District of Maryland
Press releases recorded for this federal judicial district.
Maryland Correctional Officer Pleads Guilty to Conspiracy and Destruction of Records Offenses Related to Cover-Up of Excessive Force IncidentRead the Press Release
A correctional officer at the Eastern Correctional Institution (ECI) in Westover, Maryland, pleaded guilty today to an information charging him with one count of conspiring to obstruct justice and one count of destruction of records, with the purpose of covering up evidence that a fellow officer at ECI had unlawfully assaulted an inmate.
According to court documents, on July 12, 2021, while working at the ECI, David Quillen, 37, learned that another officer had used force against an inmate. Upon learning of the incident, Quillen responded to the scene with a video camera and began recording the inmate. While Quillen filmed him, the inmate asserted that he had been assaulted by a correctional officer — Samuel Warren — for no reason. The inmate also cried and was visibly injured with blood on his face.
After Quillen stopped filming, he and other officers watched the video Quillen had filmed. While watching the video, a supervisory officer commented that the video did not look good for Warren and indicated that the video should be deleted. Warren agreed and Quillen and other officers agreed to lie about the deletion. Understanding that the video contained evidence that Warren’s use of force against the inmate had been unlawful, Quillen deleted the video.
Following the deletion, Quillen lied about what happened to the video, including to supervisors at ECI and to state and federal investigators.
Warren has since admitted that he unlawfully assaulted the inmate and has entered guilty pleas to both federal offenses related to that assault.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Erek L. Barron for the District of Maryland and Acting Special Agent in Charge Joseph Rothrock of the FBI Baltimore Field Office made the announcement.
The FBI Baltimore Field Office is investigating the case, with assistance from the Maryland Department of Public Safety and Correctional Services.
Assistant U.S. Attorney Sarah Marquardt for the District of Maryland and Trial Attorney Erin Monju of the Civil Rights Division’s Criminal Section are prosecuting the case, with assistance from Special Legal Counsel Mark Blumberg of the Civil Rights Division’s Criminal Section.
Former Bank Employee Convicted After Four-Day Trial for Using His Position to Facilitate a Bank Fraud SchemeRead the Press Release
Greenbelt, Maryland – After deliberating less than 90 minutes, a federal jury convicted Jalen Craig McMillan, age 30, of Jessup, Maryland, for conspiracy to commit bank fraud, bank fraud and aggravated identity theft. The jury returned its verdict late on February 16, 2024.
The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland 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 Paul Archie, 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 are awaiting sentencing.
McMillan faces a maximum sentence of 30 years in federal prison for the conspiracy and for each count of bank fraud and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed for aggravated identity theft. U.S. District Judge Peter J. Messitte has scheduled sentencing for McMillan on June5, 2024, at 2:30 p.m.
U.S. Attorney Erek L. Barron commended 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 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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Defendant Who Posed as a Lawyer Sentenced to 22 Years in Federal Prison for Fraud Related to a Debt Elimination SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Willie Lamont Hicks, a/k/a “Will Woodward” and “CW,” age 52, of Kansas City, Missouri, yesterday to 22 years in federal prison, followed by three years of supervised release, for federal charges of wire fraud and conspiracy to commit wire fraud and mail fraud related to a debt elimination and wealth management fraud scheme. Judge Chuang also ordered Hicks to pay a forfeiture money judgment of $1,649,897.33 and pay restitution of $3,281,109.38. A federal jury convicted Hicks and co-defendant Mary Ann Mendoza, a/k/a “Mary Ann Manuel,” “Trinity,” “M3,” and “Emily James,” age 51, of Gaithersburg, Maryland, of those charges on October 4, 2023.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Edwin S. Bonano of the Southeastern Region - Federal Housing Finance Agency - Office of Inspector General; Special Agent in Charge Javan Wilson of the U.S. Department of the Treasury - Office of Inspector General; Montgomery County State’s Attorney John McCarthy; and Chief Marcus Jones of the Montgomery County Police Department.
According to the evidence presented at the seven-day trial, from August 2011 to at least September 2017, Hicks and Mendoza, who represented themselves as partners and as husband and wife, held in-person trainings purporting to educate victim-debtors on how to discharge consumer debt, including mortgage debt, credit card debt, and automobile financing debt. Hicks and Mendoza also marketed wealth management services to victims, including purporting to set up a family office and to fund business opportunities.
As detailed in trial testimony, during the debt elimination classes, Hicks, who claimed to be an attorney, and Mendoza told victims that on the back of their social security cards and birth certificates, there was a number that unlocked access to a special bank account with funds owed to the victims by the U.S. government. The defendants also told the victim-debtors that they could create or use “trusts” to fulfill the wealth management or debt elimination services, or to obtain return on investment.
The evidence proved that Hicks, Mendoza, and their associates offered to facilitate the discharge of the debt held by the victims or perform other purported services for a fee, such as a percentage of the victim-debtors’ outstanding debt. The defendants accepted payment in the form of cash, wire transfers, personal and cashier’s checks, and the use of the victim-debtors’ credit. Victim-debtors also paid the defendants through the liquidation of their retirement savings, the leasing of apartments, and the purchase of vehicles and office equipment and supplies. In 2017, Hicks and Mendoza caused one victim to transfer almost $100,000 from the victim’s bank account to the accounts of fraudulent corporate entities controlled by the defendants. Trial testimony showed that victim-debtors were induced into providing the defendants with over one million dollars in cash and other forms of payment during the period of the conspiracy.
According to the evidence also presented at trial, Hicks and Mendoza used the victims’ personal identifying information without the victims’ knowledge or permission and provided the victims with fraudulent documents, including Internal Revenue Service forms, memorandums of agreement, intake forms, and other materials that the defendants claimed were necessary for discharging debt. The evidence showed that Hicks, Mendoza, and their associates mailed the fraudulent paperwork to the victim-debtors’ creditors, lenders, and the Internal Revenue Service purporting to effectuate the discharge of the victim’s debts.
As a result of Hicks’ and Mendoza’s scheme, victims suffered substantial financial harm, including foreclosure and eviction, homelessness, depletion of their retirement savings, significant downgrading of their credit scores, bankruptcy, and hundreds of thousands of dollars in fees and penalties owed to the IRS as a result of the fraudulent paperwork mailings.
Mendoza faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and mail fraud and a maximum of 20 years in federal prison for wire fraud. Judge Chuang has scheduled sentencing for Mendoza on February 23, 2024, at 9:30 a.m.
United States Attorney Erek L. Barron commended the Federal Housing Finance Agency - Office of Inspector General, the U.S. Department of the Treasury - Office of Inspector General, the Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked the United States Marshals, the Hinesville, Georgia Police Department, the Gwinnett County, Georgia Police Department, the Queen Anne’s County Sheriff’s Office, and the United States Attorney’s Offices of Western District of North Carolina, Northern District of Georgia, Eastern District of Texas, New Jersey, and the Eastern District of Pennsylvania for their assistance. Mr. Barron thanked Assistant U.S. Attorney Coreen Mao, 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 and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Robber Pleads Guilty to Committing a Series of Armed Bank and Commercial RobberiesRead the Press Release
Baltimore, Maryland – Dexter Nikoe Eaton, age 34, of Baltimore, pleaded guilty yesterday to armed bank robbery, related to a series of bank and armed commercial robberies he committed.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Richard Worley of the Baltimore Police Department.
According to Eaton’s plea agreement, between June 3 and July 30, 2022, Eaton committee six separate robberies/attempted robberies of banks and other businesses and used a firearm in four of the robberies.
Specifically, Eaton admitted that on June 3, 2022, he robbed a bank in the 3200 block of West North Avenue in Baltimore, providing a note to the teller that demanded money and threatened to kill the teller’s family if the teller did not comply with Eaton’s demands. On June 9, 2022, Eaton attempted to rob a check cashing and financial services business located in the 1600 block of West North Avenue, again by passing a note to the teller. The teller refused to read the note, instead activating an alarm, and Eaton fled the bank. Law enforcement collected the note passed by Eaton, which again demanded money and threatened to kill the family of the employee if Eaton’s demands were not met.
As detailed in his plea agreement, on June 10, 2022, Eaton, armed with a handgun, entered a bank in the 3200 block of West North Avenue wearing a black head covering and a surgical mask and pointed the gun at customers and employees stating, “Nobody move. Give me $4,000 or everyone in this b***h is dead.” Eaton forced a customer to the ground at gunpoint and took the customer’s wallet and cash. With the gun still pointed at the customer’s head, Eaton demanded that an employee get him $4,000 or Eaton would shoot the customer. The bank employee, fearing for her safety and the safety of others, gave Eaton cash, and Eaton fled the bank. On June 27, Eaton, armed with a handgun, robbed a bank in the 4700 block of Liberty Heights Avenue in Baltimore, pointing a gun at the security guard’s head and forcing the security guard to accompany Eaton to the teller window, where a customer was conducting a transaction. With the gun still at the security guard’s head, Eaton demanded that the teller give him $7,000 and threatened to shoot the security guard and the customer if the teller did not give him money or pushed any alarms. Fearing for her safety, the teller gave Eaton cash and he fled the bank.
Finally, on July 23, 2022, and July 30, 2022, Eaton robbed two businesses in the 3100 block of West North Avenue. In both robberies, Eaton held employees at gunpoint and demanded money, threatening an employee in the second robbery for moving too slow. The employees in both robberies gave Eaton cash and he left the stores.
Eaton and the government have agreed that, if the Court accepts the plea agreement, a sentence between seven and 20 years in federal prison is the appropriate disposition of the case. U.S. District Judge Richard D. Bennett has scheduled sentencing for May 15, 2024 at 11:00 a.m.
United States Attorney Erek L. Barron praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Reema Sood and Paul E. Budlow, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Firearms Trafficker Sentenced to 42 Months in Federal Prison for Illegally Dealing in FirearmsRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Mark Ryals, age 35, of Baltimore, Maryland, to 42 months in federal prison, followed by three years of supervised release, for unlicensed dealing in firearms.
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 (ATF) Baltimore Field Division; and Commissioner Richard Worley of the Baltimore Police Department.
According to his guilty plea, in early July 2021, law enforcement received information that Ryals was illegally selling firearms from his residence in Baltimore. That month, an undercover law enforcement agent asked Ryals to sell him firearms. Ryals agreed to make the sale and on July 15, 2021, Ryals sold the undercover officer two privately manufactured 9mm pistols and a .17 caliber firearm silencer for $2,250. Ryals knew that he was prohibited from possessing firearms due to a final protective order that was served on him on June 30, 2021. Ryals also knew that he didn’t have a license to deal or sell firearms.
According to court documents, between July 15 and August 11, 2021, Ryals sold firearms to undercover law enforcement personnel on six separate occasions, resulting in the purchase of 21 additional firearms from the defendant.
As detailed in the plea agreement, on August 12, 2021, law enforcement executed a search warrant at Ryals’ residence and recovered two privately manufactured 9mm pistols, one of which was equipped with a large capacity magazine; a short barreled 12-gauge shotgun with no serial number; a .22 caliber firearm; 237 rounds of assorted ammunition and $1,190 in cash, most of which was ATF funds used in the controlled purchases. Additionally, officers recovered firearms accessories and tools used in the creation of privately manufactured firearms, including a Dremel press with red plastic shavings on it. Ryals waived his Miranda rights and agreed to an interview with law enforcement, during which Ryals admitted that he had been making firearms and selling them.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the ATF, and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked 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 https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Leader of Baltimore Drug Trafficking Organization Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Ernest Lee Bailey, age 51, of Owings Mills, Maryland, to 10 years in federal prison, followed by four years of supervised release, for possession with intent to distribute controlled substances, including heroin, fentanyl, cocaine and MDMA.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation (“FBI”), Baltimore Field Office; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration (“DEA”) - Washington Division; and Special Agent in Charge Troy W. Springer of the National Capital Region U.S. Department of Labor - Office of Inspector General (“DOL-OIG”).
According to his guilty plea, from at least November 2019 to November 2020, Bailey led a drug trafficking organization (DTO) that was responsible for distributing kilogram quantities of controlled substances, including heroin, fentanyl, cocaine and MDMA in and around Baltimore.
As detailed in his plea agreement, between June and November 2020, law enforcement intercepted communications from multiple cellphones used by Bailey in connection with his drug activities, including “source” phones, which Bailey used to communicate with sources of drug supply, and “shop” phones with Bailey used to communicate with downstream distributors.
The intercepted communications revealed that Bailey obtained heroin from a Mexican-based DTO. The Mexican DTO’s middleman in New York City delivered narcotics to, and received payments from, Bailey on behalf of the Mexican DTO.
Bailey admitted that he obtained cocaine from a source of supply in Philadelphia, Pennsylvania, through a co-conspirator who was a Baltimore-area cocaine wholesaler. Bailey also recruited another individual to serve as a courier to transport cocaine from Philadelphia to Baltimore on behalf of Bailey. On at least five separate occasions Bailey and a co-conspirator acquired kilograms of cocaine from the Philadelphia source and directed the courier that Bailey recruited to bring the cocaine back to Baltimore.
According to the plea agreement, Bailey maintained a network of wholesale drug redistributors who sold the drugs supplied by Bailey to their own customers. In addition, Bailey rented an apartment on Heath Street in Baltimore which he used as a stash location to store and process drugs for redistribution.
Finally, Bailey admitted that he used the proceeds of bank fraud to pay the rent on the apartment. Specifically, Bailey’s used pandemic-related unemployment insurance benefits that were fraudulently issued to an inmate, T.S., on a bank debit card in July 2020. Bailey contacted the bank, posing as T.S. and requested that the PIN on the card be reset. Bailey confirmed the card number and the average card balance, which was $19,230.45. Bailey then used the funds on the card to purchase four $500 U.S. Postal Service money orders. Bailey used $1,000 of the money orders toward his down payment on a new Acura MDX and the remaining money orders, marked payable from the individual in whose name Bailey rented the Heath Street apartment, toward the rent on the apartment.
On November 16, 2020, law enforcement executed a search warrant at Bailey’s residence and recovered 13 cell phones, men’s designer watches and other jewelry, and $8,980 in cash. Bailey later admitted that the cash and jewelry represented proceeds from the sale of controlled substances or money intended to be used to purchase controlled substances. Searches of the Heath Street apartment recovered drug paraphernalia, including digital scales, drug cutting agents and hydraulic presses and controlled substances, including over 215 grams of a mixture of fentanyl, heroin, methamphetamine, and tramadol; and 301 grams of eutylone, a controlled substance analogous to MDMA.
Bailey was the last defendant in this 13-defendant case to be sentenced. Eleven co-defendants pleaded guilty to their roles in the DTO and were sentenced to between one and six years in federal prison and one defendant passed away after being indicted.
This prosecution is part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Baltimore Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region. The Baltimore SF is comprised of agents and officers from the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the U.S. Postal Inspection Service, the U.S. Secret Service, the Baltimore Police Department, the Baltimore City Sheriff’s Office, the Baltimore City State’s Attorney’s Office, the Anne Arundel County Police Department, the Baltimore County Police Department, the Maryland Department of Public Safety and Correctional Services, the Maryland National Guard, the Maryland State Police, and the Maryland Transportation Authority, and the prosecution is being led by the Office of the United States Attorney for the District of Maryland.
United States Attorney Erek L. Barron commended the FBI, DEA, and the DOL-OIG for their work in the investigation and recognized the U.S. Postal Inspection Service for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Jeffrey J. Izant and Anatoly Smolkin, 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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Holy Health Care Services, LLC Program Administrator Sentenced to Five Years in Federal Prison for a Health Care Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Lambert Mbom, age 50, of Riverdale, Maryland, to five years in federal prison, followed by three years of supervised release, for conspiracy to commit health care fraud and wire fraud and for conspiracy to make false statements relating to health care matters in connection with a scheme to fraudulently bill Medicaid. The defendant’s conviction stems from a scheme involving services purportedly provided by Holy Health Care Services, LLC (“Holy Health”), a mental health services provider with locations in Washington, D.C. Judge Xinis also ordered Mbom to pay restitution in the full amount of the loss, $4,450,588.66. The sentence was imposed on February 8, 2024.
The guilty verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge David J. Scott of the FBI Washington Field Office’s Criminal and Cyber Division; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (“HHS OIG”); and Daniel W. Lucas, Inspector General for the District of Columbia.
According to evidence presented at Mbom’s six-day trial, he was a program administrator at Holy Health. Holy Health entered into Medicaid Provider Agreements with the District of Columbia’s Department of Health Care Finance (“DHCF”), to provide healthcare services to D.C. Medicaid recipients and was certified by the District of Columbia’s Department of Behavioral Health (“DBH”) to provide mental health services as a freestanding clinic and as a Mental Health and Rehabilitation Services (“MHRS”) provider. As a certified MHRS provider, Holy Health had authority to provide and bill for a variety of mental health services including “community support” – a service for which community support workers (“CSWs”) provide rehabilitative and educational support to mental health patients both in clinical settings and in the community.
According to evidence presented at trial, Mbom and his co-conspirators paid to Medicaid beneficiaries to induce the beneficiaries to visit Holy Health for mental health services. As detailed in trial testimony, Mbom and his co-conspirators caused claims to be submitted by Holy Health to Medicaid for services, including community support services, purportedly provided to Medicaid beneficiaries.
As detailed in trial testimony, Mbom and his co-conspirators paid individuals to come into the office and then used their personally identifiable information (“PII”) to bill Medicaid for services that were not rendered or were not rendered as billed. The evidence proved that Mbom made up fake Holy Health employees who were purportedly Community Support Workers so that he could bill Medicaid for services provided by these fake employees. Witnesses testified that during the investigation, sources posing as mental health patients were sent to Holy Health to obtain community support services. Not only did the sources not receive the services as billed, but Holy Health billed for CSW services for those patients for visits that never happened.
The jury acquitted Mbom of conspiring to violate the Anti-Kickback Statute.
The owners of Holy Health, Julius Bakari, age 46, and Mboutchock Kabiwa a/k/a “Eugenie Bakari” or “Eugenie Kabiwa,” age 46, both of Silver Spring, Maryland, previously pleaded guilty to conspiracy to commit health care fraud in connection with a scheme to pay bribes and kickbacks to Medicaid beneficiaries to induce the beneficiaries to visit their company. Kabiwa was sentenced to 20 months in federal prison and was ordered to pay restitution of $3,493,681. Bakari is scheduled to be sentenced on April 9, 2024.
United States Attorney Erek L. Barron commended the FBI, the HHS OIG, and the District of Columbia Office of Inspector General’s Medicaid Fraud Control Unit for their work in the investigation and the support provided by the District Department of Health Care Finance Division of Program Integrity during the investigation. Mr. Barron thanked Assistant U.S. Attorneys Christopher M. Sarma and Megan S. McKoy, 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.
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Former Carroll County Coach and Substitute Teacher Pleads Guilty to Federal Charge for Sexual Exploitation of a ChildRead the Press Release
Baltimore, Maryland – Evan Thomas Harris Frock age 34, of Taneytown, Maryland, has pleaded guilty to sexual exploitation of a child. Frock, a substitute teacher and volleyball coach in Carroll County, Maryland, posing as a teenager, used social media accounts to meet and communicate with children and to encourage them to produce and send to Frock images and videos of themselves engaged in sexually explicit activity. He remains detained on related state charges.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation (“FBI”), Baltimore Field Office; Carroll County Sheriff James DeWees; Chief Gregory Der of the Howard County Police Department, and Carroll County State’s Attorney Haven Shoemaker.
According to his plea agreement, from 2021 through May 2022, Frock, pretending to be a minor male and a minor female, used a variety of aliases on several social media platforms to communicate with other users, including eight minor victims, ranging in age from 9 to 17 years old. Specifically, Frock used the internet-based accounts and aliases to persuade, induce, and coerce the victims to produce sexually explicit images and videos of themselves and send those images and videos to Frock. On at least one occasion, Frock distributed a sexually explicit video of a minor male and sent images of his own genitalia to the minors to induce them to reciprocate. Further, Frock possessed several hundred commercially available images and videos of child sexual abuse material that depicted toddlers, violence, and bestiality.
Frock faces a mandatory minimum sentence of 15 years in federal prison and a maximum sentence of 30 years for sexual exploitation of a child to produce child pornography. U.S. District Judge Brendan A. Hurson has scheduled sentencing for Frock on April 16, 2024, at 11:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States 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.
United States Attorney Erek L. Barron commended the FBI, the Carroll County Sheriff’s Office, the Howard County Police Department, and the Carroll County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorney Colleen E. McGuinn, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Ten Defendants Arrested on Federal Indictments Related to a Multi- Million Dollar Fraud SchemeRead the Press Release
Baltimore, Maryland – As a result of a law enforcement operation on February 7, 2024, 10 defendants were arrested at locations throughout Maryland and three search warrants were executed related to an alleged money laundering conspiracy involving more than $9.5 million in proceeds from fraud schemes. Law enforcement agents from the Homeland Security Investigations Mid-Atlantic El-Dorado Task Force, the Environmental Protection Agency Office of Inspector General, IRS Criminal Investigation, and the Defense Criminal Investigative Service participated in yesterday’s searches and arrests. Additional defendants are currently fugitives.
A federal grand jury in Maryland returned two indictments last year that were unsealed upon the arrests of the defendants. The following defendants were arrested in connection with these two cases.
Case Number: 23-CR-411 (MJM)
1. Adanegbe Gift Osemwenkhae, age 38, of Upper Marlboro, Maryland;
2. Emily Gil Arias, age 26, of Silver Spring, Maryland;
3. Fatoumata Boiro, age 30, of Largo, Maryland;
4. Lakeisha Parker, age 31, of Baltimore;
5. Martin Ogisi, age 35, of Severn, Maryland;
6. Blondel Ndjouandjouaka, age 30, of Silver Spring, Maryland;
7. Kevin Colon, age 33, of Curtis Bay, Maryland; and
8. Lorena Perez Herrera, age 27, of Silver Spring, Maryland.Case Number: 23-CR-304 (MJM)
9. Yahye Sowe, a/k/a “Cash,” age 40, of Largo, Maryland; and
10. Areal El-Lovieta Harris, age 24, of Hanover, Maryland.The defendants had initial appearances yesterday in U.S. District Court in Baltimore before U.S. Magistrate Judge Charles Austin. Osemwenkhae, Ogisi, and Ndjouandjouaka consented to detention, Sowe and Boiro were detained pending detention hearings scheduled for February 9, 2024, and the remaining defendants were released on conditions under the supervision of U.S. Pretrial Services.
The indictments were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), Washington, D.C. Field Office; Special Agent in Charge Nicolas Evans of the Environmental Protection Agency, Office of Inspector General (“EPA OIG”); and Special Agent in Charge Ken DeChellis, of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service - Cyber Field Office (“DCIS”).
According to the indictments, the defendants allegedly created and used limited liability companies and other shell businesses to open bank accounts on which the shell entities were listed as the account holders. Members of the conspiracy had signature authority for the bank accounts, at times using aliases or stolen identities. The defendants and their co-conspirators used the bank accounts to receive money obtained from the fraud victims. The victims included government agencies, organizations, and companies, such as an environmental trust, an urban redevelopment program, a medical center, a transportation and logistics company, a school district, a college, and a county government, among others. Some of the co-conspirators obtained and used forged and counterfeited identification documents, including documents bearing the names of individual identity theft victims.
As detailed in the indictments, the victims were deceived into sending money to the conspirators’ bank accounts based on false pretenses, such as being provided with false bank account information for legitimate vendor payments and false wire transfer information for legitimate transactions. After the fraudulently obtained funds were received in the bank accounts, the defendants and their co-conspirators allegedly engaged in financial transactions to conceal and disguise the nature and source of the money through cash withdrawals, the purchase of cashier’s checks, debit card transactions, and by transferring funds to other bank accounts controlled by the conspirators.
According to the indictments, the defendants obtained and used a portion of the fraud proceeds for themselves. The defendants allegedly used some of the fraud proceeds to purchase vehicles, some of which were shipped or attempted to be shipped outside the United States. As alleged in the indictment, the defendants also engaged in international financial transactions and caused fraud proceeds to be sent outside the United States.
The indictment further alleges that the defendants in case 23-CR-411 (MJM) and their co-conspirators collectively conducted and attempted to conduct financial transactions involving more than $9.5 million in fraud proceeds. The indictment in 23-CR-304 (MJM) alleges that the defendants and their co-conspirators conducted and attempted to conduct financial transactions involving more than $2 million in fraud proceeds.
If convicted, the defendants each face a maximum sentence of 20 years in federal prison for the conspiracy and for each count of 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.
United States Attorney Erek L. Barron commended the HSI Mid-Atlantic El Dorado Task Force, IRS-CI, EPA-OIG, and DCIS for their work in the investigation and recognized the Anne Arundel County, Prince George’s County and Montgomery County Police Departments for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Harry M. Gruber and Stephanie Williamson, who are prosecuting these cases. He also recognized the assistance of the 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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Sex Offender Sentenced to 78 Months in Federal Prison for Abusive Sexual Contact with a MinorRead the Press Release
Greenbelt, Maryland - U.S. District Judge Deborah L. Boardman sentenced Delvon Lashawn Redd, age 30, of Virginia Beach, Virginia, yesterday to 78 months in federal prison, followed by five years of supervised release, for abusive sexual contact with a minor. Judge Boardman also ordered that, upon his release from prison, Redd must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Brian T. Platt of the Naval Criminal Investigative Service, Washington, D.C. Field Office.
According to his guilty plea, from April 17 to May 28, 2022, Redd, a U.S. Navy service member was staying at the Navy Lodge Hotel located at the U.S. Naval Air Station Patuxent River Base in Patuxent River, Maryland. On approximately May 6, 2022, Redd began communicating on a social media platform with an 11-year-old minor female who claimed she was 18 years old. Redd asked the victim to send him pictures of herself and the victim sent a short video of herself. In their online conversations that day, Redd commented on how young the victim looked. Despite that, later that evening Redd drove to the victim’s house in Lexington Park, Maryland, picked the victim up near her home and drove her back to the Navy Lodge, where security footage shows Redd and victim entering his room at approximately 9:44 p.m. Once inside the room, Redd had sexual intercourse with the victim. The following morning, Redd drove the victim back to her house.
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.
United States Attorney Erek L. Barron commended the NCIS for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Christoper Sarma, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Man Pleads Guilty to Participating in a Violent Racketeering Conspiracy, Including a MurderRead the Press Release
Baltimore, Maryland – Daniel Williams, age 33, of Baltimore, Maryland, pleaded guilty yesterday to conspiracy to participate in racketeering activity, including murder, carjacking, and armed robbery, just before the start of his trial in U.S. District Court in Baltimore.
The guilty plea 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 (ATF) Baltimore Field Division; Acting Special Agent in Charge R. Joseph Rothrock 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.
According to his guilty plea, from at least April 2019 to the present, Williams and at least five other people agreed to participate in a criminal enterprise which committed a series of armed commercial robberies, armed robberies, attempted armed robberies, and carjackings, some of which resulted in the murder or non-fatal shooting of the victims. Williams and the co-conspirators used at least three different firearms to commit the crimes and shared the proceeds of their exploits, which they promoted on social media.
As detailed in the plea agreement, between June 9, 2019 and August 12, 2019, the conspirators committed seven carjackings, six armed robberies and two attempted armed robberies. During a carjacking on June 12, 2019, a victim was shot and killed; a victim was shot during an attempted armed robbery on July 24, 2019; and a victim sustained life threatening injuries after the victim was shot during a robbery on August 8, 2019.
Williams admitted that he personally participated in an armed carjacking on June 9, 2019, the armed robberies of three businesses in Baltimore and on June 28, 2019, the attempted armed robbery of a victim in the 22800 block of Forest Glen Road during which the victim was shot to death.
Williams and the government have agreed that, if the Court accepts the plea agreement, Williams will be sentenced to 16 years in federal prison. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for June 6, 2024, at 10:00 a.m.
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.
United States Attorney Erek L. Barron commended the ATF, the FBI, the Baltimore Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Patricia C. McLane and Clinton J. Fuchs, 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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Federal Jury Convicts Former Baltimore City State’s Attorney Marilyn MosbyRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Marilyn J. Mosby, age 44, of Baltimore, Maryland, 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. The jury acquitted her of making a false mortgage application related to her purchase of a home in Kissimmee, Florida.
The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock 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.
U.S. Attorney Erek L. Barron said, “We humbly respect the court’s considered rulings, opposing counsels’ zealous advocacy, and the wisdom of both jury verdicts in this case and we remain focused on our mission to uphold the rule of law.”
“Ms. Mosby’s conduct undermines the confidence the public deserves to have in their government officials," said Acting Special Agent in Charge R. Joseph Rothrock of the FBI's Baltimore Field Office. "The jury’s decision holds Ms. Mosby accountable for disregarding the laws she swore to uphold. The FBI works diligently to ensure that anyone who engages in fraud and corruption will be held accountable for their bad acts.”
According to the evidence presented at trial, in February 2021, Mosby made a false statement in an application for a $428,400 mortgage to purchase a condominium in Long Boat Key, Florida. As part of the application, Mosby falsely stated that she had received a $5,000 gift from her husband to be applied to the purchase of the property. According to the evidence presented at trial, Mosby made this statement in order to secure a lower interest rate. According to the evidence presented at trial, Mosby did not receive a $5,000 gift from her husband, but rather transferred $5,000 to him, and he then transferred the $5,000 back to her.
Mosby faces a maximum of 30 years in federal prison for making a false mortgage application.
On November 9, 2023, Mosby was previously 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 Baltimore City State’s Attorney. Mosby faces a maximum sentence of five years in federal prison for each of the two counts of perjury.
U.S. District Judge Lydia K. Griggsby has not yet scheduled a sentencing date in either of Mosby’s pending federal cases.
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. Mr. Barron praised Assistant U.S. Attorneys Sean R. Delaney and Aaron S.J. Zelinsky, for their focus and hard work throughout 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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Silver Spring Felon Pleads Guilty to Federal Charges of Illegal Possession of Ammunition and Postal Service KeysRead the Press Release
Greenbelt, Maryland – Andrew Steven Martin, age 30, of Silver Spring, Maryland, has pleaded guilty to being a felon in possession of ammunition and to unlawful possession of U.S. Postal Service keys used to access U.S. Postal Service mail receptacles.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service (“USPS”)- 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.
Martin faces a maximum sentence of 10 years in federal prison for being a felon in possession of ammunition and for illegal possession of USPS arrow keys. U.S. District Judge Theodore D. Chuang has scheduled sentencing for April 30, 2024, at 2:30 p.m.
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 https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Pennsylvania Man Facing Federal Felony Charges for Illegally Operating a Drone During the National Football League’s AFC Championship GameRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Matthew Hebert, age 44, of Chadds Ford, Pennsylvania, on federal felony charges related to his flying a drone over M&T Bank stadium during the National Football League’s AFC Championship game in Baltimore on January 28, 2024.
The federal charges were announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation (“FBI”), Baltimore Field Office; Acting Special Agent in Charge Thomas Neighbors of the U.S. Department of Transportation, Office of Inspector General, Mid-Atlantic Regional Office; and Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police (“MSP”).
“Illegally operating drones poses a significant security risk that will lead to federal charges,” said United States Attorney Erek L. Barron, “Temporary flight restrictions are always in place during large sporting events.”
“Operating a drone requires users to act responsibly and educate themselves on when and how to use them safely,” said Acting Special Agent in Charge R. Joseph Rothrock of the FBI's Baltimore Field Office. “The FBI would like to remind the public of the potential dangers of operating a drone in violation of federal laws and regulations. The reckless operation of a UAS in the vicinity of a large crowd can be dangerous to the public, as well as interfere with other law enforcement and security operations.”
According to the affidavit filed in support of the criminal complaint, on January 28, 2024, the Federal Aviation Administration had put in place a temporary flight restriction (“TFR”) for M&T Bank Stadium in Baltimore during the National Football League (“NFL”) AFC Championship game, which precluded the flight of any UAS, including flying a UAS under the Exception for Recreational Flyers. A TFR temporarily restricts certain aircraft, including an UAS, from operating within a three nautical mile radius of the stadium. This is a standard practice for stadiums or sporting venues where a regular or postseason Major League Baseball, NFL, or NCAA Division One Game is occurring; or a NASCAR Cup, Indy Car, or Champ Series Race is occurring. The TFR goes into effect one hour before the scheduled start time and lasts until one hour after the end of a qualifying event.
During the game on January 28, 2024, the incursion of an unidentified and unapproved drone was deemed a serious enough threat that NFL Security temporarily suspended the game. MSP Troopers tracked the movement of the drone directly over the stadium and deployed to the area where the drone landed in the 500 block of South Sharp Street in Baltimore. FBI agents traveled to that location and assisted MSP Troopers. Hebert was located at that location and spoke with law enforcement.
Hebert advised law enforcement that he purchased a DJI UAS in 2021 and used the DJI account to operate the drone. The drone was not registered, nor did Hebert possess a Remote Pilot certificate to operate it. As detailed in the affidavit, on past occasions, the DJI application prevented him from operating the UAS due to flight restrictions and Hebert relied exclusively on the DJI application to tell him if he was not allowed to fly the UAS. The affidavit alleges that on January 28, 2024, Hebert assumed he was allowed to fly his UAS since the DJI application did not prevent him from doing so. Hebert allegedly flew the drone approximately 100 meters or higher for approximately two minutes. According to the affidavit, while in flight, Hebert captured approximately six photos of himself and the Stadium and may have taken a video as well.
If convicted, Hebert faces a maximum sentence of three years in federal prison for knowingly operating an unregistered UAS and for knowingly serving as an airman without an airman’s certificate. Hebert faces a maximum of one year in federal prison for willfully violating United States National Defense Airspace. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. An initial appearance and arraignment will be scheduled later this month.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI, DOT OIG, and MSP for their work in the investigation, and thanked the FAA Office of Security & Hazardous Materials Safety for its substantial assistance. Mr. Barron thanked Assistant U.S. Attorney P. Michael Cunningham, 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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Windsor Mill Woman Pleads Guilty to Conspiring to Obtain More Than $3.5 Million in COVID-19 CARES Act LoansRead the Press Release
Baltimore, Maryland –Tomeka Glenn, a/k/a “Tomeka Harris” and “Tomeka Davis,” age 47, of Windsor Mill, Maryland, pleaded guilty today to conspiracy to commit wire fraud, relating to the submission of millions of dollars in fraudulent COVID-19 CARES Act Paycheck Protection Program and Economic Injury Disaster Loan applications.
Glenn’s co-defendant, Kevin Davis, age 43, also of Windsor Mill, Maryland, pleaded guilty on January 25, 2024, to being a felon in possession of a firearm and ammunition.
The guilty pleas were announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation (“FBI”), Baltimore Field Office; Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector Genera (“SBA-OIG”), Eastern Region; and Chief Robert McCullough of the Baltimore County Police Department.
Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, administered through the Small Business Administration (“SBA”). The SBA also offered an Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations. An EIDL advance did not have to be repaid, and small businesses could receive an advance, even if they were not approved for an EIDL loan. The maximum advance amount was $10,000.
According to Glenn’s plea agreement, beginning in June 2020 and continuing through March 2021, Glenn and various co-conspirators prepared numerous false and fraudulent EIDL and PPP loan applications for various businesses (including some that did not exist in any legitimate capacity) and that included false information concerning, among other things, number of employees, monthly payroll costs, and revenue. The PPP applications also routinely included false and fraudulent Internal Revenue Service (“IRS”) tax forms and bank statements, which were submitted by Glenn to substantiate the false representations made in the applications.
Glenn admitted that she received kickback payments from the loan borrowers in exchange for her assistance in connection with the submission of fraudulent PPP and EIDL applications, ultimately receiving more than $400,000 in kickbacks in connection with the scheme. These kickbacks typically amounted to 10% to 20% of the loan amount.
In total, the kickback scheme resulted in the disbursement of at least $2,715,649.12 in fraudulently obtained PPP and EIDL funds in connection with 23 fraudulent PPP loans and EIDLs.
According to Glenn’s plea agreement, Glenn and her then-fiancé Davis, received $300,726.50 in PPP/EIDL funds for various entities that they controlled, and Glenn attempted to obtain $601,511.20 in additional fraudulent PPP and EIDL funds too.
Glenn used the fraudulently obtained funds to pay for a luxury vacation at a resort in Jamaica, to purchase a 2021 Mercedes-Benz S580 sedan valued at $148,171.60, to buy thousands of dollars in luxury jewelry, as well as numerous other luxury goods, including items from Luis Vuitton, Neiman Marcus, Dior, Cartier, Gucci, Chanel, and Hermes.
At the time of her scheme, neither Glenn, nor Davis had any legitimate source of income, and in May 2020, each applied for unemployment insurance benefits in the State of Maryland.
As detailed in Davis and Glenn’s plea agreement, on January 6, 2023, law enforcement executed a federal search warrant at their residence. Davis and Glenn were present at the residence at the time of the search and were arrested in connection with the fraudulent COVID-19 CARES Act loans.
According to Davis’s plea agreement, during the execution of the search warrant, law enforcement found and seized four firearms loaded with ammunition—a 9mm firearm, and three .40 caliber firearms. Later investigation revealed that the one of the .40 caliber firearms had earlier been reported stolen by its owner.
As detailed in the plea, the firearms were hidden by Davis in the air ducts of the residence: two firearms were hidden in the main bedroom air duct where Davis slept and kept his personal effects; the other two firearms were in the air duct of the bathroom closest to the main bedroom. Moreover, two of the firearms were further stuffed in socks in attempt to hide them. Davis admitted that he possessed and secreted the firearms in the air ducts of his home (and in the socks) in an attempt to conceal them from law enforcement after learning that federal agents had a warrant to search his home. Davis’s concealment of the firearms constitutes attempted obstruction of the administration of justice with respect to the investigation. Each of the four firearms recovered from Davis’s home on January 6, 2023 were later found to have his DNA on them. A later review of Davis’s iCloud account revealed the existence of, among other things, a series of videos depicting Davis handling firearms, including a shotgun and an assault rifle. Davis knew that his previous felony conviction prohibited him from possessing firearms or ammunition.
As part of their plea agreements, Glenn and Davis will be required to forfeit their interest in any assets derived from or obtained by them as a result of, or used to facilitate the commission of, their illegal activities. Specifically, Glenn is required to forfeit a money judgment in the amount of at least $700,726.50; the 2021 Mercedes-Benz; cash in bank accounts she controlled that were held in the names of business entities; and jewelry, including her 3.03 carat yellow diamond engagement ring, a Diamond Miami Cuban Link Chain with 31.5 carats of VS1 diamonds, and Rolex, Cartier and Breitling watches. Davis must forfeit the firearms and ammunition.
Glenn faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and Davis faces a maximum of 15 years in federal prison. Actual sentences for federal crimes are typically less than the maximum penalties. U.S. District Judge Richard D. Bennett has scheduled Glenn’s sentencing for May 7, 2024, at 2:30 p.m. and scheduled sentencing for Davis on April 17, 2024, at 11:00 a.m.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the FBI, the SBA-OIG, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Baltimore County Serial Fraudster Sentenced to Five Years in Federal Prison and Ordered to Pay $4.2 Million in RestitutionRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Adeyanju Adewale, age 40, of Reisterstown, Maryland, to five years in federal prison, followed by one year of home detention as part of three years of supervised release, for a wire fraud conspiracy that resulted in a loss of millions of dollars to Medicaid, businesses, law firms, financial institutions, individuals, and to the state and federal governments. Judge Bennett also ordered that Adewale must pay restitution of $4,258,587.03.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Special Agent in Charge Karen L. Brown Cleveland of the U.S. Department of State’s Diplomatic Security Service (“DSS”) – Washington Field Office; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; and Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (“HHS-OIG”).
According to his plea agreement, between 2018 and 2022 Adewale coordinated a series of frauds with various co-conspirators. Adewale assisted co-conspirators to obtain fraudulent identification documents that were used to perpetrate the fraud. Co-conspirators created shell companies and used shell company names and false, forged and counterfeit identification documents, including passports, to open bank accounts. Adewale obtained the bank information from his co-conspirators and communicated with his foreign conspirators about where the fraud proceeds should be directed. The foreign co-conspirators caused the victims to be misled into sending their money to those accounts. Adewale also served as a go-between with conspirators outside the United States and the U.S.-based bank account holders.
For example, as detailed in the plea agreement, in January 2019, Adewale worked with co-conspirators to fraudulently obtain money through a business email compromise scheme that victimized a business in Virginia that was seeking to disburse settlement funds. The victim business sent more than $400,000 to the bank account of an individual in Maryland who used the funds from the victim to purchase $71,000 and $62,000 cashier’s checks and caused the cashier’s checks to be delivered to an address in Baltimore used by Adewale. Adewale caused checks to be deposited into bank accounts controlled by co-conspirators and provided information about the companies associated with those bank accounts to members of the conspiracy located outside the United States. Adewale shared in the proceeds of the fraud.
During 2020, Adewale also participated in hospital frauds targeting Medicaid. Specifically, Adewale and his co-conspirators obtained money that the Ohio and Colorado Medicaid programs and the state of Ohio, sought to pay hospitals in Ohio and Colorado, including as reimbursement for health care services. As part of the fraud, false information was sent to an Ohio government office and Colorado Medicaid regarding the bank accounts on file for the hospitals. As a result of the fraudulent representations, from July to September 2020, the state of Ohio transferred approximately $3.5 million to a bank account controlled by a co-conspirator. The majority of the funds were quickly removed by the co-conspirator, transferred via check to other accounts. Similarly, in September 2020, fraudulent information was provided to representatives of Colorado Medicaid regarding the bank account on file for the hospital in Colorado. Later that month, Colorado Medicaid sent approximately $610,000 to a bank account controlled by the conspirators. Again, Adewale shared in the proceeds of the fraud schemes.
Adewale admitted that as a result of the fraud schemes the actual fraud losses exceeded $4.2 million, including more than $1 million in actual losses to a federal health benefit program, specifically, Medicaid.
“The Diplomatic Security Service is pleased with the success of this case. This shows the positive outcome when federal agencies work together to stop criminals from exploiting U.S. passports for illegal profit,” said Karen L. Brown Cleveland, Special Agent-in-Charge of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service (DSS). “We’re committed to investigating U.S. business operators who acquire U.S. passports to carry out criminal activities.”
United States Attorney Erek L. Barron and Acting Assistant Attorney General Nicole M. Argentieri praised the DSS, HSI, and HHS-OIG for their work in the investigation and thanked the FBI for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Harry M. Gruber and Tamera Fine and Justice Department Trial Attorneys Gary A. Winters and Christopher Wenger of the Criminal Division’s Fraud Section, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Two Baltimore “Triple C” Gang Members Sentenced to More Than 20 Years in Federal Prison for a Racketeering Conspiracy, Including Murders and Attempted MurdersRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Darien Coleman age 23, of Baltimore, to 270 months in federal prison, and sentenced co-defendant Darrell Carter, age 27, of Baltimore to 300 months in federal prison, each followed by five years of supervised release, for a racketeering conspiracy, including murders and attempted murders, related to their participation in the violent street gang known as Cruddy Conniving Crutballs or Triple C, which operated throughout Baltimore. Chief Judge Bredar imposed the sentences on January 29, 2024.
The sentences were announced 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 (ATF); Commissioner Richard Worley of the Baltimore Police Department; and Chief Robert McCullough of the Baltimore County Police Departments.
According to Coleman and Carter’s plea agreements and other court documents, Triple C members engaged in a pattern of criminal racketeering activity between 2015 and 2020, including more than a dozen murders and numerous non-fatal shootings, robberies, and carjackings, in order to promote the reputation of Triple C and to command respect from the neighborhood. Other spin-offs of the gang are “SCL” and recently, “TRD.”
As detailed in the plea agreements, the gang benefitted financially from selling narcotics, murdering drug dealers, taking contract killings, and engaging in street robberies. Triple C members also robbed dice games for cash and occasionally carjacked vehicles. Triple C members and associates used at least 14 firearms to commit crimes, often trading with each other or other groups to avoid detection through ballistic evidence. Members divided the proceeds of illegal activities among those who participated in the crimes, and often contacted each other to commit a robbery if a member needed money. Members of Triple C often critiqued each other after committing crimes regarding ways to improve their performance.
Triple C members routinely used social media to identify and locate victims, to communicate with each other, and to share information concerning possible retaliation for violent crimes committed by gang members. Details of the crimes committed by Triple C members were publicized on social media and thus were well-known to CCC members.
Darien Coleman admitted that he participated in the December 31, 2018 murder of Corey Mosley, during which at least one member of the conspiracy fired a gun, striking and killing Mosley.
Darrell Carter admitted that he participated in the October 27, 2015 murder of Quinton Heard in Baltimore, and the June 1, 2016 attempted murder of A.F. in the 3200 block of Tivoly Avenue in Baltimore, during which at least one member of the conspiracy fired a firearm in an attempt to collect the $10,000 contract on A.F.’s life. In addition, Carter possessed a 9mm handgun loaded with 11 rounds of ammunition on November 12, 2020, in the 2300 block of Harford Road.
In addition to these violent acts, both defendants admitted that they agreed to distribute and possess with the intent to distribute controlled substances, including crack cocaine, on behalf of the racketeering enterprise.
This investigation has led to the guilty pleas of 34 members and associates of Triple C.
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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in this investigation and thanked the United States Marshals Service and the Office of the Baltimore City State’s Attorney for their assistance in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorney Patricia C. McLane and Michael C. Hanlon, 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/project-safe-neighborhoods-psn.
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Twenty-Year Fugitive Pleads Guilty to Conspiring to Export Defense Articles to IranRead the Press Release
Baltimore, Maryland – En-Wei Eric Chang, age 48, a citizen of the United States and the Republic of Taiwan, residing in Taiwan, pleaded guilty today to a federal conspiracy charge, related to the export of defense materials to Iran. Such materials were embargoed under the Iranian Transactions and Sanctions Regulations (ITSR).
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office.
“National security is a top priority, and we will relentlessly pursue and hold accountable those who put us at risk,” said United States Attorney Erek L. Barron.
As detailed in the plea agreement, the export from the United States of arms, munitions, military aircraft parts, and related components and technology, is strictly controlled. The Munitions List is a catalog of designated “defense articles” which are subject to export and certain import restrictions. Any person who intends to export defense articles on the Munitions List from the United States is required to first obtain a license and must identify in the required license application the ultimate and final destination of the goods. At the time of the conspiracy, it was the policy of the United States to deny licenses, other approvals, and exports of defense articles destined for Iran.
According to Chang’s guilty plea, from January 2002 and March 2003, Chang conspired with David Chu to ship items on the Munitions List to Iran without obtaining the proper licensing. Chu had a business relationship with an Iranian businessman and was the sole individual in contact with the Iranian businessman during the time of the conspiracy. In 2001 Chu became acquainted with Chang through Chang’s work as an electrical component supplier.
According to the plea and other court documents, in January 2002, the Iranian businessman requested that Chu research satellite imagery dealers. Chu asked Chang to facilitate this request, and Chang agreed to do so. Shortly thereafter, Chang emailed a Maryland corporation to acquire high-definition satellite space images of Tehran, Iran for export from the United States to Iran. An undercover government agent based in Maryland ultimately responded to Chang, pretending to be a businessman who could help him acquire the satellite images from a defense contractor. The undercover agent told Chang: “if the items are going for end use in Iran, sending them there would be a violation of U.S. law.” Chang wrote back that the images could be sent to Taiwan, and that “from Taiwan to Iran my friend will take care of it.”
Chang and the undercover agent communicated over serval months regarding the status of the satellite images order. After Chu’s Iranian contact asked Chu to research and source antennas, on March 12, 2002, Chang contacted the undercover agent asking for quotes on antennas and included in his email specific part numbers for cavity-backed spiral antennas with military applications, including related to the detection and surveillance of ground-based radar. These antennas were designated as defense articles on the United States Munitions List. The undercover agent agreed to attempt to source the antennas. Chang admitted that he knew that the acquisition of the antennas from the United States for export either directly or indirectly to Iran without proper licensing, was a violation of the laws of the United States. Chang also knew that he did not have the proper license or authorization.
As detailed in the plea agreement, the undercover agent ultimately quoted prices for various models of antennas and noted that the U.S.- based manufacturer “won’t even accept order without approved export license up front.” Chang repeatedly urged the undercover agent to act faster and on July 19, 2002, Chang wrote: “Please understand our final end user is Iran. ‘the country’ They will keep buying the stuff if we can always deliver . . . The Iran guy promises [my co-conspirator, Chu] a 10 million USD business [per] year if we can really do this.” On July 31, 2002, Chang provided banking information from the undercover agent to Chu to facilitate $6,400 to be transferred to the undercover agent in Maryland as a 50% down payment on the cavity-backed antennas, which would take approximately five months to produce.
From March 2002 through January 2003, Chang kept in regular contact with the undercover agent regarding the antennas and asked the undercover agent for pricing information that he indicated was requested by his “buyer” in Iran for items that Chang indicated his “buyer” was interested in purchasing. The items included: an anti-submarine and surveillance radar system for installation on helicopters and airplanes; military-grade night-vision goggles for use by pilots; helicopters and helicopter engines; ten handheld laser range-finders; and other military items.
By January 2003, the cavity-backed spiral antennas had been produced in the United States. Chang, his co-conspirator, David Chu, and the undercover agent agreed to transfer the cavity-backed spiral antennas in Guam, where Chu could take possession of them and transfer them to Iran. In February 2003, Chu travelled to Guam and took possession of the cavity-backed spiral antennas from the undercover agent, then checked his luggage, which contained the antennas, for a flight from Guam to Taipei, Taiwan. Chu was arrested and his luggage was seized by U.S. authorities, before he could board the flight to Taiwan.
On March 4, 2003, the undercover agent, via email, informed Chang of his true identity and told Chang that he had been indicted in the District of Maryland with conspiracy to export U.S. Munitions List items to Iran, and that his co-conspirator Chu was in the custody of the U.S. Marshals. The undercover agent encouraged Chang to turn himself in. On March 12, 2003, Chang met with U.S. officials in Taiwan who told Chang that he should consider surrendering to the United States on the current charges, but Chang declined to surrender to the United States.
Chang remained a fugitive until his arrest on April 10, 2023, at Rome-Fiumicino International Airport in Italy and subsequent extradition to the United States.
Co-defendant David Chu, age 48, of Monterey Park, California, pleaded guilty to his role in the conspiracy and was sentenced on February 23, 2004, to two years in federal prison, followed by three years of supervised release.
Chang faces a maximum sentence of five years in federal prison for the conspiracy. U.S. District Judge Richard D. Bennett has scheduled sentencing for May 8, 2024 at 11:00 a.m.
U.S. Attorney Erek L. Barron commended HSI and DCIS for their work in the investigation. Mr. Barron also thanked Assistant United States Attorneys Aaron S.J. Zelinsky and Robert I. Goldaris, 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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Maryland U.S. Attorney’s Office and Justice Department’s Civil Rights Division Secure $440,000 Agreement with MedStar Health, Inc. to Provide People with Disabilities Equal Access to Medical CareRead the Press Release
Baltimore, Maryland – A complaint and proposed consent decree have been filed in U.S. District Court in Maryland to resolve allegations that MedStar Health, Inc., a healthcare provider in Maryland and the Washington, D.C., region, violated the Americans with Disabilities Act by denying people with disabilities equal access to medical care by excluding their necessary support persons. Under the proposed consent decree, which the Court must approve, MedStar Health has agreed to pay a total of $440,000 to compensate eligible affected individuals. MedStar Health will also revise its policies to ensure ADA compliance, train its workforce on the new policies, and report to the Department on any future exclusion of support persons, as defined in the Decree.
The lawsuit and proposed consent decree was announced by United States Attorney for the District of Maryland Erek L. Barron and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.
“Patients are entitled to equal access to healthcare.” said U.S. Attorney Erek L. Barron. “We appreciate MedStar Health’s cooperation in this investigation and are pleased that MedStar Health has agreed to take comprehensive steps to ensure that patients with disabilities have the same opportunities to obtain medical care and services.”
“For some people with disabilities, having a support person accompany them is critical to ensure they have the same access to health care as everyone else. This is a key promise of the ADA,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When health care providers do not appropriately account for the needs of people with disabilities, they may provide unequal care in violation of the ADA. The Justice Department is committed to combatting such discrimination.”
As detailed in the complaint, certain individuals with dementia, intellectual disabilities, autism spectrum disorder, and other disabilities may require the assistance of a support person (such as a family member, companion, or aide) when accessing medical care, including to provide information about medical history and/or to understand medical directions. During the COVID-19 pandemic, MedStar Health instituted policies restricting the flow of individuals into its buildings. The government’s complaint alleges that MedStar Health failed on numerous occasions to modify its visitor restrictions so that people with certain disabilities, which affected their ability to independently access medical care, could be accompanied by their support persons. As a result, they were unable to receive equal care without the assistance of their support person.
This matter was handled jointly by the U.S. Attorney’s Office for the District of Maryland and the Civil Rights Division’s Disability Rights Section. U.S. Attorney Erek Barron thanked Assistant U.S. Attorney Sarah Marquardt and Trial Attorney Anne Langford of the Civil Rights Division, who handled the case.
Title III of the Americans with Disabilities Act (ADA) requires private hospitals and other health care providers to provide individuals with disabilities with full and equal enjoyment of their goods and services. For more information on the Maryland U.S. Attorney’s Office’s civil rights work, please visit https://www.justice.gov/usao-md/civil-rights. ADA complaints may be filed online at https://www.ada.gov/file-a-complaint/. Anyone in Maryland may also report civil rights violations by emailing [email protected].
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Maryland Man Sentenced to 22 Years in Federal Prison for Sexual Exploitation of a Child to Produce Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Jose Hilario Aldana-Moreno, age 37, of Baltimore, Maryland, yesterday to 22 years in federal prison, followed by 40 years of supervised release, for sexual exploitation of a child to produce of child pornography. Judge Hollander also ordered that, upon his release from prison, Aldana-Moreno must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Richard Worley of the Baltimore Police Department; and Baltimore City State’s Attorney Ivan Bates.
According to his guilty plea and other court documents, from 2014 to 2020 Aldana-Moreno sexually abused a minor victim, beginning when the victim was 10 years old. Aldana-Moreno was a truck driver and traveled for work. On at least five occasions while Aldana-Moreno was away, he engaged in video chats with the victim and convinced the victim to pose for him, taking screenshots of her genitals. Aldana-Moreno also took images and videos documenting his sexual abuse of the victim at her home and when the victim traveled with him.
As detailed in his plea agreement, Aldana-Moreno was arrested on January 15, 2022, and his cellphone was recovered. A search of the phone revealed that Aldana-Moreno used a messaging application to send a video depicting the genitals of two prepubescent males to two separate individuals on May 29, 2018.
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.
United States Attorney Erek L. Barron commended the FBI, the Baltimore Police Department, and the Baltimore City State’s Attorney’s Office 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Justice Department Secures Agreement with MedStar Health Inc. to Provide People with Disabilities Equal Access to Medical CareRead the Press Release
The Justice Department announced today that it filed a complaint and proposed consent decree in the U.S. District Court for the District of Maryland to resolve allegations that MedStar Health Inc., a leading health care provider in Maryland and the Washington, D.C., region, violated the Americans with Disabilities Act (ADA) by denying people with disabilities equal access to medical care by excluding their necessary support persons.
“For some people with disabilities, having a family member, aide or other support person by their side is critical to ensure they have the same access to health care as everyone else,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When health care providers impose visitor restrictions that do not appropriately account for the needs of people with disabilities, they may run afoul of the Americans with Disabilities Act. The Justice Department is committed to safeguarding the civil rights of people with disabilities, including ensuring equal access to medical care.”
“Patients are entitled to equal access to health care,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We appreciate Medstar Health’s cooperation in this investigation and are pleased that Medstar Health has agreed to take comprehensive steps to ensure that patients with disabilities have the same opportunities to obtain medical care and services.”
Some individuals with dementia, intellectual disabilities, autism spectrum disorder and other disabilities may require the assistance of a support person (such as a family member, companion or aide) to provide their medical history or understand medical directions when accessing medical care. The complaint alleges that MedStar Health failed on numerous occasions to modify its visitor restrictions so that people with certain disabilities which affected their ability to independently access medical care could be accompanied by their support persons. As a result, they were unable to receive equal care without the assistance of their support person.
Under the proposed consent decree, which the court must approve, MedStar Health has agreed to pay a total of $440,000 to compensate multiple eligible affected individuals. MedStar Health will also revise its policies to ensure ADA compliance, train its workforce on the new policies and report to the department on any future exclusion of support persons, as defined in the decree.
This matter was handled jointly by the department’s Civil Rights Division and the U.S. Attorney’s Office for the District of Maryland. Title III of the ADA requires private hospitals and other health care providers to provide individuals with disabilities with full and equal enjoyment of their goods and services.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov. If you believe you’ve been discriminated against, you may file a complaint online at www.civilrights.justice.gov/. Anyone in the District of Maryland may also report civil rights violations by emailing [email protected].
Three Individuals Charged for Roles in $1.89B Cryptocurrency Fraud SchemeRead the Press Release
The Justice Department today announced charges against two individuals and the guilty plea of a third individual for orchestrating a $1.89 billion cryptocurrency fraud scheme.
Sam Lee, 35, an Australian citizen residing in Dubai, United Arab Emirates, was charged in an indictment unsealed today for allegedly co-founding HyperFund, also known as HyperTech, HyperCapital, HyperVerse, and HyperNation. Rodney Burton, 54, of Miami, and Brenda Chunga, 43, of Severna Park, Maryland, were promotors of HyperFund.
“The defendants are charged with defrauding investors to the tune of $1.89 billion. As alleged in court documents, the defendants falsely represented that investors would receive substantial returns paid from cryptocurrency mining operations, which did not in fact exist,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “With our partners in Homeland Security Investigations and IRS Criminal Investigation, we are committed to uncovering sophisticated frauds involving cryptocurrency and digital assets and bringing those who perpetrate them to justice.”
“The level of alleged fraud here is staggering,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Whether it’s cryptocurrency fraud, or any other financial frauds, if it sounds too good to be true, it probably is. This office and our law enforcement partners will hold perpetrators accountable for these and other fraud schemes.”
According to court documents, from June 2020 to November 2022, Lee and his co-conspirators allegedly offered and sold investment contracts to the public through HyperFund’s online investment platform. HyperFund’s promotional materials allegedly made various false claims, including that investors who purchased HyperFund “memberships” would receive between 0.5% to 1% daily in passive rewards until the company either doubled or tripled the investor’s initial investment. To convince investors that HyperFund could make such payments, HyperFund allegedly claimed that its payments would be disbursed in part from its revenues from large-scale crypto mining operations, when in truth, HyperFund did not have such operations. Beginning in at least July 2021, HyperFund allegedly began to block investor withdrawals.
“Today’s charges are a testament to the incredible work of HSI New York’s El Dorado Task Force,” said Acting Special Agent in Charge Erin Keegan of Homeland Security Investigations (HSI) New York. “I commend our law enforcement partners, including those at HSI Baltimore, for their outstanding collaboration. HSI will continue to protect American investors from financial predators.”
“The illegal activity alleged in this case is precisely the type of conduct IRS Criminal Investigation and our law enforcement partners are committed to deterring,” said Acting Special Agent in Charge David Meisenheimer of the IRS Criminal Investigation (IRS:CI) Washington, D.C. Field Office. “These charges send a clear message that we have the tools and internal fortitude to protect our financial systems by diligently investigating, prosecuting, and holding accountable those who seek to defraud the American public.”
Lee is charged with one count of conspiracy to commit securities fraud and wire fraud. If convicted, he faces a maximum penalty of five years in prison. Burton is charged by criminal complaint with one count of conspiracy to operate an unlicensed money transmitting business and one count of operating an unlicensed money transmitting business. He also faces a maximum penalty of five years in prison on each count. Chunga pleaded guilty today to one count of conspiracy to commit securities fraud and wire fraud. She is scheduled to be sentenced on May 1 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI New York’s El Dorado Task Force and IRS:CI are investigating the case.
Trial Attorney Tian Huang of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Aaron S.J. Zelinsky and Spencer Todd for the District of Maryland are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Individuals Charged in $1.89 Billion Cryptocurrency Fraud SchemeRead the Press Release
Baltimore, Maryland – Three individuals are charged in U.S. District Court in Maryland for orchestrating a $1.89 billion cryptocurrency fraud scheme.
A federal grand jury has returned an indictment charging Sam Lee, age 35, an Australian citizen residing in the United Arab Emirates for allegedly co-founding HyperFund, also known as HyperTech, HyperCapital, HyperVerse, and HyperNation. The indictment was returned on January 25, 2024, and unsealed today. Co-conspirator Rodney Burton, a/k/a “Bitcoin Rodney,” 54, of Miami, Florida, is charged by criminal complaint for his role as an alleged promoter of HyperFund. Co-conspirator Brenda Chunga, 43, of Severna Park, Maryland, pleaded guilty today to her role in the fraud scheme.
The federal charges were announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Acting Special Agent in Charge Erin Keegan of Homeland Security Investigations (“HSI”) New York; and Acting Special Agent in Charge David Meisenheimer of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), Washington, D.C. Field Office.
“The level of alleged fraud here is staggering,” said U.S. Attorney Erek L. Barron. “Whether it’s cryptocurrency fraud, or any other financial frauds, if it sounds too good to be true, it probably is. This office and our law enforcement partners will hold perpetrators accountable for these and other fraud schemes.”
“The defendants are charged with defrauding investors to the tune of $1.89 billion. As alleged in court documents, the defendants falsely represented that investors would receive substantial returns paid from cryptocurrency mining operations, which did not in fact exist,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “With our partners in Homeland Security Investigations and IRS Criminal Investigation, we are committed to uncovering sophisticated frauds involving cryptocurrency and digital assets and bringing those who perpetrate them to justice.”
“Today’s charges are a testament to the incredible work of HSI New York’s El Dorado Task Force,” said Acting Special Agent in Charge Erin Keegan of Homeland Security Investigations (HSI) New York. “I commend our law enforcement partners, including those at HSI Baltimore, for their outstanding collaboration. HSI will continue to protect American investors from financial predators.”
“The illegal activity alleged in this case is precisely the type of conduct IRS Criminal Investigation and our law enforcement partners are committed to deterring,” said David Meisenheimer, Acting Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Washington, D.C. Field Office. “These charges send a clear message that we have the tools and internal fortitude, to protect our financial systems by diligently investigating, prosecuting, and holding accountable, those who seek to defraud the American public.”
According to court documents, from June 2020 to November 2022, Lee and his co-conspirators allegedly offered and sold investment contracts to the public through HyperFund’s online investment platform. HyperFund’s promotional materials allegedly made various false claims, including that investors who purchased HyperFund “memberships” would receive between 0.5% to 1% daily in passive rewards until the company either doubled or tripled the investor’s initial investment. To convince investors that HyperFund could make such payments, HyperFund allegedly claimed that its payments would be disbursed in part from its revenues from large-scale crypto mining operations, when in truth, HyperFund did not have such operations. Beginning in at least July 2021, HyperFund allegedly began to block investor withdrawals.
If convicted, Lee faces a maximum sentence of five years in federal prison for conspiracy to commit securities fraud and wire fraud. Burton has been arrested on a criminal complaint charging him with one count of conspiracy to operate an unlicensed money transmitting business and one count of operating an unlicensed money transmitting business. At a detention hearing today before U.S. Magistrate Judge Erin Aslan in U.S. District Court in Baltimore, Maryland, Burton was ordered to be detained. If convicted, he also faces a maximum penalty of five years in prison on each of those counts.
Brenda Chunga, a/k/a “Bitcoin Beautee,”pleaded guilty today to conspiracy to commit securities fraud and wire fraud, for her role as a promoter of HyperFund. According to her plea agreement and other court documents, Chunga conducted online investor meetings, including in Maryland, to promote HyperFund’s investment programs and which detailed the purported returns that prospective investors could earn from investing in HyperFund. Chunga admitted that she personally received at least $3 million in fraud proceeds from her participation in the conspiracy. As detailed in her plea agreement, Chunga will be required to pay restitution in the full amount of the victims’ losses, which the parties agree is at least $3 million, but could be significantly higher. Chunga faces a maximum penalty of five years in prison. U.S. District Judge Richard D. Bennett has not yet scheduled a sentencing date.
Neither an indictment nor a criminal complaint is a finding of guilt. An individual charged by indictment or criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
United States Attorney Erek L. Barron commended HSI New York’s El Dorado Task Force and IRS-CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Spencer Todd, and Trial Attorney Tian Huang of the Criminal Division’s Fraud Section 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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MS-13 Gang Member Sentenced to 26 Years in Federal Prison for a Racketeering Conspiracy, Including a Murder in MarylandRead the Press Release
Baltimore, Maryland – U.S. District Judge Paula Xinis today sentenced MS-13 member Kevin Alexander Castillo Calderon, a/k/a “Fantasma,” “Ghost,” “Eterno,” and “Josue Argueta Gonzalez,” age 25, of Adelphi, Maryland, to 26 years in federal prison for a racketeering conspiracy, including a murder, connected to his participation in La Mara Salvatrucha, a transnational criminal enterprise also known as MS-13.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge James C. Harris of Homeland Security Investigations Baltimore; and Chief Malik Aziz of the Prince George’s County Police Department.
MS-13, one of the largest street gangs in the United States, is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries. Branches or “cliques” of MS-13, operate throughout the United States, including in Maryland, Virginia, and Washington, D.C. Castillo Calderon and his co-defendants were members and associates of the Weedams Locos Salvatruchs (“WLS”) clique of MS-13.
Members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons, at all times, using any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increases the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to promotion to a leadership position.
As detailed in court documents, on August 8, 2020, WLS members, including Castillo Calderon, WLS leader Brayan Alexander Torres and Franklyn Sanchez, were gathered at a park in Prince George’s County, Maryland. Castillo Calderon, Torres, Sanchez and other WLS members agreed to murder Victim 4, who was suspected of cooperating with law enforcement and to whom Sanchez owed a debt. Sanchez and another MS-13 member murdered Victim 4, then WLS members dragged Victim 4’s body to a stream and left it there. Castillo Calderon then picked up a large rock and dropped it on Victim 4’s head. As he was leaving the woods, Sanchez was concerned that his DNA may have been left on the body. To prevent the discovery of DNA or other evidence and to hinder the investigation and prosecution of Victim 4’s murder, other WLS members were called and ordered to bring shovels to the wooded area, where they dug a hole and buried Victim 4’s body. In addition, at Torres’ direction, Castillo Calderon took the guns used to shoot Victim 4 and Victim 4’s cell phone, put them in a bag he was carrying and disposed of the evidence. Victim 4’s body was later recovered with a bullet wound to the head.
Castillo Calderon was also responsible for collecting extortion payments, or “rents,” from extortion victims on behalf of WLS, knowing that the victims making extortion payments did so under the threat of death or bodily injury by members of WLS. For example, gang members used baseball bats to impose rents and sometimes collected rent while flashing firearms or otherwise making it known that they were carrying weapons.
Brayan Alexander Torres a/k/a “Spooky,” age 29, and Franklyn Edgardo Sanchez, a/k/a “Freddy,” “Magic,” “Miclo,” and “Delinquente,” age 26, both of Adelphi, Maryland, were each previously sentenced to 28 years in federal prison and ordered to pay restitution in the full amount of the victims’ losses, including any funeral costs.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
These cases are 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.
These cases are also Organized Crime Drug Enforcement Task Force (OCDETF) investigations. 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 Barron and Acting Assistant Attorney General Argentieri commended the FBI, HSI and the Prince George’s County Police Department for their work in the investigation and thanked U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and the Montgomery County Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorney Joel Crespo and Trial Attorney Christopher Taylor of the Criminal Division’s Organized Crime and Gang 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 https://www.justice.gov/usao-md/community-outreach and https://www.justice.gov/usao-md/project-safe-neighborhoods-psn.
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MS-13 Gang Member Sentenced for Racketeering ConspiracyRead the Press Release
A Maryland man was sentenced today to 26 years in prison for racketeering conspiracy, including murder, connected to his participation in La Mara Salvatrucha, a transnational criminal enterprise also known as MS-13.
According to court documents, Kevin Alexander Castillo Calderon, also known as Fantasma, Ghost, Eterno, and Josue Argueta Gonzalez, 25, of Adelphi, and his co-defendants were members and associates of the Weedams Locos Salvatrucha (WLS) clique of MS-13. MS-13 is one of the largest street gangs in the United States and is composed primarily of immigrants or descendants from El Salvador and other Central American countries.
Members of MS-13 are expected to protect the name, reputation, and status of the gang from rival gang members and other persons, at all times, using any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. One of the principal rules of MS-13 is that its members must attack and kill rivals whenever possible. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increases the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to promotion to a leadership position.
On Aug. 8, 2020, WLS members, including Castillo Calderon and co-defendants WLS leader Brayan Alexander Torres, 30, of Adelphi, and Franklyn Edgardo Sanchez, 26, also of Adelphi, were gathered at a park in Prince George’s County, Maryland. Castillo Calderon, Torres, Sanchez, and other WLS members agreed to murder Victim 4, who was suspected of cooperating with law enforcement and to whom Sanchez owed a debt. Sanchez and another MS-13 member murdered Victim 4, then other WLS members dragged Victim 4’s body to a stream and left it there. Once in the stream, Castillo Calderon picked up a large rock and dropped it on Victim 4’s head. As he was leaving the woods, Sanchez was concerned that his DNA may have been left on the body. To prevent the discovery of DNA or other evidence and to hinder the investigation and prosecution of Victim 4’s murder, other WLS members were called and ordered to bring shovels to the wooded area, where they dug a hole and buried Victim 4’s body. In addition, at Torres’ direction, Castillo Calderon took the guns used to shoot Victim 4 and Victim 4’s cell phone, put them in a bag he was carrying, and disposed of the evidence. Victim 4’s body was later recovered with a bullet wound to the head.
Castillo Calderon was also responsible for collecting extortion payments, or “rents,” from extortion victims on behalf of WLS, knowing that the victims making extortion payments did so under the threat of physical violence by members of WLS. For example, gang members used baseball bats to impose rents and sometimes collected rent while displaying firearms or otherwise making it known that they were carrying weapons.
Castillo Calderon pleaded guilty in August 2023 to RICO conspiracy.
Torres and Sanchez were each previously sentenced to 28 years in prison upon their prior guilty pleas. The court also ordered each to pay restitution in the full amount of the victims’ losses, including any funeral costs.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Erek L. Barron for the District of Maryland, Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division, Acting Special Agent in Charge R. Joseph Rothrock of the FBI Baltimore Field Office, Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore, and Chief Malik Aziz of the Prince George’s County Police Department made the announcement.
The FBI, HSI, and the Prince George’s County Police Department investigated the case, with substantial assistance from U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and the Montgomery County Police Department.
Trial Attorney Christopher Taylor of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Joel Crespo for the District of Maryland are prosecuting the case.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. Call the FBI tipline at 1-866-STP-MS13 (1-866-787-6713), or the HSI tipline at 1-866-DHS-2-ICE.
School Instructional Assistant Sentenced to Seven Years in Federal Prison for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Tyler Edward Perkins, age 30, of Huntingtown, Maryland, today to seven years in federal prison, followed by 10 years of supervised release, for possession of child pornography. The statement of facts also established that Perkins distributed child sexual abuse material to others and Judge Chuang took that into account in imposing today’s sentence. Judge Chuang also ordered that Perkins must pay restitution of $12,000 and upon his release from prison, Perkins will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police; and Calvert County State’s Attorney Robert Harvey.
According to his guilty plea agreement, Perkins was an instructional assistant at a school for children requiring special education services. On June 1, 2022, law enforcement executed a search warrant at Perkins’s residence after the National Center for Missing and Exploited Children received CyberTips from the instant messaging platform Kik, that accounts associated with usernames, which investigation determined were controlled by Perkins, had uploaded files containing child pornography to Kik. Kik also determined that many of the uploaded files were distributed to other users in private chats.
Law enforcement investigating the CyberTips were able to identify Perkins’s residence as being associated with the distribution of child pornography. During the search of his residence, law enforcement seized several electronic devices. A digital forensic examination of the devices revealed that they contained at least 600 images of child sexual abuse material, including videos, documenting the sexual abuse of minors, including prepubescent minors. Further, some of the material portrayed sadistic or masochistic conduct. The investigation did not reveal any evidence of Perkins committing any sexual assault or having illegal contact with any child.
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.
United States Attorney Erek L. Barron commended HSI, the Maryland State Police Computer Crimes Unit and Maryland State Apprehension Team, and the Calvert County State’s Attorney’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Christopher M. Sarma and Timothy F. Hagan, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Florida Man Sentenced to 60 Years in Federal Prison for Charges Related to the Sexual Exploitation of MinorsRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced John W. Balch, age 76, of Jacksonville, Florida, to 60 years in federal prison, followed by lifetime supervised release, for two counts of sexual exploitation of a child. Balch had previously pleaded guilty to those charges and further admitted to the sexual exploitation of six minor victims, including prepubescent minors. On January 23, 2024, Chief Judge Bredar sentenced co-defendant Jane Ellen Campbell, age 35, of Hagerstown, Maryland, to 210 months in federal prison, followed by 15 years of supervised release, for distribution of child pornography, related to one of the victims. Chief Judge Bredar also ordered that, upon their release from prison, the defendants will be required to register as sex offenders in the places where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (“SORNA”).
The sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Chief Paul Joey Kifer, Chief of the Hagerstown Police Department; and Frederick County State’s Attorney J. Charles Smith, III.
According to Balch’s guilty plea and other court documents, between 2017 and 2022, Balch sexually exploited six minors between the ages of 3 and 15 years old. Balch paid the victims’ mothers to produce images and videos of the victims engaged in sexually explicit conduct. The exploitation also included paying the victims’ mothers to perform sex acts on their prepubescent children, record the abuse, and send the files to Balch. Balch also admitted that he paid one of the mothers to transport her 15-year-old daughter to engage in sex acts with Balch in a hotel room.
As detailed in Campbell’s plea agreement, Campbell and Balch met in approximately 2007. In recent years, Campbell drove various women to have commercial sex with Balch in hotels when Balch traveled to Maryland from his home in Florida. In 2017, Balch asked Campbell multiple times to produce naked images of Minor Victim 1, who was nine years old at the time. Campbell admitted that she sent Balch three sexually explicit images of Minor Victim 1 in July 2017. Beginning in 2021, Balch initiated conversations directly with Minor Victim 1. According to Campbell’s plea agreement, Balch paid Campbell $3,245, between November 23, 2020, and August 5, 2022.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Erek L. Barron commended the HSI, the Hagerstown Police Department, and the Frederick County State’s Attorney’s Office for their work in this investigation. U.S. Attorney Barron also recognized the U.S. Attorney’s Offices for the Northern District of West Virginia and the Middle District of Florida, and the FBI’s Pittsburgh Field Office for their assistance in the Balch case. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow and Special Assistant U.S. Attorney Joyce King, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Baltimore “Triple C” Gang Member Sentenced to 30 Years in Federal Prison and Two Others Sentenced to 25 Years for a Racketeering Conspiracy, Including Murders and Attempted MurdersRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Desmond Butler, age 26, of Baltimore, today to 30 years in federal prison, followed by five years of supervised release, for a racketeering conspiracy, including murders and attempted murders, related to his participation in the violent street gang known as Cruddy Conniving Crutballs or Triple C, which operated throughout Baltimore. Earlier this week, Chief Judge Bredar sentenced Triple C members Wayne Gilliam, age 28, and Tyeshawn Rivers, age 24, both of Baltimore, each to 25 years in federal prison, followed by five years of supervised release, for the same charge.
The sentences were announced 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 (ATF); Commissioner Richard Worley of the Baltimore Police Department; and Chief Robert McCullough of the Baltimore County Police Departments.
“When you perpetrate violence upon communities, like these defendants, you will be held accountable,” said United States Attorney Erek L. Barron. “Young people must know that they can make another choice besides violence and murder and we will continue to work with our community partners to get that message out.”
According to Gilliam, Rivers and Butler’s plea agreements and other court documents, Triple C members engaged in a pattern of criminal racketeering activity between 2015 and 2020, including more than a dozen murders and numerous non-fatal shootings, robberies, and carjackings, in order to promote the reputation of Triple C and to command respect from the neighborhood. Other spin-offs of the gang are “SCL” and recently, “TRD.”
As detailed in the plea agreements, the gang benefitted financially from selling narcotics, murdering drug dealers, taking contract killings, and engaging in street robberies. Triple C members also robbed dice games for cash and occasionally carjacked vehicles. Triple C members and associates used at least 14 firearms to commit crimes, often trading with each other or other groups to avoid detection through ballistic evidence. Members divided the proceeds of illegal activities among those who participated in the crimes, and often contacted each other to commit a robbery if a member needed money. Members of Triple C often critiqued each other after committing crimes regarding ways to improve their performance.
Triple C members routinely used social media to identify and locate victims, to communicate with each other, and to share information concerning possible retaliation for violent crimes committed by gang members. Details of the crimes committed by Triple C members were publicized on social media and thus were well-known to CCC members.
Desmond Butler admitted that he participated in the August 19, 2017 murder of Devonte Monroe in the 1700 block of Durham Street in Baltimore; the April 21, 2018 murder of Diamante Howard during a dice game in the 6100 block of Fortview Way in Baltimore; the December 31, 2018 murder of Corey Mosley; the February 24, 2019 robbery and attempted murder of Q.W. in the 5200 block of Cedonia Avenue in Baltimore; and the July 4, 2019 attempted murder of A.C. and D.R. in the 5500 block of Bowley’s Lane in Baltimore.
Wayne Gilliam admitted that he participated in the December 31, 2018 murder of Corey Mosley in the 4900 block of Green Rose Lane in Baltimore, and the April 14, 2019 attempted murder of rival gang members “LTMN” in the 3500 block of Pelham Avenue in Baltimore, during which at least one member of the conspiracy fired a firearm.
Tyeshawn Rivers admitted that he participated in the August 5, 2020 murder of Donya Short in Baltimore City, during which Short was shot and killed; the April 4, 2018 attempted murder of rival gang members in the 2900 block of Mayfield Avenue, in Baltimore City, during which at least one member of the conspiracy fired a firearm; the March 17, 2020 attempted murder of T.B. and others in the 300 block of McMechen Street in Baltimore, during which T.B. was shot; and on October 30, 2020 the defendant possessed a .45 caliber handgun which is a ballistic match to shell casings found at the August 5, 2020 murder of Donya Short.
In addition to these violent acts, all three defendants admitted that they agreed to distribute and possess with the intent to distribute controlled substances, including crack cocaine, on behalf of the racketeering enterprise.
This investigation has led to the guilty pleas of 34 members and associates of Triple C.
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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in this investigation and thanked the United States Marshals Service and the Office of the Baltimore City State’s Attorney for their assistance in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorney Patricia C. McLane and Michael C. Hanlon, 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/project-safe-neighborhoods-psn.
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Two Landover Hills Brothers Indicted for an Alleged Lottery Scheme that Defrauded Victims of More Than $3.5 MillionRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging brothers Dwayne and Wayne Henry, age 32 and 34, respectively, both of Landover Hills, Maryland, for conspiracy to commit mail fraud, in connection with a lottery scheme where victims believe that they have won a lottery or sweepstakes and are required to send payment in advance for taxes and other fees before they are entitled to receive their winnings.
The superseding indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Chief Malik Aziz of the Prince George’s County Police Department; and Special Agent in Charge Colleen Lawlor of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
According to the superseding indictment, from October 2020 until December 2023, the defendants and their co-conspirators contacted the victims by mail and 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.
As detailed in the superseding indictment, the defendants sent lottery solicitations, as well as packages and suitcases that purportedly contained the victims’ winnings to victims throughout the United States, using a false address and fictitious name when mailing the items. The defendants allegedly tracked the packages sent to and from the victims and Wayne received numerous packages that contained victim funds addressed to “Anthony Henry.” The superseding indictment further alleges that Wayne opened two bank accounts to receive money from the scheme, including in cash deposits and peer-to-peer transfers and that Dwayne and Wayne Henry sent numerous payments to each other using a digital payment network. The majority of the ATM cash withdrawals from one of the bank accounts also allegedly occurred outside the United States.
For example, the superseding indictment alleges that the conspirators sent packages and caused packages to be sent that contained checks made payable to victim J.S. in the amount of $150 million, cell phones, and typewritten notes, including a note requesting that J.S. contact the writer at a telephone number ending in 9391 “to get in touch . . . about paying you the 150 million dollars.”
The superseding indictment further alleges that in early 2023, Wayne, Dwayne, and other conspirators caused victim J.P. to believe that J.P. had won $5.5 million in the lottery. As detailed in the superseding indictment, J.P. received a metal briefcase purportedly containing partial payment of the lottery winnings and was told that he/she would receive a code to unlock the briefcase after J.P. sent the required taxes and fees. J.P. was also allegedly told that if J.P. opened the briefcase without receiving the code, the money would be destroyed by an exploding ink pack inside the briefcase.
According to the indictment, as a result of the scheme, the victims sent more than $3.5 million to the defendants and other conspirators based on false pretenses, representations, and promises involving false lottery or sweepstakes winnings.
If convicted, the defendants face 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. An initial appearance has not yet been scheduled.
A superseding indictment is not a finding of guilt. An individual charged by superseding 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.
United States Attorney Erek L. Barron commended the U.S. Postal Inspection Service, HSI, the Prince Georges County Police Department, and the Social Security Administration - Office of Inspector General for their work in the investigation and thanked the Maryland State Police, the Baltimore County Police Department, and the Anne Arundel County Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorney 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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Five Marylanders Facing Federal Charges for a Fraud Scheme Involving the Theft of Checks from the MailRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging five Marylanders with conspiracy to commit mail fraud and bank fraud and related charges in connection with a fraud scheme involving more than 600 stolen checks with a face value of over $5 million. The indictment was returned on December 7, 2023, and unsealed late on January 19, 2024. Charged in the indictment are:
Tianna Cosby, a/k/a “Mendoza,” age 23, of Upper Marlboro, Maryland;
Marche Sisco, age 26, of Suitland, Maryland;
Tommi Cosby, age 21, of District Heights, Maryland;
Biniah Carter, age 24, of Upper Marlboro, Maryland; and
Zion Oluwademilade Adeduwon, age 22, of Bowie, Maryland.Tianna Cosby and Biniah Carter were arrested on January 19, 2024, and are expected to have initial appearances today at 1:30 p.m. and 2:15 p.m., respectively, in U.S. District Court in Greenbelt before U.S. Magistrate Judge Gina L. Simms. Law enforcement has not yet located Marche Sisco, Tommi Cosby, and Zion Oluwademilade Adeduwon.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; Executive Special Agent in Charge Jeffrey Krafels of the U.S. Postal Service Office of Inspector General – Mid Atlantic Field Office; and Chief Malik Aziz of the Prince George’s County Police Department.
According to the 18-count indictment, Tianna Cosby and Sisco stole and caused the theft of personal and business checks belonging to victims that had been mailed through the U.S. Postal Service (USPS). Specifically, the indictment alleges that Sisco used her position as a USPS mail handler assistant at the Washington Network Distribution Center (NDC) to steal checks from the NDC, then communicated regarding the sale and distribution of over 600 stolen checks with Cosby. These checks had a face value of more than $5 million. In addition to stealing checks from the NDC, the indictment alleges that the conspiracy also obtained checks by stealing them from USPS collection boxes.
Further, the indictment alleges that Tianna Cosby, Tommi Cosby, Carter, and Adeduwon recruited “account mules” – individuals whose bank accounts are used to deposit illegally acquired checks and proceeds of the scheme. The conspirators then collected and shared account mule information, which included banking and identity information. The defendants allegedly also used and transferred the means of identification of at least five identity theft victims. As detailed in the indictment, the conspirators altered the stolen checks to reflect payment to account mules, deposited the fraudulent checks into the bank accounts belonging to the account mules, then engaged in financial transactions, including ATM withdrawals and account transfers, to obtain the proceeds.
If convicted, the defendants each face a maximum sentence of 30 years in federal prison for conspiracy to commit mail fraud and bank fraud and for each count of bank fraud; and a mandatory two years, consecutive to any other sentence imposed, for each count of aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the U.S. Postal Inspection Service, the U.S. Postal Service Office of Inspector General, and the Prince George’s Police Department Strategic Investigations Division - Financial Crimes Unit for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Bijon A. Mostoufi, Raganath Manthripragada, and Elizabeth Wright, 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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Maryland United States Attorney’s Office Announces Supervisory AppointmentsRead the Press Release
Erek L. Barron, the United States Attorney for the District of Maryland, announced two new senior supervisory appointments. Alicia N. Washington is joining the office as Special Counsel to the United States Attorney, where she will advise the United States Attorney on matters across the office, especially within the Criminal Division, and on the office’s most complex and sensitive issues. Assistant U.S. Attorney John W. Sippel, Jr. has been appointed as the Coordinator of the Organized Crime Drug Enforcement Task Force’s (OCDETF) Mid-Atlantic Region, which covers Maryland, Delaware, Pennsylvania, Virginia, West Virginia and District of Columbia.
“I am pleased to make these appointments. The hiring of Alicia Washington and promotion of John Sippel adds greater depth of experience and perspective to our decision-making to better serve Marylanders and the mission of the Department of Justice,” said United States Attorney Erek L. Barron.
Ms. Washington joins the office from the international law firm Simpson Thacher & Bartlett LLP, where she has served as a litigation partner and member of the firm’s government and internal investigations practice. Prior to her private practice, she served as an Assistant United States Attorney in the Eastern District of New York’s Criminal Division, investigating and prosecuting public corruption, white collar, civil rights, violent crime, narcotics, money laundering, firearms, and child exploitation. Prior to joining the Eastern District of New York, Ms. Washington was an associate at Davis+Gilbert LLP and an associate at Simpson Thacher & Bartlett LLP. Ms. Washington also served as a law clerk for the Honorable Barbara M. G. Lynn of the United States District Court for the Northern District of Texas. Ms. Washington received her law degree from Columbia Law School and her undergraduate degree from Yale University with Honors.
John Sippel has served as an Assistant United States Attorney in the District of Maryland since February 2003, first in the Office’s Civil Division, where he handled civil defensive cases and assisted the Financial Litigation Unit, then transitioning to the Criminal Division’s Violent Crime Section (now the Violent Organized Crime Section or “VOC”) in July 2007. While serving in the VOC Section, Mr. Sippel has handled a variety of violent crime and drug-related matters, including large-scale narcotics investigations, firearms cases, carjackings, commercial robberies, and racketeering cases. In 2016, Mr. Sippel received the OCDETF National Award for the Mid-Atlantic Region for the investigation and successful prosecution of the Kedrick Jenifer Drug Trafficking Organization. He also serves one of the office’s Ethics Advisors. Mr. Sippel earned his law degree from the University of Baltimore School of Law and his undergraduate degree in Political Science from Loyola College in Maryland (now Loyola University Maryland). Prior to joining the Office, John was in private practice.
Ms. Washington and Mr. Sippel join a management team that includes, First Assistant United States Attorney Phil Selden; Executive Assistant United States Attorney Lillian N. Stewart; and Counsel to the United States Attorney, David I. Salem.
As First Assistant U.S. Attorney, Phil Selden helps manage the investigation and litigation of all criminal and civil cases brought on behalf of the United States. Mr. Selden began his career as an Assistant United States Attorney in 2010, investigating and prosecuting a wide variety of cases, including public corruption, white collar, national security, cybercrime, and violent crime matters. He has received awards from the Social Security Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and multiple Department of Justice Special Achievement Awards, and received the 2020 Homeland Security Investigations Prosecutor of the Year for his efforts in prosecuting domestic and international corruption. Before joining the Department of Justice, Mr. Selden worked in private practice handling complex commercial litigation and white collar matters on behalf of Fortune 500 companies. He began his career working with at-risk youth at the Philadelphia Family Court. Mr. Selden received his undergraduate degree from Georgetown University, magna cum laude, his Master’s Degree in Government Administration from the University of Pennsylvania and his Juris Doctor degree from Columbia Law School, where he was a Harlan Fiske Stone Scholar, a Tony Patiño Fellow, and a Paula Jewell Fellow. Mr. Selden has taught as an adjunct faculty member at University of Maryland School of Law, Howard University School of Law, Harvard Law School, and the George Washington University Law School.
Executive Assistant U.S. Attorney Lillian Stewart joined the office in March 2023 and oversees the Civil and Administration Divisions. Previously, Ms. Stewart served as the Executive Assistant United States Attorney for the United States Attorney’s Office for the Northern District of Texas; Assistant General Counsel handling civil litigation for the FBI General Counsel’s Office; and as an Assistant United States Attorney for the Central District of Illinois, where she worked in the Civil Division handling various affirmative and defensive civil matters including False Claims Act, Healthcare Fraud and Civil Rights investigations. Ms. Stewart earned her law degree from Vanderbilt University Law School, and her undergraduate degree in Political Science, magna cum laude, from the University of Tennessee.
David Salem was appointed as Counsel to the United States Attorney in January 2023, and has been an Assistant U.S. Attorney in the District of Maryland’s Greenbelt office since November 1990, serving first in the Civil Division before switching to the Criminal Division in 1994. Since then, Mr. Salem has tried more than 50 felony cases, focusing most recently in areas of white collar and national security matters and served as Senior Litigation Counsel and Collateral Litigation Chief. David also has trained law enforcement officers, prosecutors, defense bar and judges in Ashgabat, Turkmenistan; Kiev, Ukraine; Almaty, Kazakhstan; Tallinn, Estonia; Riga, Latvia; and Tbilisi, Georgia. He received his joint JD-MBA from the University of Maryland. David was the recipient of numerous Department of Justice and office awards, including the 2020 Deborah A. Johnston Award; the 2015 Department of Justice Award for Criminal Prosecution for United States v. Mikerin; the 2004 Gary Jordan Award; the 2004 Inspector General Integrity Award for contributions to health care fraud prosecutions; and the 1998 Chief Postal Inspector’s Award for United States v. Bosah.
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Baltimore County Man and Woman Plead Guilty to Fraudulently Obtaining More Than $300,000 in COVID-19 CARES Act LoansRead the Press Release
Baltimore, Maryland – Theodore Mouzon, age 42, of Pikesville, Maryland pleaded guilty today to conspiracy to commit wire fraud, relating to the submission of fraudulent CARES Act loan applications. Co-defendant Yannice Nunez, age 34, of Baltimore County, Maryland, pleaded guilty to the same charge on January 4, 2024. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General, Eastern Region; and Chief Robert McCullough of the Baltimore County Police Department.
Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, administered through the Small Business Administration (SBA). The SBA also offered an Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations. An EIDL advance did not have to be repaid, and small businesses could receive an advance, even if they were not approved for an EIDL loan. The maximum advance amount was $10,000.
According to their plea agreements and other court documents, Nunez and Mouzon submitted fraudulent PPP loan applications for purported businesses which they owned. The applications contained material misrepresentations as to the existence of the business, number of employees and average monthly payroll. Based on the fraudulent submissions and misrepresentations, Mouzon and Nunez ultimately obtained $300,162 in connection with their scheme (with $185,416 in loan funds going to Nunez and $114,746 in loan funds going to Mouzon). Nunez and Mouzon further attempted to obtain more than $373,054 in PPP and EIDL funds for various other purported businesses, but those loans ultimately did not close.
Nunez used the fraudulently obtained funds to, among other things, buy a motorcycle, purchase large amounts luxury goods, travel to Miami, Florida for vacation, and get plastic surgery. Mouzon used the PPP funds for personal expenses and provided a portion of the funds to his girlfriend. The defendants’ use of the funds for those purposes was impermissible under the PPP.
Nunez and Mouzon were arrested on November 14, 2022. Law enforcement searched Mouzon’s residence, a house belonging to his girlfriend, that same day and recovered two loaded firearms—a .357 revolver and a .32 caliber revolver—multiple boxes of ammunition, and body armor. Law enforcement interviewed Mouzon’s girlfriend who stated that there were no guns in the residence. Law enforcement also located $4,945 in cash—proceeds from the scheme—next to a box containing 20 rounds of 9mm ammunition in a dresser in the bedroom. As part of his plea agreement, Mouzon has agreed to waive any right, title and interest in the firearms, ammunition, and body armor.
Mouzon and Nunez each face a maximum sentence of 20 years in federal prison for wire fraud. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Nunez on March 27, 2024 at 10:00 a.m. and for Mouzon on April 5, 2024 at 11:00 a.m.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the FBI, Small Business Administration Office of Inspector General, and Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber.
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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Maryland Man Sentenced for Issuing Death Threats to LGBTQI+ Advocacy GroupRead the Press Release
A Maryland man was sentenced today to two years in prison, along with three years of supervised release, for making death threats and other calls for violence against a group that advocates for LGBTQI+ people.
According to the evidence presented by the government at today’s sentencing hearing, Adam Michael Nettina, 34, of West Friendship, also sent threatening messages to Maryland and Virginia state delegates due to their support of transgender people.
“This defendant targeted and threatened members of the LGBTQI+ community and their allies, instilling fear and promoting violence toward a heavily targeted community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence underscores the Justice Department’s commitment to combating threats against public officials and protected communities. We will work tirelessly to expunge the growing threat posed by bias-motivated acts of violence directed at the LGBTQI+ community and their allies.”
“You have the right to your own opinions, but you don’t have the right to threaten the lives of those who disagree with you. As this case demonstrates, free speech does not include violent threats against others,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We’ll continue prosecuting these threats to the fullest extent of the law.”
“Threats of violence made against people and organizations to instill fear will not be tolerated,” said Acting Special Agent in Charge R. Joseph Rothrock of the FBI Baltimore Field Office. “The FBI will continue to work diligently to ensure the civil rights of all Americans are protected.”
According to court documents, on the evening of March 28, 2023, the victim organization received a threatening voicemail from a phone number, which investigators identified as belonging to Nettina. The message referenced the March 27, 2023, mass shooting at a school in Nashville, Tennessee, involving multiple shooting fatalities, where police identified the perpetrator as a transgender woman. During the call, numerous threats were made including, “…we’ll cut your throats. We’ll put a bullet in your head…You’re going to kill us? We’re going to kill you 10 times more in full.”
Nettina admitted that he left this voicemail for the purpose of issuing a threat and with the knowledge that the voicemail would be viewed as a threat. Further, Nettina intentionally selected the advocacy organization as a target of his message because of the actual and perceived gender, gender identity and sexual orientation of the people who work at and are assisted by the organization.
As detailed in his plea agreement, on March 31, 2022, a Maryland State Delegate posted a message of support on social media in honor of Trans Day of Visibility. Nettina responded on social media later that same day, which stated, among other things, that he had “begun the formal process of getting you excommunicated…” from the Catholic Church. On Nov. 8, 2022, the delegate was reelected. Nettina sent the delegate another message on social media, stating: “…Baby killing terrorist. Enjoy hell…You’re going sooner than you think.”
Finally, as outlined in the court documents, on Oct. 13, 2022, an online news story was published about an interview a Virginia State Delegate gave in which she advocated for the prevention of abuse towards transgender children. Two days later, on Oct. 15, 2022, Nettina sent an email to the delegate’s press email account, stating: “The delegate is a terrorist. You are a terrorist. You deserve to be shot and hung in the streets. You want to come after people? Let’s go b**ch.” Nettina also sent a similar message to another email address of the delegate two minutes later. Nettina intentionally selected the delegate and her campaign staff as the recipient of his email because of the actual and perceived gender, gender identity and sexual orientation of the people and constituents for whom the delegate had expressed support.
The FBI Baltimore Field Office investigated the case.
Assistant U.S. Attorney Paul E. Budlow for the District of Maryland and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division prosecuted the case.
For more information about the department’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes.
Howard County Man Sentenced to Two Years in Federal Prison for Threatening an LGBTQI+ Advocacy GroupRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Adam Michael Nettina, age 34, of West Friendship, Maryland, to two years in federal prison, followed by three years of supervised release, for using the telephone to make death threats and other calls for violence against a group that advocates for LGBTQI+ people. According to the evidence presented by the government at today’s sentencing hearing, Nettina also sent threatening messages to Maryland and Virginia state delegates due to their support of transgender people.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.
“You have the right to your own opinions, but you don’t have the right to threaten the lives of those who disagree with you. As this case demonstrates, free speech does not include violent threats against others,” said United States Attorney for the District of Maryland, Erek L. Barron. “We’ll continue prosecuting these threats to the fullest extent of the law.”
“This defendant targeted and threatened members of the LGBTQI+ community and their allies, instilling fear and promoting violence toward a heavily targeted community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence underscores the Justice Department’s commitment to combating threats against public officials and protected communities. We will work tirelessly to expunge the growing threat posed by bias-motivated acts of violence directed at the LGBTQI+ community and their allies.”
“Threats of violence made against people and organizations to instill fear will not be tolerated,” said Acting Special Agent in Charge R. Joseph Rothrock of the FBI Baltimore Field Office. “The FBI will continue to work diligently to ensure the civil rights of all Americans are protected.”
According to court documents, on the evening of March 28, 2023, the victim organization received a threatening voicemail from a phone number, which investigators identified as belonging to Adam Michael Nettina. The message referenced the March 27, 2023, mass shooting at a school in Nashville, Tennessee, involving multiple shooting fatalities, where police identified the perpetrator as a transgender woman. During the call, numerous threats were made including, “ . . . We’ll cut your throats. We’ll put a bullet in your head . . . . You’re going to kill us? We’re going to kill you ten times more in full.”
Nettina admitted that he left this voicemail for the purpose of issuing a threat and with the knowledge that the voicemail would be viewed as a threat. Further, Nettina intentionally selected the advocacy organization as a target of his message because of the actual and perceived gender, gender identity, and sexual orientation of the people who work at and are assisted by the organization.
As detailed in his plea agreement, on March 31, 2022, a Maryland State Delegate posted a message of support on social media in honor of Trans Day of Visibility. Nettina responded on social media later that same day, which stated, among other things, that he had “begun the formal process of getting you excommunicated . . . ” from the Catholic Church. On November 8, 2022, the delegate was reelected. Nettina sent the delegate another message on social media, stating: “ . . . Baby killing terrroist. Enjoy hell You’re going sooner than you think.”
Finally, as outlined in the court documents, on October 13, 2022, an online news story was published about an interview a Virginia State Delegate gave in which she advocated for the prevention of abuse towards transgender children. Two days later, on October 15, 2022, Nettina used the internet to send an email to the delegate’s press email account, stating: “The delegate is a terrorist. You are a terrorist. You deserve to be shot and hung in the streets. You want to come after people? Let’s go b**ch.” Nettina also sent a similar message to another email address of the delegate two minutes later. Nettina intentionally selected the delegate and her campaign staff as the recipient of his email because of the actual and perceived gender, gender identity, and sexual orientation of the people and constituents for whom the delegate had expressed support.
United States Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke commended the FBI for its work in the investigation. Mr. Barron and Ms. Clarke thanked Assistant U.S. Paul E. Budlow and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division, who prosecuted the federal case.
Earlier this year, the U.S. Attorney’s Office for the District of Maryland (USAO-MD) launched the national Department of Justice initiative, United Against Hate. Together with our local partners, USAO-MD’s United Against Hate campaign will empower local residents and communities to combat unlawful acts of hate, stand against racism and discrimination and alter the course of growing intolerance.
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 Two Years in Federal Prison for Fraudulently Obtaining COVID-19 CARES Act Paycheck Protection Program LoansRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Reginald Alphonso Hopkins, age 52, of Prince George’s County, Maryland, today to two years in federal prison, followed by one year of home confinement as part of three years of supervised release, for a wire fraud conspiracy relating to the submission of fraudulent claims for the Paycheck Protection Program (“PPP”) benefits under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The 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, United States Attorney for the District of Maryland and Acting Special Agent in Charge R. Joseph Rothrock 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). 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 his plea agreement, Hopkins fraudulently obtained $1,007,224 in PPP funds and $9,000 in Economic Injury Disaster Loan funds for various purported businesses he controlled—a transportation business, a car sales business, and an assisted living facility. He also attempted to fraudulently obtain more than $3,132,224 in PPP and EIDL funds.
As detailed in the statement of facts submitted as part of the plea agreement, between June 11, 2020 and March 23, 2021, Hopkins, with the assistance of a co-conspirator submitted fraudulent PPP loan applications for Prestige Executive Transportation, Prestige 24/7 Auto Sales & Services LLC (“Prestige 24/7”), and Prestige Assisted Living Inc. (“Prestige Assisted Living”), all businesses owned by Hopkins. Each loan application contained multiple material misrepresentations, including as to the number of employees and average monthly payroll. Fabricated IRS tax forms and bank records were also submitted in support of the loan applications. In fact, IRS tax records reveal that none of the companies reported paying wages to any employees.
Based on the fraudulent submissions, the PPP loans were funded. Approximately $291,090 was distributed to Prestige Transportation’s bank account; approximately $294,771 was distributed to Prestige 24/7’s bank account; and approximately $421,363 was distributed to Prestige Assisted Living’s bank account. All the bank accounts were controlled by Hopkins. Hopkins agreed to pay the co-conspirator a kickback payment for his work in submitting the false applications. Hopkins provided the co-conspirator: a check for $58,000, approximately 20 percent of the PPP loan amount for the Prestige Executive Transportation loan; eight checks totaling $75,000 or 25 percent of the Prestige 24/7 loan; and five checks totaling $44,000 or approximately 10.5 percent of the Prestige Assisted Living loan.
Hopkins admitted that he spent the fraudulently obtained loan proceeds in various ways unrelated to job retention or other business expenses, including the $177,000 in kickbacks paid to the co-conspirator, providing PPP funds to various friends, family members, making large cash withdrawals for himself, and paying off various personal debts. Hopkins also used $30,000 of the PPP funds to purchase an auto body repair shop called B&G Auto Repair LLC, for which he planned to obtain a fraudulent PPP loan.
In addition to obtaining the PPP loans discussed above, Hopkins also conspired with the co-conspirator to fraudulently obtain PPP loans for various other purported businesses, including Prestige Executive Protection Services, LLC, Prestige Paradise Promotions, LLC, Prestige Executive Protection Services II, LLC, Prestige Real Estate & Development, LLC, and B&G Auto Repair LLC. Hopkins repeatedly sought the co-conspirator’s assistance in obtaining PPP loans for these entities, but the loans never closed.
Hopkins further admitted that he caused to be submitted numerous fraudulent EIDL applications, including for Prestige Executive Transportation and Prestige Executive Protection Services II. Both of those loans, as well as others, were ultimately declined, but Hopkins received an EIDL advance of $5,000 and $4,000, for Prestige Executive Transportation and Prestige Executive Protection Services II, respectively.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the FBI for their work in the investigation and thanked the Baltimore County Police Department and the U.S. Small Business Administration – Office of Inspector General (“SBA-OIG”). Mr. Barron thanked Assistant U.S. Attorney Paul Riley, who prosecuted the federal case. Mr. Barron also recognized the assistance of the Maryland COVID-19 Strike Force 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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Former Social Media Influencer Sentenced to Three Years in Federal Prison for Scheming to Obtain More Than $1.2 Million in COVID-19 CARES Act LoansRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah L. Boardman sentenced Denish Sahadevan, a/k/a “Danny Devan,” age 32, of Potomac, Maryland, today to three years in federal prison, followed by three years of supervised release, for wire fraud, aggravated identity theft and money laundering, relating to his scheme to defraud lenders and the Small Business Administration (“SBA”) of more than $1.2 million in Paycheck Protection Program (“PPP”) loans and Economic Injury Disaster Loans (“EIDL”). Judge Boardman also ordered that Sahadevan will forfeit the cash and Bitcoin seized during a search of his residence on February 24, 2023 and will be required to pay restitution and a forfeiture money judgement of at least $429,906. Sahadevan provided a $100,000 check to the Court today as part of his restitution.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and John T. Perez, Special Agent in Charge, Headquarters Operations, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the PPP, as well as EIDLs to help small businesses meet their financial obligations, both administered through the SBA.
According to his plea agreement, beginning in about March 2020, Sahadevan submitted EIDL and PPP application on behalf of four Maryland entities that he controlled, often creating fraudulent and fabricated documents, such as tax forms and bank statements, to be used in the applications. In addition, Sahadevan used the identifying information belonging to a tax preparer that he knew, without that person’s knowledge or agreement, to legitimize the fabricated tax forms he created and submitted.
Specifically, Sahadevan admitted that he used his home in Rockville, Maryland to create the fabricated documents and electronically apply for EIDL and PPP loans. Sahadevan applied for approximately 71 PPP loans totaling approximately $941,794.75, and successfully obtained approximately $146,000 in PPP benefits. Sahadevan applied for and received eight EIDLs totaling $283,900. On the EIDL loans, Sahadevan induced his father into becoming a co-signer for the loan, then forged his father’s signature on the loan application. Sahadevan’s father would not have agreed to sponsor the loan had he known of its fraudulent nature and contents.
As detailed in the plea agreement, Sahadevan caused the fraud proceeds to be deposited into bank accounts he opened specifically for that purpose, then laundered the funds by engaging in several monetary transactions, including purchasing and trading securities and cryptocurrency, settling personal debts and making payments to his girlfriend.
In addition, between December 16, 2021 and January 10, 2022, Sahadevan applied to a financial institution for a $1,336,000 loan to purchase a property in Potomac, Maryland. In the loan application, Sahadevan failed to disclose the $283,900 he owed to the United States for the EIDL benefits he fraudulently received. Relying on Sahedevan’s representations, the financial institution approved the loan, which was used to purchase the Potomac property.
On February 24, 2023, law enforcement executed a search warrant at Sahadevan’s Potomac residence and recovered multiple electronic devices, a can containing approximate 18 driver’s licenses belonging to other individuals, what appeared to be a gold physical Bitcoin in a black case, and approximately $17,043 in cash found in a suitcase in a bedroom closet. The cash and Bitcoin constitute proceeds of the fraud scheme.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the FBI and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Bijon A. Mostoufi, who prosecuted the 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.
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Father and Son Sentenced for Laundering Drug Trafficking Bitcoin Proceeds Intended for Federal ForfeitureRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Joseph Farace, age 72, of Sparks, Maryland today to 19 months in federal prison, followed by two years of supervised release, for a money laundering conspiracy. On January 5, 2023, Judge Griggsby sentenced his son, Ryan Farace, age 38, of Reisterstown, Maryland, a previously convicted felon, to 54 months in federal prison for the same charge.
The sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief Robert McCullough of the Baltimore County Police Department; Chief Gregory Der of the Howard County Police Department; Anne Arundel County Police Chief Amal E. Awad; Carroll County Sheriff James DeWees; Washington County Sheriff Brian K. Albert; and Chief Teresa Walter of the Havre de Grace Police Department.
According to their guilty pleas and other court documents, in November 2018, Ryan Farace was convicted in U.S. District Court in Maryland for a scheme to manufacture and distribute alprazolam tablets (sold under the brand name “Xanax”) in exchange for Bitcoin through sales on darknet marketplaces. Cryptocurrency tracing techniques established that, in all, wallets associated with R. Farace, and/or his vendor name “XANAXMAN,” received over 9,138 Bitcoins from addresses associated with darknet marketplaces.
Prior to his sentencing for the 2018 crimes, R. Farace met with representatives of the United States Attorney’s Office and the Drug Enforcement Administration, for the purpose of helping the government gain access to R. Farace’s drug proceeds, particularly cryptocurrency and cash, which had not yet been seized. R. Farace repeatedly stated that he did not recall the location or means by which he could access any additional Bitcoins about which the government was not already aware. At R. Farace’s sentencing for the 2018 crimes, he argued that he had been cooperative with the government’s efforts to obtain his assets. Nonetheless, after R. Farace was sentenced, the government recovered additional drug proceeds in the form of Bitcoin. Specifically, in early 2020, law enforcement recovered over 24 Bitcoin.
As detailed in his guilty plea, despite R. Farace’s claims to the government that he could not access any other Bitcoin proceeds related to his 2018 drug trafficking conviction, from October 2019 to April 2021, while incarcerated for his 2018 crimes, R. Farace conspired with his father, J. Farace, and others to launder additional proceeds of crimes through a series of financial transactions. For example, in 2019, R. Farace sent approximately 71 Bitcoin from digital wallets he controlled to online exchanges and retailers. Financial records from one such retailer indicated that R. Farace used some of the drug proceeds to benefit his father, including sending $3,341.65 worth of gift cards. R. Farace used a contraband cell phone in prison to communicate with J. Farace about these purchases, using an encrypted email service.
In August 2020, while he was incarcerated, R. Farace asked J. Farace to transfer more than 2,874 Bitcoin to a third party, so that the funds could be moved into a foreign bank account. R. Farace provided J. Farace with the wallet address by typing it into the back cover of a prison library book and mailing it to J. Farace.
As detailed in their plea agreements, R. Farace (while incarcerated) and J. Farace used email and phone calls to discuss the transfer of bitcoin using coded language. In September 2020, J. Farace completed the transfer of over 2,874 Bitcoin to the third party, all of which were proceeds of R. Farace’s 2018 drug crimes. On February 10, 2021, federal agents seized all of the 2,874.90419597 Bitcoin that J. Farace had transferred, the market value of which was between $65 million and $150 million at the time of seizure. On May 11, 2021, the government seized 58.742155166 Bitcoin that was also proceeds of R. Farace’s drug trafficking. Both R. Farace and J. Farace must forfeit all of the Bitcoin seized during the investigation.
United States Attorney Erek L. Barron and Acting Assistant Attorney General Nicole M. Argentieri commended the DEA, the IRS-CI, the Baltimore County, Howard County, and Anne Arundel County Police Departments, the Carroll County Sheriff’s Office, the Washington County Narcotics Task Force, the Havre de Grace Police Department for their work in the investigation and thanked the United States Postal Inspection Service, Maryland Department of Public Safety and Correctional Services and the Federal Bureau of Prisons for their assistance. Mr. Barron thanked Assistant U.S. Attorney Coreen Mao and Trial Attorney Emily Cohen of the Justice Department’s Money Laundering and Asset Recovery Section, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Maryland U.S. Attorney Erek L. Barron Recognizes the Contributions of Law Enforcement Partners and the Teamwork that Helped to Reduce Violent Crime in 2023Read the Press Release
Baltimore, Maryland – At a press conference earlier today, U.S. Attorney Erek L. Barron, thanked federal, state and local law enforcement partners in the fight against violent crime in Maryland. The teamwork, community-based partnerships, and strategic law enforcement initiatives helped make a difference in reducing homicides in Baltimore in 2023 by more than 20% percent. Partners at today’s press conference included:
U.S. Attorney Erek L. Barron;
ATF Director Steven Dettelbach;
ATF Special Agent in Charge Toni Crosby;
State’s Attorney for Baltimore City Ivan Bates;
Baltimore City Police Commissioner Richard Worley; and
Drug Enforcement Administration Special Agent in Charge Jarod Forget;
Federal Bureau of Investigation Acting Special Agent in Charge R. Joseph Rothrock;
Homeland Security Investigations Special Agent in Charge James Harris;
Acting U.S. Marshal Mathew Silverman
Executive Director Errol Etting of the Maryland Department of Public Safety and Correctional
Services Intelligence and Investigative Division; and
Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police.“Going forward we will continue investigating and prosecuting large RICO cases, like Triple C, but we will also continue to employ strategic and preventative law enforcement measures—especially by using any legal means necessary to remove those who illegally possess or use guns in our communities,” said United States Attorney Erek L. Barron.
“This past year's almost 20% reduction in Baltimore homicides and 9% reduction in non-fatal shootings is a significant step forward in improving the quality of life for the citizens of this city. Every life saved from senseless acts of gun violence is worth celebrating. But we can't forget that every single life lost to this epidemic is a needless tragedy,” said ATF Director Steve Dettelbach. “Through strong partnerships and utilizing crime gun intelligence, ATF is able to focus law enforcement priorities not on entire communities, but instead on strategically identifying the trigger pullers who are terrorizing those communities. My message for 2024? We are not done by a long shot. ATF is committed to protecting the rights of Baltimoreans to live in peace. Law abiding folks should not live in fear of falling victim to senseless gun violence tragedies that continue to plague our most vulnerable communities.”
“Together, we have achieved significant strides in reducing violent crime throughout the year 2023, and while just one life lost to violence in Baltimore is one too many, we remain optimistic about the collective progress made. The collaborative spirit, tireless dedication, and innovative approaches demonstrated by our prosecutors, investigators, and law enforcement colleagues have played a pivotal role in creating safer communities for the residents of Baltimore,” said State’s Attorney Ivan J. Bates. “We have collectively contributed to decreasing violent crime rates through strategic initiatives, community engagement, and diligent prosecution efforts. Our success in this endeavor is a testament to the collaborative strength of our justice system. It reflects the unity and determination that defines us as a community and highlights our shared commitment to public safety and a safer Baltimore for all.”
As one example of holding violent gang members accountable at today’s press conference U.S. Attorney Barron highlighted the case of U.S. v. Correy Cawthorn, where Cawthorn, a member of the violent Baltimore street gang the “Cruddy Conniving Crutballs,” otherwise known as the “Triple C” gang, was sentenced to 35 years in federal prison. Cawthorn admitted that he was part of a racketeering conspiracy and participated in three murders, an attempted murder and drug trafficking on behalf of the gang. This investigation led to the guilty pleas of 34 members and associates of Triple C, including Cawthorn. It was investigated by ATF and the Baltimore Police Department as part of the Project Safe Neighborhoods (PSN) program, using leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN), a national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.
“Crime gun intelligence allows ATF and our law enforcement partners to identify, investigate, and incarcerate the most violent and prolific offenders operating in Baltimore. The 35-year sentence for Triple C gang member Correy Cawthorn today and the guilty plea of Black Guerilla Family gang member Wayne Prince yesterday are just two examples of what this investigative approach can do in the hands of law enforcement like our relentless Special Agents and Task Force Officers,” said ATF Baltimore Special Agent in Charge Toni M. Crosby. “While we take this moment to acknowledge the progress of this past year, we must also remember that any murder or act of violence prevents people from having the sense of security in their own neighborhood that they deserve. ATF Baltimore Field Division is looking forward to another year of serving the citizens of Maryland, creating safer communities so they can thrive.”
“Drugs are directly related to crime through the effects they have on the user’s behavior and by generating violence and other illegal activities including firearms related incidents and homicides. Through DEA’s Operation Overdrive initiative, we have mapped the most dangerous and ruthless drug trafficking organizations that operate in the DMV and have directed our resources towards dismantling and prosecuting these organizations. Our collaborative efforts have led to the seizure of record numbers of illegal drugs to include fentanyl and firearms, as well as many impactful prosecutions and convictions. DEA’s primary focus remains combating drug related violence and fentanyl poisoning in our neighborhoods,” said Jarod Forget, Special Agent in charge of DEA Washington Division.
“Every day the FBI works closely with our law enforcement partners in Baltimore and the rest of Maryland to identify and combat violent crime and other threats facing our communities,” said Acting Special Agent in Charge R. Joseph Rothrock of the FBI'S Baltimore Field Office. “In 2024 and the years to come, we will remain laser focused on partnering together to make our communities safer places for all of us.”
“Through a combination of comprehensive strategies, partnerships, and community engagement, we have made substantial progress in curbing the frequency of gun-related violence in Baltimore,” said Special Agent in Charge James C. Harris of HSI Baltimore. “We have fostered relationships among our federal, state, and local law enforcement partners, as well as our prosecutors. We coordinate efforts, share intelligence, and leverage resources in a unified approach to combat illegal gun trafficking, apprehend violent offenders, and hold perpetrators of gun violence accountable. Our efforts throughout our Maryland communities has resulted in a reduction of homicides in Baltimore, by 19% while non-fatal shootings are down almost 9%. While we celebrate this success, we recognize that our work is far from over. We are committed to sustaining and expanding our efforts to further reduce violent gun crime in and around Baltimore in 2024."
“This past year, the United States Marshals Service has helped our federal, state, and local partners apprehend over 1,300 violent fugitives,” stated Mathew Silverman, Acting United States Marshal for the District of Maryland. “The public can rest assured that we will do everything within our lawful authority to continue to support our partners and help make the State of Maryland a safer place.”
U.S. Attorney Barron also thanked our community partners, such as ROCA Baltimore, whose mission is focused on violent crime prevention and intervention initiatives and highlighted a joint public service announcement, U.S. Attorney Office coordinated community walks, and resource fairs for returning citizens. The law enforcement officials at today’s press conference renewed their commitment to community building in order to build trust and to prevent violent crime.
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 Pleads Guilty to a Federal Racketeering Conspiracy Charge, Including MurderRead the Press Release
Baltimore, Maryland – Wayne Prince, a/k/a “Taz,” age 24, of Baltimore pleaded guilty today to conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (“BGF”) gang.
The guilty plea 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; Acting Special Agent in Charge R. Joseph Rothrock 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 target owned and was having renovated. A construction crew was on site at the time. During the assault, 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.
Prince and the government have agreed that, if the Court accepts the plea, Prince will be sentenced to between 20 and 29 years in federal prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for March 26, 2024, at 10:00 a.m.
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 Peter J. Martinez, Patricia C. McLane, and Ari D. Evans, 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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Nigerian National Arrested in Ghana Facing Federal Charges for an Alleged $7.5 Million Business Email Compromise Scheme Involving Two Charitable OrganizationsRead the Press Release
Greenbelt, Maryland – An eight-count federal grand jury indictment was unsealed today charging Olusegun Samson Adejorin, of Nigeria, for wire fraud, aggravated identity theft, and unauthorized access to a protected computer related to a $7.5 million scheme to defraud two charitable organizations by impersonating employees, and gaining access to the employees’ email accounts. Adejorin was arrested in Ghana on December 29, 2023 and is detained pending his initial appearance in Ghana.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.
According to the eight-count indictment, between June and August 2020, Adejorin perpetrated a scheme to defraud Victim 1, a charitable organization located in North Bethesda, Maryland and Victim 2, a charitable organization located in New York, New York by gaining access to employee email accounts and impersonating employees to induce financial transactions. The indictment alleges that Adejorin posed as an employee of Victim 2 to request withdrawals of Victim 2’s funds from Victim 1, a charitable organization that provided investment services to Victim 2. Withdrawals over $10,000 required approval from at least one of several individuals authorized by Victim 1. According to the indictment, Adejorin fraudulently obtained the credentials of employees at Victim 1 and Victim 2 and posed as those employees to send emails from their accounts, including emails making fraudulent requests for the withdrawal of investment funds. As part of the scheme, Adejorin also allegedly purchased a credential harvesting tool designed to steal email login credentials, registered spoofed domain names, and concealed the fraudulent emails from a legitimate employee by causing the fraudulent emails to be moved to an inconspicuous location within Employee 1’s mailbox.
The indictment alleges that, as part of the scheme, Adejorin caused more than $7.5 million of Victim 2’s funds to be sent, pursuant to fraudulent withdrawal requests, from Victim 1 to bank accounts that were not Victim 2’s bank accounts.
If convicted, Adejorin faces a maximum sentence of 20 years in federal prison for each of five counts of wire fraud; a maximum of five years in federal prison for unauthorized access to a protected computer; and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for each of the two counts of aggravated identity theft. The maximum penalty for two of the wire fraud counts could be increased by seven years for knowingly falsely registering and using a domain name. 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 proceeding.
United States Attorney Erek L. Barron commended the FBI, Baltimore Field Office, for its work in the investigation and thanked the FBI Legal Attaché in Accra, Ghana, and the Republic of Ghana’s Economic and Organized Crime Office, the Office of Attorney General and Ministry of Justice, and the Ghana Immigration Service, for their valuable assistance in this case. Mr. Barron thanked Assistant U.S. Attorney Coreen Mao, 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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Member of Baltimore “Triple C” Gang Sentenced to 25 Years in Federal Prison for a Racketeering Conspiracy, Including Murders and Attempted MurdersRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Raekwon McMann, age 26, of Baltimore, yesterday to 25 years in federal prison, followed by five years of supervised release, for a racketeering conspiracy, including two murders and two attempted murders, related to his participation in the violent street gang known as Cruddy Conniving Crutballs or Triple C. Triple C operated throughout Baltimore City.
The sentence was announced 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 (ATF); and Commissioner Richard Worley of the Baltimore Police Department.
According to McMann’s plea agreement and other court documents, Triple C members engaged in a pattern of criminal racketeering activity between 2015 and 2020, including more than a dozen murders and numerous non-fatal shootings, robberies, and carjackings, in order to promote the reputation of Triple C and to command respect from the neighborhood. Other spin-offs of the gang are “SCL” and recently, “TRD.”
As detailed in the plea agreement, the gang benefitted financially from selling narcotics, murdering drug dealers, taking contract killings, and engaging in street robberies. Triple C members also robbed dice games for cash and occasionally carjacked vehicles. Members divided the proceeds of illegal activities among those who participated in the crimes, and often contacted each other to commit a robbery if a member needed money.
Triple C members routinely used social media to identify and locate victims and to communicate with each other and share information concerning possible retaliation for violent crimes committed by gang members. Triple C members and associates used at least 14 firearms to commit crimes, often trading with each other or other groups to avoid detection through ballistic evidence. Details of the crimes committed by Triple C members were publicized on social media and thus were well-known to CCC members. Members of Triple C often critiqued each other after committing crimes regarding ways to improve their performance.
McMann admitted that he was present at two murders during which at least one member of the Triple C conspiracy discharged a firearm, including the murder of Darius Mason on July 29, 2018, and the murder of Larry Matthews on April 22, 2019. In addition, McMann was present at two attempted murders on February 24, 2019 and April 14, 2019. McMann liked to boast about his association with Triple C on social media and what members would do for each other. McMann frequently appeared in social media posts with other Triple C members, many times with firearms. McMann also admitted that as part of his activities with Triple C, he distributed controlled substances, including crack cocaine. McMann also knew that a victim could be murdered or show during the course of the conspiracy.
This investigation has led to the guilty pleas of 34 members and associates of Triple C, including Correy Cawthorn, one of the gang’s leaders. Cawthorn, age 25, of Baltimore, is scheduled to be sentenced on January 4, 2024, at 10:00 a.m.
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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in this investigation and thanked the United States Marshals Service and the Office of the Baltimore City State’s Attorney for their assistance in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorney Patricia C. McLane and Michael C. Hanlon, 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/project-safe-neighborhoods-psn.
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Maryland Financial Advisor Pleads Guilty to Stealing an Elderly Client’s Life SavingsRead the Press Release
Baltimore, Maryland – Eddy Blizzard, age 45, of Perry Hall, Maryland, pleaded guilty today to bank fraud, in connection with a fraud scheme in which he embezzled approximately $1 million from an elderly client’s retirement account.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Southeast Region Special Agent in Charge Edwin Bonano of the Federal Housing Finance Agency, Office of Inspector General.
“This defendant perpetrated a heartless scheme that preyed on a vulnerable elderly victim, stealing more than a million dollars,” said United States Attorney Erek L. Barron. “We will continue to work with our law enforcement partners to bring to justice those who engage in these despicable schemes targeting elderly victims. I encourage anyone who believes they may be a victim of financial fraud to contact the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
According to his plea agreement, Blizzard held several licenses that allowed him to operate as a registered broker and a registered investment adviser per the Financial Industry Regulatory Authority (“FINRA”). From 2003 to 2014, Blizzard was employed by a bank securities company (Bank 1) and from 2014 to 2017 he was employed by a bank investment services company (Bank 2), both in Maryland.
As detailed in the statement of facts, victim R.M. was a resident of Maryland and had attended school through the ninth grade. R.M. was 75 years old in January 2020. Beginning in 1963, R.M. went to work for a Baltimore based commercial air-conditioning company, where he enjoyed a successful career installing commercial grade air conditioning units around the country. R.M.’s employer offered him supervisory positions at the company, but R.M. declined because he was not able to read or write. R.M. was able to continue as an air conditioning technician by memorizing facts and figures and conceptualizing things visually. R.M. routinely worked approximately 15 to 30 hours of overtime per week during his career to make extra money. In 2003, after approximately 40 years of service with the air conditioning company, R.M. took a buyout and retired. Six months later, R.M. decided to invest his retirement funds to provide an inheritance for his grandchildren. R.M. sought investment advice from Bank 1, where he had his depository accounts.
Blizzard began working at Bank 1 shortly after R.M. began investing there and became R.M.’s financial adviser. Blizzard admitted that in about 2005, he told R.M. that he “went out on his own” meaning that Blizzard began working as an independent financial advisor and asked R.M. if R.M. wanted to leave Bank 1 and use Blizzard as a full-time financial advisor. Blizzard told R.M. that it would be a while before he had his own office, but he would continue to work out of the Bank 1 branch in Catonsville, Maryland. However, Blizzard never went to work as an independent financial advisor.
According to the plea agreement, approximately once a month, R.M. would drive from his new home in Chester, Maryland on the Eastern Shore to meet with Blizzard at Bank 1 in Catonsville, approximately one hour away; however, R.M. and Blizzard would meet in Blizzard’s car, not the office. R.M. continued to meet with Blizzard in this way over several years. These meetings lasted 30 to 45 minutes and R.M. was never told why they were meeting in Blizzard’s car.
Blizzard admitted that after he became R.M.’s financial advisor, he began asking R.M. for signed blank checks. R.M. recalled giving Blizzard 15-20 signed blank checks. Blizzard filled in the remaining information to include the payee, the amount, the date, and detailed memo section, but R.M. did not know what the checks were for. When R.M. received the cancelled checks in the mail, he knew Blizzard had written them out because R.M. recognized Blizzard’s handwriting. Blizzard used these checks for personal purposes, and not for any benefit of R.M. On approximately 12 different instances, R.M. went to his local bank to withdraw cash and was told there was not enough money in the account. R.M. would then call Blizzard to let him know about the deficiency. Blizzard then told R.M. to wait a day or two and there would be funds in the account to withdraw. R.M. did not ask Blizzard why there were no funds in the account or how those funds were replenished.
During his years of investment with Blizzard, R.M. believed that his retirement funds were protected, meaning they would not lose value – a fact that Blizzard reiterated to R.M. many times. R.M. also believed that Blizzard was handling payment of R.M.’s mortgage.
As detailed in the plea, in August 2019, R.M. realized there was a problem. R.M. was preparing to go on a family vacation and attempted to withdraw $1,000 to $1,500 in cash from the local Bank 1 branch and was told there were not sufficient funds in the account. R.M. attempted to contact Blizzard on his cell phone for a week with no response. R.M. then went to Blizzard’s Perry Hall, Maryland residence to talk to Blizzard in person, knocking on the front and back doors of Blizzard’s residence. No one came to the door, but R.M. received a voicemail from Blizzard, while he was still at Blizzard’s home. In the voicemail, Blizzard stated that the neighbors had called him and were complaining about the banging on the door. Blizzard further explained that all of R.M.’s money was gone, and that Blizzard had attempted suicide at his parent’s Myrtle Beach, South Carolina home, and was being hospitalized.
On September 19, 2019, Blizzard sent an email to R.M.’s son in response to a message R.M.’s son had sent via social media to Blizzard’s wife inquiring about what happened to R.M.’s money. Blizzard told R.M.’s son that he had made some bad investments and felt terrible about failing R.M. and that is why Blizzard tried to end his life. As explained in the plea, Blizzard admitted that, in fact, he was never hospitalized and did not attempt suicide in South Carolina and that the reason R.M.’s account lost value was almost entirely because Blizzard withdrew R.M.’s funds, and deposited those funds into his own bank account, to use for his own purposes.
A review of R.M.’s depository and investment accounts showed that between January 2013 and August 2019 there were a total of 242 distributions totaling approximately $1.4 million from R.M.’s retirement accounts. Of those, 129 distributions totaling $1.2 million were specifically requested from R.M.’s retirement accounts instead of being regular systematic annuity payments. After taxes and fees were deducted from those requested payments, approximately $1 million was deposited into R.M.’s Bank 1 account. This review also revealed that from April 2016 to April 2019 Blizzard deposited approximately 112 checks drawn on R.M.’s account into various bank accounts at Bank 1 and elsewhere that were held by Blizzard jointly with his wife or individually. These checks totaled approximately $848,000 and were written to Blizzard or Blizzard’s wife. A review of these checks showed that almost all had comments written on the memo section indicating various purposes such as payment of property taxes, construction, boat payments, and down payments for a new house.
In addition, on at least three occasions Blizzard stole R.M.’s Social Security income, which was directly deposited into R.M.’s checking account. On each occasion, once the payment was deposited into R.M.’s account, a check in the amount of $1,200 or more, signed by R.M. and made payable to Eddy Blizzard, was deposited in Blizzard’s personal account. Also, in the fall of 2019, R.M.’s home was put into foreclosure because Blizzard failed to make the mortgage payments on R.M.’s home as he had promised. R.M. died on March 20, 2020.
Blizzard faces a maximum sentence of 30 years in federal prison for bank fraud. As outlined in the plea agreement, Blizzard will also be required to pay restitution in the full amount of the victims’ losses, which is at least $1,030,000 and to forfeit $848,000 in the form of a money judgment. U.S. District Judge Stephanie A. Gallagher scheduled sentencing for Blizzard on April 30, 2024, at 11:30 a.m.
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 through 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.
United States Attorney Erek L. Barron commended the FBI and the FHFA OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Evelyn Lombardo Cusson and Aaron S.J. Zelinsky, who are prosecuting this 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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Virginia Man Sentenced to over Three Years in Federal Prison for Cyberstalking of Maryland WomanRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Michael Ghali, age 35, of Fairfax, Virginia, today to 38 months in federal prison, followed by three years of supervised release for a federal cyberstalking charge, related to sexually explicit and threatening messages and emails he sent to two victims. Ghali has been detained since his arrest and remains detained.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, beginning in June 2020, Ghali sent an acquaintance, Victim 1, a series of sexually explicit and threatening text messages using an application which allows users to acquire phone numbers to send text messages that they don’t want to be associated with their known phone number.
During that same time, Ghali sent Victim 2, who was the head of a medical department at a Baltimore-based hospital, a series of emails from email addresses he created for the purpose of sending Victim 2 threatening messages, accusing Victim 2 of sexually abusing employees in the medical department and minors, and which claimed that the sender had photos of the abuse. Ghali demanded that Victim 2 resign from his position at the hospital and threatened to send the purported photos of the abuse to the press. Victim 2 knew of Ghali, as Ghali had previously completed a short medical rotation at the hospital.
As detailed in the statement of facts, after receiving the threatening messages, Victim 1 contacted the Anne Arundel County Police Department and obtained a protective order that became effective on July 7, 2020. Similarly, after Victim 2 received an email from Ghali which threatened Victim 2’s life and the lives of his grandchildren, Victim 2 hired a professional security detail and changed his surgical and other schedules. Victim 2 suspected that Ghali sent the messages and became aware that in 2019 Ghali had been charged in Fairfax, Virginia, with brandishing an AR-15 assault rifle within 1000 feet of a school. On July 21, 2020, the hospital obtained a temporary restraining order and ultimately a preliminary injunction against Ghali on behalf of Victim 2.
On August 25, 2020, law enforcement executed a search warrant at Ghali’s residence, seizing several electronic devices, including two Apple iPhones, as well as three boxes of .44 caliber ammunition. From a Federal Firearms Licensee in Fairfax County law enforcement also seized a .22LR caliber semi-automatic firearm, a 10-round capacity magazine, and additional ammunition. A subsequent review of Ghali’s phone revealed another social media page Ghali created in which he posted photos of individuals, including Victim 1. Several images of Victim 1 with sexually explicit captions were located on the page.
According to the plea agreement, on August 28, 2020, Ghali obtained a new Apple iPhone and, in violation of the protective orders that were in place, sent Victim 1 and Victim 2 additional messages and emails. In addition, Ghali posted sexually explicit and threatening messages regarding Victim 1 to another of his social media pages. On October 9, 2020, law enforcement executed a second search warrant at Ghali’s home which authorized seizure of among other things, the new Apple iPhone used by Ghali to send the message to Victim 1. Law enforcement ultimately were unable to locate the device but did locate a receipt for its purchase and packaging material.
U.S. Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron also thanked Assistant United States Attorney Paul A. Riley, 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 and https://www.justice.gov/usao-md/community-outreach.
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Waldorf Man Sentenced to over Four Years in Federal Prison for COVID-19 CARES Act Unemployment Insurance Fraud Scheme Involving More Than $1.5 Million in LossesRead the Press Release
Baltimore, Maryland – U.S. District Judge Brendan A. Hurson sentenced Dementrous Von Smith, a/k/a “Meecho” and “El Meecho,” age 36, of Waldorf, Maryland, to 53 months in federal prison, followed by three years of supervised release, for a wire fraud conspiracy, wire fraud and aggravated identity theft, in relation to the submission of fraudulent CARES Act unemployment insurance claims in Maryland, California and Arizona totaling at least $1.5 million.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division (USPIS); Special Agent in Charge Troy W. Springer of the National Capital Region, U.S. Department of Labor - Office of Inspector General (DOL-OIG); Chief Amal E. Awad of the Anne Arundel County Police Department; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police (MSP); and Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. Financial assistance offered through the CARES Act also 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, Smith and his co-conspirators impersonated victims to submit fraudulent claims for unemployment insurance (UI) benefits in Maryland and California. As part of the scheme, Smith and his co-conspirators used electronic messages, phone calls, electronic mail and other means to aggregate and exchange the personally identifiable information (“PII”) of identity theft victims with each other, created false email address and phone numbers for the victims, and used the fake emails and phone numbers in the fraudulent UI applications.
Once Smith and his co-conspirators received the fraudulently obtained benefits on debit cards, they used the cards for cash withdrawals and other transactions for their own financial benefit. For example, in July 2021, Smith was seen on bank surveillance using ATMs in Laurel, Maryland to withdraw $4,000 over four transactions, using the UI profile in the name of one of the identity theft victims. Bank records also reveal that Smith called the bank regarding at least 12 UI profiles of actual victims whose identities were used to open accounts and obtain benefits without their permission. These victims are tied to texts and calls between Smith and his co-conspirators over several months. Smith and his co-conspirators personally conducted or attempted to conduct transactions involving at least $1.5 million in UI benefits.
On July 7, 2022, law enforcement executed search warrants for Smith’s residence and vehicle, recovered, among other items, a 7.62 caliber firearm, a loaded 1911 style pistol, several magazines loaded with multiple rounds of various caliber ammunition, more than 176 rounds of various caliber ammunition, and $9,100 in cash.
Co-defendant Michael Akame Ngwese Ay Makoge, a/k/a “Hype” and “2Hype,” age 28, of Laurel, Maryland pleaded guilty to his role in the fraud scheme and faces a maximum sentence of 30 years in federal prison for the wire fraud conspiracy and a mandatory two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. Judge Hurson has scheduled sentencing for Makoge on February 1, 2024, at 11:00 a.m.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the USPIS, DOL-OIG, the Anne Arundel County Police Department, HSI, MSP, and ATF, for their work in the investigation. Mr. Barron thanked the United States Marshals Service, the Prince George’s County Police Department, the Montgomery County Police Department, the Washington, D.C. Metropolitan Police Department and the Charles County Sheriff’s Office for their assistance. Mr. Barron thanked Assistant U.S. Attorney Colleen E. McGuinn, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Six Individuals, Including Two Maryland State Department of Labor Subcontractors, Facing Federal Indictment for a Scheme to Fraudulently Obtain COVID-19 CARES Act Unemployment Insurance BenefitsRead the Press Release
Greenbelt, Maryland – A federal grand jury returned an indictment charging six individuals for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft, relating to the submission of fraudulent CARES Act unemployment insurance (“UI”) claims. 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 indictment was returned on October 24, 2023, and unsealed today upon the arrests of several defendants. The following defendants are charged in the indictment:
Lawrence Nathanial Harris, a/k/a “Manman” and “Biggbank,” age 30, of Temple Hills, Maryland;
Ahmed Hussain, a/k/a “Oso,” age 22, of Oxon Hill, Maryland;
Zakria Hussain, age 26, of Washington, D.C.;
Terry Chen, a/k/a “Mike Livingston” and “2Trunt Up,” age 24, of Bowie, Maryland;
Kiara Smith, age 26, of Fort Washington, Maryland; and
Bryan Nushawn Ruffin, age 26, of Woodbridge, Virginia.Smith and Ruffin were employed by Company 1, which provided professional support services to the Maryland Department of Labor to review UI claims and administer UI benefits.
Ahmed Hussain and Terry Chen are expected to have an initial appearance in U.S. District Court in Greenbelt later this afternoon. Harris, Smith, and Ruffin are expected to have initial appearances next week. Zakria Hussain will have his initial appearance upon being taken into custody.
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 - Office of Inspector General; and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.
“In partnership with the U.S. Department of Labor – Office of Inspector General and the FBI, our COVID-19 Strike Force prosecutors have used data to uncover alleged fraud, waste, and abuse as outlined in today’s indictment,” said United States Attorney Erek L. Barron. “This case is an example of the results being obtained by our office’s COVID-19 Strike Force, which is one of five nationwide that the Attorney General has designated to fight pandemic related fraud.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving Unemployment Insurance programs,” stated Troy W. Springer, Special Agent in Charge of the National Capital Region, U.S. Department of Labor - Office of Inspector General. “We will continue to work closely with the U.S. Attorney’s Office and our other law enforcement partners on the Maryland COVID-19 Fraud Strike Force, as well as the Maryland Department of Labor, to protect the integrity of programs intended for unemployed American workers, including those who were affected by the COVID-19 pandemic.”
“The FBI is pleased to be a part of the COVID-19 Strike Force in Maryland," said Acting Special Agent in Charge R. Joseph Rothrock of the FBI'S Baltimore Field Office. "We will continue to work with our law enforcement partners to seek justice against those individuals who shamelessly defrauded pandemic relief programs during a time of uncertainty and crisis.”
The CARES Act and other federal legislation provided expanded financial assistance to Americans throughout the pandemic, and expanded eligibility for Unemployment Insurance benefits.
According to the 18-count indictment, beginning in at least January 2021 and continuing until about September 2023, the defendants and their co-conspirators engaged in a scheme to defraud the United States, the State of Maryland, multiple financial institutions and multiple individuals—including at least six identity theft victims—by submitting false and fraudulent claims for UI benefits to the Maryland Department of Labor (“MD-DOL”), the agency in Maryland responsible for processing those claims. As part of the conspiracy, the defendants obtained and attempted to obtain more than $500,000 through the submission of fraudulent UI claims.
As detailed in the indictment, the defendants possessed and used computers that Company 1 had issued to Smith and Ruffin to access nonpublic UI data and databases maintained by the MD-DOL The indictment alleges that the defendants and their co-conspirators used their access to MD-DOL databases to change information on existing UI claims, including the contact email address, the online account password, and the payment method for existing UI claims. In addition to allegedly submitting false and fraudulent information in support of UI claims using the personal identifying information (PII) of identity theft victims, the indictment alleges that the defendants and their co-conspirators used their access to the MD-DOL databases to upload and approve documents submitted in support of fraudulent UI claims, remove fraud holds on UI claims, certify weeks for determining UI benefits, and engage in other actions to facilitate the payment of fraudulent UI benefits. The MD-DOL disbursed the UI benefits to bank accounts that were believed to be those of the UI applicants, but allegedly were opened and controlled by the defendants and their co-conspirators.
If convicted, the defendants all face a maximum sentence of 20 years in federal prison for the wire fraud conspiracy. All the defendants except Ahmed Hussain also face a maximum of 20 years in federal prison for each count of wire fraud and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the DOL-OIG and the FBI for their work in the investigation and thanked the Maryland Department of Labor for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Harry M. Gruber and Paul A. Riley, who are prosecuting the case. Mr. Barron also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Former Maryland Correctional Officer Sentenced to Eight Years in Federal Prison for Civil Rights ViolationsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced former Correctional Officer Owen Nesmith, age 54, of Baltimore, Maryland, today to eight years in federal prison, followed by three years of supervised release, for three counts of deprivation of rights under color of law and to making a false statement, all related to his sexual contact with three victims who were incarcerated at the Maryland Correctional Institution Jessup.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Carolyn J. Scruggs of the Maryland Department of Public Safety and Correctional Services.
According to his guilty plea, Nesmith was employed as a Correctional Officer (“CO”) Lieutenant at Maryland Correctional Institution Jessup (“MCIJ”). Nesmith admitted that from 2005 to 2017, he deprived three incarcerated individuals of their civil rights by sexually assaulting them. Specifically, in February 2005, Nesmith followed Victim 1 back to his cell. No other inmates were present in the housing unit at that time. Nesmith told Victim 1 that he wanted Victim 1 to perform a sex act on Nesmith, which he did. Victim 1 did not consent to this act, which was a deprivation of rights under color of law.
As detailed in the plea agreement, in July 2015, Victim 2 needed an identification badge (“ID”) and Nesmith offered to take Victim 2 to the ID office. On the way to the office, Nesmith grabbed Victim 2’s genital area, then shut a gate in the area and told Victim 2 that he needed to conduct a strip search. After removing Victim 2’s pants, Nesmith sexually assaulted Victim 2, causing him pain and bodily injury. Nesmith further admitted that in December 2017, he engaged in a sex act with Victim 3, without his consent, when Victim 3 came to Nesmith’s office to discuss obtaining a job in sanitation. At that time, Nesmith was the acting lieutenant of the building and Victim 3 needed Nesmith’s approval to obtain that job. Finally, Nesmith admitted that when questioned by law enforcement, he falsely stated that he had never had any inappropriate relationships or sexual contact with any inmates while he was at MCIJ.
U.S. Attorney Erek L. Barron commended the FBI and the Maryland Department of Public Safety and Correctional Services for their work in the investigation. Mr. Barron thanked Assistant United States Attorneys Sean R. Delaney and Katelyn Semales, 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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Greenbelt Man Sentenced to Eight Years in Federal Prison on Drug and Firearms Charges, Including Illegal Possession of a MachinegunRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Donald Fortune, Jr., age 19, of Greenbelt, Maryland, today to eight years in federal prison, followed by three years of supervised release for federal charges of illegal possession of a machinegun, possession with intent to distribute oxycodone and fentanyl, and possession of a firearm in furtherance of a drug trafficking crime.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Aziz of the Prince George’s County Police Department (“PGPD”).
According to his guilty plea, law enforcement began investigating Fortune in April 2022 for suspected firearms and drug trafficking offenses. As part of the investigation, PGPD detectives monitored public posts from Fortune’s social media account where he displayed firearms and advertised drugs for sale. Based on their investigation, including the social media posts, a search warrant was obtained for Fortune’s apartment.
On June 2, 2022, law enforcement was conducting surveillance outside Fortune’s apartment building in preparation for executing the warrant. In the late morning, Fortune exited the building and approached a silver Honda Civic. Fortune removed a large bag of blue pills, suspected to be oxycodone, from a Gucci satchel that he was wearing and engaged in a suspected hand-to-hand drug transaction with the driver of the Civic. Fortune then placed the pills back in the Gucci satchel and returned to his apartment.
According to court documents, a short time later, Fortune, still wearing the Gucci satchel, left the apartment building with a woman. They both got into a rideshare and the vehicle drove away. PGPD police conducted a traffic stop of the ride-share vehicle a short time later and observed Fortune reach down toward his feet. Officers asked Fortune, who was still wearing the Gucci satchel, to step out of the vehicle and officers observed a .40-caliber semi-automatic pistol on the floorboard where Fortune had been seated. The gun, which had an obliterated serial number, was loaded with one round in the chamber and 21 rounds in an extended magazine and was equipped with a full auto selector switch on the rear of the handgun slide, making it a machinegun under federal law. A search of the Gucci satchel recovered a large bag containing 282 30mg blue pills, later found to be counterfeit oxycodone pills containing fentanyl. Officers also recovered $790 in cash from Fortune. Fortune was arrested and charged in Prince George’s County. He was released on June 14, 2022, pending trial.
Fortune admitted that he continued to sell drugs and possess firearms after his release, including coordinating a drug deal around a court appearance. Fortune switched to using a second social media account in mid-July 2022, believed by investigators to be an effort to evade law enforcement. Investigators began monitoring this account. Fortune continued to advertise pills for sale and display firearms, despite being on pretrial release. For example, on July 26, 2022, investigators observed a public-facing live video that was streaming from Fortune’s second social media account, which showed Fortune smoking a suspected marijuana cigarette, flashing two prescription bottles, and holding an AR-style pistol. Fortune then turned the camera around to show a table display of at least six firearms, including two AR-style pistols, one handgun with an extended magazine, and one handgun with a suspected full-automatic switch, with cash fanned out in front of the firearms.
As detailed in the plea agreement, on the evening of July 26, 2022, PGPD officers were on patrol in the 6400 block of Pennsylvania Avenue in District Heights, Maryland and saw Fortune smoking marijuana on the sidewalk in front of a residence. As the officer was parking his car in the parking lot, he saw Fortune walk behind a pick-up truck, crouch down, and throw an item on the ground before walking away. Believing Fortune had discarded a firearm or contraband, the officer got out of his unmarked police cruiser to speak with Fortune, who continued to walk away. As the officer got closer, Fortune began running and was apprehended a short distance away. Another officer arrived and stayed by the location where Fortune had been seen throwing something. A search of the area recovered a privately manufactured 5.56 caliber semi-automatic AR-15 style pistol with no serial number, also known as a “ghost gun.” The gun was loaded with 30 rounds of ammunition in the magazine and one in the chamber. Officers searched Fortune and recovered two pill bottles containing 16 real or counterfeit oxycodone pills. The pills were tested and eight were found to contain approximately 5mg of oxycodone each and the rest were found to be counterfeit oxycodone pills that contained fentanyl.
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 FBI’s Cross Border Task Force and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Patrick D. Kibbe and Joshua A. Rosenthal, 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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Convicted Sex Offender Sentenced to 18 Years in Federal Prison for Attempted Enticement of a Minor to Engage in Illegal Sexual ActivityRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell, III today sentenced Samuel Charles Hardeman, age 55, of Easton, Maryland, to 18 years in federal prison, followed by lifetime supervised release, for attempted coercion and enticement of a minor to engage in illicit sexual activity. Hardeman had a previous federal conviction in a 2002 case in the Northern District of Georgia for use of a computer to entice a child to engage in sexual activity, for which he was sentenced to 174 months in prison. Judge Russell ordered that, upon his release from prison, Hardeman must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Talbot County Sheriff Joseph Gamble.
According to his guilty plea, from December 11, 2022 through December 26, 2022, Hardeman engaged in conversations with an undercover law enforcement officer (UC) who purported to have a 10-year-old daughter. During the conversations, Hardeman expressed how he wanted to have sex with the 10-year-old, sent a video containing child pornography to the UC, and made plans to drive to New York, where the UC purportedly lived, to have sex with the 10-year-old. Hardeman communicated with the UC by phone, including a video call, text, and using encrypted messaging platforms. All of this occurred while Hardeman was on the sex offender registration for a previous federal sex offense conviction. During a call on December 26, 2022, Hardeman expressed hesitation about traveling to New York to visit the UC and her daughter. The UC did not hear from Hardeman after that time.
On March 14, 2023, a federal search warrant was executed at Hardeman’s residence and several electronic devices were seized. A forensic examination of one of the phones revealed the encrypted messaging account which Hardeman used to communicate with the UC, a text message thread between Hardeman and the UC, photos sent to Hardeman by the UC at Hardeman’s request, the photos and videos that Hardeman sent to the UC, and dozens of images and videos depicting minors engaged in sexually explicit conduct. Forensic examinations of several other devices and Hardeman’s Cloud storage account recovered additional images of child sex abuse material, including bestiality.
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.
United States Attorney Erek L. Barron commended the FBI and the Talbot County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Spencer Todd and Paul E. Budlow, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Maryland Tax Preparer Sentenced to More Than Two Years in Federal Prison for Preparing False Tax ReturnsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Ronald Eugene Watson, also known as Sabir Muhammad, age 59, of Brandywine, Maryland, today to 27 months in federal prison, followed by one year of supervised release, for 23 counts of aiding and assisting in the preparation of false tax returns. Judge Chuang also ordered Watson to pay restitution of $268,634.35. Watson was convicted on March 9, 2023, after an eight-day trial.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the evidence presented at trial, Watson was a self-employed tax return preparer operating SW Accounting Associates (“SWAA”) in Largo, Maryland. The evidence proved that from at least 2015 to at least 2017, Watson prepared and electronically filed with the IRS fraudulent Forms 1040 and related Schedules A and C for his taxpayer-clients. Watson included inflated and fictitious tax deductions and fraudulent business profits and losses in order to obtain larger tax refunds to which the taxpayer-clients were not entitled. According to witness testimony, Watson varied his preparation fees depending on the amount of the refund requested, with fees typically ranging from approximately $500 up to approximately $1,500. The tax loss to the United States was $325,330. Additionally, Watson failed to file his own tax returns for two years and willfully filed false tax returns in three other years.
U.S. Attorney Barron and Acting Deputy Assistant Attorney General Goldberg commended the IRS-CI for their work in the investigation. Mr. Barron and Mr. Goldberg also thanked Assistant United States Attorney Leah B. Grossi and Trial Attorney Matthew L. Cofer of the Justice Department’s Tax Division, 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 and https://www.justice.gov/usao-md/community-outreach.
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Maryland Man Pleads Guilty to Sending Threatening TextsRead the Press Release
Baltimore, Maryland – David Lee Bradby, age 29, of Baltimore, Maryland, pleaded guilty today to making interstate threatening communications, related to text messages he sent to Victim 1, a woman living in West Virginia.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, between February 13, 2022, and May 24, 2022, Bradby sent 12 text communications to Victim 1 from six different mobile numbers to which Bradby subscribed. In the text messages, Bradby threatened to kill the victim and to assault her family members. Neither Bradby nor Victim 1 knew each other.
As detailed in his plea agreement, Bradby, a Black man, also admitted that in February 2022, he made threats to Victim 2, a Black female who lived in the Baltimore area. In making the threats to Victim 2, Bradby posed as J.M.S. and made virtually the same threats to Victim 2 as he had to Victim 1, who was also Black. Bradby also threatened to blow up Victim 2’s house, claimed to know where Victim 2 worked, and included pictures and symbols used by the Ku Klux Klan in his messages to Victim 2. Bradby admitted that he sent the messages to Victim 2 to implicate J.M.S. Bradby and Victim 2 did not know each other.
Bradby faces a maximum sentence of five years in federal prison for making interstate threatening communications. U.S. District Judge Brendan A. Hurson has scheduled sentencing for February 7, 2024 at 11:00 a.m. Bradby remains detained.
U.S. Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron also thanked Assistant United States Attorney P. Michael Cunningham, 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 and https://www.justice.gov/usao-md/community-outreach.
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