 33 rounds in an extended magazine. Dozier knew that he had a previous felony conviction which prohibited him from possessing a firearm and ammunition.
U.S. Attorney Barron commended the ATF, the City of Seat Pleasant Police Department, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron also thanked Special Assistant U.S. Attorney Gustavo Ruiz and Assistant United States Attorney Kelly O. Hayes, 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 https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Jamaican National Indicted for an Alleged Lottery Scheme That Defrauded Victims of More Than $9.5 MillionRead the Press Release
Baltimore, Maryland – Today Nickoy Campbell, age 29, of Jamaica, had an initial appearance on a superseding indictment for conspiracy to commit mail fraud in connection with a lottery scheme.
The second superseding indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; 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 October 2020 until February 2024, the defendants and their co-conspirators contacted the victims by mail or over the phone and convinced them that they had won millions of dollars in a lottery or sweepstakes but were required to send payment in advance for taxes and other fees before they could receive their winnings. The defendants and other conspirators caused the victims to send payments for the purported taxes and other fees through wire transfer, by gift card, by sending cash and by other payment methods. According to the indictment, as a result of the scheme, the victims sent at least $9.5 million to the defendants and other conspirators.
Wayne Henry and Dwayne Henry of Landover Hills, Maryland were charged previously with conspiracy to commit mail fraud as part of the same lottery scheme.
If convicted, Campbell faces a maximum sentence of 20 years in federal prison for the mail fraud conspiracy. 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. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Charles D. Austin ordered that Campbell be detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of 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.
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 at 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 U.S. Postal Inspection Service, HSI, United States Department of the Treasury, Office of Inspector General and the Social Security Administration Office of Inspector General for their work in the investigation and thanked the Maryland State Police, Baltimore County Police, and Anne Arundel County Police for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Evelyn Lombardo Cusson and Christine Goo, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help seniors, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/elder-justice-initiative.
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Convicted Sex Offender Sentenced to Seven Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell. III, sentenced defendant Jacob Joseph Muir, 26, of Pasadena, Maryland, to seven years in federal prison, followed by 30 years of supervised release for one count of receipt of child pornography. Judge Russell also ordered Muir after his release from prison, to register as a sex offender, have no contact with children under 18, without permission, and undergo computer monitoring.
The sentence was 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 plea agreement, from July to August 2019, Muir pretended to be a teenage boy to entice minors to produce and send him sexually explicit photographs on social media site Instagram. A subsequent investigation revealed that Muir used aliases to communicate with minors, directing and enticing them to send him sexually graphic images of themselves.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended the FBI Baltimore Field Office, and the Anne Arundel County Police Department for their work in the investigation and prosecution. Mr. Barron thanked Special Assistant U.S. Attorney Kertisha Dixon and Assistant United States Attorney Michael F. Aubin, who prosecuted this case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
Baltimore County Man Sentenced for Bank Fraud Scheme Involving over $1.8 Million in Fraudulent Bank TransactionsRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin today sentenced Damilola Ojo, age 31, of Windsor Mill, Maryland, to 48 months in federal prison, followed by 2 years of supervised release, for charges related to a bank fraud scheme totaling more than $1.8 million. As part of his plea, Ojo also admitted to obtaining a fraudulent $475,000 COVID-19 CARES Act loan. Judge Rubin ordered Ojo to forfeit $20,000 and to pay restitution of $546,000.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration (“TIGTA”).
According to his guilty plea, from April 2016 through August 2019, Damilola Ojo conspired with Jamelia Thompson, Victor Ojo, Raissa Kaossele, and others to commit Bank Fraud using the Internal Revenue Service’s (“IRS”) Modernized Internet Employer Identification Number (“Mod IEIN”) system. Mod IEIN is the IRS system that allows users to register for a unique Employer Identification Number (“EIN”). It requires users to enter the valid name and Social Security number of a real living person in order to obtain an EIN for a business.
The co-conspirators, including Damilola Ojo, created and used various EINs (or caused various EINs to be created and used) in furtherance of a scheme to defraud. Many of these EINs were obtained from the IRS using stolen Personally Identifiable Information (“PII”). These EINs, in conjunction with fraudulently obtained state business certificates, allowed the co-conspirators to open bank accounts at various financial institutions for the purpose of depositing stolen and/or altered checks or for receiving fraudulently obtained wire transfers.
Once obtained, the proceeds of this fraudulent activity were rapidly withdrawn and/or transferred to other bank accounts controlled by the co-conspirators. A co-conspirator’s Google account was the source of many of the fraudulent identification and business documents – packaged together as “work kits” – utilized throughout the conspiracy. M any of these emails were sent to electronic accounts linked to Damilola Ojo, who would then forward them to Thompson, Victor Ojo, Kaossele, and other co-conspirators – in addition to utilizing work kits himself. These co-conspirators would then open bank accounts using these work kits, they would send Damilola Ojo evidence of the fraudulent transactions that occurred using these bank accounts. Damilola Ojo would often receive portions of these transactions’ proceeds as they were rapidly dispersed. From the point Damilola Ojo joined the conspiracy, it had an intended loss of at least $1.8 million.
Upon his arrest, Damilola Ojo shared a residence with co-conspirator Thompson. In this shared residence, the Government located evidence of ongoing fraud: numerous ETN documents, business documents in other people’s names, numerous IDs in the names of individuals other than those who lived in the home, identification documents with authentication features, and bank cards in the name of other individuals.
In the plea agreement, Damilola Ojo also admitted to additional fraudulent activity involving a pandemic relief program under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, in this case through Economic Injury Disaster Loans (“EIDL”) administered by the U.S. Small Business Administration (“SBA”). On November 21, 2021, Thompson opened a bank account at Woodforest National Bank in Maryland in the name of her business “Jamaria Empire LLC.” On February 14, 2022, a $475,000 EIDL from the SBA was deposited into bank account xxxxxx2866. The intended recipient of this EIDL was the Idaho Women’s Charitable Foundation. Once deposited into bank account xxxxxx2866, these funds were depleted through checks to Damilola Ojo, Thompson, and Certified Promotions Ent LLC (a business registered in Maryland to Damilola Ojo). Upon Thompson’s and Damilola Ojo’s arrest, the EIN application and EIN documents for Jamaria Empire LLC were recovered from their shared residence. Images of a Woodforest Bank Card for Jamaria Empire LLC and a screenshot of the Jamaria Empire LLC bank account transaction history were recovered from Damilola Ojo’s phone, along with an image of the approved $475,000 EIDL. This fraudulent transaction caused $475,000 in actual loss that was reasonably foreseeable to Damilola Ojo.
Co-conspirator Jamelia Thompson, age 30, of Jamaica, previously pled guilty to conspiracy to commit bank fraud and was sentenced to 37 months in federal prison. Another co-conspirator, Raissa Kaossele, age 23, of Baltimore, Maryland, pled guilty to conspiracy to commit bank fraud and aggravated identity theft and was sentenced to 8 months in home confinement. Co-conspirator Victor Ojo has pled guilty to conspiracy to commit bank fraud and aggravated identity theft and remains to be sentenced.
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 TIGTA for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Joseph L. Wenner and Paul Riley who prosecuted the federal case. He 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 and https://www.justice.gov/usao-md/community-outreach.
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Man Sentenced for Coercion and Enticement of a MinorRead the Press Release
A Maryland man was sentenced yesterday to 17 years in prison for coercion and enticement of a minor.
According to court documents, beginning as early as 2011, Paul Francis Blaisse, 65, of Walkersville, engaged in live video chats on the internet with minor children who were engaged in sexually explicit conduct. Blaisse sent nearly 100,000 messages to hundreds of individuals on video chat sites who offered access to minor children via webcam. During these chats, Blaisse discussed his sexual interest in children and distributed child sexual abuse material (CSAM). The Frederick County, Maryland, Sheriff’s Office identified Blaisse after receiving a CyberTip from the National Center for Missing and Exploited Children that an individual using an IP address associated with Blaisse’s residence uploaded CSAM to a video chat account.
In October 2018, Blaisse used Skype, an online video chat application, to entice a minor child in the Philippines to engage in sexually explicit conduct. Blaisse used screen recording software to create CSAM. Records of Blaisse’s Skype activity show that he communicated with an adult in the Philippines who arranged for the minor child to participate in a video chat with Blaisse. FBI agents interviewed the minor child, who stated that the person paid them to do a sexually explicit show on Skype for a “foreigner.” In addition to these chats, Blaisse’s electronic devices contained hundreds of images and videos depicting the sexual abuse of children, including prepubescent minors.
Blaisse was also ordered to serve a lifetime of supervised release and to pay over $83,000 in restitution to his victims. After his release from prison, Blaisse will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Erek L. Barron for the District of Maryland; State’s Attorney J. Charles Smith III of Frederick County; and Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office made the announcement.
The Frederick County Sheriff’s Office, FBI, and Justice Department’s High Technology Investigative Unit investigated the case.
Trial Attorney Eduardo Palomo of the Justice Department’s Child Exploitation and Obscenity Section, Assistant U.S. Attorney Michael Aubin for the District of Maryland, and Chief Counsel Joyce King of the Frederick County State’s Attorney’s Office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Aberdeen Convicted Sex Offender Sentenced to Forty Years in Federal Prison for Multiple Counts of Sexual Exploitation of A MinorRead the Press Release
Baltimore, Maryland – U.S. District Judge Brendan A. Hurson sentenced Nicholas Paul Bryson, age 41, of Aberdeen, Maryland, to forty years in federal prison, followed by a lifetime of supervised release for two counts of sexual exploitation of a minor. Bryson was also ordered to pay $16,000 in restitution to his victims. After his release from prison, Bryson will be required register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI) Baltimore; Colonel Roland L. Butler, Jr., Superintendent of Maryland State Police (MSP); Jeffrey R. Gahler, Harford County Sheriff; and Henry Trabert, Chief of Aberdeen Police Department.
According to his plea agreement, beginning in 2011 to 2013, Bryson and his wife and codefendant, Heather Clark, repeatedly sexually abused a prepubescent minor in their care and produced numerous sexually explicit videos and images of the abuse. In addition, a federal search warrant identified approximately 1,000 depictions of child pornography from various seized devices.
Codefendant Clark, age 37, previously pled guilty to two counts of sexual exploitation of a minor and is currently awaiting sentencing on September 4, 2024. She faces 60 years in federal prison.
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, MSP, the Harford County Sheriff’s Office, and the Aberdeen Police Department for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys Michael F. Aubin and Paul A. Riley, 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.
Three Men Indicted for Involvement in $3.5 Million Dollar Elder Fraud Scheme Impacting More Than 1,000 Alleged VictimsRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Amit Ahuja, age 40, of Westminster, Maryland, Kapil Gulati, age 50, of Glen Burnie, Maryland, and Priyanshu Walia, age 39, of Cleveland, Ohio, with conspiracy to commit wire fraud and wire fraud in connection with a technical support scheme where victims were made to believe that their computers had been compromised by a virus, or were susceptible to hacking, and payments were needed for computer repair services or software.
The indictment was announced by Erek L. Barron, U.S. for the District of Maryland; Postal Inspector in Charge Eric Shen of the U.S. Postal Inspection Service, Criminal Investigations Group; and Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI) Baltimore.
As detailed in the indictment, victims received a pop-up window urging them to call a phone number, or an unsolicited phone call, or victims contacted what they believed was a legitimate technical support company found through an online search. As further alleged, the victims were made to believe that their computers had major issues that they needed to pay money immediately to fix, and that they were working with legitimate computer companies or computer security companies.
According to the indictment, as a result of the scheme, more than 1,000 victims, many of whom were older adults, sent at least $3.5 million to the defendants and other conspirators based on false pretenses, representations, and promises involving the condition of the victims’ computers and the services and software allegedly required to fix the issues.
If convicted, the defendants face a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and each count of wire fraud. 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.
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 U.S. Postal Inspection Service and HSI-Baltimore, for their work in the investigation. And also thanked HSI-Cleveland for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Evelyn Lombardo Cusson and Matthew Phelps, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Convicted Sex Offender Sentenced to Seventeen Years in Federal Prison for Coercion and Enticement of A MinorRead the Press Release
Baltimore, Maryland – Today U.S. District Judge Matthew J. Maddox sentenced defendant Paul Francis Blaisse, 65, of Walkersville, Maryland, to seventeen years in federal prison, followed by a lifetime of supervised release for one count of coercion and enticement of a minor. Judge Maddox also ordered Blaisse to pay $83,694 in restitution to his victims and, after his release from prison, to register as a sex offender in the place where he resides, where he is an employee, and where he is a student.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Principal Deputy Assistant Attorney General for the Justice Department’s Criminal Division, Nicole M. Argentieri; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; and J. Charles Smith III, State’s Attorney for Frederick County, Maryland.
According to court documents, beginning as early as 2011, Blaisse engaged in live video chats with minor children who were engaged in sexually explicit conduct. Mr. Blaisse exchanged messages with hundreds of individuals on video chat sites who offered access to minor children via webcam. During these chats, Blaisse discussed his sexual interest in children and distributed child sexual abuse material (CSAM). The Frederick County Sheriff’s Office identified Blaisse after receiving a CyberTip from the National Center for Missing and Exploited Children that an individual using an IP address associated with Blaisse’s residence uploaded CSAM to a video chat account.
In October 2018, Blaisse used an online video chat application, to entice a minor child in the Philippines to engage in sexually explicit conduct. Records of Blaisse’s activity show that he communicated with an adult in the Philippines who arranged for the minor child to participate in a video chat with Blaisse. In addition to these chats, Blaisse’s electronic devices contained hundreds of images and videos depicting the sexual abuse of children, including prepubescent minors.
U.S. Attorney Barron commended the FBI Baltimore Field Office, the Justice Department’s High Technology Investigative Unit, and the Frederick County Sheriff’s Office for their work in the investigation and prosecution. Leading the prosecution of this case are Department of Justice Trial Attorney Eduardo Palomo, Assistant U.S. Attorney Michael F. Aubin, and Special Assistant U.S. Attorney Joyce King. 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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Convicted Sex Offender Sentenced to Thirty Years in Federal Prison for Sexual Exploitation of Multiple MinorsRead the Press Release
Greenbelt, Maryland – Today, U.S. District Judge Theodore D. Chuang sentenced Matthew Molnar, age 47, of Hagerstown, Maryland to thirty years in federal prison, followed by fifteen years of supervised release, for sexual exploitation of a child. He is ordered to pay $18,000 in restitution. Judge Chuang also ordered that, upon his release from prison, Molnar must continue to register as a sex offender in the places where he resides and where he is an employee pursuant to the Sex Offender Registration and Notification Act (“SORNA”).
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, Michael McCarthy of Homeland Security Investigations (HSI) Baltimore, and Chief Malik Aziz of the Prince George’s County Police Department.
According to the guilty plea, in 2015, Molnar was convicted of possession of child pornography. In 2020 and 2021, Molnar communicated with a Florida-based minor victim and coerced the minor victim to produce sexually explicit videos. In May 2021, Molnar traveled to visit the minor victim, telling the victim, falsely, that he was 17-years-old and was studying pre-law. In February 2022, Molnar started communicating with a Maryland-based minor victim, exchanging sexually explicit messages with her. Also, in February 2022, Molnar had sexual intercourse with the minor on multiple occasions. During a subsequent search warrant at Molnar’s house, law enforcement found multiple sexually explicit files that included the minor victim. In reviewing Molnar’s electronic devices seized during the search warrant, law enforcement also determined that Molnar had distributed numerous files containing child pornography.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative established by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended the FBI, HSI and Prince George’s County Police Department for their work in the investigation. Assistant U.S. Attorney Christopher Sarma is leading the prosecution of 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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United States Obtains $26M in False Claims Act Judgments Against Laboratory Companies and Their OwnerRead the Press Release
On July 18, the U.S. District Court for the District of Maryland entered default judgments for the United States totaling $26,341,951.38 against Patrick Britton-Harr and multiple laboratory companies owned by him for violations of the False Claims Act. The court entered these judgments after Britton-Harr and his companies failed to defend against the United States’ allegations.
In its complaint, filed on July 18, 2023, the United States alleged that Patrick Britton-Harr owned and operated Provista Health, LLC as well as multiple other corporate entities that sought to profit from the unfolding COVID-19 pandemic by offering COVID-19 tests to nursing homes as a way to bill Medicare for a wide array of medically unnecessary respiratory pathogen panel (RPP) tests. The complaint alleged that these RPP tests were not medically necessary because the beneficiaries had no symptoms of a respiratory illness and because the tests were for uncommon respiratory pathogens.
The complaint also alleged that Britton-Harr and Provista Health submitted claims for RPP tests that were never ordered by physicians and sometimes for RPP tests that were never performed, including over 300 claims that stated that the nasal swab test sample was supposedly collected from the beneficiary on a date after the beneficiary had died.
Also on July 18, 2023, the United States filed an application for prejudgment remedies under the Federal Debt Collection Procedures Act seeking to attach and garnish certain financial assets of Britton-Harr and to obtain financial discovery from him to help ensure funds would be available to satisfy a judgment in favor of the United States. Despite a court order prohibiting Britton-Harr from selling his house in Annapolis without approval from the court, he sold the house on Sept. 23, 2023, for $575,000 and dissipated the financial proceeds from the sale. On March 4, the court granted the United States’ motion to hold Britton-Harr in civil contempt for violating this order and ordered him to deposit $575,000 with the court’s registry.
“The Justice Department remains committed to holding accountable individuals and entities who took advantage of the COVID-19 pandemic to defraud the American taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those who attempt to thwart justice by ignoring lawsuits, dissipating assets and violating court orders.”
“The exploitation of federal health care programs designed to help the elderly and disabled during a national crisis is absolutely inexcusable,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Regardless of their methods, we will hold accountable those who defraud such programs for personal gain.”
“It's clear that Patrick Britton-Harr thought he could defraud the government by taking advantage of a global pandemic and never face the consequences. The extent of his fraud and abuse is astounding. He took critical resources away from our healthcare system and cost taxpayers their hard-earned money,” said Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office. “This investigation proves the FBI and our federal partners will continue to investigate and bring fraudsters like Britton-Harr to justice no matter how long it takes.”
“Taking advantage of Medicare beneficiaries and the COVID-19 pandemic to line companies’ pockets is unacceptable,” said Special Agent in Charge Maureen Dixon of the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG, the Justice Department and our other law enforcement partners work tirelessly to ensure that only legitimate products and services actually provided will be paid for by federal health insurance programs.”
The United States’ pursuit of this lawsuit 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 HHS at 800‑HHS‑TIPS (800-447-8477).
The Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Maryland handled the matter.
HHS-OIG and the FBI are providing investigative support.
Trial Attorneys Jonathan Hoerner and Vincent Vaccarella of the Civil Division’s Fraud Section and Assistant U.S. Attorney/Deputy Civil Chief Tarra DeShields for the District of Maryland are handling the case.
United States Obtains $26 Million in False Claims Act Judgments Against Laboratory Companies and Their OwnerRead the Press Release
Baltimore, Maryland – On July 18th, the U.S. District Court for the District of Maryland entered default judgments for the United States totaling $26,341,951.38 against Patrick Britton-Harr and multiple laboratory companies owned by him for violations of the False Claims Act. The court entered these judgments after Britton-Harr and his companies failed to defend against the United States’ allegations.
In its complaint, filed on July 18, 2023, the United States alleged that Patrick Britton-Harr owned and operated Provista Health, LLC as well as multiple other corporate entities that sought to profit from the unfolding COVID-19 pandemic by offering COVID-19 tests to nursing homes as a way to bill Medicare for a wide array of medically unnecessary respiratory pathogen panel (RPP) tests. The complaint alleged that these RPP tests were not medically necessary because the beneficiaries had no symptoms of a respiratory illness and because the tests were for uncommon respiratory pathogens.
The complaint also alleged that Britton-Harr and Provista Health submitted claims for RPP tests that were never ordered by physicians and sometimes for RPP tests that were never performed, including over 300 claims that stated that the nasal swab test sample was supposedly collected from the beneficiary on a date after the beneficiary had died.
Also on July 18, 2023, the United States filed an application for prejudgment remedies under the Federal Debt Collection Procedures Act seeking to attach and garnish certain financial assets of Britton-Harr and to obtain financial discovery from him to help ensure funds would be available to satisfy a judgment in favor of the United States. Despite a court order prohibiting Britton-Harr from selling his house in Annapolis without approval from the court, he sold the house on September 23, 2023, for $575,000 and dissipated the financial proceeds from the sale. On March 4, 2024, the court granted the United States’ motion to hold Britton-Harr in civil contempt for violating this order and ordered him to deposit $575,000 with the court’s registry.
“The exploitation of federal health care programs designed to help the elderly and disabled during a national crisis is absolutely inexcusable. Regardless of their methods, we will hold accountable those who defraud such programs for personal gain,” said Erek L. Barron, U.S. Attorney for the District of Maryland.
“The Department of Justice remains committed to holding accountable individuals and entities who took advantage of the COVID-19 pandemic to defraud the American taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those who attempt to thwart justice by ignoring lawsuits, dissipating assets, and violating court orders.”
“Taking advantage of Medicare beneficiaries and the COVID-19 pandemic to line companies’ pockets is unacceptable,” said Maureen Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “HHS-OIG, the Department of Justice, and our other law enforcement partners work tirelessly to ensure that only legitimate products and services actually provided will be paid for by federal health insurance programs.”
“It's clear that Patrick Britton-Harr thought he could defraud the government by taking advantage of a global pandemic and never face the consequences. The extent of his fraud and abuse is astounding. He took critical resources away from our healthcare system and cost taxpayers their hard-earned money," said Special Agent in Charge William J. DelBagno of the FBI's Baltimore Field Office. "This investigation proves the FBI and our federal partners will continue to investigate and bring fraudsters like Britton-Harr to justice no matter how long it takes.”
The United States’ pursuit of this lawsuit illustrates the government’s emphasis on combatting 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).
United States Attorney Erek L. Barron commended the DHHS-OIG and the Federal Bureau of Investigation for their work in this investigation. Mr. Barron thanked Assistant U.S. Attorney Tarra DeShields and Trial Attorneys Jonathan Hoerner and Vincent Vaccarella of the Department of Justice’s Civil Division’s Commercial Litigation Branch, Fraud Section, who are handling this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Maryland Woman Sentenced to 30 Months for A Series of Fraud Schemes, Including Passport Fraud, Wire Fraud, and Bankruptcy FraudRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Charmaine Miesha Brown, age 45, of Lusby, Maryland, to 30 months in federal prison, followed by 3 years of supervised release for conspiracies to commit passport fraud and wire fraud, as well as bankruptcy fraud, and making a false statement in bankruptcy proceeding. Brown was also ordered to pay $128,201.22 in restitution.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Karen L. Brown Cleveland of the U.S. Department of the State’s Diplomatic Security Service, Washington Field Office; Special Agent in Charge Colleen Lawlor of the Social Security Administration - Office of Inspector General, Philadelphia Field Division; and Inspector General Joseph V. Cuffari of the Department of Homeland Security.
As detailed in trial testimony, in January 2014, Charmaine Miesha Brown, a United States citizen, married Andrews Oduro Brown, a/k/a “Andrews Oduro,” a Ghanaian national who entered the United States in May 2013. In 2021, Oduro obtained legal permanent resident status in the United States through his marriage to Brown.
According to trial testimony, including testimony from Brown, and court documents, from December 2014 through April 2021, Brown and Oduro conspired to obtain United States passports for Oduro’s children, who were non-United States citizens, through false statements and fraudulent identity documents.
For example, the evidence established that on December 1, 2014, Brown submitted an application for a passport in the name of Brown’s child, Child C, who is a U.S. citizen, but bearing the photograph of Oduro’s child, Child A, who was born in Ghana and is not a U.S. citizen. After the application was approved, Child A traveled from Ghana into the United States using the fraudulently obtained U.S. passport. On March 16, 2015, Brown and Oduro applied for a passport in Child A’s own name and submitted a fraudulent Ghanaian birth certificate in support of the application, falsely stating that Brown was Child A’s birth mother. As detailed at trial, on March 17, 2020, Brown and Oduro applied for a passport in the name of Child B, Oduro’s non-U.S. citizen child, and again submitted a fraudulent Ghanaian birth certificate in support of the application, falsely stating that Brown was Child B’s birth mother. After the application was approved, Child B used the fraudulently obtained U.S. passport to travel into the United States.
Further, the evidence proved that from August 2016 through April 2021, Brown and Oduro conspired to receive payments from the state of Maryland’s Child Care Scholarship Program to which they were not entitled. The Child Care Scholarship Program, formerly known as the Child Care Subsidy Program, provides direct payments for childcare services to providers of childcare to low-income families. Brown falsely reported to the state of Maryland that a friend, Individual 1, was watching her children. Brown also falsely represented that Oduro was an “absent parent,” when in fact Oduro lived in the same home. The trial evidence, however, established that Individual 1 visited the United States in 2011 to 2012 before returning to Ghana and could not have provided the childcare services. Instead, Oduro posed as Individual 1 and obtained payments from the state of Maryland between 2016 and 2021 to provide childcare to his and Brown’s own children.
Finally, according to trial testimony and court documents, in 2018, Brown and Oduro defrauded creditors and the bankruptcy trustee by filing a fraudulent Chapter 7 bankruptcy petition in the United States Bankruptcy Court for the District of Maryland. Brown and Oduro filed the petition using the name and partial social security number of Individual 1, seeking the discharge of tens of thousands of dollars in debts and tax obligations to the state of Maryland that Oduro incurred using the name and PII of Individual 1. Court records show that Brown filled out the petition documents. In addition, Oduro appeared at the discharge hearing in the bankruptcy court and identified himself as Individual 1, presenting a Pennsylvania identification that Brown and Oduro had fraudulently obtained in the name of Individual 1. According to court documents and evidence presented at trial, as a result of the fraudulent bankruptcy petition in the name of Individual 1, Brown and Oduro caused the entry of an order in June 2018 discharging debt that Oduro incurred in the name of Individual 1.
Andrews Oduro Brown previously pleaded guilty to conspiracy to commit passport fraud, aggravated identity theft, and bankruptcy fraud. Judge Chuang sentenced Oduro to 28 months in federal prison, followed by three years of supervised release, and further ordered Oduro to pay restitution of $127,951.22.
U.S. Attorney Barron commended the State Department’s Diplomatic Security Service, the Social Security Administration Office of Inspector General, and the Department of Homeland Security - Office of Inspector General for their work in the investigation. Mr. Barron thanked the Office of the U.S. Trustee for the District of Maryland, the Maryland State Department of Education, the Maryland Office of the Attorney General, the Office of the Comptroller of Maryland, the Pennsylvania Department of Health, the Pennsylvania Department of Human Services, and the Dauphin County Staff for their significant assistance. Mr. Barron thanked Assistant U.S. Attorney Coreen Mao and Special Assistant U.S. Attorney Gustavo Ruiz, 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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Glen Burnie Man Pleads Guilty to Conspiracy to Engage in Dogfighting and Interstate Travel in Aid of RacketeeringRead the Press Release
Baltimore, Maryland – Mario Flythe, age 50, of Glen Burnie, Maryland, pleaded guilty today to federal charges of conspiracy to engage in animal fighting, specifically the fighting of dogs, and interstate travel in aid of racketeering.
The guilty plea was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, Special Agent in Charge David J. Scott of the Federal Bureau of Investigation, Washington 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; U.S. Marshal for Maryland Clinton Fuchs; and Anne Arundel County Police Chief Amal E. Awad.
According to the guilty plea, Flythe was affiliated with the same dogfighting enterprise as his co-defendant, Frederick Douglass Moorfield, Jr. Flythe operated a kennel under the name “Razor Sharp Kennels,” and he used his home to keep, train and breed dogs for dogfighting for several years.
A review of Flythe’s cellphone showed numerous message exchanges regarding dogfighting—primarily over the instant messaging applications WhatsApp and Telegram—with members of a group known as the “DMV Board.” In addition to arranging dog fights and wagers, Flythe and the DMV Board discussed the breeding and training of fighting dogs, procuring supplies for the maintenance and feeding of fighting dogs and criminal prosecutions of dogfighters. In some exchanges, Flythe and others discussed indictments of other members of the DMV Board and speculated about the identity of a potential “snitch.”
Flythe’s instant messages also revealed several exchanges arranging—or “hooking”—dogfights. In those conversations, Flythe identified the weight and sex of the dog he wanted to sponsor in a fight. Other dogfighters then proposed a fight against their own dog or matched Flythe with another of their contacts who had a dog in the same weight class. The dogfighters would then agree on wagers and set a date for the fight, usually six to eight weeks after the match was made. In addition to stating the amount to be paid to the winner of the fight, dogfighters agreed on forfeit—or “fit”—payments to be made if a dogfighter backed out of the fight before it was scheduled to take place.
After hooking a fight, Flythe trained his dogs in a process known as a “keep.” Flythe’s typical keep schedule for a dog involved physical training (using treadmills, weighted collars, and other accessories), a diet plan, and the use of steroids. Flythe obtained steroids and other veterinary drugs through various contacts in his dogfighting network, not through legitimate veterinary prescriptions.
When Flythe sponsored a dog in a fight, the fight ended only when a dog died or when the owner forfeited the match—either through the dog “quitting” the fight or the owner “picking up” the dog.
On several occasions between 2019 and 2023, Flythe received monetary payments through CashApp related to his participation in dogfighting conduct. Flythe also sent money to dogfighting contacts in connection with the dogfighting enterprise.
On September 6, 2023, during a search of Flythe’s home, investigators recovered a total of seven pit bull-type dogs from the premises. Four dogs were found chained to posts or poles in fenced-in cages in the property’s back yard, and three dogs were found in large metal cages in the basement. In each of the cages in the back yard, investigators observed water bowls that contained either only dirt or water that appeared contaminated. Canine feces was found in both the cages in the back yard and basement. The back yard and four of the seven dogs were infested with fleas. Flythe agrees that he bred and/or trained dogs for the purposes of sponsoring them in dogfights.
Flythe faces a maximum of five years in federal prison for conspiring to engage in an animal fighting conspiracy. U.S. District Court Judge Richard D. Bennett has scheduled sentencing for October 24, 2024 at 2:30 p.m.
Actual sentences for federal crimes are typically less than the maximum penalties. U.S. District Court Judge Richard D. Bennett will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Barron commended the FBI, the DCIS, and the USDA-OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Alexander Levin and Darryl Tarver, 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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Texas Man Pleads Guilty to International Money Laundering Conspiracy Involving More Than $8,500,000 in Fraud Scheme FundsRead the Press Release
Baltimore, Maryland – Jon Briceno, age 42, of Katy, Texas, pleaded guilty Friday, July 19, 2024, to conspiracy to commit money laundering, relating to his laundering of more than $8,751,523.07 in proceeds of various frauds, such as romance schemes and business email compromise schemes.
The guilty plea was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Christina Bentham of the United States Secret Service (USSS), Baltimore Field Office; and Sheriff Matt Crisafulli of the Worcester County Sheriff’s Office.
According to the plea agreement, beginning around June 2020, at the latest, and continuing through the date of his arrest by federal law enforcement on February 20, 2024, Briceno entered into an illegal agreement with the individuals referred to as Person A and Person B in the Indictment and numerous other co-conspirators to conduct and attempt to conduct financial transactions affecting interstate and foreign commerce that constituted the fraud schemes.
The conspiracy involved the use of numerous shell companies formed by Briceno and his co-conspirators, as well as the opening of multiple bank accounts in the name of the shell companies that concealed his receipt and transfer of fraud proceeds. These shell companies assisted the conspiracy by allowing Briceno to receive and transfer fraud proceeds while concealing Briceno’s identity and that of his co-conspirators.
In connection with the scheme, Briceno and his co-conspirators each took a percentage of the proceeds from schemes, with the Briceno often taking 10-25% of the fraud proceeds.
Briceno was an organizer or leader of the money laundering conspiracy, which involved multiple participants around the nation. Indeed, the Briceno routinely directed co-conspirators across the county in connection with the scheme, including by (1) recruiting them to open bank accounts in their names or in the names of various purported businesses (shell companies) to launder the fraud proceeds; (2) informing them when proceeds of schemes of defraud were deposited into bank accounts they controlled; (3) directing the co-conspirators regarding the intermediate accounts to which the proceeds were to be transferred; and (4) directing the co-conspirators to provide confirmation to him that the co-conspirators had in fact received and then transferred the proceeds as requested, including (a) photographs of online bank statements and online wire transfer confirmations; (b) mobile device screenshots of confirmations of transfers of funds via Zelle; and (c) mobile device screenshots of online bank statements.
Among the financial transactions Briceno directed with his co-conspirators was their receipt of funds from a victim, the Worcester County Treasurer’s Office in Worcester County, Maryland—referred to as Victim 1 in the Indictment—on 12 separate instances beginning on November 20, 2020 and ending on January 21, 2021 in amounts ranging in size from $16.60 to $41,471.94. In total, Worcester County was fraudulently convinced to provide $167,745.18 in funds to a bank account controlled by Briceno as a result of a business email compromise scheme in which an accounting manager employed by Worcester County received fraudulent emails directing that payments be made in response to a bill be made to the account controlled by Briceno.
Moreover, during the broader timeframe of June 2020 to February 20, 2024, Briceno and his co-conspirators, used numerous accounts opened by Briceno and co-conspirators throughout the United States) to launder fraud proceeds obtained by numerous victims across the United States (including victims from California, Illinois, Virginia, Iowa, North Carolina, Texas, Missouri, Florida, New Jersey, New York, Indiana, South Carolina, Ohio, Alabama), as well as international victims Australia, Singapore, Luxembourg, Peru, the Dominican Republic and Thailand.
In total, Briceno laundered at least $8,751,523.07 in funds that were proceeds of wire fraud, and he personally received in excess of $1,250,000 as his share of the fraudulently obtained funds.
Mr. Briceno used the fraudulently obtained funds he received to purchase, among other things, numerous pieces of jewelry from Tiffany & Co., Cartier, Van Cleef & Arpels and others, numerous luxury items from designers such as Louis Vuitton, Gucci, Dior, and Christian Louboutin, and at least nine Rolex watches (valued at more than $10,000 each). He invested in crypto-currency using the funds and likewise frequently gambled with large amounts of it. Moreover, Briceno use the funds to lease office space, which he used as a space for running a poker room in Texas.
On June 15, 2022, Briceno’s residence, at the time located in Katy, Texas, was searched pursuant to a federal search warrant. During the search, law enforcement identified and seized numerous bank records, money order receipts, pawn shop receipts, several bankcards and articles of incorporation documents for various shell businesses used in connection with money laundering conspiracy, along with various electronic devices. One of these devices contained numerous WhatsApp messages and audio recordings of evidentiary value, including messages with co-conspirators concerning the money laundering conspiracy and numerous bank accounts used by Briceno, Person A, Person B, and others to launder fraud scheme funds, and numerous shell entities that were founded and used in connection with the conspiracy.
On February 20, 2024, law enforcement executed another search warrant at Briceno’s new home, also located in Katy, Texas, and Briceno was arrested. Numerous items of evidentiary value were seized during the search, including electronic devices with content reflecting the money laundering conspiracy with Person A, Person B, and others.
Briceno faces a maximum possible sentence of 20 years in prison followed by up to three years of supervised release. U.S. District Judge Matthew J. Maddox has scheduled sentencing for October 24, 2024 at 10:00 a.m.
United States Attorney Erek L. Barron commended the USSS and the Worcester County Sheriff’s Office for their work in the investigation. Assistant U.S. Attorney Paul A. Riley leads the prosecution of 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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Capitol Heights Man Sentenced to 53 Months in Federal Prison for Wire Fraud and Illegal Possession of A FirearmRead the Press Release
Baltimore, Maryland – On July 18, 2024, U.S. District Judge Brendan A. Hurson sentenced Stephawn Watson, also known as “O Dawg,” age 28, of Capitol Heights, Maryland to 53 months in federal prison, followed by three years of supervised release, for charges related to a Maryland and California unemployment insurance (UI) fraud scheme totaling more than $1.5 million, as well as Illegal Possession of a Firearm. Judge Hurson also ordered Wason to forfeit over $90,000 and to pay restitution of $2,094,319.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Acting Postal Inspector in Charge Ajay Lall of the U.S. Postal Inspection Service – Washington Division; Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI) Baltimore; and Special Agent in Charge Troy W. Springer of the National Capital Region, U.S. Department of Labor’s Office of Inspector General (“DOL-OIG”); Chief Amal E. Awad of the Anne Arundel County Police Department, Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police (MSP); Chief Charles H. Hinnant of the Cumberland Police Department, and Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Baltimore Field Division.
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 his plea agreement, from March 2020 to October 2021, Watson and his co-conspirators impersonated victims to submit fraudulent claims for pandemic-related UI benefits in Maryland and in California. As part of the scheme, Watson and his co-conspirators obtained the birthdates, social security numbers, and other personal identifying information (“PII”) of numerous victims which they used to prepare and submit fraudulent applications for UI benefits. The applications contained false information, including the victims’ contact information, states of residence, and availability for work. These fraudulent applications caused financial institutions to load UI benefits onto debit cards and mail the cars to physical addresses provided and monitored by co-conspirators. Once Watson and his co-conspirators received fraudulently obtained benefits on the debit cards, they used them for cash withdrawals and other transactions for their own benefits.
A search of Watson’s residence in February, 2021, recovered 11 UI debit cards in the names of 9 victims as well as a fraudulent account created in Watson’s name. The investigation also revealed numerous text messages between Watson and his co-conspirators exchanging PII of victims and discussing the execution of the UI fraud scheme. In all, Watson and his co-conspirators submitted more than 200 fraudulent UI claims using the names and PII of victims, resulting in more than $1.6 million in losses.
Watson was also sentenced for his Illegal Possession of a Firearm based on his arrest in January 2022 by the Cumberland Police Department. At the time of his arrest, Watson was wanted for three different warrants in three different jurisdictions for firearms related offenses. The firearm was later determined to be stolen.
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, HSI, DOL-OIG, the Anne Arundel County Police Department, MSP, the Cumberland Police Department, and the ATF 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 Man Sentenced to 25 Years in Federal Prison for His Role in Murder for Hire ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin today sentenced Tyrik Braxton, a/k/a “Son-Son,” age 28, of Baltimore, Maryland, to 25 years in federal prison, followed by 3 years of supervised release, for the use and discharge of a firearm during a crime of violence resulting in death, in connection with a murder-for-hire conspiracy. A co-defendant solicited Braxton and others to murder victim Juan Ross in exchange for money and in the course of the murder-for-hire Braxton aided and abetted his co-conspirators who discharged firearms, resulting in the death of Ross.
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) Baltimore Field Division; Chief Gregory Der of the Howard County Police Department; and Howard County State’s Attorney Rich Gibson.
According to the plea agreement, on October 4, 2020, Howard County Police responded to a shooting in the area of Basket Ring Road in Columbia. Victim Juan Ross was found shot and killed at the scene, sustaining multiple gunshot wounds to the head. Braxton admitted that he accepted money and assisted the co-conspirators who shot the victim, knowing that the victim was going to be killed. A co-conspirator accused the victim Juan Rossof cooperating with law enforcement, including on a live social media conversation on September 9, 2020, and in text messages. The victim was arrested on drug and weapon charges on September 5, 2020, but was released on bail after being interviewed by police.
Braxton admitted that a co-conspirator solicited him to kill the victim and that he accepted payment from the co-conspirator to commit the murder. As detailed in the plea agreement, the defendant used interstate commerce facilities, specifically cellular telephones and a vehicle, in the commission of the murder-for-hire.
On November 20, 2020, HCPD executed a series of search warrants, including at Braxton’s residence. Braxton was in his bedroom when law enforcement arrived to execute the warrant and he was placed under arrest. Law enforcement recovered a .45-caliber handgun with magazine and ammunition under the mattress in Braxton’s bedroom; a blue backpack containing $2,134 in cash, located under the bed and Braxton’s iPhone, located next to the bed. The phone contained photos of Braxton and his co-conspirators and Braxton admitted that they were his co-conspirators in the murder-for-hire of the victim.
On January 11, 2023, Judge Rubin sentenced co-defendant Daquante Thomas, age 22, of Baltimore, to 35 years in federal prison for discharge of a firearm during a crime of violence resulting in death. Thomas admitted that he was one of the shooters. On February 27, 2024, Judge Rubin sentenced co-defendant Jourdain Larose, a/k/a “JBlacc,” age 29, of Ellicott City to 40 years in federal prison his role in the murder for hire conspiracy. Larose admitted that he solicited others to kill the victim in exchange for payment.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Barron commended the ATF, the Howard County Police Department, and the Howard County State’s Attorney’s Office for their work in the investigation and prosecution and thanked the FBI, the Maryland State Police, the Anne Arundel County Police Department, the Baltimore County Police Department, and the Baltimore Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorney Kim Y. Hagan, 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 https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Felon Pleads Guilty to Illegal Possession of A Firearm and Ammunition and Is Sentenced to Four Years in Federal PrisonRead the Press Release
Baltimore, Maryland – Jermaine Washington, age 36, of Baltimore, Maryland, pleaded guilty on July 19, 2024 to a federal charge for being a felon in possession of a firearm, and was sentenced to serve a term of four years of incarceration.
The guilty plea was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
Washington has previously been convicted of armed robbery in Maryland state court in 2006 and again in 2013. According to his guilty plea, on May 6, 2022, Baltimore Police Department officers performed a traffic stop near the 1700 block of Ramsay Street after noticing that a vehicle – later found to be driven by Washington – had an inoperable brake light and tag light, and expired registration. After stopping the car and identifying Washington, officers determined Washington had an outstanding state arrest warrant for domestic assault. Officers also examined the interior of Washington’s vehicle using a flashlight and observed a handgun in plain view on the driver’s-side floorboard. The officers then entered the vehicle and recovered a Sig-Sauer .40 caliber handgun loaded with 12 rounds of ammunition. As a part of his plea agreement, Washington admitted that he knew he was prohibited from possessing a firearm and ammunition as a result of the two previous armed robbery convictions.
As a part of his plea agreement, Washington and the government agreed that Washington would be sentenced to a term of 48 months (four years) in federal prison. U.S. District Judge Brendan A. Hurson accepted this plea agreement today and, upon Washington’s request, held a contemporaneous sentencing hearing, imposing the agreed-upon term of 48 months incarceration, and sentencing Washington to a subsequent term of three years supervised release.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Barron commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Steven T. Brantley, 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.
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Floral Company Pays $1.25 Million to Resolve False Claims Act Allegations of Defrauding Unemployment Insurance Program During Covid-19 PandemicRead the Press Release
Baltimore, Maryland – Potomac Floral Wholesale, Inc. and Tsur “Jacob” Reiss have agreed to pay the United States and State of Maryland $1,250,000.00 to resolve allegations that they caused the submission of false unemployment insurance (UI) claims at the beginning of the COVID-19 pandemic.
The settlement agreement was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Troy W. Springer, Special Agent in Charge of the National Capital Region, U.S. Department of Labor – Office of Inspector General (DOL-OIG); and Maryland Attorney General Anthony Brown.
“Attempting to unjustly profit from a global pandemic is absolutely wrong,” said United States Attorney Erek Barron. “Unemployment insurance is meant for employees who need it when they are laid off from their jobs. During the early stages of COVID-19, the Federal Pandemic Unemployment Compensation program was designed to supplement traditional unemployment insurance for employees laid off during an unprecedented global emergency. Employers should not use tax dollars to shirk their responsibility to pay employees for their work.”
“The unemployment insurance (UI) program offered critical financial support to American workers who were unable to work due to the immense challenges created by the COVID-19 pandemic,” said Troy W. Springer, Special Agent in Charge of the National Capital Region, U.S. Department of Labor, Office of Inspector General (DOL-OIG). “This civil settlement demonstrates the strong commitment, resolve, and partnership of the DOL-OIG and U.S. Attorney’s Office to hold accountable those who seek to unlawfully exploit the UI program at the expense of those who actually need it.”
“All workers deserve to be paid fairly for their time and effort. The unemployment insurance program exists as a critical lifeline to keep individuals and families afloat when someone is laid off or out of work through no fault of their own,” said Attorney General Anthony Brown. “Exploiting the program to try to avoid paying employees their fair wages is unacceptable. My office is committed to standing up for workers and stopping abusive conduct wherever it is found. We thank our federal partners for their invaluable work and cooperation in bringing this matter to a successful resolution.”
Potomac Floral is a wholesale floral company run by Owner and CEO Tsur “Jacob” Reiss. According to the settlement agreement, from March 1, 2020 to December 31, 2020, starting immediately after the COVID-19 pandemic forced the suspension or modification of American business activity, Potomac Floral and Reiss instructed a group of their employees to apply for UI benefits. Yet, they also instructed these same employees to continue working for Potomac Floral without pay. Because individuals collecting UI must be unemployed, not completing work for an employer, Potomac Floral’s and Mr. Reiss’s conduct caused the submission of false UI claims in violation of the False Claims Act.
The civil settlement also resolves claims filed under the whistleblower provision of the False Claims Act by Travis Gabriel in United States & State of Maryland ex rel. Travis Gabriel v. Potomac Floral Wholesale, Inc. & Tsur “Jacob” Reiss, Civ. No. TDC-21-0207 (D. Md). The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the recovery. As part of the civil resolution, Mr. Gabriel will receive $243,750.00.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Potomac Floral or Tsur Reiss, nor a concession by the United States that its claims are not well founded.
U.S. Attorney Erek L. Barron praised the DOL-OIG for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Matt Haven who handled the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Criminals Are Targeting Bank and ATM Customers in MarylandRead the Press Release
Baltimore, Maryland – The FBI and our local law enforcement partners are investigating a surge of armed robberies, known as “jugging” crimes, at financial institutions in Maryland. At least 21 bank and ATM customers have been victimized by these crimes just in the first week of July.
A majority of the crimes have taken place in Anne Arundel and Prince George’s Counties.
“Jugging” refers to a crime in which a suspect, or group of suspects, targets customers believed to have large amounts of cash. The perpetrators either rob customers while in the parking lot of a bank, credit union or ATM or follow them to their next location.
So far in 2024, the FBI Baltimore Field Office has received reports of around seven dozen jugging offenses with more than half of those incidents reported in June and July.
“These assailants are brazenly targeting bank and ATM customers, posing a significant risk to the public of both physical and financial harm. FBI Baltimore’s Violent Crime Task Forces and our partners are working together to combat the alarming rise of these dangerous incidents,” said FBI Baltimore Special Agent in Charge William J. DelBagno. "We will continue to pursue criminals with all our available resources and remain determined to eradicate violent crime from our streets."
“The Anne Arundel County Police Department is grateful for the assistance of our federal, state and local partnerships as we focus intently on the violent criminals involved in the wave of armed robberies being committed against our innocent, hardworking community members throughout the region,” said Anne Arundel County Chief of Police Amal E. Awad. “The perpetrators of these violent robberies, known as “juggings”, prey on people who are trying to live out their daily lives peacefully. We will continue to dedicate the necessary resources to prevent these criminals from attacking innocent people and when they do, diligently and relentlessly use our investigative techniques to identify, arrest and bring them to justice. We share in the outrage of the many people and their families who have survived these terrifying encounters left feeling victimized, broken and traumatized at the hands of these heartless, lawbreaking criminals."
“The Prince George’s County Police Department truly values our partnership with both the FBI Baltimore Field Office and local agencies on this regional issue. Our detectives regularly communicate with these law enforcement partners to share real-time information on these investigations which often cross jurisdictional borders,” said Deputy Chief Zachary O’Lare, Bureau of Investigation Prince George’s County Police Department. “Together, we intend to identify and arrest all criminals targeting victims who are simply stopping at a bank. This issue is a top priority.”
“The Bowie Police Department is committed to collaborating with federal, state, and local law enforcement agencies to identify and apprehend those responsible for these criminal acts,” said Bowie Police Chief Dwayne A. Preston.
The FBI urges the public to remain vigilant and keep the following safety tips in mind.
- Be Aware of Your Surroundings: Always be vigilant when withdrawing or depositing money from a bank or ATM.
- Look around for anyone who appears suspicious or is loitering in the area.
- Pay attention to individuals backed into parking spaces who do not exit their vehicles to conduct business.
- Don’t leave your car or the building if you observe suspicious vehicles in the parking lot or parked nearby.
- Report any suspicious activities immediately.
- Conceal Your Cash: When leaving the bank, ensure your cash is not visible. Place it in a secure, inconspicuous location such as a pocket or a bag.
- Vary Your Routine: Avoid regular patterns in your banking habits. Change the times and locations you visit the bank.
- Drive Directly to Your Next Destination: If you suspect you are being followed, drive to the nearest police station or a crowded, well-lit area, and call 911.
- Avoid Distractions: Do not engage in activities that might distract you, such as using your phone, until you are in a safe place.
If you have any information related to recent bank jugging incidents, please contact the FBI at 1-800-CALL FBI or submit an anonymous tip through tips.FBI.gov.
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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University of Maryland, College Park Agrees to Pay $500,000 to Resolve Allegations That It Failed to Disclose Foreign Research Support in Federal Grant ProposalsRead the Press Release
Baltimore, Maryland – The University of Maryland, College Park (UMD) has agreed to pay $500,000 to resolve allegations that it violated the False Claims Act by failing to disclose current and pending support from foreign sources for faculty members who were principal investigators (PI) or co-PIs of federal research grant proposals.
The settlement relates to research grant support UMD received from the National Science Foundation (NSF) and the Department of the Army between 2015 and 2020. These agencies require grant applicants to disclose all current and pending support received by the institution, its PIs, and co-PIs. Current and pending support is defined as all resources from whatever source — including foreign government sources — that are made available to researchers in support of and/or related to their research endeavors. The agencies rely on the accuracy of these disclosures, in part, to avoid funding duplicative research projects and to ensure their highly competitive grants are awarded only to PIs who demonstrate they have the time and ability to perform the planned work. Non-disclosure of required information can result in missed opportunities for other applicants to receive funding for their own research.
This investigation began as a proactive initiative spearheaded by the NSF Office of Inspector General (OIG) to determine if foreign gifts and contracts subject to Section 117 of the Department of Education’s Higher Education Act of 1965 were also being disclosed in federal grant proposals, as required.
The United States alleged UMD knowingly failed to disclose current and pending foreign funding that three UMD researchers had sought and received, in five research grant proposals submitted to the NSF and Army. Specifically, the United States alleged UMD failed to disclose to NSF gift funding from Huawei Technologies Co., Ltd. to a PI for research in “high energy density FeF3 conversion cathode materials and Li metal anodes.” Additionally, the United States alleged UMD failed to disclose to the NSF and Army grant funding to two other PIs from Taobao (China) Software Co., Ltd. (Alibaba), titled, “Large-Scale Behavior Learning for Dense Crowds”, and “Cyber-Manufacturing of Customized Apparel.”
“Complete and accurate disclosures are essential to federal agencies that make decisions on awarding federal grants,” said Erek L. Barron, United States Attorney for the District of Maryland. “Those individuals and universities that knowingly fail to do so skew the grant awarding process in their favor and will be held accountable.”
“NSF plays a major role in the U.S. research enterprise, providing about 25% of all Federal support to America’s colleges and universities for basic research. Lack of institutional oversight of individuals receiving Federal funds poses a serious risk to the success of that enterprise. This investigation was one of NSF OIG’s proactive efforts focused on determining compliance with critical grant terms and conditions, including mandatory disclosures. As this case demonstrated, the failure of institutional oversight can foster noncompliance and present significant challenges to the integrity of the Federal research funding process,” said NSF Inspector General Allison Lerner. “We thank the U.S. Attorney’s Office for the District of Maryland and our investigative partners for their work in protecting federally funded research.”
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the District of Maryland, with assistance from the NSF OIG and the Department of the Army Criminal Investigation Division.
The matter was investigated by Assistant U.S. Attorney Thomas F. Corcoran for the District of Maryland.
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Bladensburg Man Sentenced to 4 Years in Federal Prison for Conspiring to Illegally Ship Stolen Cars to West AfricaRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Karim Abdul Turay, age 31, a resident of Prince George’s County, Maryland, to 51 months in federal prison, followed by 3 years of supervised release, for conspiracy to commit transportation of stolen motor vehicles and receipt and possession of stolen motor vehicles.
The sentence 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; Port of Baltimore Director Adam Rottman of U.S. Customs and Border Protection; and Chief of the Maryland Transportation Authority Police Colonel Joseph F. Scott.
According to his plea agreement, between approximately September 2019 and June 2022, Turay worked with others to fraudulently rent vehicles from Hertz, Avis, and other car rental companies at locations in Maryland, Virginia, Washington, D.C., and elsewhere. Turay and others were able to rent these cars using false identifications and credit cards.
The vehicles would then be transported to Maryland where they would be loaded onto large cargo shipping containers and taken to the Port of Baltimore. Then, using false declaration forms and other paperwork to conceal the containers’ contents, the containers with rental vehicles inside would be exported to West Africa via cargo ship where the vehicles could be sold. Law enforcement is aware of more than 40 vehicles that Turay and his co-conspirators either exported or attempted to export to West Africa.
Co-conspirator Jonathan Davis, age 39, of Laurel, Maryland, previously pled guilty to receipt and possession of stolen vehicles and was sentenced to 13 months in federal prison. Another Co-conspirator, Rodley Balthazar, age 30, also of Laurel, Maryland, pled guilty to the same charges as Turay and was sentenced to 37 months in federal prison.
U.S. Attorney Erek L. Barron praised the HSI Border Enforcement Security Task Force and the Maryland Transportation Authority Police for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Darren S. Gardner and Timothy F. Hagan who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Washington, D.C. Man Facing Federal Charges for Allegedly Obtaining Covid-19 Cares Act Loans by Reporting Inflated Payroll Numbers and Stealing A Maryland Man’s IdentityRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Jemel Lyles, age 42, of Washington, D.C., with three counts of wire fraud, two counts of aggravated identity theft, and one count of money laundering relating to the submission of alleged fraudulent COVID-19 CARES Act loan applications. The indictment was returned on June 27, 2024, and unsealed today upon the arrest of the defendant.
The defendant had an initial appearance today, in the U.S. District Court in Greenbelt before U.S. Magistrate Judge Gina L. Simms.
The indictment was 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.
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). According to the indictment, the defendant fraudulently obtained three PPP loans and spent the funds for purposes not permitted under the PPP loan program. The first PPP loan was for a construction and landscaping business that in support of that application, Lyles submitted a false payroll document, which misrepresented the size of the business’ payroll. Lyles also disguised his ownership of the business. As a result of this application, PPP funds were deposited into a bank account under Lyles’s control and later used for personal and unauthorized expenses. The indictment also alleges that Lyles obtained two PPP loans impermissibly using the identity of a Maryland resident. In support of these applications, Lyles submitted false tax documents and listed the Maryland resident’s Social Security Number as the relevant taxpayer identification number. As a result of these applications, Lyles received PPP funds, which he proceeded to use for unauthorized expenses.
If convicted, Lyles faces a maximum sentence of 20 years in federal prison for each wire fraud count; a minimum mandatory sentence of two years in prison for each aggravated identity theft count, which will run consecutive to the wire fraud sentence; and a maximum of 10 years in federal prison for money laundering. 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 FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Joseph L. Wenner, who is prosecuting the federal case. He 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 and https://www.justice.gov/usao-md/community-outreach.
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Former National Security Agency Contractor Sentenced to Thirteen Months in Federal Prison for Time and Attendance FraudRead the Press Release
Baltimore, Maryland – U.S. District Court Judge Ellen L. Hollander sentenced Jacky Lynn McComber, of Elkridge, Maryland, to thirteen months in federal prison and ordered her to pay $176,913 in restitution for submitting false invoices to the National Security Agency (“NSA”) for overstating her hours worked on a contract and for making false statements to investigators from the NSA’s Office of the Inspector General (“NSA-OIG”).
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, Kevin Garrity, Deputy Inspector General for NSA’s Office of Inspector General and Robert P. Storch, Inspector General of the Department of Defense.
According to evidence presented at her four-week jury trial, McComber was the Chief Executive Officer of an information technology company that had contracts with the NSA. Because the subject matter of these contracts involved classified information, most of the work had to be performed at a secure location, and there were significant limitations to the amount of work that could be performed off-site. According to the testimony, during approximately 19 months, McComber billed for her supposed work physically at the NSA, when in reality approximately 90% of the work she billed for was not when she physically was at the NSA. The evidence further showed that McComber at times did not work the number of hours on the contract that she recorded on her timesheets. For example, on occasions when McComber billed a full day to the contract, she participated in charity events, attended a reunion, and was on vacation. As further detailed in trial testimony, McComber participated in a voluntary interview with NSA-OIG investigators as a result of information received from a whistleblower indicating that McComber was billing the government for hours that she was not actually working.
U.S. Attorney Barron commended the NSA-OIG and the DOD Office of Inspector General, Defense Criminal Investigative Service, for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Jefferson M. Gray and Department of Justice Fraud Section Trial Attorney Peter L. Cooch, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Baltimore Police Officer Sentenced to Two and A Half Years for Illegal Drug and Firearms ChargesRead the Press Release
Baltimore, Maryland – On June 28, 2024, U.S. District Court Judge Ellen L. Hollander sentenced Steven Umberto Angelini, of Baltimore, Maryland, to two and a half years in federal prison and other conditions, including drug treatment, for conspiracy to distribute cocaine and oxycodone and possession of a firearm in furtherance of a drug trafficking crime.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, Special Agent in Charge William DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI) Baltimore, and Chief Robert McCullough of the Baltimore County Police Department.
According to his plea agreement, Angelini was a member of the Baltimore Police Department (BPD) and from January 2022 through May 2022, Angelini and Co-Conspirator 1 conspired to distribute and possess with intent to distribute cocaine and oxycodone. During the conspiracy Angelini twice also offered to go to the Baltimore City Police Department (“BPD”) Homicide Unit to obtain information about an investigation involving Co-Conspirator 1’s supplier who had been murdered.
Angelini also provided Co-Conspirator 1 with law enforcement sensitive information on the case and some pictures, which were available to BPD employees through mass email dissemination.
According to his plea agreement, Angelini’s offer to obtain the video for Co-Conspirator 1 was made with the sole objective to persuade Co-Conspirator 1 to provide him with cocaine.
Angelini also offered to sell Co-Conspirator 1 a privately made firearm, also known as a “ghost gun,” in exchange for cash and narcotics.
In April 2022, Angelini provided 20 oxycodone pills to Co-Conspirator 1. Later in April 2022, Angelini texted Co-Conspirator 1 that he was at a gun shop and stated that he wanted to purchase cocaine from Co-Conspirator 1. Angelini then offered to purchase ammunition and firearms accessories for Co-Conspirator 1 in exchange for cocaine. Angelini purchased a magazine for the privately made firearm he sold to Co-Conspirator 1, as well as ammunition, including hollow-point ammunition, which he provided to Co-Conspirator 1 later that night in exchange for cocaine.
Further, Angelini admitted that in May 2022, after visiting a Rosedale, Maryland pain clinic and filling a prescription for oxycodone pills, he called Co-Conspirator 1 and notified him that he had the pills available for sale. They negotiated that Co-Conspirator 1 would give Angelini cash and cocaine in exchange for the oxycodone.
United States Attorney Erek L. Barron commended the FBI, HSI and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Christine Goo, 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-psnexile and https://www.justice.gov/usao-md/community-outreach.
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U.S. Army Research Biologist Pleads Guilty to Engaging in A Bribery SchemeRead the Press Release
Baltimore, Maryland – Jason Edmonds, age 45 of North East, Maryland pleaded guilty today to a federal charge of bribery relating to a bribery scheme at the Aberdeen Proving Ground.
The guilty plea was announced by Erek L. Barron U.S. Attorney for the District of Maryland, Special Agent in Charge William 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, and Special Agent in Charge L. Scott Moreland of the Army Criminal Investigation Division.
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.
Edmonds faces a maximum of five years in federal prison for conspiring to commit bribery. 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.
U.S. Attorney Barron commended the FBI, the Department of Defense Office of Inspector General, and the Army Criminal Investigation Division for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Bijon A. Mostoufi and Michael Cunningham, who are 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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Maryland Man Sentenced to over Six Years in Federal Prison for Laundering More Than $1.8 Million in Drug ProceedsRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Gerrod Davis, age 46, Glen Burnie, Maryland, to six years and three months in federal prison for laundering more than $1.8 million in drug proceeds.
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 - Washington Field Division, and Chief Robert McCullough of the Baltimore County Police Department.
According to the guilty plea, as part of the drug trafficking organization, Davis handled bulk cash narcotics proceeds while his associates were responsible for street-level distribution of narcotics. Members of the drug trafficking organization shared the cash proceeds of their street-level distributions with Davis, who laundered the money on behalf of the organization. Davis conducted “money drops” in which he transported large sums of drug proceeds to an individual purporting to act on behalf of a Mexican Cartel. Davis made these transactions with the intention of promoting the drug trafficking organization and its business relationship with the Cartel as well as concealing the nature, location, source, ownership, and control of the proceeds of the drug trafficking organization. Between July 20, 2020, and May 6, 2021, the amount of money Davis laundered, or attempted to launder in furtherance of the conspiracy was at least $1,811,611.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the DEA for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Adeyemi Adenrele and Darryl Tarver, 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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Maryland Man Found Guilty After A Four-Day Trial of Wire Fraud and Theft of Government PropertyRead the Press Release
Baltimore, Maryland – After a four-day trial, a federal jury returned a guilty verdict convicting William Rich, age 43, of Windsor Mill, Maryland, of fraudulently obtaining more than $750,000 dollars in veteran disability benefits by falsely claiming that he was paralyzed. Rich was convicted of five counts of wire fraud and one count of theft of government property.
The guilty verdict 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”).
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 to which he was not entitled including special monthly compensation, caregiver assistance compensation, and medical equipment.
Rich served in the United States Army from on or about September 22, 1998, to February 27, 2007, sustaining injuries on August 23, 2005, after being injured in 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, largely based on an October 11, 2007, exam, where Rich reported paralysis in his lower extremities and being confined to a wheelchair, he was granted permanent disability from VA.
In 2018, the VA Office of Inspector General (OIG) launched a proactive investigation of disabled veteran files and learned of conduct by Rich 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 use 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.
Rich faces a maximum sentence of 20 years in federal prison for each count of wire fraud and a maximum sentence of 10 years in federal prison for theft of government property. Actual sentences for federal crimes are typically less than the maximum penalties. Federal district court judges determine sentences after taking into account the U.S. Sentencing Guidelines and other statutory factors. The date for Rich’s sentencing has not been scheduled.
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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Russian National Charged for Conspiring with Russian Military Intelligence to Destroy Ukrainian Government Computer Systems and DataRead the Press Release
Note: Concurrent with the return of the indictment, the U.S. Department of State’s Rewards for Justice program is offering a reward of up to $10 million for information on Stigal’s location or his malicious cyberactivity. Anyone possessing such information should contact Rewards for Justice here.
A federal grand jury in Maryland returned an indictment yesterday charging Amin Timovich Stigal (Амин Тимович Стигал), 22, a Russian citizen, with conspiracy to hack into and destroy computer systems and data. In advance of the full-scale Russian invasion of Ukraine, targets included Ukrainian Government systems and data with no military or defense-related roles. Later targets included computer systems in countries that were providing support to Ukraine, including the United States. Stigal remains at large.
“As alleged, the defendant conspired with Russian military intelligence on the eve of Russia’s unjust and unprovoked invasion of Ukraine to launch cyberattacks targeting the Ukrainian government and later targeting its allies, including the United States.” said Attorney General Merrick B. Garland. “The Justice Department will continue to stand with Ukraine on every front in its fight against Russia’s war of aggression, including by holding accountable those who support Russia’s malicious cyber activity.”
“The GRU has repeatedly applied in cyberspace Russia’s statecraft of indiscriminate destruction and intimidation,” said Assistant Attorney General Matthew G. Olsen. “The Department will do its part to prevent and disrupt such malicious behavior that relies upon online services or infrastructure in the U.S., or that targets U.S. victims. We will also identify, pursue, and eventually hold to account those responsible for Russia’s malicious actions, including the cybercriminals that the Russian government cultivates in furtherance of its malign agenda.”
“Amin Timovich Stigal attempted to leverage malware to aid the Russian military in the invasion of Ukraine,” said FBI Deputy Director Paul Abbate. “Today’s indictment demonstrates the FBI’s unwavering commitment to combat malicious cyber activities by our adversaries, and we will continue to work with our international partners to thwart attempts to undermine and harm our allies.”
“Malicious cyber actors who attack our allies should know that we will pursue them to the full extent of the law,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Cyber intrusion schemes such as the one alleged threaten our national security, and we will use all the technologies and investigative measures at our disposal to disrupt and track down these cybercriminals.”
“The indictment of Amin Stigal is yet another example of the FBI’s commitment to combating cyber threats both at home and internationally,” said Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office. “To those adversaries who seek to compromise our international partners’ systems, know you will be identified and you will face consequences for your actions. The FBI vows to continually pursue justice and disrupt malicious cyber actors.”
According to court documents, in Jan. 2022, Stigal and members of the Main Intelligence Directorate of the General Staff (GRU) of the Russian Federation (the Conspirators) conspired to use a U.S.-based company’s services to distribute malware known in the cybersecurity community as “WhisperGate” to dozens of Ukrainian government entities’ computer systems and destroy those systems and related data in advance of the Russian invasion of Ukraine. The United States government previously joined with allies and partners in May 2022 to attribute this cyber-attack to the Russian military and to condemn the attack and similar destructive cyber activities against Ukraine.
On Jan. 13, 2022, the Conspirators attacked multiple Ukrainian government networks, including the Ukrainian Ministry of International Affairs, the State Treasury, the Judiciary Administration, the State Portal for Digital Services, the Ministry of Education and Science, the Ministry of Agriculture, the State Service for Food Safety and Consumer Protection, the Ministry of Energy, the Accounting Chamber for Ukraine, the State Emergency Service, the State Forestry Agency, and the Motor Insurance Bureau. The Conspirators infected computers on these and other networks with malware called WhisperGate, which was designed to look like ransomware. However, as the indictment alleges, WhisperGate was actually a cyberweapon designed to completely destroy the target computer and related data.
In conjunction with these attacks, the Conspirators compromised several of the targeted Ukrainian computer systems, exfiltrated sensitive data, including patient health records, and defaced the websites to read: “Ukrainians! All information about you has become public, be afraid and expect the worst. This is for your past, present and future.” That same day, the Conspirators offered the hacked data for sale on the internet. The effort was aimed at sowing concern among the broader Ukrainian population regarding the safety of government systems and data.
In August 2022, the Conspirators also hacked the transportation infrastructure of a Central European country that was supporting Ukraine. The indictment further alleges that from Aug. 5, 2021, through Feb. 3, 2022, the Conspirators leveraged the same computer infrastructure they used in the Ukraine-related attacks to probe computers belonging to a federal government agency in Maryland in the same manner as they had initially probed the Ukrainian Government networks.
If convicted, Stigal faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Baltimore Field Office is investigating the case with the support of the FBI’s Milwaukee and Boston Field Offices.
Assistant U.S. Attorneys Aaron S.J. Zelinsky and Robert I. Goldaris for the District of Maryland are prosecuting the case, with valuable assistance from the National Security Division’s National Security Cyber Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indictment
Russian National Charged for Conspiring with Russian Military Intelligence to Destroy Ukrainian Government Computer Systems and DataRead the Press Release
Greenbelt, Maryland – A federal grand jury in Maryland yesterday returned an indictment charging Amin Timovich Stigal [Амин Тимович Стигал], age 22, a Russian citizen, with conspiracy to hack into and destroy computer systems and data. In advance of the full-scale Russian invasion of Ukraine, targets included Ukrainian Government systems and data with no military or defense-related roles. Later targets included computer systems in countries that were providing support to Ukraine, including the United States. Stigal remains at large.
The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office.
“Malicious cyber actors who attack our allies should know that we will pursue them to the full extent of the law” said U.S. Attorney Barron. “Cyber intrusion schemes such as the one alleged threaten our national security, and we will use all the technologies and investigative measures at our disposal to disrupt and track down these cybercriminals.”
“As alleged, the defendant conspired with Russian military intelligence on the eve of Russia’s unjust and unprovoked invasion of Ukraine to launch cyberattacks targeting the Ukrainian government and later targeting its allies, including the United States.” said Attorney General Merrick B. Garland. “The Justice Department will continue to stand with Ukraine on every front in its fight against Russia’s war of aggression, including by holding accountable those who support Russia’s malicious cyber activity.”
“The indictment of Amin Stigal is yet another example of the FBI’s commitment to combating cyber threats both at home and internationally,” said Special Agent in Charge William J. DelBagno of the FBI’s Baltimore Field Office. “To those adversaries who seek to compromise our international partners’ systems, know you will be identified and you will face consequences for your actions. The FBI vows to continually pursue justice and disrupt malicious cyber actors.”
The indictment alleges that in January 2022, Stigal and members of the Main Intelligence Directorate of the General Staff (“GRU”) of the Russian Federation (the “Conspirators”) conspired to use a U.S.-based company’s services to distribute malware known in the cybersecurity community as “WhisperGate” to dozens of Ukrainian government entities’ computer systems and destroy those systems and related data in advance of the Russian invasion of Ukraine. The United States government previously joined with allies and partners in May 2022 [https://www.state.gov/attribution-of-russias-malicious-cyber-activity-against-ukraine/] to attribute this cyber attack to the Russian military and to condemn the attack and similar destructive cyber activities against Ukraine.
As alleged in the indictment, on January 13, 2022, the Conspirators attacked multiple Ukrainian government networks, including the Ukrainian Ministry of International Affairs, the State Treasury, the Judiciary Administration, the State Portal for Digital Services, the Ministry of Education and Science, the Ministry of Agriculture, the State Service for Food Safety and Consumer Protection, the Ministry of Energy, the Accounting Chamber for Ukraine, the State Emergency Service, the State Forestry Agency, and the Motor Insurance Bureau. The Conspirators infected computers on these and other networks with malware called WhisperGate, which was designed to look like ransomware. However, as the indictment alleges, WhisperGate was actually a cyberweapon designed to completely destroy the target computer and related data.
In conjunction with these attacks, the Conspirators compromised several of the targeted Ukrainian computer systems, exfiltrated sensitive data, including patient health records, and defaced the websites to read: “Ukrainians! All information about you has become public, be afraid and expect the worst. This is for your past, present and future.” That same day, the Conspirators offered the hacked data for sale on the internet. The effort was aimed at sowing concern among the broader Ukrainian population regarding the safety of government systems and data.
In August 2022, the Conspirators also hacked the transportation infrastructure of a Central European country that was supporting Ukraine. The indictment further alleges that from August 5, 2021, through February 3, 2022, the Conspirators leveraged the same computer infrastructure they used in the Ukraine-related attacks to probe computers belonging to a federal government agency in Maryland in the same manner as they had initially probed the Ukrainian Government networks.
Concurrent with the return of the indictment, the U.S. Department of State’s Rewards for Justice program is offering a reward of up to $10 million for information on Stigal’s location or his malicious cyberactivity. Anyone possessing such information should contact Rewards for Justice here.
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. If convicted, Stigal faces a maximum sentence of 5 years in federal prison. 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 and Assistant Attorney General Matthew G. Olsen commended the FBI’s Baltimore Field Office for its outstanding work and thanked the FBI’s Milwaukee and Boston Field Offices for their support in the case. Assistant U.S. Attorneys Aaron S.J. Zelinsky and Robert I. Goldaris for the District of Maryland are prosecuting the case, with valuable assistance from the National Security Division’s National Security Cyber Section.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Man Sentenced to Seven Years in Connection with A Scheme to Fraudulently Obtain Almost $18 Million in Fraudulent Covid-19 LoansRead the Press Release
Baltimore, Maryland – Today, United States District Judge Richard Bennett sentenced Ahmed Sary, age 46, of Baltimore, Maryland to seven years in federal prison, followed by one year of home detention, and three years of supervised release, in connection with a conspiracy to commit wire fraud affecting financial institutions, relating to the submission of more than $17.9 million in 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 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 (‘FBI’), Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General (“SBA-OIG”), Eastern Region, and Chief Robert McCullough of the Baltimore County Police Department (“BCPD”).
“Sary will now pay the price for living luxurious from stolen COVID-19 pandemic relief funds that others needed to keep a business open or to keep a roof over their heads,” said U.S. Attorney Barron.
"Ahmed Sary is a swindler and a cheat. This sentence holds him accountable for every lie he told and the almost $18 million in Covid relief funds he stole from American taxpayers to fuel his greed and lavish lifestyle,” said Special Agent in Charge William J. DelBagno of the FBI’s Baltimore Field Office. “The FBI and our partners will continue to bring to justice those who commit pandemic-related fraud."
“The Department of Justice remains committed to prosecuting fraudsters to who preyed upon our pandemic relief programs and the taxpayers. While the pandemic may have ended, the federal law enforcement response to the fraud continues, as demonstrated by this impactful case brought by our Strike Force in the District of Maryland,” said Director of COVID-19 Fraud Enforcement Mandy Riedel.
Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program (“PPP”), administered through the Small Business Administration (“SBA”), and SBA-approved lenders. 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 the plea agreement and other court documents, from April 2020 through January 2022, Sary and his co-conspirators prepared false and fraudulent PPP loan and EIDL applications for a number of borrowers in exchange for a kickback, typically ranging from 20 percent to 30 percent of the loan amount. The fraudulent PPP and EIDL loan applications prepared by Sary, and his co-conspirators grossly inflated the purported businesses’ number of employees, monthly payroll costs, and revenue numbers, including for businesses that didn’t exist in any legitimate capacity.
Sary and his co-conspirators filed 85 false and fraudulent PPP loan applications seeking a total of over $14,807,609.37 and 57 false and fraudulent EIDL applications seeking a total of over $3,093,670.50. All the loans were ultimately funded. After the loan funds were received and, in an attempt, to launder the funds at the direction of Sary, the loan recipient would typically provide Sary multiple, sometimes up to seven, checks that were signed by the loan recipient and that listed a payment amount and date but that left the payee name blank. Sary would then write a payee name on each of those checks and deposit them.
In connection with some of the fraudulently obtained PPP loans for purported businesses, Sary also assisted the loan recipients with setting up payroll services with a payroll processor to make it appear that the fraudulently obtained PPP loan funds were being used for permissible purposes when they, in fact, were not. The payroll services also facilitated the creation of documentation that could be used to substantiate a request for each of the PPP loans to be forgiven.
In addition to the loan kickback fees, Sary directly received $959,559 in PPP/EIDL funds for purported businesses he controlled, including a purported financial services business, a purported meatpacking business, a purported clothing company and a purported talent agency. In fact, none of these businesses existed in any legitimate capacity.
Sary admitted that he used the fraudulently obtained funds to travel to Dubai and Egypt on multiple occasions, to stay at luxury hotels, including the Four Seasons, while there, to purchase property in Egypt and to, among other things, open a beachfront restaurant in Alexandria, Egypt called Sary’s Kitchen.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the CARES Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Barron commended the FBI, the SBA-OIG and the BCPD 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 Julie Jarman.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Frederick County Man Sentenced to Twelve Years in Federal Prison for Committing Two Armed RobberiesRead the Press Release
Baltimore, Maryland – On Friday, June 21, 2024, United States District Judge Ellen L. Hollander sentenced Anthony Young, age 38, of Jefferson, Maryland, to twelve years in federal prison, followed by three years of supervised release, for the armed robberies of an American Legion Post and a bank, both located in Frederick County, Maryland.
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 Chief Jason Lando of the Frederick Police Department.
According to his plea agreement, on November 18, 2019, Young and another suspect entered the American Legion, Francis Scott Key Post 11, in Frederick, Maryland. The two men entered the bar of the Post, brandishing a black handgun. The men grabbed an employee, struck him in the mouth twice, and then restrained him with zip ties. The men then stole a large sum of U.S. currency. Witnesses observed the suspects entering a car that was determined to be registered to Young. On December 5, 2019, the Woodsboro Bank in Frederick reported an armed robbery. The suspect matched the description of Young. Employees and witnesses stated that a man entered the bank, armed with a small black handgun, and was able to steal a large sum of U.S. currency. The suspect then left the bank, entered a car, and left the area. The car was traced back to Young.
On December 16, 2019, search warrants were executed at Young’s home. During the search, law enforcement officers seized clothing and items that matched the description of one of the suspects from the American Legion robbery, and the suspect from the bank robbery. Young was arrested and taken into custody. He waived his rights and confessed to committing both robberies.
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 and the Frederick 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.
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Baltimore Man Sentenced to Fourteen Years in Federal Prison for Committing Armed Robberies of Three Cellphone Stores in Howard County, Anne Arundel County and Baltimore County, MarylandRead the Press Release
Baltimore, Maryland – United States District Judge Brendan A. Hurson today sentenced Gary Leon Holloway, age 46, of Baltimore, Maryland, to fourteen years in federal prison, followed by four years of supervised release, for the armed robberies of cellphone stores located in Howard County, Anne Arundel County, and Baltimore County, Maryland.
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) Baltimore Field Division, Chief Gregory Der of the Howard County Police Department, Chief Amal E. Awad of the Anne Arundel County Police Department, Chief Robert McCullough of the Baltimore County Police Department and Commissioner Richard Worley of the Baltimore Police Department.
According to his guilty plea, in January 2020, Holloway and his co-conspirators planned and committed armed robberies of three commercial businesses. Specifically, on January 4, January 15, and January 22, Holloway and at least one of his co-defendants robbed cellphone stores in Ellicott City, Glen Burnie, and Dundalk, Maryland, respectively. Holloway brandished a gun in each robbery and he and his co-defendant stole cellphones and other electronic devices. In the first robbery, Holloway and his co-defendant also stole the wallets of two employees and in the third robbery, they forced the employees to open and empty the safe and stole cash in addition to the cellphones and electronic devices. After the third robbery, Holloway and two co-defendants were arrested in Baltimore County.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Barron commended the ATF, the Howard County Police Department, the Anne Arundel Police Department, the Baltimore County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys John W. Sippel, Jr., and Adey Adenrele, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Silver Spring Felon Sentenced to 37 Months for Illegal Possession of Ammunition and Postal Service KeysRead the Press Release
Greenbelt, Maryland – On June 12, 2024, U.S. District Court Judge Theodore D. Chuang sentenced Andrew Steven Martin, age 30, of Silver Spring, Maryland, to 37 months of federal prison, followed by three years of supervised release, for being a felon in possession of ammunition and unlawfully possessing U.S. Postal Service keys used to access U.S. Postal Service mail receptacles.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Postal Inspector in Charge Ajay Lall of the U.S. Postal Inspection Service (“USPIS”) Washington Division; Chief Marcus Jones of the Montgomery County Police Department; and Chief Mark P. Sroka of the Gaithersburg City Police Department.
According to his guilty plea, on May 17, 2022, a Gaithersburg Police officer performed a traffic stop on a vehicle being driven by Martin. After approaching the vehicle, the officer detected an odor of marijuana emanating from the passenger compartment of the vehicle. Law enforcement recovered a bag containing marijuana in the center console, a half-smoked joint of marijuana, and two USPS “arrow” keys—one of which opened two collection boxes located outside the Reisterstown Post Office.
During the search of the vehicle law enforcement also recovered from the back seat area a stack of credit cards which were not in Martin’s name; two identification cards, one of which bore a picture of Martin and a different name; and approximately 42 checks bearing the names of payors and payees who were not Martin. Law enforcement also located in the center framework near the floorboard additional checks in names other than Martin’s, at least five debit cards; a privately made 9mm semi-automatic pistol loaded with 10 9mm caliber ammunition cartridges; and an orange pill bottle containing 27 tablets found to contain heroin and fentanyl. In total, law enforcement located 47 personal checks and two cashier’s checks in the vehicle. The sum of the funds to be paid by the checks amounted to approximately $80,164.89. Martin was arrested on an open warrant.
Martin knew that he had a previous felony conviction which prohibited him from possessing ammunition.
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 U.S. Postal Inspection Service, the Montgomery County Police Department, and the Gaithersburg City Police Department for their work in the investigation. Mr. Barron also thanked Special Assistant U.S. Attorney Gustavo Ruiz and Assistant United States Attorney Timothy F. Hagan, Jr., 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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U.S. Citizen with Diplomatic Status Facing Federal Charges for Alleged Sexual Abuse of Two Minors in Burkina FasoRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Fode Sitafa Mara, age 39, with five counts of Aggravated Sexual Abuse of a Minor, one count of Coercion and Enticement and one count of Obstruction of Justice. The charges allege the sexual abuse of two minor victims, alleged to have occurred within the special maritime and territorial jurisdiction of the United States, in Burkina Faso, West Africa. The indictment was returned on June 6, 2024, and the initial appearance was held on June 10, 2024, in Greenbelt before Chief U.S. Magistrate Judge Timothy J. Sullivan.
The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland and Deputy Assistant Director William Ferrari of the U.S. Department of State’s Diplomatic Security Service (“DSS”).
The seven-count indictment alleges that Mara, who holds a diplomatic status and was employed at the U.S. Embassy-Ouagadougou, Burkina Faso, befriended a family that included two minor children. Over the course of that relationship, it is alleged that Mara groomed, coerced and sexually abused the two minor victims, who were 13 and 15 years old at the time of the abuse. These allegations of sexual abuse and rape are believed to have occurred at Mara’s embassy assigned residence, over the course of approximately one year.
If convicted, Mara faces a minimum mandatory sentence of 30 years’ incarceration and a maximum of life in federal prison for the charges of Aggravated Sexual Abuse of a Minor. A federal district court judge will determine any applicable sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended the Diplomatic Security Service’s Office of Special Investigations, as well as the U.S. Agency for International Development’s Office of Inspector General and Homeland Security Investigations, for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Ranganath Manthripragada and Trial Attorney Adam Braskich of the Criminal Division’s Child Exploitation and Obscenity Section, 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 Man Sentenced to 70 Months in Federal Prison for Illegal Possession of Machineguns and AmmunitionRead the Press Release
Baltimore, Maryland – On June 12, 2024, U.S. District Judge Brendan A. Hurson sentenced Bernard Edwards, age 37, of Baltimore, Maryland, to 70 months in federal prison, followed by three years of supervised release for the illegal possession of a machinegun and possession of ammunition by a prohibited person.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Commissioner Richard Worley of the Baltimore Police Department; and Special Agent in Charge Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
According to his plea agreement and court documents, on June 8, 2023, at approximately 12:25 a.m., an officer from the Baltimore Police Department (“BPD”) observed a gray 2019 Chevrolet Malibu with an expired temporary license plate and the BPD officer initiated a traffic stop and then observed what appeared to be a gray-colored assault rifle in plain view through the car’ rear passenger window. Edwards refused to exit the car when ordered and instead fled at high speed, leaving behind his license and registration with the officer.
Once law enforcement located and obtained a warrant for Edwards’ residence, BPD searched and recovered five firearms and 1,168 rounds of ammunition from Edwards’ bedroom. Among the firearms recovered was a polymer AR pistol bearing no serial number (“ghost gun”) that was modified with a machine gun conversion device. Another firearm was a Glock handgun modified with a Glock switch.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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 Baltimore Police Department and the ATF for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Jacob Gordin, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Man Is Sentenced to Ten Years in Federal Prison for Committing an Armed Robbery of A Phone StoreRead the Press Release
Baltimore, Maryland – U.S. District Judge Brendan A. Hurson today sentenced Marvin Benjamin Sparrow, age 32, of Baltimore, Maryland, to ten years in federal prison, followed by three years of supervised release, for an armed commercial robbery of a T-Mobile store in Baltimore County, Maryland.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Gregory Der of the Howard County Police Department; Chief Amal E. Awad of the Anne Arundel County Police Department; and Chief Robert McCullough of the Baltimore County Police Department; and Commissioner Richard Worley of the Baltimore Police Department.
According to his guilty plea, in January 2020, Sparrow and his co-conspirators planned and committed armed robberies of three businesses located in Howard, Anne Arundel, and Baltimore Counties. Specifically, Sparrow participated in the January 22, 2020 armed robbery of a T-Mobile store located in Dundalk, Maryland. During the robbery, Sparrow’s co-conspirator brandished a gun, and then Sparrow and the co-conspirator stole cellphones and other electronic devices. After the robbery, Sparrow and two co-conspirators were apprehended and arrested by law enforcement officers.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Barron commended the ATF, the Howard County Police Department, the Anne Arundel Police Department, the Baltimore County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys John W. Sippel, Jr., and Adey Adenrele, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Laurel Man Sentenced to 37 Months in Federal Prison for Conspiring to Illegally Ship Stolen Cars to West AfricaRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Rodley Balthazar, age 30, a Haitian citizen residing in Laurel, Maryland, to 37 months in federal prison, followed by 3 years of supervised release, for conspiracy to commit transportation of stolen motor vehicles and receipt and possession of stolen motor vehicles.
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; and Chief of the Maryland Transportation Authority Police Colonel Joseph F. Scott.
According to his plea agreement, between approximately September 2019 and June 2022, Balthazar worked with others to fraudulently rent vehicles from Hertz, Avis, and other car rental companies at locations in Maryland, Virginia, Washington, D.C., Tennessee, and elsewhere. Balthazar was able to rent these cars using false identifications and credit cards.
The vehicles would then be transported to Maryland where they would be loaded onto large cargo shipping containers and taken to the Port of Baltimore. Then, using false declaration forms and other paperwork to conceal the containers’ contents, the containers with rental vehicles inside would be exported to West Africa via cargo ship where the vehicles could be sold.
Law enforcement is aware of more than 40 vehicles that Balthazar and his co-conspirators either exported or attempted to export to West Africa.
Co-conspirator Jonathan Davis, age 39, of Laurel, Maryland, previously pleaded guilty to receipt and possession of stolen vehicles and was sentenced to 13 months in federal prison. A third co-conspirator, Abdul Karim Turay Jr. has pled guilty and is scheduled to be sentenced on July 11, 2024.
United States Attorney Erek L. Barron praised the HSI Border Enforcement Security Task Force and the Maryland Transportation Authority Police for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Darren S. Gardner and Timothy F. Hagan who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Federal Credit Union Employee Sentenced to 54 Months in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced defendant Jalen Craig McMillan, age 30, of Jessup, Maryland to 54 months in federal prison, 5 years of supervised release, and restitution of $165,891.68.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Christina Bentham of the U.S. Secret Service – Baltimore Field Office.
According to the evidence presented at his four-day trial, McMillan used his position as a “Member Service Representative” at a federal credit union to facilitate both the opening of accounts in the names of identity theft victims and subsequent financial transactions, including assisting with loans. As detailed at trial and in court documents, co-defendant Archie Paul and his co-conspirators obtained, possessed, and used fictitious identities and the personal identifying information (“PII”) of real persons (the “victims”), which Paul and co-defendant John Fitzgerald Washington used to manufacture and procure false identification documents displaying the PII of the victims, but photographs of others. Paul, co-defendant Tiffany Rainel Williams and others then used the false identification documents to impersonate the victims and with the help of McMillan and other conspirators, open bank accounts and conduct financial transactions in their names, including making large withdrawals from the victims’ accounts.
In addition to the conspiracy and bank fraud charges, McMillan was convicted of aggravated identity theft for providing the identifying information of a bank customer to Paul, knowing that it would be used to facilitate the fraud. Specifically, the evidence proved that McMillan used his special access to the bank’s customer database to steal confidential PII belonging to Victim 5, a customer at the bank. McMillan provided that information to Paul. A co-conspirator subsequently opened a bank account using Victim 4’s PII and Victim 5’s banking information. McMillan serviced the transaction and assisted the co-conspirator in obtaining a $10,000 loan in Victim 4’s name, which the co-conspirator immediately withdrew in cash.
Trial evidence proved that the conspirators intended to fraudulently obtain more than $400,000 from the bank and successfully defrauded the bank of more than $150,000.
Co-defendants Archie Paul, a/k/a “Carter Hill” and “Zion Davis,” age 31, of Laurel, Maryland; John Fitzgerald Washington, age 52, of Waldorf, Maryland, and Tiffany Rainel Williams, age 37, of Glenarden, Maryland, previously pleaded guilty to their roles in the conspiracy and have been sentenced.
United States Attorney Erek L. Barron praised the U.S. Secret Service for its work in the investigation and thanked the City of Laurel Police Department for its assistance. Mr. Barron also thanked Assistant United States Attorneys Bijon Mostoufi and Ranganath Manthripragada, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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United States Department of Energy Employee Agrees to Pay $96,757.95 to Settle False Claims Act Allegations Regarding Her Submission of False Claims to Obtain Economic Injury Disaster LoanRead the Press Release
Baltimore, Maryland – U.S. Department of Energy employee Lisa Phillips, of Owings Mills, Maryland, has agreed to pay the United States $96,757.95 to resolve allegations that she violated the federal False Claims Act by submitting false claims to the U.S. Small Business Administration (“SBA”) to obtain an Economic Injury Disaster Loan (“EIDL”) and EIDL advance during the height of the COVID-19 pandemic.
The civil settlement was announced by United States Attorney for the District of Maryland Erek L. Barron, and Inspector General for the Department of Energy, Teri L. Donaldson.
During the COVID-19 pandemic, the Small Business Administration provided EIDLs and EIDL Advances to small businesses to be used for working capital and other normal operating expenses. On July 10, 2020, Phillips signed and submitted a Loan Authorization and Agreement for an EIDL in the amount of $26,200.00. The United States contends that in her this EIDL application, the defendant made several material misrepresentations including, among other things, that, in 2019, her business had four employees, a gross annual revenue of $150,500, and $90,000 in cost of goods expenses. Phillips also stated that her business opened on January 25, 2017, and that the business was in the Educational Services industry. These misrepresentations were knowingly false; Phillips knew that she did not own or operate a business in the Educational Services industry, that she did not have any employees, and that she had neither the revenue nor cost of goods as stated in the application. In addition to the $26,200 Loan, Phillips received a $4,000 advance. The civil investigation was opened by the United States Attorney’s Office based upon a referral from the U.S. Department of Energy’s Office of Inspector General.
“The U.S. Attorney’s Office and our partners are committed to zealously pursuing cases involving COVID-19 fraud, including fraud related to the EIDL program,” said U.S. Attorney Erek L. Barron.
“We are going to continue to hold those who steal from the government accountable for their actions,” said Teri L. Donaldson, Inspector General, Department of Energy. “Pandemic funds were designed to help the public during a difficult time and taking advantage of this program for personal gain will not be tolerated.”
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Phillips nor a concession by the United States that its claims are not well-founded.
United States Attorney Erek L. Barron commended the U.S. Department of Energy, Office of the Inspector General, for its work in this investigation. Mr. Barron thanked Assistant U.S. Attorney Matthew Shea, who handled the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Two Baltimore Area Men Convicted After Trial of Abductions Involving Kidnappings, Carjackings and Related ChargesRead the Press Release
Baltimore, Maryland – After a three-week trial, a federal jury returned guilty verdicts today convicting Dennis Allen Hairston, age 34, of Windsor Mill, Maryland, and Donte Davon Stanley, age 33, of Rosedale, Maryland, on federal charges of kidnapping and robbery conspiracies; kidnapping; carjacking; robbery affecting commerce. Hairston was also convicted of using, carrying, and brandishing a firearm during and in relation to a crime of violence.
The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Richard Worley of the Baltimore Police Department; Chief Robert McCullough of the Baltimore County Police Department; Harford County Sheriff Jeffrey R. Gahler; and Harford County State’s Attorney Alison M. Healey.
“My office will not tolerate carjackings,” stated U.S. Attorney Barron. “We’re collaborating with our partners to prosecute these crimes and hold offenders accountable to the fullest extent of the law.”
“There’s no question these criminals belong behind bars, and their conviction guarantees that will happen,” said Special Agent in Charge William DelBagno of the FBI’s Baltimore Field Office. “Hairston and Stanley’s actions are disturbing and will not be tolerated. FBI Baltimore is determined to ensure brazen individuals willing to use inconceivable violence for financial gain are brought to justice.”
Hairston and Stanley were each convicted of conspiracy to commit kidnapping and conspiracy to affect commerce by robbery. Hairston was convicted of counts relating to the first and second abduction, and Stanley was convicted of counts relating to the first abduction and acquitted on counts relating to the second abduction. Both defendants were acquitted of conduct relating to a third abduction.
Evidence at trial established that from May 3, 2021, through August 26, 2021, the defendants planned and organized the kidnapping of three victims. Two of the victims were employees of check cashing businesses. According to trial testimony, defendants committed the crimes with the goal of robbing the check cashing businesses where two of the victims worked, and to steal cash and other items of value from the third victim. Evidence at trial also established that the defendants planned and organized the carjackings of two of the victims’ vehicles.
According to trial testimony, the victims were surveilled prior to the abductions, including attaching tracking devices to their vehicles. The defendants then abducted the victims by posing as police officers by wearing police vests, police badges, and using a police-style light bar to stop the victims and their vehicles. Trial evidence revealed that the defendants brandished firearms, bound, and blindfolded each victim and forcibly put them into a vehicle operated by the defendants. At trial, the victims testified that the defendants used a blowtorch to burn two of the victims during the course of the kidnappings.
As to the first victim, trial evidence established that, on May 5 to May 6, 2021, the defendants followed the victim from the check cashing business where she worked and, posing as law enforcement officers, used the police-style light bar to pull over her vehicle. According to trial testimony, defendants wore police vests and badges, and brandished firearms to remove the victim from her vehicle. Trial testimony further established that the defendants handcuffed the victim’s hands behind her back, zip-tied her feet, blindfolded her by placing a mask and duct tape around her face, and forcibly placed her into the rear of a vehicle operated by the defendants. While driving with the victim, defendants Hairston and Stanley, burned the victim with a blowtorch in an attempt to obtain information from her to access the check cashing business where she worked, with the intent to remove all of the cash from the business.
As to the second victim, trial evidence established that, on May 15 to 16, 2021, Hairston and others approached the victim in his vehicle in Edgewood, Maryland. Trial evidence proved that the Hairston again used a police-style light bar to pull over the second victim. Wearing police vests and badges, the evidence revealed that Hairston kidnapped the second victim and forcibly placed him into the rear of a vehicle operated by the conspirators. After placing a mask over his face and duct-taping his face and stealing his vehicle, the second victim was burned with a blow torch in an effort to obtain cash and other items from him.
The defendants each face a maximum sentence of life in prison for the kidnapping conspiracy and for each count of kidnapping; a maximum of 20 years in federal prison for the robbery conspiracy and for each count of attempted robbery; a maximum of 15 years in federal prison for each count of carjacking. Hairston also faces a mandatory minimum sentence of seven years in federal prison and up to life in prison, consecutive to any other sentence imposed, for using, carrying, and brandishing a firearm during and in relation to a crime of violence relating to the first abduction. 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. U.S. District Judge Brendan A. Hurson has not set a date for sentencing.
Davonne Tramont Dorsey previously pled guilty to his role in the offenses, and sentencing is scheduled for August 22, 2024. U.S. District Judge Brendan A. Hurson has scheduled sentencing for Dorsey for August 22, 2024, at 10:00 a.m. Franklin Jay Smith also previously pled guilty to his role in the offenses. Judge Hurson has not set a date for sentencing for Smith.
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, the Baltimore Police Department, the Baltimore County Police Department, the Harford County Sheriff’s Office, and the Harford County State’s Attorney’s Office for their work in the investigation and prosecution.
Assistant U.S. Attorneys Paul E. Budlow and Spencer Todd of the Civil Rights and Special Victims Section are prosecuting this case. U.S. Attorney Barron also commended the work of the office’s professional staff, including the victim-witness unit, for their work on this difficult 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-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Florida Man Facing Federal Charges for Covid-19 Unemployment Insurance Fraud in Maryland and CaliforniaRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging David Godin, a/k/a “James St Patrick,” a/k/a “David Wetty,” a/k/a “Vic Pro” for wire fraud and aggravated identity theft, in connection with a scheme to defraud the Maryland Department of Labor (“MD-DOL”) and California Employment Development Department (CA-EDD”) of unemployment insurance (“UI”) benefits during the COVID-19 pandemic.
Earlier today, Godin was arrested by law enforcement in Florida and had his initial appearance in the U.S. District Court in Miami, Florida.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Troy W. Springer of the National Capital Region, U.S. Department of Labor’s Office of Inspector General (“DOL-OIG”), and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the indictment, beginning in June 2020, Godin created disposable email addresses and used them to file fraudulent UI claims with the MD-DOL and CA-EDD. The UI claims contained false and fraudulent information and contained the personal identifiable information of identity theft victims from Maryland, California, Florida, Illinois, Mississippi and Washington, D.C.
If convicted, Godin faces a maximum sentence of 20 years in federal prison for each count of wire fraud and a consecutive term of 2 years’ imprisonment for aggravated identity theft. Furthermore, if convicted, Godin must forfeit any property derived from the scheme to defraud to the United States.
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.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of the District of Maryland COVID-19 Strike Force, a Strike Force that 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 Erek L. Barron commended the DOL-OIG, and IRS-CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Bijon A. Mostoufi, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Maryland Felon Convicted After Four Day Jury Trial of Possessing A Firearm and AmmunitionRead the Press Release
Greenbelt, Maryland – After a four-day trial, a federal jury returned a guilty verdict today convicting John Robert Williams III, age 42, of Upper Marlboro, Maryland on the federal charge of possessing a firearm and ammunition after having been convicted of a crime punishable by a term of imprisonment exceeding one year.
The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron, Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief of Police Malik Aziz of the Prince George’s County Police Department.
According to the evidence at trial, the defendant possessed a firearm and ammunition, specifically, a Kel-Tec P-11 semi-automatic pistol loaded with one round of 9mm Luger caliber ammunition – after having been convicted of a crime punishable by a term of imprisonment exceeding one year.
Specifically, on the evening of September 10, 2022, members of the Prince George’s County Police Department (“PGPD”) were conducting proactive patrols in a specific area of Oxon Hill, Maryland in response to recent gun and drug-related crime in this area. An officer noticed a white Chevy Trailblazer stopped next to a business in this area and saw what he believed to be an interrupted drug transaction as he drove by.
After additional officers returned to do an investigative stop, law enforcement saw what appeared to be a firearm in the back right pocket of Mr. Williams’ pants. Mr. Williams was placed into handcuffs for the officers’ safety, and law enforcement pulled from Mr. Williams’ back right pocket a Kel-Tec P-11 semi-automatic pistol loaded with one round of 9mm Luger caliber ammunition.
Trial testimony further showed that the officers also recovered from Mr. Williams the keys to the Trailblazer and approximately $2,458 in cash. A subsequent search of the Trailblazer found a number of bags of marijuana, as well as two more firearms: a loaded Smith & Wesson .38 Special revolver, and a loaded Ruger Model P89 9mm pistol.
At sentencing, the defendant faces a maximum sentence of 15 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. U.S. District Judge Chuang has scheduled sentencing for September 11, 2024 at 2:30 p.m.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the ATF and PGPD for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Joshua Rosenthal and William Moomau, 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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Former Baltimore City State’s Attorney Marilyn J. Mosby Sentenced to Twelve Months of Home Confinement, with Electronic Monitoring and Ordered to Forfeit 90% of Property ValueRead the Press Release
Greenbelt, Maryland – U.S. District Judge Lydia K. Griggsby today sentenced Marilyn J. Mosby, age 44, of Baltimore, Maryland to twelve months of home confinement as part of thirty-six months of supervised release, for making a false mortgage application and two counts of perjury. During the first twelve months of her supervised release Judge Griggsby also ordered Mosby to remain on home confinement, with electronic monitoring. Judge Griggsby further ordered forfeiture of 90% of the property purchased with the fraudulently obtained mortgage, including any appreciation. The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
On February 6, 2024, Mosby was convicted on the federal charge of making a false mortgage application when she was Baltimore City State’s Attorney, relating to the purchase of a condominium in Long Boat Key, Florida. Previously, on November 9, 2023, Mosby was convicted on two counts of perjury, relating to the withdrawal of funds from the City of Baltimore’s Deferred Compensation Plan claiming that she suffered adverse financial consequences during the COVID-19 pandemic while she was the Baltimore City State’s Attorney.
U.S. Attorney Erek L. Barron commended the FBI and IRS-CI agents for their work in the investigation and thanked the Baltimore City Office of the Inspector General for its assistance and invaluable public service. Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Aaron S.J. Zelinsky, who prosecuted the federal cases.
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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President and Owner of Baltimore County Business Convicted After Seven Day Trial for Honest Services Wire Fraud and BriberyRead the Press Release
Baltimore, Maryland –After a seven-day trial, a federal jury returned guilty verdicts yesterday convicting Wayne I. Kacher, Jr., age 51, of Harford County, Maryland, on federal charges of conspiring to commit honest services wire fraud and bribery, honest services wire fraud, and bribery involving federal funds.
The guilty verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office.
As detailed in trial testimony, the Maryland Broadband Cooperative, Incorporated (“MdBC”) was a not-for-profit corporation whose purpose was to work with internet service providers to offer broadband internet service to under-served and un-served areas in Maryland. For a fee, public and private entities could join the cooperative and gain access to the broadband infrastructure that MdBC installed. MdBC’s office was located in Salisbury, Maryland. William Patrick Mitchell worked as the President and Chief Executive Officer (“CEO”) of MdBC.
Defendant Wayne Kacher (“Kacher”) was the president and owner of Bel Air Underground, Inc. (“BAU”), a company that is principally located in Baltimore County, Maryland. BAU frequently acted as a subcontractor on projects for MdBC. Kacher was also the president and owner of Pro Comm Engineering and Locating Services, LLC (“Pro Comm”), which was principally located in Baltimore, County Maryland. Pro Comm also acted as a subcontractor on projects for MdBC.
From 2014 to 2018, MdBC paid Kacher’s company, BAU, more than $11 million for broadband network related work. Of that amount, approximately $7.9 million was for work on installing and improving a fiber optic broadband connection from NASA Wallops Island to Patuxent River Naval Air Station (hereafter “Pax River”) in St. Mary’s County, Maryland, to enhance the communications capacity between those locations.
The trial evidence showed that from at least 2014 to 2018, Kacher provided Mitchell with financial benefits, including cash payments, and payments for an all-terrain vehicle and a John Deere Gator owned by Mitchell. Kacher also paid for renovations and improvements to Mitchell’s residence, including paying for the construction of a pole building on Mitchell’s property. Kacher gave these things to Mitchell because of and in exchange for the work that MdBC was subcontracting to BAU and Pro Comm.
At sentencing, not yet scheduled by the court, Kacher faces a maximum sentence of five years in federal prison for conspiracy; twenty years in federal prison for honest services wire fraud; and a maximum of ten years in prison for federal program bribery.
On May 10, 2024, William Patrick Mitchell, age 58, previously pleaded guilty to Counts One and Two of the Superseding Indictment, which charged Mitchell with Conspiracy and Honest Services Wire Fraud, in violation of 18 U.S.C. §§ 371 and 1346. Judge Gallagher will sentence Mitchell on October 4, 2024.
United States Attorney Erek L. Barron commended DCIS and the FBI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Matthew Phelps and Christine Goo, 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 BGF Gang Member Sentenced to 28 Years in Federal Prison for Racketeering Conspiracy Charge, Including MurderRead the Press Release
Baltimore, Maryland – On Tuesday, May 21, U.S. District Judge James K. Bredar sentenced Wayne Prince, a/k/a “Taz,” age 24, of Baltimore to 28 years imprisonment, followed by 5 years of supervised release, for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (“BGF”) gang.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Richard Worley of the Baltimore Police Department; and Chief Robert McCullough of the Baltimore County Police Department.
According to his plea agreement and other court documents, beginning in 2018 Prince was a member and associate of the BGF, also known as “Jamaa,” and participated in the BGF criminal enterprise, including a murder, a drug distribution conspiracy, possession with intent to distribute drugs and robbery. BGF is a nationwide gang which began operating in prisons and is now involved in criminal activity, including murder, murder-for-hire, robbery, extortion, drug trafficking, obstruction of justice and witness intimidation, in cities throughout the United States, including Baltimore and throughout Maryland.
As detailed in his plea agreement, on August 7, 2018, Prince and two co-conspirators attempted to murder an individual at a home that the intended target owned and was having renovated. A construction crew was on site at the time. During the attempted murder, Prince and a co-conspirator shot and killed one of the construction workers using a .40 caliber handgun. They also shot a second construction worker in the head, but that person survived the attack.
Later that day, Prince bragged to an associate during a recorded jail call, “I’m about to get some money soon,” referring to an expected payment from Co-Conspirator 2 for Prince’s role in the attempted murder of the target. From August 7 to August 9, 2018, Prince exchanged messages with a now-deceased member of Co-Conspirator 2’s inner circle, in which Prince made arrangements to collect payment from Co-Conspirator 2 for his role in the attempted murder of the target.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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 also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the ATF, the FBI, the Baltimore City Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Ari D. Evans, Patricia C. McLane, and Kim Y. Hagan 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 https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Justice Department Announces Arrest, Premises Search, and Seizures of Multiple Website Domains to Disrupt Illicit Revenue Generation Efforts of Democratic People’s Republic of KoreaRead the Press Release
The Justice Department today announced a series of coordinated and court-authorized actions to disrupt the illicit revenue generation efforts of Democratic People’s Republic of Korea (DPRK) information technology (IT) workers. As part of a Department-wide initiative – the DPRK RevGen: Domestic Enabler Initiative – the Department will continue to prioritize high-impact, strategic, and unified enforcement and disruption operations across the U.S. Government targeting U.S.-based enablers of unlawful DPRK IT workers overseas. Today’s announcement follows successful Department-led action in October 2023 which targeted similar and related conduct.
Under the Initiative, launched in March 2024 by the National Security Division and FBI Cyber and Counterintelligence Divisions, Department prosecutors and agents are prioritizing:
- The identification and shuttering of U.S.-based “laptop farms” (i.e., locations hosting laptops provided by victim U.S. companies to individuals they believed were legitimate U.S.-based freelance IT workers);
- Investigations and prosecutions of U.S.-based witting enablers, as appropriate;
- International partnerships with like-minded countries that also host IT worker support networks;
- Improved speed, tempo, and content of notifications to victims, primarily unwitting U.S. companies; and
- Enhanced partnerships with private sector online service providers, including in terms of identifying IT worker infrastructure and personas, improving the providers’ in-house fraud detection methods, and educating compliance personnel and the public regarding the threat (see e.g., May 2022 and October 2023 advisories, as well as a new advisory released today by the FBI).
“Today’s announcement reveals the complex web of deception and facilitators that is central to the North Korean regime’s schemes to evade international sanctions to finance its weapons program,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The disruptions announced today represent a focused and continuing effort to dismantle these illicit networks and thereby prevent North Korean IT workers from victimizing unwitting U.S. companies. Through such sustained campaigns against this threat, the Department will continue to enhance our collective national security and cybersecurity.”
“The FBI and its partners are committed to leveraging everything at our disposal to disrupt North Korean IT workers from subverting the rule of law in order to fund the DPRK’s weapons of mass destruction program,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We will continue our work of maintaining order in the cyber space and preventing bad actors from taking advantage of it for their strategic geopolitical objectives.”
As alleged in court documents, the DPRK government dispatched thousands of skilled IT workers to live abroad, primarily in China and Russia, with the aim of deceiving U.S. and other businesses worldwide into hiring them as freelance IT workers, to generate revenue for its weapons of mass destruction (WMD) programs. The DPRK IT workers’ scheme involved the use of pseudonymous email, social media, payment platform and online job site accounts, as well as false websites, proxy computers, and witting and unwitting third parties located in the United States and elsewhere. As described in a May 2022 tri-seal public service advisory released by the FBI, Department of the Treasury and Department of State, such IT workers have been known individually earn up to $300,000 annually, generating hundreds of millions of dollars collectively each year, on behalf of designated entities, such as the North Korean Ministry of Defense and others directly involved in the DPRK’s UN-prohibited WMD programs.
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Consistent with the goals of this initiative and prior to its inception, the District of Maryland led enforcement actions against Minh Phuong Vong of Bowie, Maryland, who was arrested this morning for his alleged participation in a scheme to assist overseas IT workers – posing with his identity – in working at U.S. companies in remote IT positions. Earlier this week, the FBI executed a premises search at Vong’s residence.
Separately, the Eastern District of Missouri led a seizure action against 12 website domains used by DPRK IT workers to mimic western IT services firms to support the bona fides of their attempts to secure remote work contracts for U.S. and other businesses worldwide.
“The alleged schemes likely benefitted the Democratic People’s Republic of Korea in evading U.S. sanctions and victimizing American businesses,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “By stealing the identities of American citizens to commit fraud, they obtained proceeds which likely helped fund the North Korean regime’s priorities including nuclear weapons programs. The FBI and our partners are committed to rooting out insidious efforts that undermine our economic and national security.”
Vong Premises Search, Complaint, and Arrest – District of Maryland
As part of an investigation pre-dating the initiative, Vong was arrested today and charged by criminal complaint with conspiracy to commit wire fraud.
According to the criminal complaint, Vong and other conspirators engaged in a scheme to fraudulently gain employment at companies located in the United States. These U.S. companies provided information technology services, including software development services, to the U.S. government. While Vong was nominally employed by these U.S. companies, he was not in fact the individual performing work for them. Remote IT workers based overseas instead posed as Vong and performed Vong’s job duties.
According to the affidavit in support of the criminal complaint, in March 2023, as part of Vong’s hiring process with a U.S. company, the Chief Executive Officer of the U.S. company conducted a video call with Vong where he verified Vong’s identity with a U.S. passport and Maryland driver’s license. A different individual, however, had appeared for an earlier interview for the position and later for work meetings during the course of Vong’s employment. That individual, charged as a John Doe defendant in the criminal complaint, is a native of North Korea and a self-described software developer who claimed to be living in Shenyang, China.
As alleged in the complaint, throughout the course of Vong’s employment with U.S. company, remote IT workers based overseas performed Vong’s job duties by accessing protected victim computer systems via remote internet connections and posing as Vong on work-related videoconferences. Vong also shipped one or more laptops to an address in China. Vong also received payment from U.S. Company and other employers, which he then transmitted to individuals located overseas, keeping a percentage for himself.
The FBI Baltimore Field Office is investigating the case.
Assistant U.S. Attorney Kathleen O. Gavin for the District of Maryland is prosecuting the case with valuable assistance provided by Trial Attorney Alexandra Cooper-Ponte of the National Security Division’s National Security Cyber Section.
Fraudulent DPRK IT Work Website Seizures – Eastern District of Missouri
On May 15, pursuant to a court order issued in the Eastern District of Missouri, the Department seized 12 website domains used by DPRK IT workers to hide their true identities and locations when applying to do remote work for U.S. and other businesses worldwide. The specific group of DPRK IT workers who created these domains work for the PRC-based Yanbian Silverstar Network Technology Co. Ltd. and the Russia-based Volasys Silver Star, both of which were sanctioned in 2018 by the Department of the Treasury. These IT workers funneled income from their fraudulent IT work back to North Korea using online payment services and Chinese bank accounts.
“Shutting down these websites is just one of the ways we are working to disrupt the flow of money to the North Korean weapons program,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “The business community can do their part by carefully vetting their online hires.”
The 12 website domains seized yesterday, partial images of which are included in the unsealed affidavit, were designed to appear as domains of legitimate, U.S.-based IT services companies located in Portland, Oregon; Houston; Lancaster, Pennsylvania; Oklahoma City; Indianapolis; New York; and Richmond, Virginia. Three of the entities that claimed to own these domains were officially registered in Wyoming. The website contents included a variety of designed to entice potential victims, such as claims that the firms assisted hundreds of “happy clients” including Fortune 500 companies (potentially a fictitious claim) and completed hundreds of projects over thousands of work hours. Other websites included claims of having helped clients benefit from new technologies, such as artificial intelligence and machine learning, “blockchain solutions,” cloud computing skills, and internet of things knowledge.
However, the website domains also included indicia that should have aroused suspicion about their bona fides. For example:
- The phone numbers used to register these domains, or advertised as belonging to these businesses, did not have area codes that corresponded with the locations where these businesses claimed to have offices;
- Some of the addresses listed were homes, versus office buildings;
- The content included disjointed phrases that appeared to be attempts at inspirational quotes – e.g., “Nor, moreover, is there anyone who loves pain because it is pain, pursues it, wants to gain it, but;” and
- Awkward promotional phrases such as “here are our main features & many more features.”
The National Security Division’s National Security Cyber Section and the U.S. Attorney’s Office for the Eastern District of Missouri are investigating this case. The FBI St. Louis Field Office conducted the investigation, with the assistance of the FBI Cyber Division.
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The FBI, along with the Departments of State and Treasury, issued a May 2022 advisory to alert the international community, private sector and public about the North Korea IT worker threat. Updated guidance was issued in October 2023 by the United States and the Republic of Korea (South Korea), which includes indicators to watch for that are consistent with North Korea IT worker fraud.
Concurrent with today’s announcement and consistent with the initiative’s goals, two additional criminal prosecutions in the District of Columbia were unsealed today, resulting in two arrests and the execution of related seizures and search warrants in multiple jurisdictions. Both prosecutions reflect investigations that predate the initiative’s inception. Arizona woman Christina Marie Chapman was arrested on May 15 and three foreign nationals were charged on May 8 in connection with a similar IT worker scheme associated with North Korea. As part of this case, the U.S. Attorney’s Office seized wages earned by more than 19 overseas IT workers and will seek their forfeiture. Additionally, the District of Columbia charged Ukrainian national Oleksandr Didenko for similar conduct. As alleged, Didenko created fake accounts at U.S. IT job search platforms and with money service transmitters. Didenko was arrested in Poland on May 6 pursuant to an arrest warrant from the United States.
The U.S. Department of State has offered potential rewards for up to $5 million in support of international efforts to disrupt North Korea’s illicit financial activities, including for certain information related to individuals who are sent outside of North Korea to work to generate money for the North Korean government or who facilitate the activities of such North Korean nationals.
An indictment and a criminal complaint are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
EDMO seizure applicationCriminal Complaint Charges Two Men with Conspiracy to Commit Wire FraudRead the Press Release
Baltimore, Maryland – The United States Attorney’s Office for the District of Maryland has filed a federal criminal complaint charging Minh Phuong Vong and a second individual “John Doe” whose true identity remains unknown with conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349.
The criminal complaint was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office. The complaint was filed on May 15, 2024. According to the affidavit filed in support of the criminal complaint,
Vong, a native of Vietnam, and a naturalized United States citizen, conspired with an unknown individual, John Doe, to commit wire fraud by making false and fraudulent statements and representations to a United States company over the Internet in order to persuade the company to hire Vong as a fullstack web developer for the purpose of receiving salary payments for work not performed by Vong.
As alleged, the false representations included statements about Vong’s education, training and job experience. Representatives of the US Company conducted a video interview over the Internet of an individual who identified himself as Vong. Shortly after that interview, Vong participated in a second remote interview with a different representative of the US Company. In this interview, Vong showed his driver’s license and passport to confirm his identity and citizenship.
Following those interviews, the company hired Vong and assigned him to work on a government contract. The contract was part of a national defense program to develop software used by various other government entities that would allow them to coordinate aviation assets effectively.
According to the affidavit, Vong, however, did not perform software development work. Instead, Vong worked at a nail salon in Bowie, Maryland, while an individual or individuals located in China used Vong’s access credentials to connect to a secure government website, perform the software development work, and attend regular online company meetings.
“John Doe” communicated regularly with Vong and during those communications Vong and “John Doe” coordinated efforts to ensure that the U.S. Company did not know that an individual or individuals located overseas were actually posing as Vong to perform work on the government software development project.
The John Doe online communications also contained information and statements that indicated that “John Doe” is North Korean and a self-described software developer who lives in Shenyang, China.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
If convicted, each defendant faces a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.United States Attorney Erek L. Barron commended the Baltimore FBI Field Office for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Kathleen O. Gavin, 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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Maryland Woman Pleads Guilty to Conspiring to Destroy the Baltimore Region Power GridRead the Press Release
Sarah Beth Clendaniel, 36, of Catonsville, Maryland, pleaded guilty today to conspiring to damage or destroy electrical facilities in Maryland.
According to court documents, in 2018, Clendaniel became acquainted with Brandon C. Russell, a Florida resident, who is currently charged with conspiracy to damage or destroy electrical facilities in Maryland and is awaiting trial. Clendaniel and Russell espouse a white supremacist ideology and advocate a concept known as “accelerationism.” To “accelerate” or to support “accelerationism” is based on a white supremacist belief that the current system is irreparable and without an apparent political solution, and therefore violent action is necessary to precipitate societal and government collapse.
From at least December 2022 and continuing through February 2023, Clendaniel conspired with Russell and others to damage energy facilities involved in the transmission and distribution of electricity and to cause a significant interruption and impairment of the Baltimore regional power grid. As part of her guilty plea, Clendaniel admitted that she communicated and planned over encrypted communication applications (ECA) to carry out attacks against energy facilities. Russell and Clendaniel communicated their plans to commit an attack on the Baltimore Region power grid to a confidential human source (CHS-1).
Their plans began to culminate on Jan. 12, 2023 when CHS-1 and Russell discussed the planned substation attack in Maryland with a goal of working with Clendaniel to “maximize impact” and “to coordinate to get multiple [substations] at the same time.” Later that same day, Clendaniel, using the moniker “Nythra88,” sent a message to CHS-1 on ECA confirming her support of the attack.
In the ensuing conversation, which continued through Jan. 14, 2023, Clendaniel told CHS-1 that she lived near Baltimore. She also stated that she was a felon, and had previously, but unsuccessfully, attempted to obtain a rifle. She asked CHS-1 to purchase a rifle for her, stating that she wanted to “accomplish something worthwhile” and that she wanted the rifle “within the next couple of weeks” to “accomplish as much as possible before June, at the latest.” On Jan. 18, 2023, on ECA, Clendaniel told CHS-1 that she had identified a few potential locations to target in her attack. CHS-1 stated that CHS-1 would have to be the “driver” and Clendaniel would have to be the “shooter” in the attack. Clendaniel confirmed that she was “determined to do this” and stated she would have done something earlier on her own if she had not lost her rifle “a few months ago.” The conversation continued with CHS-1 and Clendaniel discussing the specifics of the desired rifle and agreeing that Clendaniel would send CHS-1 a “wish list,” which she did the following day.
At various times from Jan. 21, 2023 through Jan. 29, 2023, CHS-1 exchanged encrypted messages, separately, with Clendaniel on ECA and Russell in which they discussed in detail the rifle and specific firearms accessories that Clendaniel wanted and potential targets for their attack.
On Jan. 29, 2023, Clendaniel told CHS-1 that the five substations she planned to target included: “Norrisville, Reisterstown, and Perry Hall.” Clendaniel described how there was a “ring” around Baltimore and if they hit a number of them all in the same day, they “would completely destroy this whole city.” She added that they needed to “destroy those cores, not just leak the oil…” and that a “good four or five shots through the center of them . . . should make that happen.” Further, she stated that: “[i]t would probably permanently completely lay this city to waste if we could do that successfully.” When CHS-1 asked if it would accomplish a “cascading failure,” Clendaniel replied, “[y]es . . . probably” and that the attack targets are all “major ones.” Clendaniel also said that the most difficult target that they would have to do together has “fire walls on three sides.”
During that conversation, Clendaniel sent CHS-1 five links to the “Open Infrastructure Map” which showed the locations of five specific Baltimore, Gas and Electric (BGE) electrical substations in Maryland. BGE is an energy company that utilizes substations, like the five targeted sites, to produce, convert, transform, regulate and distribute energy. Three of the five substations were located near the towns of Norrisville, Reisterstown and Perry Hall. The remaining two substations were in the vicinity of Baltimore City. Each location is a BGE substation with significant infrastructure.
On or about Jan. 31, 2023, Russell discussed with CHS-1 the attack of the targeted substations on ECA, including how to “make sure it’s done right,” how “it has been studied,” and how to make it “cascading” so as to maximize damage. Russell and Clendaniel believed that attacking these five electrical substations in the greater Baltimore area would serve accelerationism and help to break down society.
On Feb. 3, 2023, law enforcement agents executed a search warrant at Clendaniel’s residence in Catonsville, Maryland. During the search, law enforcement agents recovered from Clendaniel’s bedroom various firearms and hundreds of rounds of ammunition. Federal law prohibits Clendaniel from possessing these items because she is a convicted felon, including convictions in Cecil County Maryland for robbery in 2006 and robbery and attempted robbery in 2016.
Clendaniel pleaded guilty to conspiracy and felony possession charges. She faces a maximum sentence of 20 years in prison on the conspiracy charge and 15 years on the felon in possession charge followed by up to lifetime of supervised release for the conspiracy charge. Sentencing is scheduled for Sept 3.
Assistant U.S. Attorneys Kathleen O. Gavin and Michael Aubin for the District of Maryland prosecuted the case with valuable assistance from the Department of Justice’s National Security Division’s and Counterterrorism Section.
The U.S. Attorney’s Office for the District of Maryland is a partner in the U.S. Department of Justice’s United Against Hate community outreach program. The United Against Hate initiative seeks to directly connect federal, state and local law enforcement with traditionally marginalized communities in order to build trust and encourage the reporting of hate crimes and hate incidents. Attorney General Merrick B. Garland announced the nationwide launch of the initiative and its expansion to all 94 U.S. Attorneys’ Offices.
Maryland Woman Pleads Guilty to Conspiring to Destroy the Baltimore Region Power GridRead the Press Release
Baltimore, Maryland – Sarah Beth Clendaniel, Catonsville, Maryland resident, pleaded guilty today to conspiring to damage or destroy electrical facilities in Maryland, in violation of 18 U.S.C. § 1366(a), and to being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1).
Maryland United States Attorney Erek L. Barron and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office announced Clendaniel’s guilty plea.
“Ms. Clendaniel’s hate-fueled plans to destroy the Baltimore region power grid threatened thousands of innocent lives,” said U.S. Attorney Barron. “But, when law enforcement and the communities we serve are united in partnership, hate cannot win.”
“Ms. Clendaniel, a felon, spent months plotting, planning and taking steps to inflict grave damage to Maryland’s power grid in furtherance of her white supremacist ideology,” said Special Agent in Charge DelBagno. “Today’s guilty plea highlights the commitment of the FBI to hold individuals accountable for their actions. The FBI will continue to investigate violent threats as the safety and security of all Marylanders remains a priority.”
According to Clendaniel’s guilty plea:
In 2018, Clendaniel became acquainted with Brandon C. Russell, a Florida resident, who is currently charged with conspiracy to damage or destroy electrical facilities in Maryland and is awaiting trial. Clendaniel and Russell espouse a white supremacist ideology and advocate a concept known as “accelerationism.” To “accelerate” or to support “accelerationism” is based on a white supremacist belief that the current system is irreparable and without an apparent political solution, and therefore violent action is necessary to precipitate societal and government collapse.
According to court documents, from at least December 2022 and continuing through February 2023, Clendaniel conspired with Russell to damage energy facilities involved in the transmission and distribution of electricity and to cause a significant interruption and impairment of the Baltimore regional power grid.
As part of her guilty plea, Clendaniel admitted that she communicated and planned over encrypted communication applications (“ECA”) to carry out attacks against energy facilities. Russell and Clendaniel communicated their plans to commit an attack on the Baltimore Region power grid to a confidential human source (“CHS-1”).
Their plans began to culminate on January 12, 2023 when CHS-1 and Russell discussed the planned substation attack in Maryland with a goal of working with Clendaniel to “maximize impact” and “to coordinate to get multiple [substations] at the same time.” Later that same day, Clendaniel, using the moniker “Nythra88,” sent a message to CHS-1 on ECA confirming her support of the attack.
In the ensuing conversation, which continued through January 14, 2023, Clendaniel told CHS-1 that she lived near Baltimore. She also stated that she was a felon, and had previously, but unsuccessfully, attempted to obtain a rifle. She asked CHS-1 to purchase a rifle for her, stating that she wanted to “accomplish something worthwhile” and that she wanted the rifle “within the next couple of weeks” to “accomplish as much as possible before June, at the latest.” On January 18, 2023, on ECA, Clendaniel told CHS-1 that she had identified a few potential locations to target in her attack. CHS-1 stated that CHS-1 would have to be the “driver” and Clendaniel would have to be the “shooter” in the attack. Clendaniel confirmed that she was “determined to do this” and stated she would have done something earlier on her own if she had not lost her rifle “a few months ago.” The conversation continued with CHS-1 and Clendaniel discussing the specifics of the desired rifle and agreeing that Clendaniel would send CHS-1 a “wish list,” which she did the following day.
At various times from January 21, 2023 through January 29, 2023, CHS-1 exchanged encrypted messages, separately, with Clendaniel and with Russell in which they discussed in detail the rifle and specific firearms accessories that Clendaniel wanted and potential targets for their attack.
On January 29, 2023, Clendaniel told CHS-1 that the five substations she planned to target included: “Norrisville, Reisterstown, and Perry Hall.” Clendaniel described how there was a “ring” around Baltimore and if they hit a number of them all in the same day, they “would completely destroy this whole city.” She added that they needed to “destroy those cores, not just leak the oil . . . ” and that a “good four or five shots through the center of them . . . should make that happen.” Further, she stated that: “[i]t would probably permanently completely lay this city to waste if we could do that successfully.” When CHS-1 asked if it would accomplish a “cascading failure,” Clendaniel replied, “[y]es . . . probably” and that the attack targets are all “major ones.” Clendaniel also said that the most difficult target that they would have to do together has “fire walls on three sides.”
During that conversation, Clendaniel sent CHS-1 five links to the “Open Infrastructure Map” which showed the locations of five specific Baltimore, Gas and Electric (“BGE”) electrical substations in Maryland. BGE is an energy company that utilizes substations, like the five targeted sites, to produce, convert, transform, regulate and distribute energy. Three of the five substations were located near the towns of Norrisville, Reisterstown, and Perry Hall. The remaining two substations were in the vicinity of Baltimore City. Each location is a BGE substation with significant infrastructure.
On or about January 31, 2023, Russell discussed with CHS-1 the attack of the targeted substations on ECA, including how to “make sure it’s done right,” how “it has been studied,” and how to make it “cascading” so as to maximize damage. Russell and Clendaniel believed that attacking these five electrical substations in the greater Baltimore area would serve accelerationism and help to break down society.
On February 3, 2023, law enforcement agents executed a search warrant at Clendaniel’s residence in Catonsville, Maryland. During the search, law enforcement agents recovered from Clendaniel’s bedroom various firearms and hundreds of rounds of ammunition. Federal law prohibits Clendaniel from possessing these items because she is a convicted felon, including convictions in Cecil County, Maryland for Robbery in 2006 and Robbery and Attempted Robbery in 2016.
Clendaniel faces a maximum sentence of 20 years in prison on the conspiracy charge and 15 years on the felon in possession charge followed by up to lifetime of supervised release for the conspiracy charge. Senior United States District Judge James K. Bredar has scheduled sentencing for September 3, 2024 at 11 a.m.
U.S. Attorney Barron commended the FBI for their work in the investigation and thanked Assistant U.S. Attorneys Kathleen O. Gavin and Michael Aubin who are prosecuting the federal case.
The U.S. Attorney’s Office for the District of Maryland is a partner in the U.S. Department of Justice’s United Against Hate community outreach program. The United Against Hate initiative seeks to directly connect federal, state and local law enforcement with traditionally marginalized communities in order to build trust and encourage the reporting of hate crimes and hate incidents. Department of Justice Attorney General Merrick B. Garland announced the nationwide launch of the initiative and its expansion to all 94 U.S. Attorneys’ Offices.
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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Comfort Care Medical Equipment, Inc. and Its Owner Agree to Pay $352,800 to Settle False Claims Act Allegations Regarding Its Submission of False Claims for Compression GarmentsRead the Press Release
Baltimore, Maryland – Comfort Care Medical Equipment, Inc. (“Comfort Care”) and one of its owners, Patrick Chalmers, have agreed to pay the United States $352,800 to resolve allegations that they violated the federal False Claims Act by submitting false claims to the Office of Personnel Management (OPM), which administers the Federal Employees Health Benefit Program (FEHBP) (collectively, the “United States”). Comfort Care is a durable medical equipment provider that provides compression and lymphedema garments, for various body parts including legs and arms, to patients. Patrick Chalmers was an owner of Comfort Care. He owned 100% of its stock and served as Comfort Care’s President from September 2005 until December 31, 2019.
The civil settlement was announced by United States Attorney for the District of Maryland Erek L. Barron, and Special Agent in Charge for the OPM Office of the Inspector General (OIG) Derek M. Holt.
The civil investigation was opened by the United States Attorney’s Office based upon a referral from OPM, OIG regarding excessive billings. Comfort Care billed almost all compression stockings (arms, legs, bras, etc.) utilizing HCPCS Code A6459 (gradient compression garment, not otherwise specified). According to the contract that Comfort Care had with Care First, which administered the FEHBP plan, Comfort Care could utilize this code only if no other HCPCS code could be billed for the compression garment provided. Once the A6549 HCPCS code was used, Comfort Care could bill FEHBP contracted plans for any amount and would be reimbursed at 65% of that amount.
“Federal contractors are required to bill the appropriate code for services rendered, not the code that puts the most money in their pockets. The U.S. Attorney’s Office and our partners are committed to ferreting out unlawful compliance with government contracts," said U.S. Attorney Erek L. Barron.
“False claims threaten the integrity of the FEHBP and can make health care more expensive for American taxpayers,” said Special Agent in Charge Derek M. Holt, OPM OIG. “I applaud our investigative staff and partners at the Department of Justice for their hard work on this case.”
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Comfort Care nor a concession by the United States that its claims are not well-founded.
United States Attorney Erek L. Barron commended the U.S. Office of Personnel Management, Office of the Inspector General, for its work in this investigation. Mr. Barron thanked Assistant U.S. Attorneys Thomas Corcoran and Sarah Marquardt, who handled the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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