District of Maryland
Press releases recorded for this federal judicial district.
Silver Spring Man Sentenced to 15 Years in Federal Prison for Charges Related to a Drug Trafficking ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Lydia K. Griggsby sentenced William Reyes Garcia, a/k/a “Will,” age 33, of Silver Spring, Maryland, yesterday to 15 years in federal prison, followed by five years of supervised release for conspiracy to distribute cocaine, for possession with intent to distribute cocaine, as well as for being a felon in possession of ammunition.
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; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Chief Marcus Jones of the Montgomery County Police Department; and Chief Malik Aziz of the Prince George’s County Police Department.
According to Reyes Garcia’s plea agreement and other court documents, between September 2020 and January 2022, Reyes Garcia and his co-conspirators participated in a drug trafficking organization (DTO) that distributed at least five kilograms of cocaine. Based on chats, phone calls, and other intercepted communications and evidence, Reyes Garcia was a manager or supervisor of the DTO.
As detailed in the statement of facts, during the investigation four packages containing approximately 15.65 kilograms of cocaine were seized by law enforcement. The packages were shipped from Brownsville, Texas to an address associated with the DTO, Business 1 in Beltsville, Maryland. Reyes Garcia’s fingerprints were obtained from one of the lids on the cocaine containers in the packages. Law enforcement identified three additional packages, which investigators believe also contained narcotics, that were sent to Business 1 and to a co-conspirator’s residence. Tracking information obtained from the shipping company revealed that an IP address associated with Reyes Garcia tracked the seized packages containing cocaine as well as the additional packages. In October 2021, law enforcement seized an approximately two-kilogram package of cocaine that was sent to Reyes, Jr. Intercepted communications following the seizure allegedly showed that this package of cocaine was intended for distribution by the DTO.
Search warrants were executed at locations associated with Reyes Garcia’s residence on January 20, 2022, and law enforcement recovered: more than 139 grams of cocaine and more than 101 kilograms of marijuana; a privately manufactured 9mm semi-automatic handgun, commonly known as a “ghost gun”; a magazine loaded with 22 rounds of 9mm ammunition; 53 rounds of .40-caliber ammunition; 42 rounds of .45-caliber ammunition; 50 rounds of .380-caliber ammunition; firearms parts, including a frame, slide, barrel, barrel spring, and magazine; and drug paraphernalia, including digital scales with drug residue and a money counter.
Reyes knew that he had a previous felony conviction and was prohibited from possessing firearms or ammunition.
Co-defendants Fabricio Alexis Rivera, a/k/a “Breeze,” age 32, of Rockville, Maryland and Rodney Ricky Rivera, a/k/a “Rodney,” age 29, of Beltsville, Maryland previously pleaded guilty and are awaiting sentencing. Fernando Josue Garcia, a/k/a “Nando,” age 32, of Glenn Dale, Maryland and Noel Reyes, Jr., a/k/a “June,” age 30, of Bowie, Maryland, pleaded guilty to their roles in the conspiracy and were sentenced to 63 months and 72 months in federal prison, respectively. Charges remain pending against three other co-defendants.
This case is 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 HSI, the DEA, the Montgomery County Police Department, and the Prince George’s County Police Department for their work in the investigation and thanked the Maryland State Police, the ATF, the U.S. Postal Inspection Service, the Montgomery County State’s Attorney John McCarthy and Prince George’s County State’s Attorney Aisha Braveboy and their offices for their assistance in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys Joel Crespo and Elizabeth Wright, 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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Two Defendants Plead Guilty in Scheme to Fraudulently Obtain More Than $1.8 Million in COVID-19 CARES Act Unemployment Insurance BenefitsRead the Press Release
Greenbelt, Maryland – Federal inmates Jason Haddox, age 40, and Jonathan Henry, age 32, pleaded guilty to conspiracy to commit wire fraud and mail fraud, and Henry also pleaded guilty to aggravated identity theft, relating to the submission of fraudulent CARES Act unemployment insurance benefits. 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 pleas were 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 (“DOL-OIG”); and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service (“USPIS”) - Washington Division.
Financial assistance offered through the CARES Act included expanded eligibility for Unemployment Insurance (“UI”) benefits and increased UI benefits through the Pandemic Unemployment Assistance Program (“PUA”), Federal Pandemic Unemployment Compensation (“FPUC”), and the Lost Wages Assistance Program (“LWAP”).
According to their plea agreements, during the time of the conspiracy, March 22, 2020 through at least June 2021, Haddox and Henry were inmates at the Federal Correctional Institution, Fort Dix (“FCI Fort Dix”). Haddox, Henry, and their co-conspirators (both inmates and outside individuals), submitted fraudulent online applications for UI benefits in Maryland and other states. Henry and other conspirators used the personally identifying information (“PII”) of identity theft victims in many of the applications. Based on the information in the fraudulent applications, the Maryland Department of Labor, which is responsible for processing applications for UI benefits in Maryland, issued prepaid debit cards in the names of the applicants and mailed them to addresses included on the applications, which were accessible to the conspirators. The defendants and their co-conspirators used the prepaid debit cards to withdraw money from ATMs and to make retail purchases.
In addition to fraudulent Maryland UI claims, Haddox submitted fraudulent UI claims in Arizona, Pennsylvania, West Virginia, Louisiana, Illinois, and New York, totaling at least $292,451 in losses. Henry admitted that he used the PII of identity theft victims to submit approximately 191 fraudulent claims, the majority in Maryland but also in Washington, D.C., Virginia, and North Carolina. Of the fraudulent claims submitted, 152 claims were paid, with an actual loss of approximately $1,894,971.
Haddox faces a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud and mail fraud. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for him on March 13, 2024, at 2:30 p.m.
Henry and the government have agreed that, if the Court accepts the plea agreement, they will jointly recommend that Henry be sentenced to 97 months in federal prison. Judge Chasanow has scheduled sentencing for Henry on March 22, 2024 at 9:30 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 DOL-OIG and the USPIS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Kelly O. Hayes, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Maryland MS-13 Gang Member Pleads Guilty to Participating in a Racketeering Conspiracy, Including a MurderRead the Press Release
Baltimore, Maryland – Oscar Efrain Zavala Urrea, age 23, an El Salvadoran national residing in Silver Spring, Maryland, pleaded guilty to his participation in a racketeering conspiracy, including a murder, related to his activities as part of the MS-13 gang.
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 James C. Harris of Homeland Security Investigations Baltimore; Chief Marcus Jones of the Montgomery County Police Department and Montgomery County State’s Attorney John McCarthy.
According to court documents, La Mara Salvatrucha gang, also known as “MS-13,” is an international criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, Frederick County, and throughout the United States. In Maryland and elsewhere, MS-13 members are organized in “cliques,” smaller groups that operate in a specific city or region. MS-13 members are required to commit acts of violence, both to maintain membership and discipline within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known 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 the plea agreement, from at least January 2020, Zavala Urrea was a member or associate of the MS-13 Fulton Locos Salvatruchas (“FLS”) clique and agreed with members of MS-13 to conduct and participate in the gang’s affairs through a pattern of racketeering activity that included murder, conspiracy to commit murder, extortion and drug distribution.
In the Spring of 2020, a MS-13 member, who was a former roommate of Victim 20, was assaulted by Victim 20 and others because they believed that MS-13 member had stolen property from Victim 20. After being told of the assault, MS-13 members indicated that the gang would have to retaliate against Victim 20 to maintain its standing. MS-13 gang members also believed that Victim 20 was associated with the rival 18th Street gang, which was another sufficient reason to kill him.
According to the plea agreement, over the course of several weeks Zavala Urrea and other MS-13 members met to plan the murder of Victim 20, including discussing what role each participant would play, conducted surveillance to determine when Victim 20 left the apartment, and obtained guns to be used in the murder. The night of May 25, 2020, Zavala Urrea and other MS-13 gang members gathered in a park in Silver Spring, Maryland and Zavala Urrea met with each gang member to discuss the plan to murder of Victim 20, which was to happen the next morning.
As detailed in court documents, on May 26, 2020, at approximately 7:05 a.m., two FLS MS-13 gang members approached Victim 20 as he left his apartment in Silver Spring, Maryland and fired handguns at him repeatedly, hitting him eight times. Victim 20 died as a result of the gun shots.
Following the murder, Zavala Urrea and a co-conspirator traveled to Annapolis where they met a third MS-13 gang member. Zavala Urrea and the co-conspirator changed their clothes and disposed of the old clothing. They gave the third gang member a backpack containing two firearms for safe keeping. A few days later, Maryland State Police stopped the third gang member who had the backpack containing the two firearms.
Zavala Urrea admitted that, to assist the gang to raise money, he also participated in the sale of marijuana and the collection of extortion money from brothels and other businesses, providing the proceeds to gang leadership.
The government and the defendant have agreed to recommend that, if the Court accepts the plea, Zavala Urrea should be sentenced to between 20 and 25 years in federal prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for March 19, 2024 at 2:00 p.m.
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.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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 Barron commended the FBI, HSI, Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys Kenneth S. Clark and Anatoly Smolkin, 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/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Longtime Employee of Harford County Manufacturer Sentenced to 42 Months in Federal Prison for a $20 Million Kickback SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Elliott Dennis Kleinman, age 69, of Bel Air, Maryland, yesterday to 42 months in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud and tax evasion, in connection with a kickback scheme that defrauded his employer of more than $20 million. Judge Chasanow also ordered Kleinman to pay restitution of $19,300,757 and to forfeit $2,038,997.
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 Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his guilty plea, Kleinman was a longtime employee of Company 1, a family-owned global business headquartered in New York, but with manufacturing facilities in Belcamp and Abingdon, Maryland, both in Harford County. Beginning in 2012, Kleinman and another employee, Eugene DiNoto, began to use their management positions at Company 1 to execute a fraudulent billing scheme whereby they would get illegal kickbacks from various drum vendors doing business with Company 1, which used drums to store and transport its products. As the facility managers, Kleinman and DiNoto oversaw the purchasing and storing of drums for use at the Harford County manufacturing facilities. They also had authority to review drum invoices and authorize payments to the drum vendors.
Anthony P. Urcioli, Sr., is the owner and President of Tunnel, Barrel & Drum Co, Inc. (TBD), located in Carlstadt, New Jersey, and of another drum supply company called Hartford Fibre Drum, Inc. ( Hartford), both of which did business with Company 1. After TBD became a drum supplier to Company 1, Kleinman and DiNoto entered into arrangement with Urcioli whereby TBD could continue selling drums to Company 1 if Urcioli agreed to fraudulently invoice Company 1 for more drums than TBD actually sold and delivered to the company. If Urcioli agreed to falsify its invoices in this way, Kleinman and DiNoto said that they and TBD could split the extra money Company 1 paid TBD for the made-up drum deliveries 50/50. DiNoto told Urcioli that he would split his share of the kickbacks with Elliot Kleinman 75/25. Urcioli agreed to participate in the false billing scheme. In December 2013, Urcioli told DiNoto about Hartford, the other drum supply company Urcioli owned. After receiving records that proved that Hartford was a legitimate company, DiNoto and Urcioli agreed to expand the kickback scheme to include Hartford.
From approximately January 2012 to January 31, 2020, DiNoto contacted Urcioli at least once a week to discuss the number and type of drums that DiNoto actually wanted delivered to Company 1’s Maryland facilities. During the same conversation, DiNoto told Urcioli how many additional drums to charge, but not deliver, to Company 1. After Urcioli created the invoices that fraudulently billed Company 1 for both delivered and undelivered drums, DiNoto approved the invoices and sent them to Company 1’s headquarters to be paid. In addition, Urcioli created a handwritten purchase order ticket that summarized the breakdown of actual and bogus drum orders and how the kickback amounts were calculated. Urcioli placed a copy of the purchase order ticket in an envelope along with DiNoto’s and Kleinman’s share of the kickback amount payable via checks from TBD and Hartford, and then sent the envelope to DiNoto’s and Kleinman’s personal residences.
Urcioli wanted to pay the kickbacks to Kleinman and DiNoto by check so the payments would look like payments to drum wholesalers and be deductible as a cost of goods sold on TBD’s tax returns. Kleinman wanted his kickback checks payable to a company he formed called “EDK Management, LTD.” Urcioli agreed, and in addition to making the kickback checks drawn on TBD and Hartford accounts payable to that company, Urcioli wrote the word “drums” on the checks to further the pretense of legitimate purchases.
Between January 2012 and January 31, 2020, Urcioli falsely invoiced Company 1 a total of $20,300,757 and Kleinman’s share of the kickbacks was approximately $2,307,121. Kleinman opened and maintained two commercial bank accounts for EDK, one in the name of “EDK Management Ltd,” and the other in the name of “EDK Management Ltd t/a Main Street Cigars,” a retail store he owns, located in Bel Air, Maryland. Kleinman deposited the drum vendor’s checks into EDK’s business account, where it was withdrawn as cash, used to pay personal expenses, or transferred to the bank account for Main Street Cigars.
For the period of 2017 through 2019, TBD paid Kleinman a total of approximately $1,034,911 in kickbacks for his role in the fraudulent billing scheme. Kleinman’s 2017 through 2019 income tax returns filed with the IRS did not report those kickback payments as personal or business income, resulting in a loss to the U.S. government of approximately $291,143.
Eugene Andrew DiNoto, age 53, of Bel Air, Maryland, and Anthony P. Urcioli, Sr., age 78, of Park Ridge, New Jersey, previously pleaded guilty to their roles in the scheme.
United States Attorney Erek L. Barron commended the FBI and IRS-CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud .
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Drug Supplier Sentenced to 14 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Clarence Coby, age 48, of Baltimore, Maryland, to 14 years in federal prison, followed by four years of supervised release, for possession with intent to distribute fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; Anne Arundel County Police Chief Amal E. Awad; and Annapolis Police Chief Edward Jackson.
According to his guilty plea, in November 2019, the DEA received information about a number of drug trafficking organizations operating in and around the Annapolis, Maryland area and identified Orland Ray Coleman, Sr. as a drug trafficker responsible for distributing drugs to those organizations. Additional investigation revealed that Clarence Coby was a source of supply to Coleman, specifically providing Coleman and other Annapolis-areas drug traffickers with fentanyl and cocaine.
In mid-May 2021, several search warrants were executed on houses and vehicles associated with Coby. Investigators recovered at Coby’s house, a total of 5 guns and ammunition, more than a kilogram of cocaine and approximately 62 grams of fentanyl pills, and approximately $109,941 in drug proceeds. Investigators also executed search and seizure warrants on Coby’s vehicles and recovered approximately seven kilograms of fentanyl, 947 grams of cocaine and 264 grams of heroin hidden in secret compartments in one of Coby’s vehicles.
On October 10, 2023, Orlando Ray Coleman, Sr., age 48, of Millersville, Maryland pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl. Coleman is expected to be sentenced to eight years in federal prison at his sentencing on January 19, 2024, at 2:00 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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 DEA, the FBI, the Anne Arundel County Police Department, and the Annapolis Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney LaRai Everett, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Man Sentenced to 19 Years in Federal Prison for His Role in the Robbery and Murder of a Drug DealerRead the Press Release
Baltimore, Maryland – U.S. District Judge Matthew J. Maddox sentenced Deron Johnson, a/k/a “DJ,” age 52, of Baltimore, Maryland, to 19 years in federal prison, followed by three years of supervised release, for conspiracy to commit a Hobbs Act robbery and for committing the robbery.
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 Commissioner Richard Worley of the Baltimore Police Department.
According to their plea agreements, on September 29, 2020, Johnson and co-defendants George Felds and Joseph Williams conspired to rob a 16-year-old of drugs and drug proceeds. Specifically, at approximately 4:24 a.m., Johnson and the victim pulled into the parking lot of a hotel in the 6500 block of Frankford Avenue in Baltimore, where Williams had been staying for several months, selling drugs under a fictitious name. Johnson was working as a “hack” driver and gave the victim a ride to the hotel on the ruse that the victim would be selling drugs to Williams and Fields.
As detailed in the plea agreements, Williams and Fields approached Johnson’s van and Fields held out money as though he was ready to make a purchase. Williams and Fields then began robbing the victim while Johnson walked to the rear of the van and smoked. Fields admitted that he pinned the victim down in the front passenger seat of the van and went through his pockets. The victim struggled, flailing his arms and legs. Williams admitted that he then pulled out a handgun and fired a single shot into the victim’s chest at close range. The victim stumbled away from the van and collapsed on the ground. Johnson, Williams, and Fields and then got into the van and Johnson drove away. A hotel surveillance camera captured the entire incident. The victim died later that day after being taken to the hospital. No drugs, money, or cell phone were recovered from the victim’s personal effects.
Later that morning, the conspirators returned to the hotel in Johnson’s van, while police were still processing the scene. Johnson, Williams, and Fields entered the hotel together. Police recognized the van from the hotel surveillance footage and towed the van and detained Johnson. A search warrant was executed on the van and law enforcement recovered a single bullet from the front row carpet. On October 1, 2020, Johnson’s phone was searched and was found to contain evidence of the plan to rob the victim, including: text messages between Johnson and Williams; a record of phone calls between Johnson and the victim; several calls exchanged between Johnson and phone numbers used by Williams in the hours before and after the murder; a photograph of Johnson with Williams and Fields; and Fields’ contact information was in Johnson’s contacts.
A cell phone seized from Williams at the time of his arrest revealed that Williams had been staying at the hotel, where he was also dealing drugs and that he was in dire need of money. The phone also contained messages immediately following the murder in which Williams made plans to dispose of the murder weapon and directed another individual to destroy evidence.
Co-defendants Joseph Williams, a/k/a “Blue,” age 33, and George Fields, a/k/a “Chin,” age 49, both of Baltimore, pleaded guilty to their roles in the conspiracy and were sentenced to 26 years and 25 years in federal prison, respectively.
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 and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Kim Hagan, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Previously Convicted Bank Robber Pleads Guilty to Committing Three New Bank RobberiesRead the Press Release
Baltimore, Maryland – Kevin Maurice Lawson, age 55, of Baltimore Maryland, pleaded guilty today to committing three armed bank robberies, all while he was in a residential re-entry program serving the remainder of his federal sentence for a 2004 conviction for bank robbery.
The guilty plea 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 (“FBI”), Baltimore Field Office; and Commissioner Richard Worley of the Baltimore Police Department (“BPD”).
According to his guilty plea, Lawson committed three armed bank robberies in Baltimore between June 6 and July 18, 2022, utilizing a black air gun in each robbery. In the first robbery on June 6, 2022, Lawson robbed a bank in the 100 block of East Baltimore Street in Baltimore. As he did in each of the robberies, Lawson entered the bank wearing a surgical mask and gloves. He approached a bank employee seated at a desk on the banking floor, displayed what appeared to be a dark semiautomatic handgun in his waistband, and ordered the employee to the teller line. Lawson held the employee against the teller glass and demanded money from the victim teller, who passed cash to Lawson. Lawson placed the money in a brown paper bag contained within a white plastic bag, and fled the bank on foot.
As detailed in his plea agreement, on June 27, 2022, Lawson robbed a bank in the 5400 block of Harford Road in Baltimore. Lawson approached two bank employees seated at desks on the banking floor, displayed the handgun in his waistband, and ordered the employees to the teller line. Lawson ordered the first bank employee to demand cash from the victim teller who then passed cash to the first employee. Lawson placed the money in a brown paper bag contained within a white plastic bag and ordered the first bank employee to unlock a side door leading to Hamilton Avenue. Lawson fled on foot eastbound on Hamilton Avenue.
In the third instance, on July 18, 2022, Lawson robbed a bank in the 3200 block of West North Avenue in Baltimore. Lawson rushed a security guard, and repeatedly struck her on her head and other parts of her body with his weapon as he ordered bank employees to provide him with cash. Throughout the course of the assault of the security guard, Lawson attempted to disarm her. Bank employees behind the teller line, fearing for the safety of the security guard and their own safety, passed cash through the teller line barrier glass and called to Lawson. Lawson disengaged from the guard and went to the counter to get the money. The guard recovered from the ground and fired rounds from her duty weapon at Lawson before the weapon jammed and Lawson fled the scene in a gray Kia. BPD patrol units located the vehicle and attempted to initiate a stop, but Lawson got away. Officers briefly lost view of the vehicle before locating it crashed into the exterior wall of a vacant rowhome.
A search of the Kia recovered clothing and gloves identical to that worn in the bank robberies, as well as documents linked to Lawson including a Federal Bureau of Prisons inmate identification card. Lawson was arrested on July 22, 2022. Further investigation revealed that in 2003, Lawson had robbed the banks on West North Avenue and Harford Road.
Lawson faces a maximum sentence of 25 years in federal prison for bank robbery. U.S. District Judge Brendan A. Hurson has scheduled sentencing for March 5, 2024, at 10:30 a.m.
U.S. Attorney Erek L. Barron commended the FBI and BPD for their work in the investigation. Mr. Barron also thanked Assistant United States Attorney Michael Aubin, 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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Mount Airy Restaurant Owner Pleads Guilty to Employment Tax SchemeRead the Press Release
Baltimore, Maryland – Francesco Illiano, a/k/a Frank Illiano, age 62, of Mount Airy, Maryland, pleaded guilty yesterday to willfully failing to pay employment taxes withheld from employees of his businesses to the Internal Revenue Service (IRS).
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; 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 court documents and statements made in court, Illiano owned and operated two restaurants and a property management company which employed over 100 people. Illiano was responsible for collecting, accounting for, and paying the income and Social Security and Medicare taxes withheld from the wages of employees of the three companies he controlled. From at least April 2014 to at least July 2016, Illiano did not pay the taxes withheld from the wages of his employees to the IRS. Illiano had previously been assessed a Trust Fund Recovery Penalty for not paying more than $1.4 million in taxes withheld from employees of five Green Turtle restaurants the defendant owned in 2011 and 2012. In total, from April 2011 to July 2016, Illiano caused a tax loss to the Internal Revenue Service (IRS) of approximately $1.729 million.
Illiano faces a maximum sentence of five years in federal prison for willfully failing to pay employment taxes to the IRS. U.S. District Judge Ellen L. Hollander has scheduled sentencing for March 6, 2024.
United States Attorney Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg commended the IRS-Criminal Investigation for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Jefferson M. Gray and Trial Attorney Shawn T. Noud of the Justice Department’s Tax Division, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Severn Man Sentenced to 10 Years in Federal Prison for Coercion and Enticement of a Minor to Engage in Illegal Sexual ActivityRead the Press Release
Greenbelt, Maryland - U.S. District Judge Deborah L. Boardman today sentenced Carey Lee Sackmann, age 62, of Severn, Maryland, to 10 years in federal prison, followed by seven years of supervised release, for coercion and enticement of a minor to engage in unlawful sexual activity, related to his online sexual exploitation of multiple minor victims overseas. Judge Boardman also ordered that, as detailed in his plea agreement, Sackmann must pay a total of $50,000 in restitution, to be divided between the victims of his offense. In addition, upon his release from prison, Sackmann 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 Ryeshia Holley of the Federal Bureau of Investigation (“FBI”), Baltimore Field Office; and Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore.
According to his guilty plea, beginning no later than 2015, Sackmann engaged in video chats with facilitators in the Philippines and Madagascar who sexually exploited minor children in exchange for payment. Sackmann paid facilitators to produce sexually explicit videos of minor children and to see livestream videos of minor children performing sexual acts with adults, other children, or alone, and on more than one occasion took screen captures of the livestreams.
On September 24, 2020, FBI agents executed a search warrant on Sackmann’s residence and seized several electronic devices. Forensic examinations completed on several of the devices revealed that Sackmann’s internet activity consisted of multiple visits to livestream pornography websites and online money remitters, and his devices contained approximately 15 images and 1 video of suspected child pornography. Sackmann’s phone and other accounts also contained numerous chats about child pornography production.
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 HSI for their work in the investigation and thanked the Philippine National Police for its assistance Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake and Special Assistant U.S. Attorney Joyce King, 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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Thurmont Man Sentenced to 18 Years in Federal Prison for Sexual Exploitation of a ChildRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jose Alexander Diaz-Rodriguez, age 23, of Thurmont, today to 18 years in federal prison, followed by 25 years of supervised release, for sexual exploitation of a child, after he broke into his neighbor’s home and took sexually explicit photographs of a child. Judge Bennett also ordered that, upon his release from prison, Diaz-Rodriguez 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; Acting Special Agent in Charge Ryeshia Holley of the Federal Bureau of Investigation, Baltimore Field Office; Chief Greg Eyler of the Thurmont Police Department; Chief Jason Lando of the Frederick Police Department; and Frederick County State’s Attorney J. Charles Smith, III.
According to court documents, on July 26, 2021, Diaz-Rodriguez broke into his neighbor’s home and entered the bedroom where Jane Doe 1 and Jane Doe 2 were sleeping. Diaz-Rodriguez got into bed with Jane Doe 1, who was eight years old, and produced a series of four images intending to create sexually explicit images of Jane Doe 1. DNA from Diaz-Rodriguez was found on swabs from Jane Doe 1.
Jane Doe 1’s mother heard a noise and went into the room where she found Diaz-Rodriguez on the ground next to the bed. Diaz-Rodriguez fled and was arrested a short time later at his residence. A search warrant executed at his residence and his cell phone was seized. A forensic examination of the phone located over 1,000 files depicting the sexual abuse of children, including the four images of Jane Doe 1, which Diaz-Rodriguez had deleted prior to police arrival.
Diaz-Rodriguez further admitted that he distributed child sex abuse material on his social media account, specifically an image documenting the sexual abuse of a 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 the FBI, the Thurmont Police Department, the Frederick Police Department and the Frederick County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow and Special Assistant U.S. Attorney Joyce King, 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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Former Correctional Officer Sentenced to Federal Prison for Smuggling Controlled Substances into the Prince George’s County Department of Corrections Detention FacilityRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced former Prince George’s County Department of Corrections correctional officer Danielle Dominique Smith, age 34, of Waldorf, Maryland, to four months imprisonment, followed by four months of home detention as part of three years of supervised release, for conspiracy to distribute and possess with intent to distribute a controlled substance, in connection with her smuggling drugs to a prisoner with whom she had an intimate relationship.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Director Corenne D. Labbe of the Prince George’s County Department of Corrections; and Chief Malik Aziz of the Prince George’s County Police Department.
According to her guilty plea, from November 23, 2009 through April 15, 2022, Smith was employed as a correctional officer at the Prince George’s County Department of Corrections (“PGDOC”) detention facility. During her employment, Smith developed a romantic and sexual relationship with Avante Daquan Lee, an inmate at PGDOC, discussing their relationship on recorded jail calls beginning on at least June 3, 2021 and continuing until March 2, 2022.
As detailed in the plea agreement, from August 29, 2021 and March 2, 2022, Smith conspired with Lee and other co-conspirators to distribute Suboxone, and the synthetic cannabinoid commonly known as K2. Specifically, Smith obtained the controlled substances from co-conspirators outside PGDOC, then smuggled the drugs into PGDOC where she concealed them on special diet food trays designated for Lee. Once Lee received the food tray, he distributed the controlled substances to other inmates within PGDOC. Other inmates, or relatives and friends of inmates then sent Smith money for the controlled substances.
Smith and Lee discussed the distribution of the controlled substances on recorded jail calls, referring to the controlled substances as food products in an effort to conceal the nature of the conversation. On September 24, 2021, PGDOC Special Investigations and Intelligence Section conducted a targeted cell search of Lee’s cell for contraband and recovered white paper that was found to contain K2. On February 16, 2022, PGDOC Special Investigations and Intelligence Section conducted a targeted cell search of another PGDOC inmate for suspected contraband and found a bottle containing 395 strips that were found to contain Suboxone. The K2 and Suboxone were smuggled into PGDOC by Smith.
According to court documents, at the end of February 2022, Smith took pre-approved leave from work. Smith continued to speak to Lee on jail calls during that time. On a March 2, 2022 jail call, the day Smith was scheduled to return to work, Lee asked Smith if she was bringing the “meals,” and Smith said she was. Concerned that Smith was going to smuggle additional controlled substances, PGDOC administratively suspended Smith when she arrived at work that same day.
On October 13, 2023, Judge Chuang sentenced Avante Daquan Lee, age 30, to 30 months in prison, followed by three years of supervised release. Lee had previously pleaded guilty to his role in the conspiracy.
U.S. Attorney Erek L. Barron commended the DEA, the PGDOC, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron also thanked Assistant United States Attorney Leah B. Grossi, 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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Laurel Man Pleads Guilty to Unemployment Insurance Fraud Scheme Involving More Than $1.5 Million in LossesRead the Press Release
Baltimore, Maryland – Michael Akame Ngwese Ay Makoge, a/k/a “Hype” and “2Hype”, age 28, of Laurel, Maryland pleaded guilty yesterday to a wire fraud conspiracy and to aggravated identity theft, in relation to a Maryland and California unemployment insurance scheme totaling more than $1.5 million.
The guilty plea 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.
According to his plea agreement, from March 2020 to October 2021, Makoge and his co-conspirators impersonated victims to submit fraudulent claims for unemployment insurance (UI) benefits in Maryland and California. As part of the scheme, Makoge and his co-conspirators obtained the birthdates, social security numbers, and other personal identifying information of numerous victims which they used to prepare and submit fraudulent applications for UI benefits. The applications contained false information, including the victims’ contact information, states of residence, and availability for work. These fraudulent applications caused financial institutions to load UI benefits onto debit cards and mail the cards to physical addresses provided and monitored by Makoge and his co-conspirators. Once Makoge and his co-conspirators received the fraudulently obtained benefits on the debit cards, they used them for cash withdrawals and other transactions for their own financial benefit.
A search at Makoge’s residence on February 16, 2021, recovered 11 UI debit cards in the names of six victims from the bedroom. The investigation also revealed numerous text messages between Makoge and his co-conspirators exchanging the PII of victims and discussing the execution of the UI fraud scheme. Further, Makoge made numerous ATM withdrawals using the identities of victims, personally obtaining at least $35,540 as a result of his participation in the scheme. In all, Makoge and his co-conspirators submitted fraudulent UI claims using the names and PII of at least 12 victims, resulting in more than $1.6 million in losses.
Makoge 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. U.S. District Judge Brendan A. Hurson has scheduled sentencing for February 1, 2024, at 11:00 a.m.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. 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 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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Cockeysville Man Sentenced to Federal Prison for Scheme to Steal Cell Phones Worth More Than $500,000Read the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Reginald McElrath, age 40, of Cockeysville, Maryland, to 18 months in federal prison, followed by three years of supervised release, for a scheme to steal cell phones worth more than $500,000. Judge Hollander ordered that McElrath must pay restitution in the full among of the victims’ losses, which the parties agree is not more than $366,015.50.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division.
According to his plea agreement and other court documents, from July 2019 to January 2020, McElrath and his co-defendants, Chantelle Harris, Robert Patterson, and Danisha Thomas used the identifying information of at least 17 individuals to obtain new cell phones. McElrath, Harris, and Patterson worked in Maryland for a vendor contracted by a multinational retail corporation to handle all contractual wireless phone transactions in their stores. As cell service associates, McElrath, Harris, and Patterson were required to obtain the personal identifying information (PII) of customers in order to initiate a new account or upgrade an existing account. McElrath, Harris, and Patterson admitted that they used their positions to apply for new cell phone accounts with various carriers and to apply for upgraded cell phones on existing cell phone accounts in the victims’ names using the PII of the victims without their knowledge or permission. McElrath, Harris, and Patterson also charged purchases of new cell phones to fraudulent cell phone service accounts they opened in the victims’ names and none of the costs were borne by members of the conspiracy.
Co-defendant Danisha Thomas and other conspirators received the fraudulently obtained cell phones directly from McElrath, Harris, Patterson and others from inside the retail store. McElrath received cash and payments through CashApp as compensation for his role in the scheme.
McElrath and his co-defendants used the stolen PII of approximately 51 individual victims to fraudulently obtain at least $537,000 worth of cell phones. Fraudulent transactions personally conducted or attempted by McElrath in furtherance of the fraud conspiracy and scheme totaled approximately $366,015.50.
Co-defendants Danisha Lee Thomas, age 40, of Bladensburg, Maryland; Robert Earl Patterson, Jr., age 22, of Odenton, Maryland; and Chantelle Harris, age 34, of Hyattsville, Maryland, also pleaded guilty to their roles in the conspiracy.
United States Attorney Erek L. Barron commended the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Colleen Elizabeth McGuinn, 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.
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Two MS-13 Gang Members Sentenced for Murder ConspiracyRead the Press Release
Two La Mara Salvatrucha (MS-13) gang members were sentenced for conspiracy to commit murder in aid of racketeering in connection with their participation in the Weedams Locos Salvatrucha (WLS) clique of the MS-13 gang.
Endy Arturo Gaitan Campos, aka Clandestino, 30, of Hyattsville, Maryland, was sentenced yesterday to 10 years in prison, and Jorge Isaac Argueta Chica, aka Timido and Enano, 23, of Gaithersburg, was sentenced last week to six years in prison.
According to court documents, MS-13 is an international criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating throughout the United States. MS-13 members are organized in “cliques,” smaller groups that operate in a specific city or region, and are required to commit acts of violence, both to maintain membership and discipline within the gang and against rivals. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. MS-13 members earn promotions and improved standing within the gang for participating in attacks on rival gang members, often at the direction of MS-13 leadership.
On Aug. 8, 2020, Campos and other WLS members, including WLS leader Brayan Alexander Torres and Franklyn Edgardo Sanchez, agreed to murder Victim-4, who was suspected of cooperating with law enforcement and with whom Sanchez had a financial dispute. Campos told another MS-13 member that he would have to help commit the murder. Campos then drove Torres, Sanchez, and other WLS members to a wooded area nearby and dropped them off. Sanchez was armed with a revolver, and Torres gave a second revolver to the MS-13 member Campos had told to help in the murder, instructing that person to shoot first when Victim-4 arrived. When Victim-4 arrived, Sanchez and the other MS-13 member each fired multiple shots at Victim-4. Sanchez then pistol-whipped and stabbed Victim-4, and Torres also stabbed Victim-4. After Torres and other WLS members dragged Victim-4’s body to a stream and left it there, Campos drove the MS-13 members back to Torres’s house, where other gang members, including Argueta Chica and Agustino Eugenio Rivas Rodriguez, were waiting.
As he was leaving the woods, Sanchez noticed he was bleeding. To prevent the discovery of DNA or other evidence on the body and to hinder the investigation and prosecution of Victim-4’s murder, Torres called other WLS members and ordered them to bring shovels to bury Victim-4’s body. WLS members loaded shovels into Campos’s car, and Campos drove them, including Argueta Chica and Rivas Rodriguez, to the wooded area. WLS members then dug a hole and buried Victim-4’s body. Law enforcement later recovered the body with a bullet wound to the head.
Argueta Chica also participated in the collection of extortion payments, or “rents,” from at least two 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.
Torres and Sanchez were each sentenced to 28 years in prison, and Rivas Rodriguez was sentenced 16 years in prison for their roles in the racketeering conspiracy.
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, Special Agent in Charge Thomas J. Sobocinski 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 Prince George’s County Police Department investigated the case, with 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 prosecuted the case.
Maryland MS-13 Gang Members Sentenced to Federal Prison for a Murder ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Endy Arturo Gaitan Campos, a/k/a “Clandestino,” age 30, of Hyattsville, Maryland, yesterday to 10 years in federal prison, followed by three years of supervised release, for conspiracy to commit murder in aid of racketeering, related to his participation in the Weedams Locos Salvatrucha (“WLS”) clique of the MS-13 gang, which operated primarily in Adelphi, Maryland. Last week, Judge Xinis sentenced co-defendant Jorge Isaac Argueta Chica, a/k/a “Timido” and “Enano,” age 23, of Gaithersburg, Maryland, also a member of the WLS clique, to six years in federal prison, followed by three years of supervised release on the same charge.
The sentences were 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; Special Agent in Charge Thomas J. Sobocinski 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.
According to court documents, La Mara Salvatrucha gang, also known as “MS-13,” is an international criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in Maryland and throughout the United States. MS-13 members are organized in “cliques,” smaller groups that operate in a specific city or region, and are required to commit acts of violence, both to maintain membership and discipline within the gang and against rivals. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. MS-13 members earn promotions and improved standing within the gang for participating in attacks on rival gang members, often at the direction of MS-13 leadership.
On August 8, 2020, Campos, and other WLS members, including WLS leader Brayan Torres and Franklyn Sanchez, were gathered at a park in Prince George’s County, Maryland, where they agreed to murder Victim 4, who was suspected of cooperating with law enforcement and to whom Sanchez owed a debt. Campos told another MS-13 member that he would have to help commit the murder. Campos then drove Torres, Sanchez and other WLS members to a wooded area nearby and dropped them off. Sanchez was armed with a revolver and Torres handed a second revolver to the other MS-13 member, instructing that person to shoot first when Victim 4 arrived. When Victim 4 arrived, Sanchez and the other MS-13 member each fired multiple shots at Victim 4, who fell to the ground. Sanchez then pistol-whipped and stabbed Victim 4 and Torres also stabbed Victim 4. Torres and other WLS members dragged Victim 4’s body to a stream and left it there.
One of the MS-13 members at the scene of the murder placed the two guns used to shoot Victim 4 and several other items into a dark bag and Campos drove the MS-13 member back to Torres’s house where other gang members, including Argueta Chica, were waiting.
As he was leaving the woods, Sanchez noticed he was bleeding and 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, Torres called other WLS members, including co-defendant Agustino Eugenio Rivas Rodriguez, and ordered them to bring shovels to dig a hole and bury Victim 4’s body. Campos backed his car into the driveway of Torres’s house and parked in front of the garage. WLS members loaded shovels into Campos’s car and Campos drove Rivas Rodriguez and other WLS members to the wooded area. WLS members, including Argueta Chica then dug a hole and buried Victim 4’s body. Law enforcement later recovered the body with a bullet wound to the head.
Argueta Chica also participated in the collection of extortion payments, or “rents,” from at least two 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.
Co-defendants Brayan Alexander Torres, a/k/a “Spooky,” age 29, and Franklyn Edgardo Sanchez, a/k/a “Delinquente,” age 26, both of Adelphi, Maryland, were each sentenced to 28 years in federal prison and Agustino Eugenio Rivas Rodriguez, a/k/a “Terrible,” age 25, of Silver Spring, Maryland was sentenced 16 years in federal prison for their roles in the racketeering conspiracy.
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.
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 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 Violent Crime and Racketeering 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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Former Baltimore City State’s Attorney Marilyn Mosby Convicted on Two Counts of PerjuryRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Marilyn J. Mosby, age 42, of Baltimore, Maryland, on federal charges 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 when she was Baltimore City State’s Attorney.
The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski 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 respect the jury’s verdict and remain steadfastly committed to our mission to uphold the rule of law, keep our country safe, protect the civil rights of all Americans, and safeguard public property.”
According to the evidence presented at trial, on May 26, 2020 and December 29, 2020, Mosby submitted “457(b) Coronavirus-Related Distribution Requests” for one-time withdrawals of $40,000 and $50,000, respectively, from City of Baltimore’s Deferred Compensation Plan. Trial evidence proved that Mosby falsely certified that she met at least one of the qualifications for a distribution as defined under the CARES Act, specifically, that she experienced adverse financial consequences from the Coronavirus as a result of being quarantined, furloughed, or laid off; having reduced work hours; being unable to work due to lack of childcare; or the closing or reduction of hours of a business she owned or operated. In signing the forms, Mosby “affirm[ed] under penalties for perjury the statements and acknowledgments made in this request.” As proven at trial, Mosby did not experience any such financial hardships and in fact, Mosby received her full gross salary of $247,955.58 from January 1, 2020 through December 29, 2020, in bi-weekly gross pay direct deposits of $9,183.54.
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 sentencing.
In a separate pending federal case, Mosby also faces two counts of making false mortgage applications, relating to the purchases of two vacation homes in Florida. Those charges remain pending and a trial date has not been set. If convicted of those counts, the defendant faces a maximum of 30 years in federal prison for each of two remaining counts. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI and IRS-CI for their work in the investigation and thanked the Baltimore City Office of the Inspector General for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Aaron S.J. Zelinsky, 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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Prince George’s County Man Sentenced to 25 Years in Federal Prison for Coercing Minor Victims to Produce Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge Paula Xinis sentenced Adrian Nathaniel Haynes, age 24, of Oxon Hill, Maryland, to 25 years in federal prison, followed by 25 years supervised release, for production of child pornography. Judge Xinis also ordered that, upon his release from prison, Haynes 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; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Aziz of the Prince George’s County Police Department.
According to court documents and information presented at the sentencing hearing, on April 1, 2019, Victim 1 contacted the National Center for Missing and Exploited Children (“NCMEC”) and reported that an Instagram user with the username “darealrico_”, later identified as Haynes, had demanded that Victim 1 send images and videos of Victim 1 engaged in sexually explicit conduct to him over the internet via direct share to darealrico_. Victim 1 also disclosed that darealrico_ threatened Victim 1 that if Victim 1 did not continue to produce images of Victim 1 engaged in sexually explicit conduct, darealrico_ would expose Victim 1 by publishing the previously produced images and videos online.
Special Agents with the FBI determined that the darealrico_ Instagram account was registered on November 6, 2018, with a phone number matching a phone number that Haynes had provided to law enforcement previously. Law enforcement also determined that many of the communications from this account during the relevant period were coming from Haynes’ residence in Prince George’s County, Maryland.
A search warrant was obtained for the contents of the Instagram account associated with darealrico_. Special Agents with the FBI discovered communications from Haynes to Victim 1 on November 12, 2018, and multiple other dates, in which Haynes directs Victim 1 to produce videos of Victim 1 engaged in sexually explicit conduct and send the produced child sexual abuse material to Haynes. On November 12, 2018, while communicating via the derealrico_ account, Haynes falsely denied to Victim 1 that his name was Adrian, falsely told Victim 1 that he was 15 years old, and falsely identified himself to Victim 1 by using a fictitious name, all in an effort to convince Victim 1 to continue producing child pornography and thwart Victim 1’s efforts to identify him.
Law enforcement’s review of Haynes’s Instagram account revealed communications with 16 other Instagram users who self-identified as minors and sent child sexual abuse material to Haynes pursuant to his request. Haynes used a similar method for each, asking the user how old they were, confirming that they were a minor, then coercing the user into producing child sexual abuse material in the manner requested by Haynes.
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 Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Timothy 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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Five Indicted in Scheme to Fraudulently Obtain Bank and Small Business Administration Loans in Property Flipping SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging five individuals for a fraud scheme intended to obtain over $35 million from financial institutions by providing false documentation in support of SBA loan applications for the purchase of hotels. Defendant Mehul Ramesh Khatiwala, a/k/a “Mike Khatiwala,” age 41, of Voorhees, New Jersey, also faces a continuing financial crimes enterprise charge, also known as the financial crime kingpin statute—the first time this statute has been charged in Maryland. The indictment was returned on November 1, 2023. In addition to Khatiwala, the following defendants are charged in the indictment with bank fraud, making false statements to financial institutions, and money laundering:
Rajendra G. Parikh, age 63, of Monroe, New Jersey;
Jennifer H. Watkins, age 47, of Marlton New Jersey;
Rebecca Marie Cohn, a/k/a Rebecca Marie Stanton, age 36, of Fallston, Maryland; and
Rajnikant I. Patel, age 59, of North Brunswick, New Jersey.Rajnikant Patel and Jennifer Watkins will have initial appearances on November 9, 2023, at 11:00 a.m. and 11:30 a.m., respectively, in U.S. District Court in Baltimore before U.S. Magistrate Judge A. David Copperthite. Cohn had her initial appearance on November 6, 2023. Khatiwala and Parikh had initial appearances in the U.S. District Court in New Jersey on November 3, 2023, and were ordered to be detained.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Robert Manchak, Federal Housing Finance Agency Office of Inspector General (“FHFA-OIG”); and Special Agent in Charge Jeffrey D. Pittano, Mid-Atlantic Region, Federal Deposit Insurance Corporation Office of Inspector General (“FDIC-OIG”).
According to the 31-count indictment, Khatiwala was the owner and managing member of Delaware Hotel Group LLC (“DHG”), and an operator of GMK Consulting LLC (“GMK”) and KPG Hotel Mgmt. LLC (“KPG”), which were hotel management and loan brokerage companies located in Mount Laurel, New Jersey. Jennifer Watkins was a project coordinator for DHG and managing member of Forza Consulting LLC (“Forza”), a hotel consulting and loan brokerage company located in Marlton, New Jersey. Rajendra Parkih was an owner of KPG and Rebecca Cohn was a settlement and title processor for Residential Title & Escrow Company (“Residential Title”), a real estate title company located in Owings Mills, Maryland, that offered escrow and loan settlement services. Rajnikant Patel worked as the manager of a convenience store owned by Parikh and Parikh’s brother.
The indictment alleges that from August 2018 until February 2020 the defendants conspired to obtain loan proceeds for the defendants and others to buy and sell hotels in a hotel flipping scheme by making material misrepresentations and omissions to financial institutions during the loan application process regarding the identity of the sellers, the familial relationships between the parties, and the nature and amount of the equity injected by the borrowers, under the SBA’s Section 7(a) Program. The SBA’s Section 7(a) Program guaranteed and insured 75 percent to 90 percent of qualified loans made and administered by participating lending institutions and required that the small business owner/borrower invest a certain amount of their own money into the business to qualify for the loan.
Specifically, the indictment alleges that Khatiwala, Parikh, and Watkins created shell companies using Patel and a co-conspirator as the straw owners of the companies, then had the straw owners sign purchase contracts, operating agreements, and related documents to buy hotel properties in the names of the shell companies created by Khatiwala, Parikh, and Watkins, while at the same time soliciting investors, including family members, and creating other companies to serve as buying entities (the “Buyers”) so they could quickly resell the hotels at a much higher price.
As detailed in the indictment, Khatiwala, Parikh, Watkins, and Cohn collected, compiled, and submitted documentation needed by financial institutions to determine whether the Buyers qualified for the SBA loans, including records proving that the Buyers provided sufficient cash upfront to satisfy SBA’s equity injection requirements for Section 7(a) funding, such as checks, bank statements, and wire transfer records. Cohn maintained the equity injection funds in designated Residential Title escrow accounts pending the loan settlements and kept ledgers to track the use of those escrow funds.
The indictment alleges that Khatiwala, Parikh, Watkins and Cohn: fraudulently diverted some of the Buyers’ equity injections to make down payments on hotels that were under contract to shell companies controlled by Khatiwala and Parikh; submitted the same wire transfer records and gift letters as support for equity injections that had been already been used to satisfy the buyer’s equity injection obligations for other SBA loan applications; and fraudulently submitted falsified bank statements and wire transfers to satisfy the equity injections.
The indictment also alleges that the defendants engaged in roundtrip transactions, whereby they falsely represented to financial institutions that over $1.5 million on deposit in a Residential Title escrow account would be used to satisfy the Buyer’s equity injection obligations, when, the indictment alleges, the funds were temporarily withdrawn from that account prior to the loan closings and redeposited back into the same escrow account subsequent to the loan closings.
Further, the indictment alleges that Khatiwala, Parikh, Watkins, and Cohn falsely represented to financial institutions that the buying entities had purchased the hotels from the shell companies when, in fact, the shell companies had not yet owned the properties. Khatiwala, Parikh, Watkins, and Cohn diverted loan proceeds intended for the buyers to purchase hotels from the shell companies so that the shell companies could first purchase the property and then flip it to the buyer.
If convicted, Khatiwala faces a mandatory minimum sentence of 10 years and up to life in prison for a continuing financial crime enterprise. All of the defendants face a maximum of 30 years in federal prison for the conspiracy to commit bank fraud and for each count of bank fraud; a maximum of 5 years in federal prison for a conspiracy to make a false statement to a financial institution. Khatiwala, Parikh, Watkins, and Cohn also face a maximum of 30 years in federal prison for each count of making a false statement a financial institution and a maximum of 10 years in federal prison for conspiracy to launder money 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 FHFA-OIG and FDIC-OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Martin J. Clarke, and Harry M. Gruber, 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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Approximately 150 Business and Public Sector Leaders Participate in Cybersecurity Conference Co-Hosted by the Maryland U.S. Attorney’s Office and the University of MarylandRead the Press Release
Baltimore, Maryland – On November 6, 2023, approximately 150 business and public sector leaders participated in a cybersecurity conference co-hosted by the U.S. Attorney’s Office for the District of Maryland and the University of Maryland. The conference included panels of cybersecurity experts from government and the private sector discussing the emerging threats, best practices, and effective collaboration between federal, state, and local agencies, the private sector, and law enforcement.
“Cybercrime is an ongoing threat to all of us in Maryland. The time to talk about preventing and responding to a cyber incident is before something happens,” said United States Attorney Erek L. Barron. “I am grateful for the thoughtful and frank conversations the conference inspired and I look forward to continued collaboration and partnership between the government, business, and public sectors to protect our critical infrastructure. I also want to thank our partners at the University of Maryland for their co-sponsorship of this important conference.”
“We all know that we are living in an unprecedented time of technological advancement. From the rapid adoption of artificial intelligence and machine learning applications to advances in quantum computing and quantum networks, we are at the start of an era that has tremendous potential for radical change,” said University of Maryland President Darryll J. Pines. “That’s why here at the University of Maryland we are working every day to understand technology’s benefits and limits, support experts who can see challenges even before they appear on the horizon, and educate a generation of fearless leaders who understand their obligations to our collective wellbeing.”
Panelists from the United States Department of Justice, the National Security Agency, universities, and travel, energy and financial sectors presented information on identifying threats and weaknesses, managing a cyber incident, and coordinating with law enforcement. The conference also provided networking opportunities to allow attendees to continue their conversations and enhance cyber security in all sectors throughout Maryland.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/cybersecurity.
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Failed Restaurateur Pleads Guilty to Bankruptcy FraudRead the Press Release
The Defendant Hid Money in Panamanian Banks While Discharging $6.2 Million in Debt
Baltimore, Maryland – Keith K. Asante, age 51, formerly of Baltimore County, Maryland, pleaded guilty today to bankruptcy fraud.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration Office of Inspector General (“SBA OIG”), Eastern Region; and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division.
According to his guilty plea, Asante obtained two loans totaling approximately $4 million, one in April 2015 and the second in December 2016, for the construction and operation of two restaurant franchises in the Baltimore area. Asante personally guaranteed both loans, as did a consulting group that he owned, Asante Consulting Group (“ACG”). The Small Business Administration also guaranteed 75 percent of the loan balances to the financial institutions that made the loans.
In the spring and early summer of 2017, Asante’s restaurants experienced financial difficulties, and Asante decided to close both restaurants in the fall of 2017. However, closing the restaurants did not relieve Asante or ACG of their loan guarantees. As detailed in the plea agreement, from approximately March 2017 through April 2018, Asante executed a scheme to defraud his creditors by misappropriating loan funds and using them for non-business purposes; hiding money in undisclosed bank accounts; transferring money to Panamanian bank accounts; filing for bankruptcy; and fleeing to Panama.
Specifically, Asante used $30,000 of the loan funds to make payments to a builder for the construction of a 5,000 square foot home in Perry Hall, Maryland. In addition, on July 5, 2017, Asante formed Temak Technologies, LLC in New Mexico. The publicly available corporate documents did not identify Asante as having any affiliation with Temak. Instead, Asante used the identity of his then-wife, without her knowledge, to form Temak. In fact, Asante was the sole owner of Temak. Asante opened bank accounts on behalf of Temak and began operating the ACG business as Temak, depositing payments from ACG’s clients into the Temak bank account. From September 2017 to December 2017, Asante transferred approximately $260,000 from a Temak bank account and another bank account to banks in Panama.
On January 10, 2018, Asante filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court in Maryland. In his filing, Asante did not disclose his ownership of Temak or his ownership of several bank accounts, including any of his Panamanian bank accounts. In his plea agreement, Asante further admitted that he continued to transfer funds to the Panamanian bank accounts while in bankruptcy, transferring $62,550 to Panamanian banks between January and March of 2018.
At the conclusion of the bankruptcy proceeding, the Trustee was only able to distribute $36,775.31 to Asante’s creditors and on April 22, 2018, the Court granted Asante a bankruptcy discharge which eliminated Asante’s personal responsibility for $6,227,214.39 in debt. Asante began residing in Panama in or around January 2018.
Asante faces a maximum sentence of five years in prison for bankruptcy fraud. U.S. District Judge Deborah L. Boardman has scheduled sentencing for January 23, 2024, at 11am.
U.S. Attorney Erek L. Barron commended the SBA-OIG and the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron also thanked Assistant United States Attorneys Matthew P. Phelps and Jefferson M. Gray, 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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Baltimore Man Sentenced to 24 Months in Federal Prison for Scheme to Obtain More Than $550,000 in Fraudulent Covid-19 CARES Act LoansRead the Press Release
Used CARES Act Loan Proceeds to Purchase a Mercedes-Benz and to Lease and Fully Furnish a Luxury Apartment in Downtown Baltimore
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Lawrence A. Walker, age 64, of Baltimore, Maryland, today to 24 months in federal prison, followed by 6 months of home confinement, and 3 years of supervised release, for conspiracy to commit wire fraud and fraudulently obtaining more than $262,000 through the Paycheck Protection Program (“PPP”), intended to provide financial assistance to small businesses under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Judge Bennett also ordered that Walker must forfeit the cash seized during the search, a Mercedes-Benz, and pay a money judgment and restitution of $232,152.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Robert McCullough of the Baltimore County Police Department.
According to the plea agreement, from March 2021 through December 2021, Walker and a co-conspirator engaged in a scheme to fraudulently obtain a PPP loan for Walker’s business, Nutscola Street Promotions, LLC (“Nutscola”). Walker was the owner and resident agent, but Nutscola had no employees at the time and was not in operation.
As detailed in the plea agreement, on March 21, 2021, Walker and his co-conspirator submitted a PPP loan application that contained multiple misrepresentations, including that Nutscola had 13 employees and an average monthly payroll of $104,900.87. Walker and his co-conspirator fabricated a tax form and a February 2020 bank statement purportedly from Nutscola’s business account which were submitted in support of the loan application. Walker opened the Nutscola bank account on March 6, 2021, as part of the fraud scheme.
Based on the false representations and fraudulent documentation, the PPP loan was funded and approximately $262,252 in loan proceeds was distributed to the Nutscola bank account. After receiving the loan proceeds, Walker provided his co-conspirator with a kickback for his work in obtaining the loan—two checks totaling $78,000, which was approximately 30 percent of the loan amount.
Walker and his co-conspirator knew that, under the PPP rules, interest and principal on a PPP loan were eligible for forgiveness, if the business spent the loan proceeds on permissible items within a designated period of time and used a certain portion of the loan toward payroll expenses. To make it appear that the PPP loan funds were being used for legitimate purposes, on March 30, 2021, Walker signed an agreement with a payroll processor to provide payments using the PPP funds to purported employees of Nutscola, including Walker, his brother, and various other friends and associates. Use of the payroll services also created documentation that could be used to substantiate a request for the PPP loan to be forgiven.
According to the plea agreement, a total of $159,000 in sham payroll payments were made using funds traceable to the PPP loan obtained by Walker and Nutscola. None of the purported employees were actually employed by Nutscola and several of the purported employees provided the funds directly back to Walker. Walker used the loan proceeds to purchase a Mercedes-Benz automobile valued at more than $76,000 and to lease and fully furnish a luxury apartment in downtown Baltimore that overlooked Camden Yards baseball stadium. Neither use of the funds was permissible under PPP rules.
On December 31, 2021, Walker’s co-conspirator also fraudulently applied for an Economic Injury Disaster Loan (EIDL) under the CARES Act on behalf of Walker and Nutscola. The fraudulent EIDL loan did not close.
On April 26, 2022, law enforcement executed a federal search warrant at Walker’s residence and seized multiple electronic devices, including Walker’s phone, as well as over $30,000 in cash hidden in a garbage bag inside a heater in Walker’s bedroom. The $30,000 in cash constituted fraudulently obtained PPP funds. Walker has made no payments in connection with the PPP loan obtained for Nutscola, and the entire PPP loan amount of $262,252 remains outstanding.
The District of Maryland Strike Force is one of three strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the CARES Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the FBI and the Baltimore County Police Department for their work in the investigation and thanked the Small Business Administration Office of Inspector General for its assistance. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, 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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Former Federal Law Enforcement Officer Sentenced to Five Years' Probation After Pleading Guilty to Violating Airport Security RequirementsRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced former Customs and Border Protection (“CBP”) officer Supreme Jones, age 32, of Atlanta, Georgia and formerly of Maryland, today to five years’ probation after Jones pleaded guilty to two counts of entering an aircraft or airport security area in violation of security requirements. As a result of his federal conviction, at least during his five year term of probation, Jones will not be able to be employed in law enforcement.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; Stephen T. Maloney, Director of Field Operations for U.S. Customs and Border Protection Baltimore Field Office; and Special Agent in Charge Craig Miles of the U.S. Department of Transportation Office of Inspector General Mid-Atlantic Region (“DOT-OIG”).
According to court documents, from 2018 through 2022, Jones was an armed CBP officer assigned as a uniformed officer at the Baltimore Washington International/Thurgood Marshall Airport (“BWI”). As a result of his duties, Jones was issued credentials authorizing him to go into any area of BWI, including the areas beyond the Transportation Security Administration (“TSA”) security checkpoints, for the performance of his official duties.
In June 2021, the FBI began an investigation into complaints that Jones was abusing his authority by using his credential to enter secure areas when not performing official duties, specifically when flying for personal travel. According to the statement of facts, during a 14-month period Jones made more than 60 flights, either going from or returning to BWI. Upon review of surveillance imagery corresponding to the entry point hits, the FBI discovered that Jones was often entering the sterile area of BWI via the controlled exit portals when in civilian clothing by displaying his badge to the TSA Officer or TSO on duty at the exit portal.
Although a number of trips raised suspicions about Jones’ conduct, two itineraries in particular drew close scrutiny. On February 21, 2022, Jones flew from BWI to Atlanta, GA. He did not declare himself to be armed on this flight. Nonetheless, while in civilian clothes, he used his badge to access the security area to proceed to his departure gate within. When he arrived at the gate, he engaged in a conversation with the airline personnel, appeared to display a previously unseen limp and obtained a special needs boarding pass from the airline, thus enabling him priority boarding of the aircraft. During this same travel period, Jones flew round-trip from Atlanta to Miami, then Miami to St. Martin. To justify a flight change and/or late arrival on the return flight, without incurring a flight change fee, Jones falsely represented that a military unit to which he was assigned had been involved in an accident; falsely identified his military superior; and provided a fictitious phone number.
On April 5, 2022, FBI agents conducted surveillance of Jones in BWI. They saw Jones, while still on duty and in his uniform, jump a long line of passengers in line at an airline ticket counter to check-in for a flight he was taking later that day in his personal capacity. About 30 to 45 minutes before the departure time of his flight, FBI Special Agents saw Jones entering the terminal through the exit point, rather than through the TSA security checkpoint. When the agents confronted Jones, he denied having a flight that day and stated that he was “…working…trailing somebody,” or words to the effect. A short while later, Jones was seen in the departure gate area for his Atlanta-bound flight.
Jones was arrested on June 26, 2022, as he was about to board a flight from BWI to Boston, Massachusetts, with a scheduled return the following day.
United States Attorney Erek L. Barron praised the FBI, HSI, CBP and DOT-OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney P. Michael Cunningham, 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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Eastern Shore Man Sentenced to 30 Months in Federal Prison for Stealing More Than $1.8 Million from a Salisbury CorporationRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Duane G. Larmore, age 48, of Salisbury, Maryland, yesterday to 30 months in federal prison, followed by three years of supervised release, for a wire fraud conspiracy and aggravated identity theft in connection with the theft of more than $1.8 million from Shore Appliance Connection, where Larmore worked. Judge Chasanow also ordered Larmore to pay restitution in the full amount of the victims’ losses, which the parties stipulate is $1,850,488.94.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, from mid-September 2016 through about March 2020, Larmore conspired with others to steal more than $1.8 million from a Salisbury, Maryland company, Shore Appliance Connection, owned and operated by Owner #1 and Owner #2, that sold household appliances as well as mattresses and bedding. Larmore was an employee at Shore Appliance whose duties included maintaining the books and records for the company.
Co-defendant Stephen Franklin was the chief operating officer of Accurate Optical, a chain of optometric shops on the Eastern Shore of Maryland and with the owners of Accurate Optical he also purchased East Coast Optometric, a chain of South Carolina optical shops. Larmore and Franklin met through the Salisbury Chamber of Commerce and became friendly.
According to court documents, Larmore and Franklin stole nearly $2 million from Shore Appliance to use for their own purposes, including to make investments and to pay business expenses for Franklin’s business, without the knowledge and consent of the owners of Shore Appliance. For example, at the urging of Franklin, Larmore invested in the following: in 2016, a $100,000 investment with T.H.; a $95,000 investment with GenFinance II, PLC, London, U.K., which then required an additional $300,000, and then additional funds for a surety bond and travel abroad; in 2018, an investment through W.S. of $35,000 and an investment of $50,000 through Gateway Capital; and in 2019 - 2020, investments and expenses through I.P. and E.P.S. to obtain U.S. currency purportedly returned to the United States from humanitarian relief projects abroad, and other similar investments. The charges included wire transfers from Shore Appliance’s account to Franklin’s business account and from there to banks in the U.K. and Hong Kong. No investment paid any return to Larmore or Franklin.
To conceal how much money had been removed from Shore Appliance and to obtain cash, Larmore used the identities of the owners to enter into factoring contracts. Factoring is a means by which businesses, like Shore Appliance, can obtain cash quickly by leveraging accounts receivable. As detailed in court documents, the factoring contracts purportedly between Shore Appliance and various factoring companies, provided cash deposits to Shore Appliance's bank accounts but encumbered the accounts receivable of Shore Appliance and required payments and interest of more than $725,000. In addition, Larmore used his position of trust with Shore Appliance and signature authority over its bank accounts to draw on Shore Appliance’s lines of credit with two separate financial institutions to obtain another $200,000 in cash to conceal his use of Shore Appliance’s funds.
To obtain contracts with factoring companies for Shore Appliance, Larmore used his own email address and cell phone number with factors but identified that email address and cell phone number as belonging to Owner #1. Larmore also provided the factors with details of the owners’ identities, including dates of birth, Social Security numbers, and Maryland drivers’ licenses, without their permission.
To conceal the fact that the owners were not aware of and had not approved the factoring contracts, the signatures of the owners were forged and the fraudulent signatures were witnessed or notarized by Franklin; and Larmore and a female employee of Franklin’s posed as the owners in telephone conversations with representatives of the factoring companies. Finally, when Franklin’s business was having financial difficulties, at Franklin’s request, Larmore provided funds from Shore Appliance for Franklin’s companies.
In all, Larmore paid $739,295.28 of Shore Appliance’s funds, without the officers and owners’ knowledge or consent, to invest in fraudulent schemes that never paid any money back. Larmore caused an additional loss of $171,548.67 by transferring funds to Franklin or Franklin’s companies. Larmore caused Shore Appliance to lose an additional $731,250.07 in fees and other payments to factors and to factoring brokers. Larmore also caused Shore Appliance to draw on its bank lines of credit and pay extra interest to those banks in the amount $208,395. Thus, the factoring arrangements and advances on Shore Appliance’s lines of credit in total caused Shore Appliance to lose in actual funds $939,645. However, Shore Appliance as of March 2020 still owed the factors almost $270,000. For all of Larmore’s conduct, actual cash losses to Shore Appliance totaled $1,850,488.94 and intended losses totaled $2,137,674.74.
On September 7, 2023, Judge Chasanow sentenced Stephen Franklin, age 54, of Salisbury, Maryland, to 66 months in federal prison on the same charges and also ordered him to pay restitution in the full amount of the victims’ losses.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Evelyn Lombardo Cusson, 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. For more information about resources available to report fraud, please visit https://www.justice.gov/usao-md/report-fraud.
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Florida Man Pleads Guilty to Federal Charges Related to the Sexual Exploitation of MinorsRead the Press Release
Baltimore, Maryland – John W. Balch, age 76, of Jacksonville, Florida, pleaded guilty yesterday to two counts of sexual exploitation of a child and admitted to the sexual exploitation of six minor victims, including prepubescent minors. Today, co-defendant Jane Ellen Campbell, age 35, of Hagerstown, Maryland pleaded guilty to distribution of child pornography, related to one of the victims.
The guilty pleas 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; Colonel Paul Joey Kifer, Chief of the Hagerstown Police Department; Commissioner Richard Worley of the Baltimore Police Department; and Frederick County State’s Attorney J. Charles Smith, III.
According to his guilty plea, 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 sexually explicit images of Minor Victim 1 on three occasions between January and March of 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.
As detailed in their plea agreements, 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”).
Balch faces a mandatory minimum sentence of 15 years in federal prison and a maximum sentence of 30 years for each count of sexual exploitation of a child Campbell faces a mandatory minimum sentence of 5 years and a maximum of 20 years in federal prison for distributing visual depictions of a minor engaged in sexually explicit conduct. Chief U.S. District Judge James K. Bredar has scheduled sentencing for Balch on January 26, 2024, at 10:00 a.m. and for Campbell on January 23, 2024, at 11:30 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 HSI, the Hagerstown Police Department, the Baltimore 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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Harford County Man Pleads Guilty to Using a Hidden Camera in His Bathroom to Produce Sexually Explicit Images of Five Minor Female VictimsRead the Press Release
Baltimore, Maryland – Charles F. Wheat, III, age 38, of Bel Air, Maryland, pleaded guilty yesterday to producing sexually explicit images of five minor girls while they used a bathroom in his home, using a hidden camera.
The guilty plea 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; and Sheriff Jeffrey R. Gahler of the Harford County Sheriff’s Office.
According to his plea agreement, between April and November 2020, Wheat used a hidden camera to produce sexually explicit images of five minor girls while they used a bathroom in his home. During that same time, Wheat was in communication with three female sex traffickers in the Philippines to whom Wheat provided payment in exchange for them sending Wheat images and videos of minors being sexually exploited.
As detailed in the plea agreement, Wheat sent sexually explicit images he produced of three of the minor female victims to two Filipino women. One of the women who received the images was also depicted in several videos found on Wheat’s phone engaged in sexual conduct with a prepubescent boy. Some of the videos also depict a prepubescent girl whom the woman encourages to engage in sex acts with the boy.
Wheat faces a mandatory minimum sentence of 15 years in federal prison and a maximum of 30 years in federal prison for production of child pornography. Chief U.S. District Judge James K. Bredar has scheduled sentencing for January 17, 2024, at 10:30 a.m.
As detailed in the plea agreement, upon his release from prison, Wheat will also 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).
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 and the Harford County Sheriff’s Office for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake, 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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Former Owner of Drug Paraphernalia Store Sentenced to Federal Prison After Pleading Guilty to a Conspiracy to Import, Transport and Sell Drug Paraphernalia and to Tax EvasionRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Sean Weston, age 56, of Windsor Mill, Maryland, yesterday to 15 months in federal prison, followed by two years of supervised release, after Weston pleaded guilty to federal charges of conspiracy to import, transport, and sell drug paraphernalia and to tax evasion.
The sentenced was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration (“DEA”) - Washington Division; Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), Washington, D.C. Field Office; and Commissioner Richard Worley of the Baltimore Police Department.
According to his guilty plea, from January 2015 through at least July 2019, Weston operated the Northwest Variety store, where he sold empty gel capsules, colored plastic tops, dust masks, metal strainers, electric weighing scales, razor blades, and mannite and quinine, which are used as drug cutting agents. Weston admitted that he purchased hundreds of kilograms of quinine from China. Quinine’s only approved use is a prescription medication for the treatment of uncomplicated malaria. Importation of quinine for any other use is illegal. To conceal his purchase of quinine, Weston communicated with his foreign supplier and requested that the quinine be labelled as something else, such as “beta glucan.”
As detailed in his plea agreement, Weston also failed to file federal income tax returns with the IRS for tax years 2016 through 2018. In addition to owning the Northwest Variety Store, which had significant profits during that time, Weston was on the payroll of a water treatment facility. To conceal his income from the IRS, Weston conducted his finances substantially in cash. For example, from 2016 through 2018, Weston paid $29,835 in cash for the monthly rent for the Northwest Variety Store and deposited $352,026 in cash into two personal bank accounts. In 2016 and 2017 Weston paid cash down payments of $25,000 and $15,000, respectively, for the purchase and lease of Bentley automobiles, with fair market values of more than $117,000 and $139,000. In 2016, Weston signed a credit application stating that his annual income was $180,000 and in 2017, he had an individual prepare his 2016 tax return, which reflected a gross income of $358,984. Instead of submitting the return to the IRS, Weston submitted it to the car dealership. By failing to report his income for tax years 2016 through 2018, Weston caused a tax loss to the United States of more than $98,000.
This case is 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 and Acting Deputy Assistant Attorney General Stuart M. Goldberg commended the DEA, the IRS-CI, and the Baltimore Police Department for their work in the investigation. Mr. Barron and Mr. Goldberg thanked Assistant U.S. Attorney Kenneth S. Clark and Senior Litigation Counsel John E. Sullivan of the Justice Department’s Tax Division, 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-psn and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Man Pleads Guilty to the Armed Robbery of a Baltimore Jewelry StoreRead the Press Release
Baltimore, Maryland – Davontay Conner, age 27, of Baltimore, Maryland, pleaded guilty yesterday to the armed robbery of a jewelry store and to using, carrying, and brandishing a firearm during and in relation to a crime of violence.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Richard Worley of the Baltimore Police Department.
According to his guilty plea, on October 13, 2019, Conner and three co-conspirators robbed a jewelry store in Baltimore. During the robbery, four masked men entered the store with guns. While three of the robbers held up the security guard at gunpoint, Conner used a hammer to smash a display case and steal several pieces of jewelry. Conner and his co-conspirators then fled the store, with one of the robbers firing a shot back toward the store. The robbers escaped in a waiting SUV. Another shot was fired from inside the vehicle, breaking the rear window and leaving glass in the parking lot.
Conner and the government have agreed that, if the Court accepts the plea agreement, Conner will be sentenced to between seven and 10 years in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January 17, 2023 at 10:00 a.m.
United States Attorney Erek L. Barron commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney LaRai Everett, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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North Carolina and North Dakota Police Chiefs and Federal Firearms Licensees Indicted for Conspiracy to Illegally Acquire Machineguns and Other FirearmsRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging five defendants with a conspiracy to illegally acquire machineguns and other regulated firearms. Charged in the indictment, which was unsealed yesterday are: Sean Reidpath Sullivan, age 38, of Gambrills, Maryland; Larry Allen Vickers, age 60, of Charlotte, North Carolina; James Christopher Tafoya, age 45, of Albuquerque, New Mexico; Matthew Jeremy Hall, age 53, of Four Oaks, North Carolina; and James Sawyer, age 50, of Ray, North Dakota.
The indictment 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; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation (“FBI”), Baltimore Field Office; Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), Washington, D.C. Field Office; and Inspector General Joseph Y. Cuffari of the Department of Homeland Security Office of Inspector General (“DHS OIG”).
According to the 26-count indictment, Hall and Sawyer were Chiefs of Police in Coats, North Carolina and Ray, North Dakota, respectively. Sullivan was the owner and operator of Trident, LLC, located in Gambrills, Maryland, and was also an Intelligence Analyst with the Department of Homeland Security Investigations. Sullivan and Trident were Federal Firearms Licensees (“FFLs”) and Special Occupational Taxpayers (“SOTs”), which allowed them, in certain circumstances, to possess, import, manufacture, and deal in fully automatic firearms (machineguns) and other regulated firearms. Tafoya and Vickers owned and operated firearms related businesses in New Mexico and North Carolina and were also FFLs and SOTs.
The indictment alleges that, beginning in at least June 2018 through at least March 2021, the defendants conspired to acquire machineguns and/or other restricted firearms, such as short-barreled rifles, by falsely representing that the firearms would be used for demonstration to law enforcement agencies, including the Coats Police Department and the Ray Police Department. The indictment further alleges that Hall, Sawyer, and other conspirators signed law letters with no expectation that the weapons would ever be demonstrated to their respective law enforcement agencies.
The defendants allegedly intended to impermissibly import into the United States and resell the machineguns and other firearms for profit or to keep for their own use and enjoyment. Sullivan allegedly submitted the false law letters to the ATF seeking to import the machineguns and other restricted weapons. Once the firearms were received, Sullivan allegedly kept some of the machineguns and other restricted weapons and transferred some of the weapons to Vickers, Tafoya, and other conspirators.
In addition to the indictment, Larry Vickers pleaded guilty yesterday to participating in the conspiracy to import and obtain machineguns and other restricted firearms and admitted that he received some of the imported machineguns and other weapons. As detailed in his plea agreement, Vickers kept some of the machineguns and other restricted weapons in his personal collection and transferred other machineguns and restricted weapons to other FFLs and third parties. Vickers also pleaded guilty to a conspiracy to violate U.S. sanctions against a foreign firearms manufacturer between July 2014 and March 2021, in the Southern District of Florida.
Vickers faces a maximum sentence of five years in federal prison for conspiracy to violate federal law regulating firearms and a maximum of 20 years in federal prison for conspiracy to violate the International Emergency Economic Powers Act. U.S. District Judge Julie R. Rubin has not yet scheduled sentencing for Vickers.
If convicted, Sullivan, Tafoya, Hall, and Sawyer face a maximum sentence of five years in federal prison for conspiracy to violate federal law regulating firearms and for each count of false statements related to submission of a law letter. Sullivan and Tafoya face a maximum of five years in federal prison for each count of unlawful importation of a firearm and for each count of making a false statement in records maintained by FFLs. Sullivan also faces a maximum of 10 years in federal prison for unlawful possession of unregistered machineguns and 10 years in federal prison for using criminal proceeds to conduct financial transactions. 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. Sullivan and Tafoya have already had an initial appearance U.S. District Court in Baltimore and were released pending trial. Hall and Sawyer are expected to have an initial appearance at a later date.
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 ATF, the FBI, the IRS-CI on behalf of the Alcohol and Tobacco Tax and Trade Bureau and DHS-OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys P. Michael Cunningham and Christine Goo, who are prosecuting the case and recognized Trial Attorneys Menno Goedman and Sean O’Dowd of the Justice Department’s National Security Division and Criminal Division, respectively, for their work on the Vickers guilty plea.
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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U.S. District Court Maryland Enjoins Former Frostburg-Based Dentist from Prescribing Controlled SubstancesRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin today approved the United States’ consent decree with Jordan R. Hobel, formerly a Frostburg-based dentist, resolving the United States’ civil allegations that Hobel violated the Controlled Substances Act (CSA) in illegally prescribing opioids.
The consent decree was announced by Erek L. Barron, United States Attorney for the District of Maryland and Special Agent in Charge Jarod A. Forget of the Drug Enforcement Administration - Washington Field Division.
“Without exception, all prescribers—including dentists—are subject to the CSA.” said U.S. Attorney Erek L. Barron. “As our Office’s recent consent decrees have shown, we intend to hold accountable all medical professionals who contribute to Maryland’s opioid epidemic by overprescribing opioids, regardless of their title or the letters that follow their name.”
“As our nation battles a surge of opioid overdoses and poisonings, it is more important than ever that healthcare providers prescribe medications in a safe and responsible manner. We know that pharmaceutical abuse has led to a worsening of the opioid crisis as people turn to the streets to find pills which we know most often contain a lethal dose of fentanyl,” said Jarod Forget, Special Agent in Charge, DEA Washington Division. We encourage prescribers to remain vigilant and responsive to any signs of controlled substance misuse or diversion, for through our collective efforts, we can create a healthier and safer society for all.”
The Government alleges that, between 2017 and 2021, Hobel, who owned and practiced dentistry at Mountain City Dental in Frostburg, Maryland, issued at least several dozen prescriptions for dangerous controlled substances that had no legitimate medical purpose and fell outside the usual course of professional medical or dental practice.
More specifically, Hobel fraudulently utilized the DEA registration numbers of other dentists in his practice to prescribe himself controlled substances, including oxycodone. Further, Hobel prescribed controlled substances to various friends and family—some who were not his patients—and, for at least some of these prescriptions, Hobel received some of the pills from the intended recipient for his own use. Hobel denies the Government’s allegations.
Under the consent decree, Hobel agrees to not apply for or seek the reinstatement of his DEA registration, which is required for a medical professional to prescribe controlled substances, and which Hobel voluntarily surrendered for cause in 2022.
The Court’s approval of this consent decree should remind all medical practitioners that the Department of Justice intends to use all tools at its disposal—both criminal and civil—to combat the opioid epidemic which continues to plague Maryland and Marylanders.
U.S. Attorney Erek L. Barron commended the DEA’s Office of Diversion Control, Washington Division, Hagerstown Resident Office for its work in the investigation. Mr. Barron also thanked Assistant United States Attorney Alan C. Lazerow, who handled 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.
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Baltimore Man Pleads Guilty to a Scheme to Fraudulently Obtain Almost $18 Million in COVID-19 CARES Act LoansRead the Press Release
Baltimore, Maryland – Ahmed Sary, age 45, of Baltimore, Maryland, pleaded guilty today to conspiracy to commit wire fraud affecting financial institutions, relating to the submission of more than $17.9 million in fraudulent CARES Act loan applications. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski 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.
“Sary will now pay the price for living luxurious from stolen pandemic relief funds that others needed to keep a business open or to keep a roof over their heads,” said United States Attorney Erek L. Barron.
Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program (“PPP”), administered through the Small Business Administration (“SBA”), and SBA-approved lenders. The SBA also offered an Economic Injury Disaster Loan (“EIDL”) and/or an EIDL advance to help businesses meet their financial obligations. An EIDL advance did not have to be repaid, and small businesses could receive an advance, even if they were not approved for an EIDL loan. The maximum advance amount was $10,000.
According to the plea agreement, from April 2020 through January 2022, Sary and his co-conspirators prepared false and fraudulent PPP loan and EIDL applications for a number of borrowers in exchange for a kickback of typically ranging from 20 percent to 30 percent of the loan amount. The fraudulent PPP and EIDL loan applications prepared by Sary, and his co-conspirators grossly inflated the purported businesses’ number of employees, monthly payroll costs, and revenue numbers, including for businesses that didn’t exist in any legitimate capacity
As detailed in the statement of facts, Sary and his co-conspirators filed 85 false and fraudulent PPP loan applications seeking a total of over $14,807,609.37 and 57 false and fraudulent EIDL applications seeking a total of over $3,093,670.50. All the loans were ultimately funded. After the loan funds were received, the recipient would typically provide Sary multiple, sometimes up to seven, checks that were signed by the loan recipient and that listed a payment amount and date but that left the payee name blank. Sary would then write a payee name on each of those checks and deposit them.
In connection with some of the fraudulently obtained PPP loans for purported businesses, Sary also assisted the loan recipients with setting up payroll services with Payroll Processor 1 to make it appear that the fraudulently obtained PPP loan funds were being used for permissible purposes when they, in fact, were not. The payroll services also facilitated the creation of documentation that could be used to substantiate a request for each of the PPP loans to be forgiven.
In addition to the loan kickback fees, Sary received $959,559 in PPP/EIDL funds for purported businesses he controlled, including a purported financial services business, a purported meatpacking business, a purported clothing company and a purported talent agency. In fact, none of these businesses existed in any legitimate capacity. Sary admitted that he used the fraudulently obtained funds to travel to Dubai and Egypt on multiple occasions, to stay at luxury hotels, including the Four Seasons, while there, to purchase property in Egypt and to, among other things, open a beachfront restaurant in Alexandria, Egypt called Sary’s Kitchen.
Sary and the government have agreed that, if the Court accepts the plea agreement, Sary will be sentenced to between 60 months and 114 months in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for 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 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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Oxon Hill Man Sentenced to 12 Years in Federal Prison for Illegal Possession of Two Machineguns and for Possession with Intent to Distribute FentanylRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Jeffrey Wayne Spencer, age 26, of Oxon Hill, Maryland, to 12 years in federal prison, followed by five years of supervised release, for possession with intent to distribute controlled substances, including fentanyl, and for illegal possession of two machineguns.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal and Cyber Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his guilty plea, in October 2021, law enforcement received information that Spencer, known as “Jefe,” was distributing fentanyl and other controlled substances from an apartment in Oxon Hill, Maryland. To corroborate the tip, law enforcement arranged for a confidential source to make two purchases of fentanyl from Spencer at the residence.
On November 4, 2021, law enforcement executed a search warrant for the apartment. Spencer was the only person in the home at the time and was in the process of cutting and packaging fentanyl on the dining room table. On the dining room table, law enforcement seized 128 individual packaged baggies containing 17.7 grams of fentanyl; unpackaged loose white powdery substance in piles, determined to contain 35.95 grams of fentanyl; a money counter; and a black digital scale. On the living room couch in plain view near the dining room table, law enforcement seized a 9mm handgun with a full automatic switch. The firearm had one round of ammunition in the chamber ready to be fired and 49 additional rounds of ammunition inside a drum magazine. On the kitchen counter, law enforcement seized an additional 9mm handgun magazine containing approximately 14 rounds of ammunition.
From a shoebox in the bedroom closet, law enforcement seized a .40 caliber handgun with a full automatic switch. The firearm had one round of ammunition in the chamber ready to be fired and a .40 caliber handgun magazine containing approximately 11 rounds of .40 caliber ammunition. Also located in the shoebox was an extended magazine containing approximately 32 rounds of 9mm ammunition, as well as a tray containing approximately 5 additional rounds of .40 caliber ammunition. From inside a Burberry bag, law enforcement seized a glass jar containing 28 9mm rounds. From inside a green igloo bag, law enforcement seized a heat-sealed bag containing 499.9 grams of fentanyl and a fentanyl analogue and $77.50 in U.S. currency. Law enforcement also seized $7,765 in cash from the bathroom.
An FBI DNA analysis confirmed the presence of Spencer’s DNA on the seized firearms and firearm magazines and Spencer admitted that he possessed the firearms in furtherance of his drug trafficking.
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 and the Prince George’s County Police Department for their work in the investigation and thanked the DEA for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Patrick D. Kibbe and Adam K. Ake, 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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Maryland United States Attorney’s Office Secures Settlement in Case Concerning Disability-Based Discrimination at Multifamily Housing Complexes in MarylandRead the Press Release
Baltimore, Maryland – United States Attorney for the District of Maryland Erek L. Barron and Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division announced today that Maryland-based developer Humphrey Stavrou Associates, Inc. and related entities have agreed to pay $475,000 to settle claims that they violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by failing to build six multi-family housing complexes in Maryland with required accessible features for people with disabilities. As part of the settlement, the defendants also agreed to make extensive retrofits to remove accessibility barriers at the three properties Humphrey Stavrou Associates, Inc. still owns and the three properties Humphrey Stavrou Associates, Inc. sold to third parties.
The Justice Department previously resolved part of its lawsuit, which was filed in September 2022, with Maryland-based developer Stavrou Associates, Inc. and related entities, which agreed to pay $185,000 to settle claims that they failed to build 11 multi-family housing complexes in Maryland with required accessible features. Stavrou Associates, Inc. also agreed to make extensive retrofits to remove accessibility barriers at the complexes. The U.S. District Court for the District of Maryland entered the parties’ settlement, in the form of a consent order, on November 22, 2022.
“Developers who fail to abide by the Fair Housing Act and the Americans with Disabilities Act will be held accountable,” said U.S. Attorney for the District of Maryland Erek L. Barron. “These settlements will help ensure people with disabilities have fair and equal access to their homes by making these housing complexes more accessible.”
“When the retrofits required by these settlements are completed, people with disabilities will have equal access to 1,300 more residential units in Maryland,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains committed to ensuring that apartment complexes are accessible to people with disabilities.”
Humphrey Stavrou Associates, Inc. will deposit a sum of $410,000 in an interest-bearing escrow account to be used to retrofit the three properties it has sold since construction, which are now owned by other entities.
The combined 17 properties at issue in the case were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program and the HOME Investment Partnerships Program, and some of the properties are specifically marketed as housing for seniors.
The settlement with Humphrey Stavrou Associates, Inc., which must still be approved by the Court, also requires the defendants to pay $60,000 into a settlement fund to compensate individuals who were harmed by the inaccessible conditions and $5,000 to the government in civil penalties to vindicate the public interest.
Under the settlement, the defendants will, among other things, replace steeply-sloped walkways, widen doorways, and modify bathrooms so they are accessible for individuals who use wheelchairs. The settlement also requires the defendants to receive training about the FHA and the ADA, to ensure that their future multi-family housing construction complies with these laws and to provide periodic reports to the Justice Department. The six complexes are:
- Pin Oak Village, Bowie, Maryland
- Woodland Creek Apartments (formerly “Henson Creek Manor I and II Apartments”), Fort Washington, Maryland
- Woodside Village Apartments, Fort Washington, Maryland
- Acclaim at Lake Largo (formerly “Largo Center Apartments”), Largo, Maryland
- Randolph Village Senior Apartments, Silver Spring, Maryland
- Vistas at Lake Largo, Upper Marlboro, Maryland
The 11 complexes built by Stavrou Associates, Inc. that are the subject of the previously entered Consent Decree are:
- Villages at Belle Hill, Elkton, Maryland
- Burgess Mill Station I, Ellicott City, Maryland
- Burgess Mill Station II, Ellicott City, Maryland
- River Point Apartments, Essex, Maryland
- Hammarlee House Apartments, Glen Burnie, Maryland
- Overland Gardens, Landover, Maryland
- Rainier Manor Phase II Apartments, Mount Rainier, Maryland
- Chapel Springs Senior Apartments, Perry Hall, Maryland
- Hampshire Village, Silver Spring, Maryland
- Windsor Crossing Family Apartments, Suitland, Maryland
- Windsor Crossing Senior Apartments, Suitland, Maryland
Individuals who believe they or someone they know may have had difficulties because of the inaccessible conditions at any of these properties should send an e-mail to the Justice Department at [email protected] or leave a message at 1-833-591-0291, selecting option 1 for English, selecting option 4 for housing accessibility for persons with disabilities, and selecting option 4 for Stavrou Associates Inc.
The United States Attorney’s Office together with the Justice Department’s Civil Rights Division enforce the FHA, which prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. This law requires that most multifamily housing buildings with four or more units constructed after March 13, 1991, have basic accessible features. Enacted in 1990, the ADA requires that places of public accommodation, such as rental offices at multifamily housing complexes constructed after Jan. 26, 1993, be accessible to persons with disabilities.
U.S. Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke thanked Assistant U.S. Attorney Kimberly S. Phillips of the District of Maryland and Trial Attorneys Beth Pepper and Jennifer McAllister of the Justice Department’s Civil Rights Division, who are handling these cases.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-Maryland and https://www.justice.gov/usao-Maryland/civil-rights.
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Hagerstown Man Pleads Guilty to Making a False Statement on a Loan Application to Obtain COVID-19 FundsRead the Press Release
Baltimore, Maryland – Jeffrey Bearden, age 47, of Hagerstown, Maryland, pleaded guilty today to making a false statement on a loan application relating to the submission of fraudulent CARES Act loan applications. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.
The guilty plea was announced by Erek L. Barron, 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 Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector (“SBA OIG”), Eastern Region.
Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, (“PPP”) administered through the Small Business Administration, through participating financial institutions.
According to his plea agreement, Bearden was the Chief Executive Officer of B&D Consulting Inc., a corporation that provided information technology services, including cybersecurity services. As detailed in the plea agreement, on May 1, 2020, Bearden submitted an application for a $734,609 PPP loan for B&D Consulting. As part of the application, Bearden certified that the loan application and supporting documents for his company, B&D Consulting, were accurate and correct. The $734,609 PPP loan was intended to be used primarily for employee salaries, but at the time of the application, the company had no employees, nor reported paying any earnings and wages for any employee to the Maryland Department of Labor and Licensing (DLLR) in 2020.
According to court documents, on May 18, 2020, the loan was approved and $734,609 was deposited into B&D’s bank account. That same day, the $734.609 was transferred to a different B&D bank account and a total of approximately $69,848.06 was subsequently transferred to Bearden and three other individuals. The next month, $600,000 was transferred to Bearden’s brokerage account and was used to purchase stocks in a variety of publicly traded companies, including one that produced a vaccine for COVID-19. The purchase of stocks is not an approved use of PPP loan funds by the Small Business Administration.
In February 2021, Bearden applied for a second PPP loan in a similar amount, attaching a fraudulent bank statement for B&D Consulting for the month of March 2020 showing the company was paying salaries to at least 19 individuals and that there had been $335,000 in total deposits and $332,017.10 in total withdrawals from the account. In fact, no deposits or withdraws had been made from that account in March 2020 and the account was overdrawn by more than $275. A loan for $734,609 was initially approved but later cancelled after the discovery of the fraudulent March 2020 bank statement and no funds were disbursed.
Bearden faces a maximum sentence of 30 years in federal prison. As part of his guilty plea, Bearden will also be required to pay a money judgment of $734,609 and to forfeit $16,562.15 seized from an investment account during the investigation. U.S. District Judge George L. Russell, III has scheduled sentencing for January 22, 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 HSI and the SBA OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Aaron S.J. Zelinsky, who is prosecuting the federal case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Eastern Shore Man Sentenced to 10 Years in Federal Prison for Coercion and Enticement of a MinorRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander today sentenced Richard Wesley Robinson, age 74, of Cambridge, Maryland, to 10 years in federal prison, followed by 25 years of supervised release, for enticement and coercion of a minor to engage in sexual activity. Judge Hollander also ordered that, upon his release from prison, Robinson must register as a sex offender in the places where he resides, is an employee, and is a student, pursuant to 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 James C. Harris of Homeland Security Investigations (“HSI”) Baltimore.
According to his guilty plea, prior to July 17, 2018, Robinson communicated with a 12-year-old boy, using mobile phones and the internet to arrange a meeting for sexual activity. On July 17, 2018, Robinson met the victim at a park in Easton, Maryland, where Robinson engaged in sexual activity with the child. Robinson used his cellphone to document the sexual abuse of the minor victim.
In July of 2021, the National Center for Missing and Exploited Children (“NCMEC”) received a CyberTip report from Snapchat, reporting that Robinson’s Snapchat account had uploaded suspected child pornography. Law enforcement later executed a search at Robinson’s residence and seized two cellular phones and additional electronic media. Investigators forensically examined the content of the phones seized from Robinson’s residence and reviewed the content of his Snapchat and Gmail accounts after obtaining search and seizure warrants. The sexually explicit images that Robinson produced of the victim on July 17, 2018 were found on both of Robinson’s cell phones. After his abuse of the victim, Robinson sent text messages to others describing his sexual abuse of the boy and used Snapchat to distribute the sexually explicit images he took of the victim to others. In addition to distributing sexually explicit images of the victim to other internet users, Robinson also engaged in sexually explicit communication regarding minors. During these communications, Robinson discussed the sexual abuse of children, including a prepubescent child who was being cared for by another Snapchat user. On June 9, 2021, Robinson received sexually explicit images depicting the sexual abuse of a two-year-old male victim from that Snapchat user. After receiving the images, Robinson asked the Snapchat user about the abuse and encouraged the Snapchat user to “take some pics.”
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 for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney 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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Virginia Man Pleads Guilty to Federal Cyberstalking of Maryland WomanRead the Press Release
Baltimore, Maryland – Michael Ghali, age 35, of Fairfax, Virginia, pleaded guilty today to a federal cyberstalking charge, related to sexually explicit and threatening messages and emails he sent to two victims.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland and Special Agent in Charge Thomas J. Sobocinski 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, as a result of 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 a number of 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.
Ghali faces a mandatory minimum sentence of one year in prison and a maximum of five years in prison for cyberstalking. U.S. District Judge George L. Russell, III has scheduled sentencing for November 28, 2023, at 9:30 a.m. Ghali has been detained since his arrest and remains detained pending sentencing.
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 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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Howard County Man Pleads Guilty to His Role in a Murder-For-Hire ConspiracyRead the Press Release
Baltimore, Maryland – Jourdain Larose, a/k/a “JBlacc,” age 28, of Ellicott City, Maryland, pleaded guilty today to the use and discharge of a firearm during a crime of violence resulting in death, in connection with a murder-for-hire conspiracy. Larose admitted that he solicited others to murder victim Juan Ross in exchange for money and that in the course of the murder-for-hire Larose aided and abetted his co-conspirators who discharged firearms, resulting in the death of Ross.
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; Chief Gregory Der of the Howard County Police Department; and Howard County State’s Attorney Rich Gibson.
According to his plea agreement, Larose accused Juan Ross, age 23, of Columbia, Maryland, of cooperating with law enforcement, including on a live social media conversation on September 9, 2020, and in text message.
As detailed in his plea agreement, Larose provided a gun to a conspirator on September 12, 2020, for the purpose of killing Juan Ross. On October 3, 2020, when the conspirator had not committed the murder yet, Larose solicited co-defendant Tyrik Braxton to commit the murder instead. On that same date, Braxton texted a cell phone number linked to co-defendant Daquante Thomas with the address where Ross could be found.
According to court documents, on October 4, 2020, after text messaging each other about the address where they could find the victim, Braxton, Thomas, and another co-conspirator drove to the area of Basket Ring Court in Columbia to locate Juan Ross, then drove to a drug store nearby, where Braxton got out of the car and left the area. A short time later, Thomas and the co-conspirator returned to Basket Ring Court, shot and killed Juan Ross and drove away together.
Although they denied knowing each other in post arrest statements, investigators linked Larose and Braxton through cellphone records and witness interviews. According to the plea agreement, after Ross’s murder, Braxton texted Larose that he had something important to discuss, and Larose told Braxton to Facetime him. As detailed in the plea agreement, on October 7, 2020, Braxton texted Larose, “It’s going to be hot as sh** out here” to which Larose responded, “It already is bro.”
Larose and the government have agreed that, if the Court accepts the plea, Larose will be sentenced to no more than 40 years in federal prison. U.S. District Judge Julie R. Rubin has scheduled sentencing for Larose on February 27, 2023.
Co-defendant Tyrik Braxton, a/k/a “Son-Son,” age 27, of Baltimore, Maryland, previously pleaded guilty to discharge of a firearm during a crime of violence resulting in death and is expected to be sentenced to between 20 and 25 years in federal prison. No date has been set for his sentencing. On January 11, 2023, Judge Rubin sentenced co-defendant Daquante Thomas, age 21, of Baltimore, to 35 years in federal prison for the same charge. Thomas admitted that he was one of the shooters.
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, the Howard County Police Department, and the Howard County State’s Attorney’s Office for their work in the investigation and prosecution and thanked the FBI, the Maryland State Police, the Anne Arundel County Police Department, the Baltimore County Police Department, and the Baltimore Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorney Kim Y. Hagan, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Felon Sentenced to 33 Months in Federal Prison for Illegal Possession of Two Stolen FirearmsRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Tavion Thomas, age 23, of Baltimore, Maryland, to 33 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition.
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; Commissioner Richard Worley of the Baltimore Police Department; and Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police.
“Removing from the community—by any legal means necessary—those most likely to commit gun violence, guides the accountability arm of our work,” said United States Attorney Erek L. Barron. “As a convicted violent offender, Mr. Thomas knew that he was not allowed to have a gun—if you are caught illegally carrying a gun, you will be held accountable.”
According to his guilty plea, on September 10, 2022, Baltimore Police officers were advised that Tavion Thomas had an open arrest warrant in Baltimore City for a violent crime. Officers went to the 3200 block of Belair Road in Baltimore, an area they knew Thomas was known to frequent, and located Thomas standing with a crowd of people. Thomas was arrested and the backpack he was wearing was searched. From the backpack, officers recovered a 9mm pistol loaded with one 9mm round in the chamber and one magazine containing 14 9mm rounds; a magazine loaded with 10 9mm rounds; eight mason jars containing a total of 1,696 grams of suspected marijuana; four plastic bags containing 28 grams of suspected marijuana; five plastic containers containing 100 grams of suspected marijuana; and one metal grinder with marijuana residue. Officers also searched Thomas and recovered from his waistband a 9mm pistol loaded with one 9mm round in the chamber and a magazine loaded with 10 9mm rounds. Thomas has a previous felony conviction and knew that as a result, he was prohibited from possessing a firearm and ammunition.
Investigation also revealed that the 9mm pistols Thomas possessed were reported stolen from Bel Air, Maryland and from Atlanta, Georgia.
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 Baltimore Police Department and the Maryland State Police for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Michael F. Aubin, 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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Maryland U.S. Attorney's Office Partners with Baltimore Orioles to Elevate Campaign to End Gun Violence to New Heights [Photos]Read the Press Release
Baltimore, Maryland - The Maryland U.S. Attorney’s Office’s video spot aimed at ending gun violence is appearing on Baltimore’s “big screens.” Starting this week, "End Gun Violence" public service announcements will be featured on billboards, kiosks, bus shelters and other digital platforms across the region.
In September, the Maryland U.S. Attorney's Office launched a cutting edge 60 second public service announcement encouraging viewers to take action to end gun violence. The video continues to air across Maryland on digital platforms and will soon return to cable broadcast.
“There is no single solution to ending gun violence,” said Maryland U.S. Attorney Erek L. Barron. “We’ll make an impact with law enforcement working together with communities around prevention, intervention, and accountability.”Maryland is experiencing reduced violent crime than previous years as a result of collaborative efforts between law enforcement and community-based organizations. The Department of Justice's Project Safe Neighborhoods brings together committed groups to balance prevention, intervention, strategic law enforcement, and community engagement in an effort to end gun violence and keep communities safe.
The PSAs appear on outdoor platforms along I-895, I-83, throughout the Inner Harbor, and other places around greater Baltimore. Each includes a scannable code to find more information and learn how to get involved.
“The Baltimore Orioles, in partnership with our media partner, MASN, wholeheartedly support the effort to end gun violence throughout our communities because everyone deserves a safe place to call home,” said Kerry Watson, Executive Vice President, Public Affairs for the Baltimore Orioles. This campaign exposes the grief that impacts families every day and we appreciate the opportunity to be a vehicle for delivering this important message.”
No one should live in fear in their own home or neighborhood. This educational campaign encourages communities to get involved in ending gun violence.
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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Two Defendants, Including One Who Posed as a Lawyer, Convicted for Fraud Related to a Debt Elimination SchemeRead the Press Release
Greenbelt, Maryland – A federal jury returned guilty verdicts yesterday convicting Willie Lamont Hicks, a/k/a “Will Woodward” and “CW,” age 50, of Kansas City, Missouri, and Mary Ann Mendoza, a/k/a “Mary Ann Manuel,” “Trinity,” “M3,” and “Emily James,” age 49, of Gaithersburg, Maryland, on federal charges of wire fraud and conspiracy to commit wire fraud and mail fraud related to a debt elimination and wealth management fraud scheme.
The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Guy Petrillo of the Mid-Atlantic 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 their 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 informed the victim-debtors that they could create or use “trusts” into which they could transfer their assets without transferring any attendant consumer debt, or to obtain return on investment.
The evidence proved that Hicks, Mendoza, and their co-conspirators offered to effectuate the discharge of the debt held by the victims or other purported services for a fee, including a fee equal to 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 liquidating their retirement savings, the leasing of apartments, and the purchase of vehicles and office equipment and supplies. Hicks and Mendoza caused one victim to transfer almost $100,000 from the victim’s bank account to fraudulent corporate entities controlled by the defendants in 2017, including by interstate wire transfer. Trial testimony showed that victim-debtors were induced into providing the defendants with over a million dollars in cash and other forms of payment during the period of the conspiracy.
According to the evidence also presented at trial, Hicks, Mendoza, and their co-conspirators 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 co-conspirators 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.
The defendants each face 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 each of four counts of wire fraud. U.S. District Judge Theodore D. Chuang has scheduled sentencing for defendant Hicks for January 11, 2024, at 9:30 a.m., and for defendant Mendoza for January 12, 2024, at 9:30 a.m.
United States Attorney Erek L. Barron commended the Mid-Atlantic and Central Regions of 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. Attorneys Coreen Mao and G. Michael Morgan, 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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Federal Grand Jury Returns an Indictment Charging Two Anne Arundel County Men for Facilitating a Dog Fighting RingRead the Press Release
Baltimore, Maryland – A federal grand jury returned a 10-count indictment late yesterday charging Frederick Douglass Moorefield, Jr., age 62, of Arnold, Maryland, and Mario Damon Flythe, age 49, of Glen Burnie, Maryland with conspiracy to engage in an animal fighting venture and other charges related to their alleged establishment and promotion of a dog fighting ring.
Flythe and Moorefield are scheduled to have an initial appearance and arraignment on the indictment on Friday, October 6, 2023, at 11:30 a.m. and 2:00 p.m., respectively, in U.S. District Court in Baltimore before U.S. Magistrate Judge A. David Copperthite. The defendants are currently released under the supervision of U.S. Pretrial Services on related charges.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Wayne A. Jacobs of the Federal Bureau of Investigation, Washington Field Office, Criminal and Cyber Division; Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture Office of Inspector General; Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office; Chief Deputy U.S. Marshal for Maryland Mathew Silverman; and Anne Arundel County Police Chief Amal E. Awad.
“The mistreatment of animals for sport is among the lowest level of human conduct,” said Erek L. Barron, U.S. Attorney for the District of Maryland. “Those who engage in this cruelty will be held accountable to the fullest extent of the law.”
According to the indictment, Moorefield and Flythe used encrypted messaging applications to communicate with individuals throughout the United States to discuss dogfighting. Moorefield used the name “Geehad Kennels” and Flythe used the name “Razor Sharp Kennels” to identify their respective dogfighting operations.
As alleged in the indictment, Moorefield, Flythe and their associates used the encrypted messaging applications to discuss dogfights, dogfighting, breeding fighting dogs, training techniques to maximize their chances of developing champion fighting dogs, and methods to avoid being caught by law enforcement, as well as to buy and sell veterinary supplies for use on fighting dogs, arrange and coordinate dogfights, and exchange information about wagers on dogfights.
Further, the indictment alleges that between June 2022 and September 2023, the defendants unlawfully possessed, trained, delivered and received dogs to participate in an animal fighting venture and from February 2019 to September 2023 used the internet and text and instant-messaging applications to promote, manage and facilitate gambling related to the dogfights. The indictment also seeks forfeiture of any proceeds derived from, or traceable to, the gambling enterprise.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
If convicted, the defendants each face a maximum sentence of five years in federal prison for each of the 10 counts charged in the indictment. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Erek L. Barron commended the FBI, the United States Department of Agriculture – Office of the Inspector General, the DoD Office of Inspector General’s Defense Criminal Investigative Service, the U.S. Marshals Service, the Anne Arundel County Police Department, Anne Arundel County Animal Control, and thanked the United States Attorney’s Office for the Eastern District of Virginia for their valuable assistance in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Alexander Levin and Darryl Tarver, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Two Anne Arundel County Men, Including Department of Defense Deputy Chief, Charged with Facilitating Dog Fighting RingRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Frederick Douglass Moorefield, Jr., age 62, of Arnold, Maryland, and Mario Damon Flythe, age 49, of Glen Burnie, Maryland with promoting and furthering animal fighting venture. The criminal complaint was filed on September 21, 2023, and was unsealed at the defendants’ initial appearances on September 28, 2023. At their initial appearance, U.S. Magistrate Judge J. Mark Coulson ordered that the defendants be released pending trial under the supervision of U.S. Pretrial Services.
The criminal complaint was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Wayne A. Jacobs of the Federal Bureau of Investigation, Washington Field Office, Criminal and Cyber Division; Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture Office of Inspector General; Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office; U.S. Marshal for Maryland Johnny Hughes; and Anne Arundel County Police Chief Amal E. Awad.
According to the affidavit filed in support of the complaint, Moorefield, a Deputy Chief Information Officer for Command, Control, and Communications, for Office of the Secretary of Defense, and Flythe used an encrypted messaging application to communicate with individuals throughout the United States to discuss dogfighting. Moorefield used the name “Geehad Kennels” and Flythe used the name “Razor Sharp Kennels” to identify their respective dogfighting operations.
For example, as detailed in the affidavit, Moorefield, Flythe and their associates used the encrypted messaging application to discuss how to train dogs for illegal dogfighting, exchanged videos about dogfighting, and arranged and coordinated dogfights. Moorefield and Flythe also discussed betting on dogfighting, discussed dogs that died as a result of dogfighting, and circulated media reports about dogfighters who had been caught by law enforcement. As further alleged in the affidavit, Moorefield and others also discussed how to conceal their conduct from law enforcement.
On September 6, 2023, law enforcement officers executed search warrants at Moorefield and Flythe’s residences in Maryland. Following the execution of these warrants, twelve dogs were recovered and seized by the federal government. Law enforcement also recovered veterinary steroids, training schedules, a carpet that appeared to be stained with blood, and a weighted dog vest with a patch reading “Geehad Kennels.” In addition, law enforcement officers seized a device consisting of an electrical plug and jumper cables, which the affidavit alleges is consistent with devices used to execute dogs that lose dogfights.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings. If convicted, the defendants each face a maximum sentence of five years in federal prison for possessing, training, or transporting animals for participation in an animal fighting venture. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Erek L. Barron commended the FBI, the United States Department of Agriculture – Office of the Inspector General, the Defense Criminal Investigative Service, the U.S. Marshals Service, the Anne Arundel County Police Department, Anne Arundel County Animal Control, and thanked the United States Attorney’s Office for the Eastern District of Virginia for their valuable assistance in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Alexander Levin and Darryl Tarver, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Stanford University Agrees to Pay $1.9 Million to Resolve Allegations that it Failed to Disclose Foreign Research Support in Federal Grant ProposalsRead the Press Release
Baltimore, Maryland – Stanford University, located in Palo Alto, California, has agreed to pay $1.9 million to resolve allegations that it violated the False Claims Act by submitting proposals for federal research grants that failed to disclose current and pending support that twelve Stanford faculty members were receiving from foreign sources.
The settlement was announced by United States Attorney for the District of Maryland Erek L. Barron and Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division.
The settlement relates to research grants that Stanford received between 2015 and 2020 from five federal agencies: The Departments of the Army, Navy and Air Force, the National Aeronautics and Space Administration (NASA) and the National Science Foundation (NSF). All of these agencies require grant applicants to disclose all current and pending support received by the institution and the principal investigators (PIs) and co-PIs on the grant proposals. Current and pending support is defined as all resources from whatever source — including foreign government sources — that are made available to researchers in support of and/or related to their research endeavors. The United States alleged that on sixteen grant proposals submitted to the Army, Navy, NASA and NSF, Stanford knowingly failed to disclose current and pending foreign funding that eleven Stanford PIs and co-PIs had received or expected to receive in direct support of their research. The United States further alleged that Stanford knowingly failed to disclose to the Army, Air Force and NSF that a Stanford professor received research funding in connection with his employment at Fudan University, a foreign public university and from a foreign government’s national science foundation. In connection with the settlement, Stanford has agreed to work with the NSF Office of the Chief of Research Security Strategy and Policy on best practices in the areas identified by the United States.
“Complete and accurate disclosures by principal investigators and universities of current and pending support are essential to federal agencies that make decisions on awarding federal grants,” said Erek Barron, United States Attorney for the District of Maryland. “Those individuals and universities that knowingly fail to do so skew the grant awarding process in their favor and will be held accountable.”
“Universities and their researchers must disclose all sources of current and pending support, including any foreign support, in federal research grant applications,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to ensure that grant applicants submit complete and truthful disclosures, so the government has full transparency into the applicant’s funding sources.”
“The National Science Foundation awards billions of dollars in grants each year to promote promising scientific research. NSF and other federal funding agencies rely on grant recipients to accurately track the commitments of their personnel and fully disclose all funding sources. Stanford failed to disclose foreign funding in grant proposals submitted to multiple federal agencies. Full and accurate disclosures are essential to protect the interests of American taxpayers and ensure that federal funds are properly awarded to deserving institutions,” said NSF Inspector General Lerner. “We thank the Department of Justice, U.S. Attorney’s Office for the District of Maryland, and our investigative partners for their work in protecting the integrity of federal research.”
“This settlement is a prime example of our agents and partner law enforcement agencies pursuing those who do not disclose foreign government ties when entering into contracts with the U.S. Army,” said Acting Special Agent-in-Charge Michael Curran for the Department of the Army Criminal Investigation Division, Major Procurement Fraud Field Office. “It is imperative that when someone partners with the U.S. Army, they comply with all their obligations.”
“The failure of U.S. universities to disclose current or pending awards with foreign entities on research grant proposals submitted to the U.S. Government as required by law has the potential to threaten government interests,” said Assistant Director Thomas Cannizzo of the NCIS National Security Directorate. “Through the efforts of the National Science Foundation with support from NCIS and additional law enforcement partners, sensitive research funded by the U.S. military was protected from disclosure to foreign interests.”
“Protecting research and development programs funded by taxpayer dollars is a top priority for us,” said Acting Assistant Inspector General for Investigations Michael Graham at the NASA Office of Inspector General (OIG). “The settlement agreement with Stanford University is the result of a joint effort to guard against fraud, waste and abuse in government grants. This case demonstrates the commitment of NASA OIG and our partners to work with the U.S. Attorney’s Office to safeguard public funds.”
“This settlement demonstrates the Office of Procurement Fraud’s determination and commitment to identify and hold accountable those who conceal foreign affiliations to obtain research funding,” said Special Agent in Charge William W. Richards for the Air Force Office of Special Investigations (AFOSI). “AFOSI, along with our law enforcement and prosecutorial partners, will continue to work tirelessly to protect the integrity of the Federal grant process."
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the United States Attorney’s Office for the District of Maryland, with assistance from Army CID, NCIS, AFOSI, NSF OIG, NASA OIG and the Department of Education.
The matter was investigated by Assistant U.S. Attorney Thomas F. Corcoran and by Trial Attorney Sarah E. Loucks of the Civil Division’s Commercial Litigation Branch (Fraud Section).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Stanford University Agrees to Pay $1.9 Million to Resolve Allegations That it Failed to Disclose Foreign Research Support in Federal Grant ProposalsRead the Press Release
Stanford University, located in Palo Alto, California, has agreed to pay $1.9 million to resolve allegations that it violated the False Claims Act by submitting proposals for federal research grants that failed to disclose current and pending support that 12 Stanford faculty members were receiving from foreign sources.
The settlement relates to research grants that Stanford received between 2015 and 2020 from five federal agencies: the Departments of the Army, Navy and Air Force, the National Aeronautics and Space Administration (NASA) and the National Science Foundation (NSF). All of these agencies require grant applicants to disclose all current and pending support received by the institution and the principal investigators (PIs) and co-PIs on the grant proposals. Current and pending support is defined as all resources from whatever source — including foreign government sources — that are made available to researchers in support of and/or related to their research endeavors.
The United States alleged that on 16 grant proposals submitted to the Army, Navy, NASA and NSF, Stanford knowingly failed to disclose current and pending foreign funding that 11 Stanford PIs and co-PIs had received or expected to receive in direct support of their research. The United States further alleged that Stanford knowingly failed to disclose to the Army, Air Force and NSF that a Stanford professor received research funding in connection with his employment at Fudan University, a foreign public university and from a foreign government’s national science foundation. In connection with the settlement, Stanford has agreed to work with the NSF Office of the Chief of Research Security Strategy and Policy on best practices in the areas identified by the United States.
“Universities and their researchers must disclose all sources of current and pending support, including any foreign support, in federal research grant applications,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to ensure that grant applicants submit complete and truthful disclosures, so the government has full transparency into the applicant’s funding sources.”
“Complete and accurate disclosures by principal investigators and universities of current and pending support are essential to federal agencies that make decisions on awarding federal grants,” said U.S. Attorney Erek Barron for the District of Maryland. “Those individuals and universities that knowingly fail to do so skew the grant awarding process in their favor and will be held accountable.”
“The National Science Foundation awards billions of dollars in grants each year to promote promising scientific research. NSF and other federal funding agencies rely on grant recipients to accurately track the commitments of their personnel and fully disclose all funding sources. Stanford failed to disclose foreign funding in grant proposals submitted to multiple federal agencies. Full and accurate disclosures are essential to protect the interests of American taxpayers and ensure that federal funds are properly awarded to deserving institutions,” said NSF Inspector General Allison C. Lerner. “We thank the Department of Justice, U.S. Attorney’s Office for the District of Maryland and our investigative partners for their work in protecting the integrity of federal research.”
“This settlement is a prime example of our agents and partner law enforcement agencies pursuing those who do not disclose foreign government ties when entering into contracts with the U.S. Army,” said Acting Special Agent in Charge Michael Curran of the Department of the Army Criminal Investigation Division, Major Procurement Fraud Field Office. “It is imperative that when someone partners with the U.S. Army, they comply with all their obligations.”
“The failure of U.S. universities to disclose current or pending awards with foreign entities on research grant proposals submitted to the U.S. government as required by law has the potential to threaten government interests,” said Assistant Director Thomas Cannizzo of the Naval Criminal Investigative Service (NCIS) National Security Directorate. “Through the efforts of the National Science Foundation with support from NCIS and additional law enforcement partners, sensitive research funded by the U.S. military was protected from disclosure to foreign interests.”
“Protecting research and development programs funded by taxpayer dollars is a top priority for us,” said Acting Assistant Inspector General for Investigations Michael Graham of the NASA Office of Inspector General (NASA-OIG). “The settlement agreement with Stanford University is the result of a joint effort to guard against fraud, waste and abuse in government grants. This case demonstrates the commitment of NASA-OIG and our partners to work with the U.S. Attorney’s Office to safeguard public funds.”
“This settlement demonstrates the Office of Procurement Fraud’s determination and commitment to identify and hold accountable those who conceal foreign affiliations to obtain research funding,” said Special Agent in Charge William W. Richards of the Air Force Office of Special Investigations (AFOSI). “AFOSI, along with our law enforcement and prosecutorial partners, will continue to work tirelessly to protect the integrity of the federal grant process."
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Maryland, with assistance from Army CID, NCIS, AFOSI, NSF OIG, NASA OIG and the Department of Education.
The matter was investigated by Trial Attorney Sarah E. Loucks of the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorney Thomas F. Corcoran for the District of Maryland.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementMaryland Man Found Guilty on All Counts for Sexual Exploitation of Children to Produce Child Pornography and Related ChargesRead the Press Release
Baltimore, Maryland – A federal jury convicted Gary Rocky Jones, age 42, of Baltimore, on charges of sexual exploitation of a child, use of interstate commerce facility to entice a minor to engage in sexual activity, commission of a felony crime involving a minor by a registered sex offender and possession and distribution of child pornography. The guilty verdict was returned on September 27, 2023, after a three-week trial.
The verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation (FBI), Baltimore Field Office; and Acting Commissioner Richard Worley of the Baltimore Police Department.
Previously convicted sex offender Gary Rocky Jones, was found guilty of 27 counts of sexual exploitation of a child to produce child pornography, 15 counts of use of an interstate commerce facility, specifically, the internet, to entice a minor to engage in illegal sexual activity—relating to 15 minor victims from around the country, and commission of a felony crime involving a minor by a registered sex offender, as well as distribution and possession of child pornography.
According to the evidence presented at trial, between 2014 and August 2015, Jones twice produced images and videos of a minor male engaged in sexually explicit conduct. The victim was age 14 to 15 years old during the exploitation. Additionally, as detailed during the trial, from September 2018 through August 2020, Jones used social media accounts to persuade, entice, and coerce another 15 minor males from several states and ranging in age from eight to 17 years old, to engage in sexually explicit conduct. During these internet-based communications, Jones caused the victims to both produce live-streamed and recorded visual depictions of themselves engaged in sexually explicit conduct, both alone and with others, and send Jones the sexually explicit images and video via the internet. On April 2, 2018, Jones used a social media account to distribute child pornography. Further, Jones possessed child pornography from December 2, 2014 through January 31, 2020, and from May 29, 2017 through July 14, 2020, respectively, in connection with two separate email addresses and related storage accounts. Finally, the jury found that, based on the evidence presented at trial, between 2015 and September 2020, Jones committed felony offenses involving minors while he was required to register as a sex offender under Maryland law.
Jones faces a mandatory minimum sentence of 25 years and a maximum sentence of 50 years in federal prison for each count of sexual exploitation of a child; a mandatory minimum sentence of 10 years and a maximum of life imprisonment for each count of coercion and enticement of a child; a mandatory minimum sentence of 15 years and a maximum of 40 years in federal prison for distribution of child pornography; and a mandatory minimum sentence of 10 years and a maximum of 20 years in federal prison for possession of child pornography. Jones also faces a mandatory consecutive sentence of 10 years in federal prison for commission of a felony crime involving a minor by a registered sex offender. U.S. District Judge George L. Russell, III has not yet scheduled sentencing.
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 Baltimore Police Department for their work in the Jones case, which is being prosecuted by Assistant U.S. Attorneys Paul E. Budlow and Colleen E. McGuinn.
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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Internal Revenue Service Information Technology Supervisor Facing Federal Charges for Extortion and Attempted Witness TamperingRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Satbir Thukral, age 61, of Germantown, Maryland, for interference with commerce by extortion, and attempted witness tampering.
The defendant had an initial appearance on September 29, 2023, in U.S. District Court in Greenbelt before U.S. Magistrate Judge Ajmel A. Quereshi.
The indictment 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 Wayne A. Jacobs of the Federal Bureau of Investigation (FBI) – Washington Field Office; and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration (TIGTA).
“A top criminal priority for the FBI is to investigate public corruption perpetrated against the government and American taxpayers,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office. “Today’s indictment is an example of an important partnership with TIGTA and the work we do every day towards our common goal. The FBI will not relent in our mission to root out corruption and fraud within the government, and to hold those accountable who put greed above their trusted positions.”
TIGTA Special Agent in Charge Andrew McKay said, “Internal Revenue Service employees are placed in a position of trust, and when an employee tries to sell that trust for personal gain, the faith of the American taxpayer falters. The Treasury Inspector General for Tax Administration takes allegations of public corruption very seriously and will ensure that any employees involved in such acts are held accountable. I want to thank our law enforcement partners at the FBI, the U.S. Attorney’s Office, and the Department of Justice Fraud Section for their efforts.”
According to the indictment, Thukral was employed as an information technology manager for the Internal Revenue Service (“IRS”), assigned to an office in Lanham, Maryland. He had a supervisory role in connection with contracts between the IRS and various businesses. Victim 1 was the President of Business 1, which was a professional services firm based outside of Maryland, that conducted business in Maryland. Businesses 2 and 3 had prime contracts with the IRS for the performance of IT services. At various times from approximately September 2018 through February 2021, Business 1 subcontracted with Businesses 2 and 3 to assist in executing the contracts with the IRS.
According to the indictment, in March 2018, Victim 1 provided their resume to Thukral who passed Victim 1’s resume within the IRS, to Business 2, and elsewhere for purposes of facilitating the hiring of Business 1 as a subcontractor on a prime contract with the IRS. The indictment alleges that, beginning in September 2018, Business 1 was hired as a subcontractor by Business 2 to perform services in support of Business 2’s contract with the IRS; at a later point, Business 1 was hired to assist Business 3. Beginning in October 2018, Thukral allegedly demanded that Victim 1 pay him a portion of the earnings on Business 1’s subcontracts, claiming that Thukral enabled Business 1’s employment and telling Victim 1 that there would be consequences if Victim 1 did not pay. From approximately October 2018 through December 2020, Victim 1 allegedly provided such payments to Thukral, totaling at least approximately $120,000. The indictment alleges that Victim 1 made these payments out of fear that Thukral would cause Victim 1 economic and reputational harm if Victim 1 did not pay.
Further, the indictment alleges that, in February 2023, Victim 1 informed Thukral that they had been approached by federal investigators inquiring about cash withdrawals that Victim 1 made from their bank accounts. Thukral allegedly attempted to persuade Victim 1 to deceive the federal investigators about the reason for Victim’s 1 cash withdrawals and about the extortion scheme.
If convicted, Thukral faces a maximum sentence of 20 years’ imprisonment on each count in the indictment. 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.
Members of the public who suspect misconduct such as that described above, or believe they have been the victim of such misconduct, should contact the TIGTA telephone line at 800-366-4484 or visit https://www.tigta.gov/reportcrime-misconduct.
United States Attorney Erek L. Barron and Acting Assistant Attorney General Nicole M. Argentieri commended the FBI and TIGTA for their work in the investigation. Mr. Barron and Ms. Argentieri thanked Assistant U.S. Attorneys Elizabeth Wright and Christopher Sarma and Trial Attorney Matt Kahn from the U.S. Department of Justice, Criminal Division, Fraud Section, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Washington, D.C. Man Sentenced to 30 Years in Federal Prison for Federal Kidnapping and Attempted Witness TamperingRead the Press Release
Greenbelt, Maryland – Judge Paula Xinis today sentenced Kyrie Rashuad Thompson, age 29, formerly of Washington, D.C., to 30 years in prison, followed by 5 years of supervised release for kidnapping and attempted witness tampering.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation.
According to the Court’s findings, on September 22, 2019, the victim drove her car to the residence of Thompson in the District of Columbia to drop off their three-year-old child to Thompson in a prearranged visit. Instead of retrieving their child, Thompson opened the front passenger door and sat down in the victim’s vehicle and ordered her to drive to Bald Eagle Drive in Maryland. After the victim refused, Thompson become angry and threatening. As a result, the victim began driving. Once they crossed into Maryland, the victim pulled into a parking lot in Forest Heights, Maryland, hoping to diffuse the situation. During that time, the victim’s boyfriend called the victim’s cell phone. Thompson answered the call, and told the caller that the victim was going to perform a sex act on him. When Thompson concluded the call, he started choking the victim around her neck with his hands and pulling her head toward the passenger side floorboard, pinning her down so she could not breathe. During this struggle, their three-year-old child was in the backseat of the vehicle crying.
At some point, Thomson stopped choking the victim and ordered her to continue driving to Bald Eagle Drive. They ended up on Bald Eagle Drive, near the entrance to the Oxon Hill Children’s Farm in Prince George’s County, Maryland. There, Thompson pulled out his phone, and ordered the victim to perform a sex act on him. When the victim refused, Thompson choked the victim again and then pushed the victim’s head toward his crotch, holding it there while he used his cellphone to record the sex act. On the recording, their three-year-old child could be heard crying and telling him to stop. After the victim performed the sex act, she drove back toward the District of Columbia, where Thompson took their child out of the car. He threatened the victim not to call the police or something would happen.
On December 18, 2019, a federal grand jury in the District of Maryland returned an indictment charging Thompson with kidnapping. Thereafter, on August 25, 2020, Thompson sent the victim a letter in which he wrote: “I talked to my lawyer and they told me they talked to you. Only thing is you have to change the facts [victim’s name]. You gotta say I didn;t kidnap you. You gotta say nothing happened until we were already in MD. They told me they know you probably think if you don’t go to court it’ll go away like before but its different with federal cases. You gotta call back and say I didn’t kidnap you. Please . . . . Tell them I didn’t force you to go to MD . . . Please call and say I didn’t kidnap you and you willing to tell a jury or judge that at court as well.”
United States Attorney Erek L. Barron commended the FBI for its work in the investigation and thanked the Federal Bureau of Investigation- Washington Field Office and the U.S. Park Police for their assistance. Mr. Barron thanked Assistant U.S. Attorney Leah Grossi, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Prince George's County Man Pleads Guilty to Fraudulently Obtaining Covid-19 Cares Act Paycheck Protection Program LoansRead the Press Release
Baltimore, Maryland – Reginald Alphonso Hopkins, age 52, of Prince George's County, Maryland, pleaded guilty today to the charge of conspiracy to commit wire fraud relating to the submission of fraudulent claims for the Paycheck Protection Program (“PPP”) benefits under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, enacted to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, Hopkins fraudulently obtained $1,007,224 in fraudulent 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.
According to his plea agreement, on June 11, 2020, with direction from Hopkins, a co-conspirator submitted a fraudulent PPP loan application to Bluevine and Celtic Bank for Prestige Executive Transportation, a business owned by Hopkins. The application contained multiple material misrepresentations, including that Prestige Executive Transportation in 2019 had 15 employees and an average monthly payroll of $116,436. In support of the loan application, a fabricated 2019 Internal Revenue Service (IRS) Form 944—Employer’s Annual Federal Tax Return—was submitted, which falsely indicated that the entity’s total payments to all employees in 2019 was $1,397,237.78. Based on the fraudulent submissions, the PPP loan was funded, and approximately $291,090 was distributed. Hopkins agreed to pay the co-conspirator a kickback payment after the PPP loan funds were received, and he provided the co-conspirator a check in the amount $58,000.
On March 14, 2021, the co-conspirator submitted a fraudulent PPP loan application to Cross River Bank for Prestige 24/7 Auto Sales & Services LLC (“Prestige 24/7”), another business owned by Hopkins. The loan application contained multiple material misrepresentations, including that Prestige 24/7 in 2019 had 15 employees and an average monthly payroll of $120,409. In support of the loan application, a fabricated 2019 IRS Form 940—Employer's Annual Federal Unemployment—was submitted, which falsely indicated that the entity’s total payments to all employees in 2019 was $1,444,902.60. Based on the fraudulent submissions made on behalf of Hopkins as the owner of Prestige 24/7, the PPP loan was funded on March 23, 2021, and approximately $294,771 was disbursed to Hopkins.
On March 23, 2021, the co-conspirator, with direction from Hopkins, submitted a fraudulent PPP loan application to Cross River Bank for Prestige Assisted Living Inc. (“Prestige Assisted Living”), another business owned by Hopkins. The PPP loan application contained multiple material misrepresentations, including that Prestige Assisted Living in 2019 had 24 employees and an average monthly payroll of $168,545. In support of the loan application, a fabricated 2019 IRS Form 940 was submitted, which falsely indicated that the entity in 2019 paid $2,022,544.12 in wages to all employees. Prestige Assisted Living did not even obtain a license to operate as an assisted living facility until December 18, 2020. It was authorized to have four beds. Moreover, even after it obtained its license, Prestige Assisted Living never paid wages to any employee. The PPP loan application also included a fabricated February 2020 Wells Fargo Bank account statement for Prestige Assisted Living. The actual beginning balance on the Wells Fargo Bank statement was negative $3.50, not $123,538.50 as shown on the purported bank statement submitted to Cross River Bank. Likewise, the actual ending balance on the Wells Fargo Bank statement was negative $17.50, not $123,475.77 as shown on the purported February 2020 statement submitted to Cross River Bank. Based on the fraudulent submissions the PPP loan was funded, and approximately $421,363 was distributed to Hopkins. Hopkins again paid the co-conspirator kickback payments for his work, totaling $44,000.
Hopkins spent the fraudulently obtained loan proceeds in various ways, including by paying $177,000 in kickbacks to the co-conspirator, providing PPP funds to various friends, family members and associates for purposes unrelated to employment, 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. He planned to seek and obtain a fraudulent PPP loan for this entity as well.
On March 19, 2021, another fraudulent PPP loan application was submitted to Cross River Bank for Prestige Executive Protection Services, LLC, another business owned by Hopkins, seeking a loan in the amount of $250,723. This application falsely claimed, among other things, that the business had $100,289 in average monthly payroll. It also included a fabricated 2019 IRS Form 940, which stated that total payments to all employees in 2019 were $1,203,471.52. The loan was ultimately declined.
In addition to obtaining the PPP loans discussed above, Hopkins also conspired with the co-conspirator to obtain PPP loans for various other purported businesses, including Prestige Paradise Promotions, LLC, Prestige Executive Protection Services II, LLC, Prestige Real Estate & Development, LLC, and B&G Auto Repair LLC, as noted above. Hopkins repeatedly sought the co-conspirator’s assistance in obtaining PPP loans for these entities, but the loans never closed.
Hopkins also caused to be submitted numerous fraudulent EIDL applications. The EIDL program was another program administered by the U.S. Small Business Administration (“SBA”) designed to provide relief funds to small businesses impacted by COVID-19.
On April 1, 2020, an EIDL application was submitted for Prestige Executive Transportation. The application falsely claimed that the business had five employees, 2019 gross revenues of $250 million, and cost of goods sold of $100 million. This equated to a requested loan amount of $2 million. This loan was ultimately declined; however, Hopkins received a EIDL Advance of $5,000.
Likewise, on April 2, 2020, an EIDL application for Prestige Executive Protection Services II was submitted to the SBA. Financial information supplied on the application stated that Prestige Executive Protection had gross revenues of $200,000 and a monthly revenue of $16,666.66, which equated to a requested loan amount of $100,000. This loan was also declined; however, Hopkins received an EIDL Advance of $4,000.
On July 1, 2020, an EIDL application was submitted for Prestige 24/7. It falsely claimed that the business had gross revenues of $700,000 and cost of goods sold of $650,000. The loan was ultimately declined.
If the party’s plea agreement is accepted by the Court, Hopkins will be sentenced to between 18 months and 41 months of imprisonment. U.S. District Judge Richard D. Bennett has scheduled sentencing for January 10, 2024, at 2:30 p.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 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 is prosecuting 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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Maryland Man Sentenced to 24 Months in Federal Prison for Federal Firearms ChargesRead the Press Release
Baltimore, Maryland – Judge James K. Bredar yesterday sentenced Elias Nick Costianes, age 44, formerly of Nottingham, Maryland, to 24 months in prison, followed by two years of supervised release, after Costianes’s plea of guilty to possession of firearms and ammunition by an unlawful user of any controlled substance.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, on February 12, 2021, the FBI executed search warrants for Costianes’s residence, his vehicle, and his cellphone. Costianes was taken into custody pursuant to an arrest warrant issued by the U.S. District Court for the District of Columbia. Costianes was advised of his Miranda rights and voluntarily agreed to be interviewed. Costianes told agents that he kept four firearms in cases in the basement. Law enforcement searched the basement and recovered the four firearms described by Costianes: a 9mm pistol; a M&P 15 semi-automatic rifle; a .223 caliber semi-automatic rifle; and a 12-gauge shotgun, as well as thousands of rounds of ammunition, including 9mm, .22 caliber, .223 caliber, and shotgun cartridges. A box containing 100 rounds of 9mm ammunition was also found in the trunk of Costianes’ vehicle. Two of the firearms were semiautomatic and capable of accepting a large-capacity magazine.
As detailed in his plea agreement, during the search, law enforcement also recovered marijuana and four vials containing either testosterone enanthate or testosterone cypionate, both controlled substances. The electronic evidence from Costianes’ phone, including photographs and text message conversations, revealed that Costianes illegally used cocaine, testosterone, and marijuana and that his use of each substance was consistent, prolonged, and recent. Costianes further admitted that he not only purchased cocaine and testosterone for personal use, but that he also conspired to distribute, and did distribute, cocaine and testosterone to others.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Jeffrey J. Izant and P. Michael Cunningham, who prosecuted the federal case. Mr. Barron also thanked Paralegals Andrew Branigan, and Mark Phares, and Intelligence Research Specialist Angelina Thompson for their assistance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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MS-13 Gang Member Sentenced to Life in Prison for Racketeering Conspiracy, Including MurderRead the Press Release
A Maryland man was sentenced today to life in prison for racketeering and murder in aid of racketeering conspiracies, for committing murder in aid of racketeering, and for conspiracy to destroy and conceal evidence in connection with his participation in La Mara Salvatrucha (MS-13), a transnational criminal enterprise.
According to court documents, on March 8, 2019, Jose Rafael Ortega-Ayala, aka Impaciente, 30, of Greenbelt, along with Jose Henry Hernandez-Garcia, Victim 1, and other MS-13 members, participated in a Los Ghettos Criminales Salvatruchas (LGCS) clique meeting, where gang matters – including recent contacts that Victim 1 had with the police – were discussed. During the meeting, Jose Domingo Ordonez-Zometa, the leader of LGCS, questioned Victim 1 about his/her cooperation with police. During the questioning, Ortega-Ayala and at least one other MS-13 member assaulted Victim 1, based on their incorrect suspicions that Victim 1 was cooperating with law enforcement. They also assaulted another MS-13 member who attempted to defend Victim 1. The assault culminated with Ordonez-Zometa, as LGCS clique leader, ordering that Victim 1 be killed. Ortega-Ayala, Hernandez-Garcia, and other MS-13 members then stabbed and murdered Victim 1 in Ordonez-Zometa’s basement.
After the murder, Ordonez-Zometa ordered Ortega-Ayala, Hernandez-Garcia, and other LGCS clique members and co-conspirators, to conceal and destroy evidence of the murder. Ortega-Ayala and other MS-13 members transported Victim 1’s body to a secluded location in Stafford County, Virginia, set the body on fire, then destroyed and concealed evidence of the murder from the vehicle used to transport the victim. Meanwhile, Ordonez-Zometa, Hernandez-Garcia, and another MS-13 member stayed at the crime scene and attempted to remove, destroy, and conceal evidence of the murder, including the blood of Victim 1.
On March 6, Ordonez-Zometa was sentenced to life in prison. On Aug. 4, Hernandez-Garcia was also sentenced to life in prison.
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, and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI, Department of Homeland Security, and state and local law enforcement partners investigated the case.
Trial Attorneys Jared Engelking and Matthew Hoff of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Michael Morgan for the District of Maryland prosecuted the case.
MS-13 Gang Member Sentenced to Life 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 Jose Rafael Ortega-Ayala, a/k/a “Impaciente,” age 30, of Greenbelt, Maryland, to life in federal prison for racketeering and murder in aid of racketeering conspiracies, for committing murder in aid of racketeering, and for conspiracy to destroy and conceal evidence connected to his participation in La Mara Salvatrucha, a transnational criminal enterprise also known as MS-13. The charges related to the murder of a victim believed to be cooperating with law enforcement and the subsequent cover-up of the murder. Ortega-Ayala was convicted on December 16, 2022, after a two-week trial, along with co-defendants Jose Domingo Ordonez-Zometa, a/k/a “Felon,” age 33, of Landover Hills, Maryland and Jose Henry Hernandez-Garcia, a/k/a “Paciente,” age 29, of Annandale, Virginia.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Assistant Attorney Nicole M. Argentieri of the Justice Department's Criminal Division; the Federal Bureau of Investigation – Washington Field Office Criminal and Cyber Division; Special Agent in Charge James C. Harris of Homeland Security Investigations, Baltimore Field Office; Chief Kevin Davis of the Fairfax County Police Department; Stafford County Sheriff David P. Decatur; and Chief Malik Aziz of the Prince George’s County Police Department.
According to evidence presented at trial, 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. Ortega-Ayala and his co-defendants were members and associates of the Los Ghettos Criminales Salvatruchas (“LGCS” or “Ghettos”) 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.
Also outlined during trial evidence was the fact that Ordonez-Zometa, the leader of the LGCS clique. On March 8, 2019, Ordonez-Zometa called a meeting of the LGCS clique at his house to discuss gang matters, including recent contacts that a clique member (Victim 1) had with the police. Ortega-Ayala, Hernandez-Garcia, Victim 1, and other MS-13 members participated in the meeting, during which Ordonez-Zometa questioned Victim 1 about his/her cooperation with police.
During the questioning, Ortega-Ayala and at least one other MS-13 member assaulted Victim 1, based on their incorrect suspicions that Victim 1 was cooperating with law enforcement. They also assaulted another MS-13 member who attempted to defend Victim 1. The assault culminated with Ordonez-Zometa, as LGCS clique leader, ordering that Victim 1 be killed. Ortega-Ayala, Hernandez-Garcia, and other MS-13 members then stabbed and murdered Victim 1 in Ordonez-Zometa’s basement.
According to trial testimony, after the murder, Ordonez-Zometa ordered Ortega-Ayala, Hernandez-Garcia, and other LGCS clique members and co-conspirators, to conceal and destroy evidence of the murder. Ortega-Ayala and other MS-13 members transported the body of the victim to a secluded location in Stafford County, Virginia, and set the victim’s body on fire, then destroyed and concealed evidence of the murder from the vehicle used to transport the victim. Meanwhile, Ordonez-Zometa, Hernandez-Garcia, and another MS-13 member stayed at the crime scene and attempted to remove, destroy, and conceal evidence of the murder, including the blood of Victim 1.
Ordonez-Zometa and Hernandez-Garcia were previously sentenced to life in federal prison.
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.
This case is also 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.
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.
United States Attorney Erek L. Barron and Acting Assistant Attorney General Nicole M. Argentieri commended the FBI, HSI, the Fairfax County Police Department, the Stafford County Sheriff's Office, and the Prince George's County Police Department for their work in the investigation and thanked the Prince George’s County State’s Attorney’s Office for its assistance. Mr. Barron and Ms. Argentieri thanked Assistant U.S. Attorney Michael Morgan and Trial Attorneys Jared Engelking and Matthew Hoff of the Justice Department’s Criminal Division, Violent Crime and Racketeering Section, who are prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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