District of Maryland
Press releases recorded for this federal judicial district.
U.S. Attorney’s Office Highlights Prosecutions This Week Removing from Our Communities Criminals Who Are Using GunsRead the Press Release
Baltimore and Greenbelt, Maryland – Seven defendants pleaded guilty or were sentenced this week in cases involving the illegal possession of firearms or ammunition. The charges included illegal possession of firearms or ammunition, possession of a firearm in a school zone, and drug distribution cases where firearms were seized.
Prosecutors are using all available resources and any legal means necessary to investigate and prosecute repeat violent offenders—specifically for any wrongdoing that meets office priorities, especially pandemic-related fraud, and utilizing a federal school zone statute that makes it a crime to possess a gun within 1000 feet of a school. As a result, homicides in Baltimore are down approximately 23% and nonfatal shootings are down approximately 6.5%; homicides and non-fatal shootings are also down in Prince George’s County.
The sentences and guilty pleas were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Acting Commissioner Richard Worley of the Baltimore Police Department; Chief Robert McCullough of the Baltimore County Police Department; and Chief Malik Aziz of the Prince George’s County Police Department.
“Removing from our communities those violent individuals who use guns is one of the top priorities of my office,” said United States Attorney Erek L. Barron. “Working collaboratively with federal, state and local partners to implement innovative programs to reduce violent crime and using all the tools we have available, we are making progress in our fight to reduce homicides and non-fatal shootings across the state.”
“All throughout Maryland, there are criminals who are determined to carry and possess firearms, regardless of where they are or the threat it poses to the people around them,” said ATF Baltimore Special Agent in Charge Toni M. Crosby. “Some are sitting by elementary schools or standing on the corner dealing drugs with a gun right by their side. Others are convicted felons driving around with guns or keeping guns and drugs in their homes. That same level of determination they feel to do the wrong thing is matched only by the level of determination ATF and our law enforcement partners have every day to investigate and incarcerate them. The law-abiding citizens of Maryland deserve to feel safe in their communities and it is our mission to ensure we take offenders off the street who keep that from happening.”
At a press conference on August 24, 2022, U.S. Attorney Barron announced several new programs, including a new Violent and Organized Crime Section, expanded collaboration between federal, state, and local law enforcement, state funds supported the hiring of additional Special Assistant U.S. Attorneys, whose sole focus has been on violent crime, along with investigators, and other legal support personnel.
In addition, the U.S. Attorney’s Office is continuing to sponsor and participate in reentry events for returning citizens, as well as call-ins for those at risk of re-offending, in order to connect them with services and assistance to assure their best chance for success. We are also engaging community members and youth through monthly community walks, school outreach, and gang and internet safety training.
Illegal Possession of a Firearm or Ammunition
Three defendants were sentenced for illegal possession of a firearm or ammunition and a fourth defendant pleaded guilty to that charge after law enforcement recovered loaded firearms from the defendants, including two privately made firearms, commonly known as “ghost guns,” and an AR-15 pistol.
U.S. District Judge Richard D. Bennett sentenced Marcus Pitts, age 27, of Baltimore to 46 months in federal prison, followed by three years of supervised release, for being a felon in possession of ammunition. Pitts was arrested after law enforcement saw him engage in suspected hand-to-hand drug transactions. Law enforcement recovered a 9mm ghost gun, loaded with seven rounds of ammunition and two orange prescription bottles, one containing 27 amphetamine pills and the other containing 13 alprazolam pills, as well as $426 in cash.
U.S. District Judge Paula Xinis sentenced Darius Linwood Ashby, age 36 of Capitol Heights, Maryland, to two years of home detention with electronic monitoring, followed by three years of supervised release for being a felon in possession of a firearm. Ashby was also ordered to perform 50 hours of community service. Ashby was arrested after officers performed a traffic stop and recovered a .45-caliber pistol on the driver’s seat where Ashby had been seated before being removed from the vehicle. The gun was loaded with eight rounds of .45-caliber ammunition, including one round in the chamber. Officers recovered a .45-caliber magazine and additional ammunition from Ashby’s pants pockets. The firearm was found to have been stolen on July 4, 2020 from North Carolina.
U.S. District Judge Deborah K. Chasanow sentenced Darrien Ledante Taylor, age 39, of Capitol Heights, to four years in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition and for possession with intent to distribute controlled substances. Taylor was arrested after a search warrant executed at his home recovered a 9mm handgun loaded with 13 rounds of 9mm ammunition and approximately 24 rounds of ammunition loaded in an extended magazine; an AR-15 pistol with no serial number and with an extended magazine loaded with 39 rounds of 5.56xc45mm caliber ammunition; approximately 78 rounds of ammunition of various calibers; and two baggies with 50 pills inside, which laboratory analysis concluded contained fentanyl. Officers also recovered 13 plastic vials containing approximately 1.6 fluid ounces of phencyclidine, commonly known as PCP, from the driver-side door pocket of Taylor’s vehicle. Taylor admitted that he possessed the fentanyl and PCP with the intent to distribute the drugs and that he possessed the firearm in furtherance of his drug trafficking.
Brandon Ford, age 33, of Baltimore, was pulled over by Baltimore County Police officers after he drove by them without headlights at 2:00 a.m. on April 3, 2021. After failing several field sobriety tests, Ford was arrested and his vehicle was searched. Officers recovered a .357 caliber ghost gun, loaded with 14 rounds of .357 caliber ammunition from the vehicle console. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for Ford on January 4, 2024, at 11:00 a.m.
All four defendants admitted that they knew they had been convicted of a felony and were prohibited from possessing firearms or ammunition. Pitts was prosecuted by Assistant U.S. Attorney Jacob Gordin; Ashby was prosecuted by Assistant U.S. Attorney Leah B. Grossi; Taylor was prosecuted by Assistant U.S. Attorney Patrick D. Kibbe and Ford is being prosecuted by Assistant U.S. Attorney Patricia C. McLane
Possession of a Firearm in a School Zone
U.S. District Judge Richard D. Bennett sentenced Gerald Dean, age 31, of Baltimore, to 30 months in federal prison, followed by six months of home detention as part of three years of supervised release, for possession of a firearm in a school zone. As detailed in his plea agreement, law enforcement was called to Mosher and Ashburton Streets, where they found Dean sleeping in his car with the lights on and the motor running, within 1,000 feet of the Katherine Johnson Global Academy (formerly Calverton Elementary/Middle School). Dean eventually woke up and was secured by the officers. A subsequent search recovered a .380 caliber pistol loaded with eight rounds of ammunition from Dean’s vehicle and recovered eight small green containers of crack cocaine, four small black containers of heroin, 16 methamphetamine pills and a sublingual strip from Dean’s person. Dean admitted that he knew or had reasonable cause to believe that he was in a school zone at the time he possessed the firearm. This case is being prosecuted by Assistant U.S. Attorney Jonathan S. Tsuei.
Possession with Intent to Distribute Controlled Substances
One defendant was sentenced for possession with intent to distribute controlled substances and a second defendant pleaded guilty to that charge.
Kevin Corbett, age 32, of Baltimore, pleaded guilty to possession with intent to distribute heroin, fentanyl and cocaine. An officer observing a surveillance camera in the 600 block of Poplar Grove Street in Baltimore for suspected drug activity saw Corbett engage in several suspected hand-to-hand drug transactions. The full outline of a firearm was clearly visible in Corbett’s right jacket pocket. Officers arrived at that location, arrested Corbett and recovered a .9mm handgun loaded with eight rounds of ammunition, including one in the chamber, from Corbett’s jacket pocket. Officers also recovered from Corbett 144 gel capsules containing a mixture of heroin and Para-fluorobutyryl fentanyl and 43 flip-top jugs of cocaine. Corbett admitted to possessing the firearm, which he must forfeit as part of his plea agreement. U.S. District Judge Lydia K. Griggsby set Corbett’s sentencing for October 17, 2023, at 2:00 p.m. Corbett is being prosecuted by Special Assistant U.S. Attorney Keelan F. Diana and Assistant U.S. Attorney Clinton J. Fuchs.
Chief U.S. District Judge James K. Bredar sentenced Alonta Johnson, age 30 or Baltimore, to 138 months in prison, followed by three years of supervised release, for possession with intent to distribute controlled substances, specifically cocaine and buprenorphine. Officers attempted to conduct a traffic stop on a vehicle, but the driver, later identified as Johnson, fled, repeatedly opening the driver’s side door while the car was in motion. Johnson crashed into a parked vehicle and ran away, pursued by officers. As detailed in his plea agreement, Johnson dropped a handgun while running from the scene and was arrested a short time later. Officers recovered three clear baggies of a white rock-like substance on the ground next to Johnson, which were determined to be cocaine. Law enforcement also recovered seven pink containers of a white rock-like substance, 32 suboxone strips, and a digital scale, among other items. The firearm Johnson dropped was recovered and was determined to be a .22 caliber semi-automatic pistol loaded with eight rounds of .22 caliber ammunition. Johnson knew that he was prohibited from possessing a firearm or ammunition due to previous felony convictions. As part of his plea agreement, Johnson is required to forfeit the firearm and ammunition. In addition, Chief Judge Bredar ordered that Johnson serve his federal sentence concurrent to the 30 year state sentence he is currently serving. Johnson was prosecuted by Assistant U.S. Attorney Jonathan S. Tsuei.
These cases are part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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, the Baltimore County Police Department, and the Prince George’s County Police Department for their work in these investigations and thanked the Assistant U.S. Attorneys and the Special Assistant U.S. Attorney who are prosecuting the cases.
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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Owings Mills Man Sentenced to Three Years in Federal Prison for a Fraudulent Gift Card SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Yong Chen, age 34, of Owings Mills, Maryland, yesterday to three years in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud related to a fraudulent gift card scheme resulting in $561,000 in losses to more than 10 victims. Chen was also ordered to pay restitution of $169,950.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police; and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration (“TIGTA”) Mid-Atlantic Field Division.
According to Chen’s plea agreement, Chen managed a scheme to fraudulently obtain gift cards from retail stores, which he and his co-conspirators used to purchase high-end electronics, including cell phones, iPads, and laptop computers. For example, victim R.E.S., a resident of Hampstead, Maryland, responded to an email claiming that a technical support service contract would automatically renew unless the victim cancelled the service by calling the number listed in the email. R.E.S had never subscribed to such a service, but he called the phone number to make sure it would not be renewed.
As detailed in the plea agreement, the man who answered the call had a heavy accent that R.E.S could not understand, so he gave the phone to his daughter. The man identified himself as “Brian,” and explained that R.E.S was entitled to a $300 refund. If the daughter would download a computer application which would give “Brian” temporary control over the computer, he would directly deposit the $300 into R.E.S.’s bank account. After the daughter downloaded the application and opened her father’s bank account, the daughter typed $300 as “Brian” had instructed, but the amount somehow appeared as a $3,000 deposit into R.E.S’s bank account.
To fix the purported overpayment, “Brian” asked the daughter to go to a Target store to buy Target gift cards to reimburse him. After unsuccessfully using credit cards to buy gift cards at Target and Best Buy (R.E.S’s bank would not authorize the transactions), the daughter cashed a check at her father’s bank, then used the cash to buy five $500 Target gift cards for a total of $2500. The daughter then gave “Brian” the gift card numbers and access codes printed on the back of each gift card. To make up for the remaining balance of $100 still allegedly owed to “Brian,” the daughter purchased an Amazon gift card. Using the application again, “Brian” accessed her computer, obtained the Amazon gift card number from her email, then deleted all traces of the email from her email account.
The next day, R.E.S. met with a customer service representative at his bank and learned that he had been defrauded, because “Brian” had never actually deposited money into his bank account. Instead, using the downloaded computer application to access his bank account, “Brian” had transferred money from R.E.S’s credit card account into his checking account, thereby setting up the withdrawal of cash to pay for the gift cards. The fraudulent scheme was reported to the Maryland State Police Computer Crimes Unit (“MSPCCU”), which initiated an investigation.
As detailed in the plea agreement, transactional records and video footage from Target revealed that the five gift card numbers and access codes purchase by R.E.S. were used that same day at three different Target stores in two different states. For example, less than an hour later, Young Chen used two of the cards to purchase two Apple watches at the Target store in Owings Mills. At the same time, co-conspirator Bin Tang was using the numbers of the other three gift cards to purchase Apple watches at a Target store in Dumfries, Virginia and later at a different store in Glen Allen, Virginia. Target security personnel discovered that they had more video footage of Chen at the Owings Mills store using different gift cards on February 12, 2020 to purchase two iPads and other Apple products and an attempted purchase of similar products on February 14, 2020.
A search warrant was executed at Chen’s house in Owings Mills, Maryland on March 3, 2020. Law enforcement recovered four boxes containing new high-end electronics, including dozens of iPad tablets and Apple watches that were purchased with proceeds of the fraud scheme. A notebook that served as a ledger for the gift card scheme was found in Chen’s bedroom and contained the dates that gift cards were fraudulently obtained and how they were redeemed, including the names of the people Chen and co-defendant Bin Tang paid to use the cards. The purchased electronics were intended to be sold to foreign buyers. The notebook also listed the projected profit for each product purchased. Cell phones belonging to Chen and Tang were seized and subsequently searched, revealing messages on a Chinese messaging platform among Chen, Tang and Liang Liang Zeng discussing the scheme.
According to his plea agreement, Chen used the message platform to acquire the stolen gift card numbers and access codes, and then shared that information with others involved in the scheme. He regularly purchased the stolen gift card numbers through his bank account in China at a price that is about 20% less than the value preloaded on the cards, so a $100 gift card cost him $80. Chen said that the stolen gift card numbers he purchased had to be redeemed that same day, sometimes within hours, before the cards got canceled. Chen also provided his buyers, also referred to as “runners,” with Target employee numbers (Target Team Member Numbers) to display at the cash register to get a ten percent employee discount, which increased the scheme’s profit margin. He and the “runners” he hired would go to multiple stores during the same day, sometimes in different states, because Target might limit the amount of purchases. Each runner was told what type of product to buy with the numbers based on a price list Chen and Tang received from potential buyers overseas. The messages also showed that the runners shared information with Chen and Tang throughout the day about the remaining balances on their cards and any trouble they were having redeeming them. At the end of the day, the runners brought the receipts and the products to Chen’s house, where products were boxed and labeled for shipment overseas.
According to the plea agreement, dozens of victims in many different states were defrauded and the cards purchased by the victims were primarily redeemed in the mid-Atlantic region to illegally purchase approximately $561,000 of Target products.
Co-defendants Liang Liang Zeng, age 58, a Chinese national residing in Staten Island, New York, and Wen Fu Zeng, age 55, of Brooklyn, New York were sentenced to 54 months in federal prison and to 10 months in prison, respectively, for their roles in the fraud scheme. Both defendants were also ordered to pay restitution of $145,228 and L. Zeng was ordered to forfeit $43,633. Bin Tang, age 33, is a fugitive.
United States Attorney Erek L. Barron praised the Maryland State Police and TIGTA for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Martin J. Clarke, 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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Virginia Man Sentenced to Federal Prison for Conspiring to Violate Iranian SanctionsRead the Press Release
Behrouz Mokhtari, 72, of McLean, Virginia, was sentenced today to 41 months in prison followed by three years of supervised release for violating U.S. sanctions against Iran by conspiring to engage in prohibited business activities on behalf of persons and entities in Iran. In addition, Mokhtari was ordered to forfeit approximately $2,862,598 in proceeds derived from his criminal activity as well as a residence he purchased in Campbell, California, for over $1.5 million using such proceeds.
Mokhtari pleaded guilty earlier this year in the District of Maryland to two counts of conspiracy to violate the International Emergency Economics Power ACT (IEEPA). According to court documents, Mokhtari engaged in a conspiracy lasting from at least March 2018 until at least September 2020 in which he conducted numerous business activities on behalf of Iranian entities without first obtaining the required licenses from the Office of Foreign Assets Control (OFAC). In a separate conspiracy lasting from about February 2013 until at least June 2017, Mokhtari and a number of Iranian nationals agreed to conduct illicit shipments of petrochemical products to and from Iran, utilizing his front company, East & West Shipping Inc., in Panama to do so.
Mokhtari held management positions and/or maintained ownership control of numerous businesses in Iran and the United Arab Emirates (UAE), collectively referred to as “the FSR Network.” Using the FSR Network, he and his co-conspirators illegally provided services to Iranian entities such as the refinement and transport of petrochemical products. Mokhtari and his co-conspirators used FSR Network bank accounts in the UAE, including Bitubiz FZE, to process these U.S. dollar transactions.
Mokhtari admitted that he knew that, as a U.S. citizen, engaging in business with Iranian entities without first obtaining a license or permission from OFAC is prohibited. He further knew that it was illegal to engage in transactions intended to evade Iranian sanctions, or to engage in transactions related to goods and services of Iranian origin or export.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Erek L. Barron for the District of Maryland and Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office made the announcement.
The FBI investigated the case.
Assistant U.S. Attorneys Kathleen O. Gavin for the District of Maryland prosecuted the case, with valuable assistance provided by the National Security Division’s Counterintelligence and Export Control Section.
Virginia Man Sentenced to Federal Prison for Conspiring to Violate Iranian SanctionsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Lydia K. Griggsby today sentenced Behrouz Mokhtari, age 72, of McLean, Virginia and Tehran, Iran, a native of Iran and a naturalized citizen of the United States, to 41 months in federal prison, followed by three years of supervised release, for violating U.S. sanctions against Iran by conspiring to engage in prohibited business activities on behalf of persons and entities in Iran. Judge Griggsby also ordered Mokhtari to forfeit approximately $2,862,598 in proceeds derived from his criminal activity as well as a residence he purchased in Campbell, California for over $1.5 million, using such proceeds. Mokhtari pleaded guilty earlier this year to two counts of conspiracy to violate the International Emergency Economics Power ACT (“IEEPA”).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
“This defendant knew that he was prohibited from engaging in business with Iran, but did so anyway and attempted to conceal his actions through his control of businesses and financial entities in Iran and the United Arab Emirates,” said United States Attorney Erek L. Barron. “Now, he will not only serve time in federal prison, he will forfeit cash and property purchased with his ill-gotten proceeds.”
According to his guilty plea, in one conspiracy that lasted from at least March 2018 until at least September 2020, Mokhtari agreed with his co-defendant and others to evade Iranian sanctions by engaging in business activities on behalf of Iranian entities without first obtaining the required licenses from the Office of Foreign Assets Control (“OFAC”).
Mokhtari held management positions and/or maintained ownership control of multiple businesses in Iran and the United Arab Emirates (“UAE”), referred to collectively as “the FSR Network.” Mokhtari and his co-conspirators used the FSR Network to provide services to Iranian entities and engage in transactions involving Iranian petrochemical products, including refining petrochemical products and transporting them by sea. Mokhtari and his co-conspirators used bank accounts located in the UAE, including Bitubiz FZE, which was part of the FSR Network and over which Mokhtari exercised partial or complete control, to process these U.S. dollar transactions.
Mokhtari admitted that Bitubiz operated as a conduit for the FSR Network to conceal the fact that Mokhtari and his co-conspirators were engaging in financial transactions with, and providing services to, Iranian entities in violation of the Iranian sanctions. Bitubiz maintained daily ledgers which recorded the receipt and transfers of funds. After receiving an incoming wire transfer, Bitubiz would credit most of that amount to Ayegh Isfahan Manufacturing Company (“AIM”). Mokhtari and others held ownership interests in AIM, which was located in Iran, was engaged in the petrochemical industry, and was part of the FSR Network.
As stated in his guilty plea, in a separate conspiracy that lasted from about February 2013 until at least June 2017, Mokhtari and a number of Iranian nationals agreed to conduct illicit shipments of petrochemical products to and from Iran, in violation of the Iranian sanctions and used the U.S. financial system to facilitate such shipments. In furtherance of the scheme, Mokhtari created a front company in Panama, East & West Shipping, Inc., to purchase two liquid petroleum gas (LPG) tanker vessels for approximately $38 million. These vessels were subsequently used to transport Iranian petrochemical products in international commerce on behalf of, and to benefit, Iranian entities associated with the Government of Iran.
After using East & West to purchase the two vessels (LPG Vessel 1 and 2), Mokhtari transferred ownership of the vessels to other entities, in order to conceal the conspirators’ financial and ownership interest in the two vessels. The conspirators then used another entity, Greenline Shipholding, Inc., to control operations of LPG Vessels 1 and 2. For example, through email communications from Greenline email accounts, or email accounts containing some variation of the Greenline name, the conspirators directed Company 5, a ship management company, to oversee the leasing and operation of LPG Vessel 1 and 2 to transport Iranian petrochemical products from Iranian ports to other locations and to participate in ship-to-ship transfers of Iranian products while on the high seas.
The conspirators, including Mokhtari, used the United States financial system to engage in transactions related to the hiring of the vessels and other expenses. In addition, Mokhtari and his co-conspirators frequently communicated by email about the nature and source of the products that the vessels were transporting, as well as the use of false shipping documents and other measures taken to conceal the fact that the vessels were transporting products to and from Iran, in order to evade the Iranian sanctions.
At some point prior to May 2017, ownership of LPG Vessel 1 was transferred to Russell Shipping, Inc., which was owned by Mokhtari. On May 30, 2017, Mokhtari sold LPG Vessel 1 to be scrapped for more than $3.1 million. Mokhtari received a total of $2,862,591.12 from that sale. The purchaser wired funds to accounts at two separate banks held in the name of Mori Construction and Development, LLC (Mori Construction). Mokhtari was the sole owner of Mori Construction and controlled both bank accounts. Through a series of inter-account transfers and check payments, by September 2017 all of the proceeds from the sale of LPG Vessel 1 were located in a third account, over which Mokhtari and his daughter had signature authority. In March 2018, Mokhtari used those proceeds to purchase a home in Campbell, California for $1,512,000.
Mokhtari admitted that he knew that, as a U.S. citizen, engaging in business with Iranian entities, without first obtaining a license or permission from OFAC is prohibited. He further knew that it was illegal to engage in transactions intended to evade Iranian sanctions, or to engage in transactions related to goods and services of Iranian origin or export.
United States Attorney Erek L. Barron commended FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kathleen O. Gavin, who prosecuted the case, with valuable assistance provided by the National Security Division’s Counterintelligence and Export Control Section.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md.
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Defendant in a Conspiracy to Rob a U.S. Post Office Pleads Guilty to Federal ChargesRead the Press Release
Greenbelt, Maryland – Juan Ramon Ramirez Delgado, age 40, a Honduran national residing in Leesburg, Virginia, pleaded guilty today to federal charges for a commercial robbery conspiracy and for committing an armed robbery of a U.S. Post Office.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division.
According to his plea agreement, on October 19, 2017, Ramirez Delgado and his co-conspirators, wearing masks and armed with firearms, entered a U.S. Post Office in Brandywine, Maryland, pointed firearms at the employees and demanded money. Ramirez Delgado and his co-conspirators stole cash and a computer tower as well as other miscellaneous items, then ran to a getaway vehicle parked nearby, where another conspirator drove them away.
Ramirez Delgado and the government have agreed that, if the Court accepts the plea agreement, Ramirez Delgado will be sentenced to 10 years in federal prison and will be required to pay restitution in the full amount of the loss. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for October 10, 2023 at 1:30 p.m.
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 the U.S. Postal Inspection Service for their work in the investigation and thanked the Federal Bureau of Investigation, the Prince George’s County and Montgomery County Police Departments and the Fairfax County, Virginia Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Leah B. Grossi and William D. Moomau, 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/community-outreach.
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Baltimore Man Pleads Guilty to Attempted Murder of a Federal OfficerRead the Press Release
Baltimore, Maryland – Davon Rogers, age 40, of Baltimore, Maryland, pleaded guilty yesterday to attempted murder of a federal officer in connection with a shooting that occurred on December 29, 2021. Co-defendant Juan Hester, age 41, of Baltimore, pleaded guilty on July 10, 2023, to conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and 50 grams or more of methamphetamine.
The guilty pleas were 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; and Acting Commissioner Richard Worley of the Baltimore Police Department.
According to Rogers’ guilty plea, during the evening of December 29, 2021, members of the Drug Enforcement Administration (“DEA”) were conducting surveillance in the 2500 block of W. Fayette Street in Baltimore, as part of an ongoing federal drug trafficking investigation. One of the members of the surveillance team was a DEA Special Agent who was in the area in his unmarked vehicle conducting covert surveillance in connection with the narcotics investigation.
Rogers admitted that while the Special Agent was inside of his vehicle, he and another individual approached the vehicle and began looking inside. The Special Agent tried to avoid being seen by laying down in the rear area the vehicle. After they looked inside of the Special Agent’s vehicle, Rogers and the second individual walked away from the vehicle. Several minutes later, the Special Agent got into the driver’s seat of his vehicle to try to drive away from the area. By that time, Rogers and the second individual had returned to the area. At approximately 9:18 p.m., as the Special Agent began driving away, Rogers and the second individual began shooting at the Special Agent. The Special Agent was nearly struck by one or more of the bullets, and his vehicle sustained multiple bullet strikes. Specifically, bullets struck the driver’s side front and rear doors, the rear window, the trunk, and the passenger’s side sun visor and ceiling area.
As detailed in the plea agreement, the Special Agent was able to drive for approximately one block before crashing his vehicle into a nearby parked car and running to safety. After the shooting, Rogers and the second individual fled the scene. Investigators recovered multiple shell casings, of two different calibers, from the area where Rogers and the second individual shot at the Special Agent.
After the shooting, search warrants were executed at co-defendant Juan Hester’s residence and at Rogers’ residence on December 30, 2021 and January 4, 2022. Investigators recovered 113 grams of almost pure methamphetamine hydrochloride, 814 grams of THC, 34 grams of mixtures containing cocaine, three grams of mixtures containing fentanyl, and various cutting agents from Hester’s residence and investigators seized approximately fourteen rounds of .40 caliber ammunition from Rogers’ residence. Based on new information received, two additional search warrants were executed on Hester’s residence on January 1, 2022 and January 6, 2022 and investigators recovered approximately 337 grams of mixtures or substances containing fentanyl, 78 rounds of 7.62 caliber ammunition, 32 rounds of .22 caliber ammunition and one handgun magazine. Hester admitted that he maintained the residence as a premises for manufacturing or distributing controlled substances.
Rogers, Hester, and the government have agreed that, if the Court accepts the plea agreements, Rogers will be sentenced to nine years in federal prison and Hester will be sentenced to 14 years in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Rogers on September 11, 2023 at 11:00 a.m. and for Hester on September 12, 2023 at 11:00 a.m.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (“ATF”) National Integrated Ballistic Information Network (“NIBIN”). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the DEA and the Baltimore Police Department for their work in the investigation and thanked the Anne Arundel County, Howard County, and Baltimore County Police Departments, the Laurel Police Department, the Annapolis Police Department, the Maryland Transportation Authority Police Department, and the Baltimore City State’s Attorney’s Office for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Anatoly Smolkin 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 https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Final Defendant Sentenced to 51 Months in Federal Prison for a Racketeering Conspiracy to Smuggle Contraband into the Chesapeake Detention FacilityRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III, sentenced Bernard Bay, age 53, of Baltimore, to 51 months in federal prison, followed by three years of supervised release, for a racketeering conspiracy at the Chesapeake Detention Facility (CDF), in Baltimore, Maryland. Judge Russell ordered that Bey’s federal sentence be served consecutive to the 10 year sentence that Bey is currently serving for possession of a stolen firearm. Bey, who was a leader in the conspiracy, is the final defendant in the conspiracy to be sentenced. Three former correctional officers (COs), three other detainees, and two outside “facilitators” pleaded guilty or were convicted after trial for their roles in the conspiracy, which involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison. Bey’s co-defendants were sentenced to between 18 and 51 months in federal prison.
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 Secretary Carolyn J. Scruggs of the Maryland Department of Public Safety and Correctional Services.
According to court documents and the evidence presented at trial, CDF is run by the Maryland Department of Public Safety and Correctional Services (DPSCS) pursuant to a contract with the United States Marshals Service (USMS) and is used for the housing of federal pretrial detainees.
According to his plea agreement, from at least 2018 through June 2020, Bey conspired with other detainees, employees and associates of CDF to smuggle contraband into CDF, including narcotics, cell phones, and tobacco, in exchange for bribe payments. Bey had a romantic relationship with CO Talaia Youngblood and she met with outside facilitators at Bey’s direction to receive contraband and bribe payments, as well as the cellular telephone that she used to communicate with Bey. For example, in March 2020 Bey sent a note to CO Youngblood telling her that an outside facilitator would be providing her with marijuana and CDs and DVDs to smuggle into CDF. Bey also told Youngblood to contact a second outside facilitator, whom Bey called “Fatman,” so that Fatman could provide her with a pair of designer sunglasses as a bribe.
As detailed in his plea agreement, during the Spring of 2020, Bey made a $500 bribe payment to another CO through an outside facilitator after CO Youngblood stopped showing up to work. In August 2018, Bey paid a bribe to a third CO, Andre Davis, who then smuggled a smart watch and a package containing tobacco into CDF for Bey.
United States Attorney Erek L. Barron commended the FBI and DPSCS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Peter J. Martinez and Robert I. Goldaris, 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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U.S. Attorney’s Office, Joined by State and Local Agencies, to Host Summer One-Stop Reentry Resource Fair at the War Memorial in Baltimore on Wednesday, July 19, 2023Read the Press Release
Baltimore, Maryland – On Wednesday, July 19, 2023, the U.S. Attorney’s Office for the District of Maryland, the U.S. Probation and Pretrial Services Office, and the Maryland Division of Parole and Probation, will sponsor a one-stop reentry resource fair that will be held from 10:00 a.m. to 2:00 p.m. at the Baltimore War Memorial, 101 N. Gay Street, Baltimore, MD. More than 40 organizations, including at least 20 employers, will be on-site offering support, assistance and resources to returning citizens and justice-involved persons, including in the areas of employment, job training, educational opportunities, health services, transitional housing, expungement help and more.
This reentry resource and job fair is a component of the U.S. Attorney’s Office’s violent crime reduction strategy. In addition to the office’s enforcement efforts to remove violent criminals with guns from our communities, the U.S. Attorney’s Office has initiated a number of outreach, intervention and prevention efforts to support and invest in communities plagued by violence, such as this reentry resource fair.
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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Justice Department Files False Claims Act Complaint Against Laboratory Companies and Their OwnerRead the Press Release
The Justice Department has filed a complaint against Patrick Britton-Harr and multiple laboratory companies owned by him alleging False Claims Act violations for submitting claims to Medicare for laboratory tests that were not ordered by health care providers, not medically necessary, and sometimes never performed.
According to the complaint, Britton-Harr owned and operated Provista Health LLC as well as multiple other corporate entities that allegedly sought to profit from the unfolding COVID-19 pandemic by offering COVID-19 tests to nursing homes as a way to bill Medicare for a wide array of medically unnecessary respiratory pathogen panel (RPP) tests. The complaint alleges that these RPP tests were not medically necessary because the beneficiaries had no symptoms of a respiratory illness and because the tests were for uncommon respiratory pathogens.
The complaint also alleges that Britton-Harr and Provista Health submitted claims for RPP tests that were never ordered by physicians. Multiple physicians denied ever ordering the thousands of RPP tests for which Britton-Harr and Provista Health allegedly submitted claims to Medicare listing one of these physicians as the ordering provider. The complaint further alleges that Britton-Harr and Provista Health submitted claims to Medicare for RPP tests that were never performed, including over 300 claims that stated that the nasal swab test sample was supposedly collected from the beneficiary on a date after the beneficiary had died.
As alleged in the complaint, Britton-Harr wholly owned and operated Provista Health, AMS Onsite Inc., Britton-Harr Enterprises Inc., Coastal Laboratories Inc. and Coastal Management Group Inc., and these companies – together with Britton-Harr – conspired to carry out these schemes.
“The Department of Justice is committed to holding accountable individuals and entities who exploited the COVID-19 pandemic for their own illicit purposes,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to protect our federal health care programs, their beneficiaries, and taxpayers from fraud and abuse.”
“The complaint alleges that these individuals and their companies took advantage of a national health crisis to line their own pockets,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Our office has and will continue to bring to justice those who used the COVID-19 pandemic to defraud individuals or the government.”
“Providers who saw the COVID-19 pandemic as an opportunity for illegal profit undermine the goals and integrity of critical public health measures,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to working with our law enforcement partners to hold accountable those who attempt to defraud these crucial public health measures and steal money from federal health care programs.”
“Patrick Britton-Harr and his co-conspirators took advantage of vulnerable adults during the public health emergency,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “The FBI and its partners will continue to aggressively investigate those who try to exploit the American people and swindle funds for their own profit.”
The United States’ pursuit of this lawsuit illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Maryland. Investigative support is being provided by HHS-OIG and the FBI. The allegations in the complaint were identified by a government investigation that arose from a proactive analysis of Medicare claims data.
The Civil Division's Fraud Section Trial Attorneys Jonathan Hoerner and Vincent Vaccarella and Assistant U.S. Attorney/Deputy Civil Chief Tarra DeShields for the District of Maryland are handling this case.
The claims in the complaint are allegations only, and there has been no determination of liability.
ComplaintMaryland Defense Contractor Sentenced to Almost Four Years in Federal Prison for Procurement FraudRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced Cory Collin Fitzgerald Sanders, age 39, of Hagerstown, Maryland, to 45 months in federal prison, followed by three years of supervised release, for wire fraud, false claims, and making and using a false document in connection with his companies’ performance on federal contracts. Chief Judge Bredar also ordered Sanders to forfeit $173,926.99 and to pay restitution of $27,315.10. A federal jury convicted Sanders on March 6, 2023, after a nine-day trial.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Troy W. Springer, of the National Capital Region of the U.S. Department of Labor’s Office of Inspector General (“DOL-OIG”); and Special Agent in Charge Greg Gross of the U.S. Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office (ECFO).
According to the evidence presented at the nine-day trial, in June 2014 Sanders formed Sandtech LLC, a Maryland limited liability company whose business was the sale of video teleconference equipment to the Department of Defense and other agencies of the federal government. Sanders was the sole owner, agent, and president of Sandtech. Witnesses testified that Sanders obtained contracts with federal agencies for Sandtech to provide telecommunications equipment and services. Sanders caused Sandtech to fail to perform on contracts with the U.S. Department of Labor and the Department of the Army, which terminated the Sandtech contracts for cause. Sanders then formed Cycorp Technologies in 2016 to provide the same type of telecommunication services as Sandtech.
The trial evidence proved that from February 10, 2015 through June 30, 2020, Sanders engaged in a scheme to defraud the government by entering into contracts with federal agencies that required Sandtech or Cycorp Technologies to provide new telecommunications equipment which was still under manufacturers’ warranty. The evidence showed that in his communications with federal agency contracting officers Sanders provided false information about the delivery, source, warranty, and/or condition of the electronic equipment provided by his companies, including misrepresentations that the equipment was new and protected by the manufacturer’s warranty, when Sanders knew that the equipment was not new, or was new but not under warranty, or was procured through unauthorized channels. The evidence also showed that Sanders was not authorized to provide certain IT services to the federal government, although he represented to government officials that he was.
Further, Sanders provided contracting officials with false information and false documents about the credentials, certifications, and qualifications of Cycorp Technologies. As proven during trial, Sanders provided fabricated and forged documents falsely certifying Cycorp Technologies’ status as an “authorized partner” of two large national telecommunications equipment manufacturers. If true, the certificates would have authorized Cycorp Technologies to buy directly from those companies’ distributors, provide maintenance to their equipment, or re-sell their new and warrantied products. In addition, Sanders submitted invoices on behalf of Sandtech and Cycorp Technologies so that the government agencies he contracted with would pay for deficient or non-existent performance by electronic deposit into business bank accounts.
“Cory Collin Fitzgerald Sanders executed a brazen scheme using a pattern of deception to defraud numerous federal agencies on telecommunication contracts awarded to his companies. Today's sentencing should serve as a strong message to those who choose to defraud the government and harm the American taxpayer,” said Acting Special Agent in Charge Troy W. Springer of the U.S. Department of Labor – Office of Inspector General (DOL-OIG), National Capital Region. “DOL-OIG is committed to working closely with the U.S. Attorney’s Office and our investigative partners to combat fraud, deception, and other criminal acts associated with federal government contracting and purchasing.”
“Mr. Sanders deserves to be held fully accountable for his actions to defraud the U.S. Government by routinely providing telecommunications equipment that did not meet contract specifications and submitting false documentation in an attempt to cover up his scheme,” said Special Agent in Charge Greg Gross of the U.S. Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office (ECFO). “NCIS and our partners are dedicated to rooting out product substitution and other frauds that diminish the Department of the Navy’s (DON) warfighting capabilities and threaten the integrity of the DON acquisition process.”
United States Attorney Erek L. Barron commended the DOL-OIG and the NCIS for their work in the investigation and thanked the Army Criminal Investigation Division, and the Offices of Inspector General for the U.S. Department of State, the U. S. Department of Commerce, the U.S. Environmental Protection Agency, the U.S. Department of the Interior, the Defense Criminal Investigative Service, the U.S. Department of Homeland Security, the U.S. Department of Health and Human Services and the U.S. Department of Justice for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Evelyn Lombardo Cusson and Stephanie Williamson, who prosecuted the case and thanked Paralegal Specialists Juliette Jarman and Jenna Lee for their assistance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to fight fraud, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Former Correctional Officer Pleads Guilty to Smuggling Controlled Substances into the Prince George’s County Department of Corrections Detention FacilityRead the Press Release
Greenbelt, Maryland – Former Prince George’s County Department of Corrections correctional officer Danielle Dominique Smith, age 34, of Waldorf, Maryland, pleaded guilty to 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 guilty plea 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 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 her inmate boyfriend 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 her inmate boyfriend. Once the inmate received the food tray, he distributed the controlled substances to other inmates within PGDOC. Other inmates, or relative and friends of inmates then sent Smith money for the controlled substances.
Smith and the inmate 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 Smith’s boyfriend’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 the plea agreement, at the end of February 2022, Smith took pre-approved leave from work. Smith continued to speak to her inmate boyfriend on jail calls during that time. On a March 2, 2022 jail call, the day Smith was scheduled to return to work, the inmate 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.
Smith and the government have agreed that, if the Court accepts the plea agreement, Smith will be sentenced to six months of home detention. U.S. District Judge Theodore D. Chuang has scheduled sentencing for October 13, 2023, at 2:30 p.m.
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 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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Owner of Health Care Company Pleads Guilty to Federal Charge for Conspiracy to Commit Health Care FraudRead the Press Release
Baltimore, Maryland – Mboutchock Kabiwa a/k/a Eugenie Bakari or Eugenie Kabiwa, age 45, of Silver Spring, Maryland, pleaded guilty yesterday to conspiracy to commit health care fraud in connection with a scheme to pay bribes and kickbacks to Medicaid beneficiaries to induce the beneficiaries to visit her company Holy Health Care Services, LLC (“Holy Health”), a mental health services provider with locations in Washington, D.C.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge of the FBI Washington Field Office’s Criminal and Cyber Division, Emily Odom; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (“HHS OIG”); and Daniel W. Lucas, Inspector General for the District of Columbia.
According to her plea agreement, Kabiwa and a co-conspirator owned and operated Holy Health. Holy Health entered into Medicaid Provider Agreements with the District of Columbia’s Department of Health Care Finance (“DHCF”), to provide healthcare services to D.C. Medicaid recipients. Holy Health was certified by the District of Columbia’s Department of Behavioral Health (“DBH”) to provide mental health services as a freestanding clinic and as a Mental Health and Rehabilitation Services (“MHRS”) provider. As a certified MHRS provider, Holy Health had authority to provide and bill for a variety of mental health services including “community support” – a service for which community support workers (“CSWs”) provide rehabilitative and educational support to mental health patients both in clinical settings and in the community. Holy Health documented the services provided to patients utilizing an electronic healthcare system called the Integrated Care Management System (“ICAMS”), then submitted invoices for those services to DHCF, which processed the invoices and paid Holy Health.
As detailed in the plea agreement, Kabiwa and her co-conspirators paid bribes and kickbacks to Medicaid beneficiaries to induce the beneficiaries to visit Holy Health, and paid bribes and kickbacks to others in exchange for referring Medicaid beneficiaries to Holy Health for mental health services. The co-conspirators caused Medicaid beneficiaries to be transported, often by van, to Holy Health’s North Capitol location. Medicaid beneficiaries who visited Holy Health were required to sign in and received a cash bribe – generally $5 or $10 – in exchange for visiting Holy Health. To conceal the nature of these payments, Kabiwa directed Holy Health employees to falsely describe these payments as a transportation stipend, even when Holy Health transported the beneficiaries or when beneficiaries were not incurring transportation expenses. At other times during the conspiracy, Kabiwa and her co-conspirators attempted to conceal the illegal bribe payments to beneficiaries as payments from the Agatha Foundation, a nonprofit that Kabiwa founded. Kabiwa provided front-desk employees of Holy Health with sign-in sheets containing Agatha Foundation letterhead to create the false appearance that Agatha was making the payments. Kabiwa admitted that she and a co-conspirator provided funds to Holy Health employees to fund the kickback and bribe payments.
According to the plea agreement, Kabiwa and her co-conspirators caused claims to be submitted by Holy Health to Medicaid for services, including community support services, purportedly provided to Medicaid beneficiaries procured through bribes and kickbacks. Medicaid would not have paid the claims had it known they were procured through bribes and kickbacks. Kabiwa also became aware that co-conspirators entered false notes into ICAMS for CSW services that were not rendered and were not provided as billed to Medicaid, but took no action to stop or correct the fraudulent claims. Based on the amount that Medicaid paid to Holy Health for community support services that were not delivered or procured through bribes and kickbacks, the actual loss to Medicaid was at least approximately $3,343,781.
Finally, Kabiwa admitted that she fraudulently obtained an Economic Injury Disaster Loan (“EIDL”) of $150,000 for Holy Health. The EIDL program was part of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and was intended to help small businesses meet necessary financial obligations that could have been met had the COVID-19 pandemic not occurred. After a $1,000 handling charge, EIDL loan proceeds of $149,900 were transferred into a Holy Health bank account on May 26, 2020. Within a few days, Kabiwa transferred $120,000 of the EIDL proceeds from the Holy Health bank account to her personal bank account. Kabiwa used the EIDL funds for personal purposes including to purchase two vehicles—one of which was a Porsche Cayenne. Kabiwa titled both vehicles in the name of her non-profit, the Agatha Foundation. Kabiwa also transferred more than $40,000 in EIDL funds overseas, including $37,821 to Cameroon, even though Holy Health had no operations outside of the United States.
Kabiwa faces a maximum sentence of 10 years in federal prison for the health care fraud conspiracy. As part of her plea agreement, Kabiwa will be required to forfeit and pay restitution in the full amount of the loss, which the parties agree is at least $3,493,681. U.S. District Judge Paula Xinis has scheduled sentencing for November 21, 2023 at 10:00 a.m.
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 Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the FBI, the HHS OIG, and the District of Columbia Office of Inspector General’s Medicaid Fraud Control Unit for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Jessica C. Collins, Christopher M. Sarma, and Megan S. McKoy, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Florida Man Sentenced to More Than Three Years in Federal Prison for His Role in a Scheme to Scam Elderly Victims Out of More Than $1.5 MillionRead the Press Release
Baltimore, Maryland – U..S. District Judge Richard D. Bennett sentenced McArnold Charlemagne, age 35, of Miramar, Florida, yesterday to 41 months in federal prison, followed by one year of supervised release, for a federal mail fraud conspiracy charge, in connection with a scheme in which he defrauded more than 65 elderly victims of more than $1.5 million. Judge Bennett also ordered Charlemagne to pay restitution of $1,866,745.
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.
“Targeting senior citizens for abuse will bring the full weight of the U.S. Attorney’s Office,” said Unites States Attorney Erek L. Barron. “If you or someone you know is a victim of financial fraud, please help us bring justice by contacting the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
“Elderly Americans deserve to live their golden years enjoying their hard-earned savings, not being victimized by fraudsters like Charlemagne,” said Special Agent in Charge Thomas J. Sobocinski of the FBI's Baltimore field office. “The FBI will do all it can to make seniors aware of these threats and hold those preying on our seniors accountable.”
According to Charlemagne’s plea agreement, from about January 2018 through at least December 2019, he was part of a conspiracy to defraud elderly victims by persuading them to send thousands of dollars in cash to members of the conspiracy by falsely stating that the money would be used to help the victims’ relatives pay legal or other expenses in connection with crimes and other incidents that had not occurred or that the money would be sent to particular individuals at their addresses, rather than to members of the conspiracy falsely claiming to reside at those addresses. Charlemagne’s co-conspirators telephoned elderly victims throughout the United States, posing as a police officer, lawyer, or other individual, falsely telling the victim that a relative, typically the victim’s grandchild, had been incarcerated in connection with a car accident or traffic stop involving a crime, and needed money—often tens of thousands of dollars—for bail, legal fees, and other expenses.
As detailed in the plea agreement, during the telephone calls, the co-conspirators directed victims to send cash to a particular address via an overnight delivery service. The co-conspirators even posed as the victims’ relatives to further induce them to send the cash. Once the victims did send money, the co-conspirators called the victims asking for more cash, regularly obtaining tens of thousands of dollars from the retirement savings of victims. To prevent the victims from sharing the information with anyone, the co-conspirators allegedly told the victims that a “gag order” had been placed on the case requiring secrecy, or that the situation was embarrassing for the grandchild and they didn’t want anyone else to know about it.
Charlemagne admitted that, in order to conceal the crime, he and other co-conspirators identified residential locations across the country where the cash should be sent, including in Maryland, Pennsylvania, Delaware, and Florida. Charlemagne and his co-conspirators identified locations that were either vacant or for sale, so that no one would be at those locations at the time of the deliveries, then retrieved the packages of cash when they were delivered. Charlemagne and other co-conspirators recruited and instructed additional people to assist in retrieving packages of cash from specified locations.
As a result of the execution of the scheme to defraud, Charlemagne and others caused at least 85 different victims to send a total of at least $2.5 million.
On June 15, 2023, co-conspirator Eghosasere Avboraye-Igbinedion a/k/a “Ego” and “Ghost,” age 28, of Miramar, Florida, was convicted after a six-day trial conspiracy to commit mail fraud and four counts of mail fraud, in connection with the scheme. Co-conspirator Medard Ulysse, age 38, most recently of Miami, Florida, was sentenced earlier this year to nine years in federal prison, for wire fraud and conspiracy to commit mail fraud in relation to multiple fraud schemes, including the elder fraud “grandparent” scam.
Reporting from consumers about fraud and fraud attempts is critical to law enforcement efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps, including identifying appropriate reporting agencies, providing information to callers to assist them in reporting or connecting them with agencies, and providing resources and referrals on a case-by-case basis. The hotline is staffed from 10:00 a.m. to 6:00 p.m. Monday through Friday. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Christine Goo, who are prosecuting the case.
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Greenbelt Man Pleads Guilty to Federal Drug and Firearms Charges, Including Illegal Possession of a MachinegunRead the Press Release
Greenbelt, Maryland – Donald Fortune, Jr., age 19, of Greenbelt, Maryland, pleaded guilty yesterday to federal charges for illegal possession of a machinegun, possession with intent to distribute oxycodone and fentanyl, and possession of a firearm in furtherance of a drug trafficking crime.
The 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 Chief Malik Aziz of the Prince George’s County Police Department (“PGPD”).
According to his guilty plea, law enforcement began investigating Fortune in April 2022 for suspected firearms and drug trafficking offenses. As part of the investigation, PGPD detectives monitored public posts from Fortune’s social media account where he displayed firearms and advertised drugs for sale. Based on their investigation, including the social media posts, PGPD detectives obtained a search warrant for Fortune’s apartment.
On June 2, 2022, law enforcement was conducting surveillance outside Fortune’s apartment building in preparation for executing the warrant. In the late morning, Fortune was seen exiting the building and approaching a silver Honda Civic. Fortune removed a large bag of blue pills, suspected to be oxycodone, from a Gucci bag that he was wearing. Fortune engaged in a suspected hand-to-hand drug transaction with the driver of the Civic. Fortune then placed the pills back in the Gucci satchel and returned to his apartment.
A short time later, Fortune left the apartment building accompanied by a woman. He was wearing the Gucci satchel across his chest and had his right hand in the satchel as he walked, consistent with having a firearm inside the satchel. Fortune and the woman got into a rideshare and the vehicle drove away. PGPD police conducted a traffic stop a short time later and observed Fortune reach down toward his feet. Officers asked Fortune, who was still wearing the Gucci satchel, to step out of the vehicle and officers observed a .40-caliber semi-automatic pistol on the floorboard where Fortune had been seated. The gun was loaded with one round in the chamber and 21 rounds in an extended magazine and was equipped with a full auto selector switch on the rear of the handgun slide, making it a machinegun under federal law. A search of the Gucci satchel recovered a large bag containing 232 30mg blue pills, later found to be counterfeit oxycodone pills containing fentanyl. Officers also recovered $790 in cash from Fortune. Fortune was arrested and charged in Prince George’s County. He was held for 12 days before being released on June 14, 2022, pending trial.
Fortune admitted that he continued to sell drugs and possess firearms after his release, including coordinating a drug deal around a court appearance. Fortune switched to using a second social media account in mid-July 2022, believed by investigators to be an effort to evade law enforcement. Investigators began monitoring this account, where Fortune continued to advertise pills for sale and display firearms, despite being on pretrial release. For example, on July 26, 2022, investigators observed a public-facing live video that was streaming from Fortune’s second social media account, which showed Fortune smoking a suspected marijuana cigarette, flashing two prescription bottles, and holding an AR-style pistol. Fortune then turned the camera around to show a table display of at least six firearms, including two AR-style pistols, one handgun with an extended magazine, and one handgun with a suspected full-automatic switch, with cash fanned out in front of the firearms.
As detailed in the plea agreement, that evening, PGPD officers were on patrol in the 6400 block of Pennsylvania Avenue in District Heights, Maryland and saw Fortune smoking marijuana on the sidewalk in front of a residence. As the officer was parking his car in the parking lot, he saw Fortune walk behind a pick-up truck and throw an item under the truck, then walk away from the area. Believing Fortuned had discarded a firearm or contraband, the officer got out of his unmarked police cruiser to speak with Fortune, who continued to walk away. As the officer got closer, Fortune began running and was apprehended a short distance away. Another officer arrived and stayed by the location where Fortune had been seen throwing something. A search of the area recovered a privately manufactured 5.56 caliber semi-automatic AR-15 style pistol with no serial number, also known as a “ghost gun.” The gun was loaded with 30 rounds of ammunition in the magazine and one in the chamber. Officers searched Fortune and recovered two pill bottles containing 16 real or counterfeit oxycodone pills. The pills were tested and eight were found to contain approximately 5mg of oxycodone each and the rest were found to be counterfeit oxycodone pills that contained fentanyl.
Fortune and the government have agreed that, if the Court accepts the plea agreement, Fortune will be sentenced to between seven years and 10 years in federal prison. U.S. District Judge Theodore D. Chuang has scheduled sentencing for November 3, 2023, at 9:30 a.m.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the FBI’s Cross Border Task Force and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Patrick D. Kibbe, and Special Assistant U.S. Attorney Joshua A. Rosenthal, 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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Waldorf Man Sentenced to over Three Years in Federal Prison for Impersonating a Deputy U.S. Marshal and for Being a Felon in Possession of a FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Antione William Tuckson, age 38, of Waldorf, Maryland, to 37 months in federal prison, followed by three years of supervised release, for false impersonation of an officer and employee of the United States and for being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; U.S. Marshal Johnny Hughes; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; and Chief Malik Aziz of the Prince George’s County Police Department.
As detailed in the plea agreement, beginning in at least December 2018, Tuckson undertook a scheme to impersonate a Deputy United States Marshal (“DUSM”). On December 27, 2018, Tuckson used a vehicle with emergency lights to interfere in a robbery in Charles County, Maryland, identifying himself to investigators from the Charles County Sheriff’s Office as a United States Marshal during the incident. In December 2020, Tuckson registered the trademark “USMS Special Services,” with the State of Maryland and registered multiple vehicles in that name, using forged Maryland Motor Vehicle Administration records to make it appear that the vehicles were registered as emergency vehicles in Maryland. The vehicles were equipped with red and blue flashing lights as if they were law enforcement vehicles.
According to the plea agreement, in early 2022, Tuckson impersonated a DUSM to secure employment as an armed security guard at a restaurant in District Heights, Maryland. Tuckson identified himself as a United States Marshal to the part-owner of the restaurant to get the job. On March 6, 2022, Tuckson showed up for work at the restaurant wearing a vest marked “POLICE,” a tactical belt with a 9mm semi-automatic pistol and multiple ammunition clips, and brought a dog which was also outfitted in police K-9-style gear. Tuckson also possessed a fake Department of Justice (“DOJ”) identification card, a United States Marshals Service (“USMS”) law enforcement badge, handcuffs, and a taser.
That evening, two women at the restaurant got into a dispute over their bill and Tuckson intervened, identifying himself to the patrons as a United States Marshal. Tuckson followed the women after they ran from the restaurant. Tuckson then falsely held himself out as a DUSM to Prince George’s County Police Department (“PGPD”) officers whom he encountered at a park while pursuing the two women. After returning to the restaurant Tuckson encountered additional PGPD officers who had reported to the scene. When questioned by the officers, Tuckson continued to identify himself as a DUSM and displayed his fake badge. Tuckson told the officers that the USMS could verify his employment and officers asked him to put them in touch with a supervisor that would confirm his employment. Tuckson called an individual who claimed to be a supervisor of Tuckson at a security company and then called a co-conspirator, who also claimed to be a DUSM and Tuckson’s supervisor. Both falsely told officers that Tuckson was a DUSM.
After further investigation revealed that Tuckson was not a DUSM, he was arrested and officers recovered the 9mm semi-automatic pistol that was loaded with 11 rounds of ammunition. Tuckson knew that he had a previous felony conviction and was prohibited from possessing a firearm or ammunition.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the U.S. Marshals Service, the U.S. Postal Inspection Service, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Timothy F. Hagan, and Special Assistant U.S. Attorney Peter L. Cooch, 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-psn and https://www.justice.gov/usao-md/community-outreach.
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Hagerstown Man Sentenced to 30 Years in Federal Prison for Sexual Exploitation of a ChildRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell, III today sentenced John Frederick Hegedus, age 34, of Hagerstown, Maryland, to 30 years in federal prison, followed by lifetime supervised release, for sexual exploitation of a child. Judge Russell also ordered that, upon his release from prison, Hegedus 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 and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, Hegedus sexually abused a six-year old girl on seven separate instances between April 26, 2022 and June 9, 2022. Hegedus admitted that he used his cellular phone to record his abuse of the minor victim and subsequently posted the videos to a child pornography group chat. The videos were reported to law enforcement and on June 9, 2022, law enforcement executed a search warrant at Hegedus’ apartment and Hegedus was arrested. During the execution of the warrant, agents noted that the background shown in the videos matched the defendant’s apartment.
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 for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Colleen E. McGuinn, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Man Sentenced to 26 Years in Federal Prison for Robbery and MurderRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Joseph Williams, a/k/a “Blue,” age 33, of Baltimore, Maryland, to 26 years in federal prison, followed by five years of supervised release, for conspiracy to commit a Hobbs Act robbery and for using, carrying, brandishing, and discharging a weapon during and in relation to a crime of violence.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Commissioner Richard Worley of the Baltimore Police Department.
According to their plea agreements, on September 29, 2020, Williams and co-defendants George Felds and Deron Johnson 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. Williams, Fields and Johnson then got into the van and 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. Williams, Fields and Johnson 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.
George Fields, a/k/a “Chin,” age 49, of Baltimore, previously pleaded guilty to his role in the conspiracy and was sentenced to 25 years in federal prison. Co-defendant Deron Johnson, a/k/a “DJ,” age 52, of Baltimore, pleaded guilty to the conspiracy and to committing the robbery. Johnson is expected to be sentenced to between 15 and 20 years in federal prison at his sentencing on September 6, 2023, at 11:00 a.m.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Kim Y. Oldham, 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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Foreign National Sentenced to Almost Four Years in Federal Prison for $1.5 Million Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Nigerian citizen, Akolade Ojo, age 31, of Owings Mills, Maryland, yesterday to 46 months in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud. Judge Gallagher also ordered Ojo to pay $1,320,186.19 in restitution. The charges stemmed from fraud schemes in which Ojo communicated with his co-conspirators about the receipt of money from victims into bank accounts controlled by the conspirators and instructed conspirators about withdrawals, transfers, and purchases of cashier’s checks using the fraudulently obtained funds.
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 Karen L. Brown Cleveland of the U.S. Department of State, Diplomatic Security Service (“DSS”), Washington Field Office; Acting Special Agent in Charge Troy W. Springer, of the National Capital Region of the U.S. Department of Labor’s Office of Inspector General (“DOL-OIG”); and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service – Washington Division.
According to Ojo’s plea agreement and other court documents, from August 2018 to November 2020, Ojo and his co-conspirators, some of whom were located outside the United States, defrauded multiple businesses, individuals, and financial institutions. As part of the fraud schemes, Ojo’s co-conspirators obtained fake passports and other identification documents, in multiple aliases, created and used limited liability companies to further hide their identities, and opened bank accounts in the names on the identification documents or the limited liability companies. Other conspirators made false representations to companies and individuals to induce them to fraudulently send money to the bank accounts controlled by the conspirators. These false representations included hacking into email accounts to impersonate individuals and redirect legitimate payments for services and products; deceiving victims about how to pay a vendor’s legitimate invoice through look-alike email addresses; and romance frauds.
Ojo and other co-conspirators used an encrypted messaging app to communicate the timing of financial transactions, including directing members of the conspiracy regarding the deposit, withdrawal, transfer, and conversion of fraudulently obtained funds. Ojo admitted that he was involved in numerous financial transactions in which money was directed to aliases that were being used by his co-conspirators and that he personally benefitted from the money obtained by the fraud. Ojo knew that the fraud schemes involved more than 15 business and individual victims with losses of at least $1.5 million.
Ojo is the final defendant charged in the conspiracy to be sentenced. In May 2022, co-defendant Idowu Raji, age 40, of Baltimore County, Maryland, was sentenced to 94 months in federal prison for this and a related case. Hameed Adesokan, age 35, of New Jersey, and Damilola Lawal, a/k/a DML, D Baba, and Dami, age 32, of Windsor Mill, Maryland, were each sentenced to 46 months in federal prison, for their roles in the fraud scheme. Adewumi Abioye, age 35, of Randallstown, Maryland; and Lukman Salam, age 37, of Bear, Delaware were sentenced to 27 months and 30 months in federal prison, respectively. Olatunde Vincent, age 35, of Pikesville, Maryland was sentenced to 50 months in prison for a related case.
United States Attorney Erek L. Barron commended HSI, the DSS, the DOL-OIG, and the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case and Paralegal Joanna B.N. Huber, who assisted on 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/report-fraud.
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Court Orders Maryland Pharmacy to Pay $120,000 Penalty in Case Alleging Unlawful Opioid DistributionRead the Press Release
A federal court enjoined a Cumberland, Maryland, pharmacy and its owner and pharmacist from dispensing controlled substances, including opioids, without taking specific steps to help ensure the drugs will not be abused or diverted, and ordered them to pay a $120,000 civil penalty.
The court’s order, entered pursuant to a consent decree of permanent injunction, resolves a complaint filed by the United States on June 16 alleging that Beckman’s Greene Street Pharmacy and its owner and pharmacist-in-charge, John A. Beckman, filled hundreds of prescriptions in violation of the Controlled Substances Act (CSA). The complaint alleges that the defendants ignored obvious “red flags” of drug abuse, drug diversion, and drug-seeking behavior. For example, according to the complaint, the defendants repeatedly filled prescriptions for dangerously large doses and high-risk combinations of controlled substances known to be sought by drug abusers and which significantly increase the risk of overdose. The complaint alleges that the defendants frequently filled prescriptions for an opioid known as buprenorphine in a form that did not include the abuse-deterrent component with which it is ordinary prescribed. The complaint further alleges that the defendants often dispensed controlled substances to patients who lived long distances from the pharmacy or who paid in cash despite the availability of insurance. According to the complaint, at least 10 patients died within 10 days of having controlled substance prescriptions filled at Beckman’s Greene Street Pharmacy.
“Pharmacies and pharmacists have an obligation to prevent the illegal dispensing of controlled substances,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will work with its law enforcement partners to hold responsible those who dispense potentially dangerous prescription drugs in violation of the law.”
“Those who fill and dispense controlled substances prescriptions, including for opioids, without fulfilling their responsibilities, fan the flames of the ongoing opioid epidemic,” said U.S. Attorney Erek L. Barron for the District of Maryland. “The U.S. Attorney’s Office for the District of Maryland will use all tools at its disposal — criminal and civil — to hold responsible those who violate the CSA.”
“The devastating effects of opioid overdoses and poisonings have affected many lives in our local communities,” said Special Agent in Charge Jarod Forget of the DEA Washington Division. “Health care providers have a great responsibility as it relates to dispensing medications to meet the health needs of our citizens. This includes being vigilant for any signs of controlled substance diversion or misuse. Our team is committed to protecting the safety and health of all Americans, which includes ensuring that all licensed professionals comply with the law and report dangerous behaviors.”
Beckman and Beckman’s Greene Street Pharmacy agreed to be bound by the consent decree. The injunction entered by U.S. District Judge Lydia Kay Griggsby for the District of Maryland prohibits the defendants from filling certain “red flag” prescriptions and requires the defendants to fill other prescriptions only with documentation justifying those prescriptions.
DEA Special Agent Thomas W. Adams of the Washington Division’s Hagerstown Resident Office investigated the case along with the Washington Division’s Baltimore Diversion Group. Senior Litigation Counsel Donald R. Lorenzen of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Alan C. Lazerow for the District of Maryland handled the case.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
The claims made in the complaint are merely allegations that the United States would need to prove if the case proceeded to trial.
Consent Decree Approved Among the United States and Cumberland, Maryland Based Pharmacy and Pharmacist Alleged to Have Illegally Dispensed Controlled SubstancesRead the Press Release
Baltimore, Maryland - U.S. District Judge Lydia K. Griggsby approved the United States’ consent decree with John A. Beckman, a Cumberland, Maryland based pharmacist, and Beckman’s Greene Street Pharmacy, Inc. (“Beckman’s Pharmacy”), resolving the United States’ civil allegations that Beckman and Beckman’s Pharmacy violated the Controlled Substances Act (“CSA”) in illegally dispensing controlled substances.
The consent decree was announced by United States Attorney for the District of Maryland Erek L. Barron; Principal Deputy Assistant Attorney General Brian M. Boynton, of the Justice Department’s Civil Division; and Special Agent in Charge Jarod A. Forget of the Drug Enforcement Administration – Washington Field Division.
“Irresponsible pharmacies and pharmacists fan the flames of the ongoing opioid epidemic,” said U.S. Attorney Erek L. Barron. “Our office intends to use all tools at our disposal—criminal and civil—to hold accountable those at every step in the supply chain who violate the CSA.”
“Pharmacies and pharmacists have an obligation to help stop the illegal distribution of controlled substances,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will work with its law enforcement partners to hold responsible those who dispense potentially dangerous prescription drugs in violation of the law.”
“The devastating effects of opioid overdoses and poisonings have affected many lives in our local communities,” said Special Agent in Charge Jarod Forget for the DEA Washington Division. “Healthcare providers have a great responsibility as it relates to dispensing medications to meet the health needs of our citizens. This includes being vigilant for any signs of controlled substance diversion or misuse. Our team is committed to protecting the safety and health of all Americans, which includes ensuring that all licensed professionals comply with the law and report dangerous behaviors.”
The Government alleges that at least since 2017, Beckman and Beckman’s Pharmacy knowingly filled fraudulent prescriptions for controlled substances, ignoring red flags that should have acted as warning signs that the prescriptions were not legitimate. More specifically, the Government alleges that, since at least 2017, Beckman and Beckman’s Pharmacy would often dispense dangerous combinations of controlled substances which are known to be pursued by drug abusers, but which seriously increase the risk of respiratory distress, overdose, and death, and did so without noting any reasonable explanation for these dangerous combinations. These combinations included the extremely dangerous “holy trinity,” which combines an opioid, a benzodiazepine, and carisoprodol. Additionally, Beckman and Beckman’s Pharmacy often dispensed a combination of an opioid and buprenorphine, a drug which is generally used to treat opioid dependence and regularly filled prescriptions for controlled substances that were paid for with cash even though the patient had insurance available to pay for the patient’s prescriptions.
The Centers for Disease Control and Prevention generally recommends that individuals should avoid daily dosages of opioids over 90 morphine milligram equivalents (MME), but Beckman and Beckman’s Pharmacy routinely dispensed prescriptions to patients causing their MME levels to be many times that amount—and upwards of 1000 daily MME. The Government alleges that Beckman and Beckman’s Pharmacy dispensed opioids to more than ten patients who subsequently died within ten days of the date of the prescription for those opioids.
Under the consent decree, Beckman and Beckman’s Pharmacy agree to pay a $120,000 civil monetary penalty and are required to identify certain red flags—including when a patient has traveled a long distance to the pharmacy, and when a patient is receiving an opioid and a benzodiazepine. Before filling prescriptions bearing those and other red flags, the consent decree requires Beckman and Beckman’s Pharmacy to document in detail any indications of abuse or diversion and the steps they took to ensure that the prescription was valid and was issued for a legitimate medical purpose, and that the prescription would not be abused or diverted for illegitimate purposes. Additionally, under the consent decree, Beckman and Beckman’s Pharmacy are prohibited from filling certain prescriptions, including when a patient presents prescriptions that, if filled, would cause the patient to take more than 90 daily MME; a combination of an opioid, a benzodiazepine, and carisoprodol; most prescriptions for buprenorphine without naloxone; any controlled substance paid for with cash even though the patient has insurance available to pay for the patient’s prescriptions; and any prescription for a controlled substance if the patient is an employee of Beckman’s Pharmacy.
Under the consent decree, if the DEA determines that Beckman or Beckman’s Pharmacy have violated any provision of the consent decree or if Beckman or Beckman’s Pharmacy do not implement the corrective action the DEA orders, the DEA can order Beckman and Beckman’s Pharmacy to cease ordering or dispensing controlled substances immediately.
The consent decree is not an admission of liability by Beckman or Beckman’s Pharmacy, nor a concession by the United States that its claims are not well founded.
The Court’s approval of this consent decree—the fourth such consent decree in the District of Maryland in the past two years—should again remind pharmacists and pharmacies of their corresponding responsibility to confirm the legitimacy of the prescriptions that they fill and that the Department of Justice intends to use all tools at its disposal—both criminal and civil—to combat the controlled substances epidemic which continues to plague our country, including here in Maryland.
U.S. Attorney Erek L. Barron and Principal Deputy Assistant Attorney General Brian M. Boynton commended the DEA Baltimore Division’s Office of Diversion Control and Tactical Diversion Squad for its work in the investigation. Mr. Barron and Mr. Boynton thanked Assistant United States Attorney Alan C. Lazerow and Donald R. Lorenzen, Senior Litigation Counsel with the Department of Justice’s Consumer Protection Branch, who handled the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Maryland U.S. Attorney Erek L. Barron Announces Results of Strategies to Reduce Violent CrimeRead the Press Release
Baltimore, Maryland – Erek L. Barron, United States Attorney for the District of Maryland, announced today that, because of the crime reduction efforts led by his office, homicides and non-fatal shootings in Baltimore are continuing to trend down significantly. As of the half year mark in 2023, homicides are down 22.2% and non-fatal shootings are down 12.6%.
At a press conference on August 24, 2022, U.S. Attorney Barron announced the establishment of a new Violent and Organized Crime Section along with expanded collaboration between federal, state, and local law enforcement. State funds supported the hiring of additional Special Assistant U.S. Attorneys, whose sole focus has been on violent crime, along with investigators, and other legal support personnel. Additionally, U.S. Attorney Barron has encouraged prosecutors to use all available resources and any legal means necessary to investigate and prosecute repeat violent offenders—specifically for any wrongdoing that meets office priorities, especially pandemic-related fraud, and utilizing a federal school zone statute that makes it a crime to possess a gun within 1000 feet of a school.
In August 2022, immediately before implementation of the U.S. Attorney’s Office’s collaborative violent crime strategy, homicides were up approximately 7% and nonfatal shootings were up more than 12%; the next month (September 2022), however, saw a record-low since 2015 in violence and, since implementation of the office’s strategy, homicides are down approximately 20% and nonfatal shootings are down approximately 10%.
“We have much more work to do, but law enforcement and community collaboration, innovation, and evidence-based initiatives are making neighborhoods safer,” said U.S. Attorney Barron. “We will continue to lead a coalition of law enforcement, community and public service partners, as our model of working together at the local, state and federal levels is making a difference in the fight against violent crime.”
Since September 2022, State-funded Special Assistant United States Attorneys have indicted 30 defendants for federal gun crimes, including charging 10 defendants for illegal possession of a firearm within 1,000 feet of Baltimore schools, including Sandtown-Winchester Achievement Academy, Calverton Elementary and Middle School, Green Street Academy, Frederick Elementary School, Cherry Hill Elementary School, Maree G. Faring Elementary School, Curtis Bay Elementary and Middle School and Belaire-Edison Elementary School. Of those school zone defendants nine have pleaded guilty and seven have been sentenced to between six months and 12 years in federal prison. Additionally, every Criminal Division prosecutor in the U.S. Attorney’s Office has been assigned a gun case, marking the most significant officewide investment in combating violent crime in the office’s history.
The office’s “Al Capone” prosecution model for repeat offenders has also been successful in the violent crime strategy. For example, defendants have been charged with CARES Act fraud and gun crimes, including the illegal possession of privately manufactured firearms, often referred to as “ghost guns.” The U.S. Attorney’s Office created a CARES Act Strike Force and, as part of that effort, U.S. Department of Labor - Office of Inspector General Special Agents are now co-located in the office to coordinate and screen all new violent crime and illegal firearms defendants for potential pandemic fraud. The success of this Strike Force’s effort has led U.S. Attorney Barron to also establish the Maryland Financial Intelligence Task Force (“MD FIT”), a coalition of federal, state, and local law enforcement and financial institutions, working collaboratively to uncover financial crimes, including crimes committed by violent repeat offenders.
U.S. Attorney Barron stated, “MD FIT is another tool to add to our arsenal of proactive and innovative measures to combat violent crime. We will do everything we can to remove the violent criminals who wreak havoc in our neighborhoods. I am grateful that our law enforcement partners joined our office’s strategy to try new and innovative ways to reduce violent crime.”
While strategic enforcement is key to U.S. Attorney’s Office’s violent crime efforts, community-based prevention and intervention is a core principle—embraced more than ever—by the office. The U.S. Department of Justice and the U.S. Attorney’s Office are especially supporting and teaming up with nonprofits focused on reaching at-risk youth and young adults.
In September 2022, three Baltimore community-based organizations, ROCA Inc., the Living Classrooms Foundation, and the Black Mental Health Alliance, were awarded U.S. Department of Justice grants totaling more than $5 million to help reduce gun crime and other violence. ROCA Baltimore received $1,998,807 to expand its violence intervention programming and the U.S. Attorney’s Office has instituted monthly community walks with ROCA to reach out to youth and young adults to provide resources and needed services. Since November 2022, this collaboration has directly serviced over 130 individuals and approximately 20 young people have been referred for services, including the job training and education services provided by ROCA.
Since September, the office has also sponsored or cosponsored a variety of other community-based violence intervention and prevention initiatives as part of a comprehensive strategy. Six reentry resource fairs, focused on federal returning citizens and those soon to return, have provided healthcare assistance, employment opportunities, financial literacy services, and more. The office has also participated in multiple meetings with community leaders and serious at-risk individuals, to encourage potential reoffenders to take a better path to success. Additionally, since last November, U.S. Attorney Barron, along with leadership from the Maryland Department of Public Safety and Correctional Services, have participated in “knock and talk” home visits of parolees with teams of probation officers and social workers, to provide resources and services to parolees and their families.
These efforts are part of Project Safe Neighborhood Program (“PSN”), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN combines federal, state, and local law enforcement partners, and community service providers to reduce violent crime and make our neighborhoods safer for everyone. The office is working comprehensively to build trust and collaboration between law enforcement and the community, to support community-based intervention and prevention, and to strategically enforce the law against those most responsible for the violence in our communities.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Man Pleads Guilty to Federal Racketeering Conspiracy Charge for His Participation in the Triple C GangRead the Press Release
Baltimore, Maryland – Jawaun Harris, age 24, of Baltimore, Maryland, pleaded guilty yesterday to a federal charge of conspiracy to participate in the affairs of a racketeering enterprise, in connection with his membership in the Triple C gang, including a carjacking, two attempted murders and a drug distribution conspiracy.
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 Robert McCullough of the Baltimore County Police Department; and Acting Commissioner Richard Worley of the Baltimore Police Department.
According to court documents, Harris was a member of the Cruddy Conniving Crutball gang, or Triple C, an enterprise operating primarily in east Baltimore. The gang’s main purpose was to commit violent acts to promote the reputation of the gang and to command respect from the neighborhood. The enterprise benefitted financially from selling narcotics, murdering drug dealers, taking contract killings, engaging in street robberies, robbing dice games, and occasionally carjacking vehicles. The members of the gang divided the proceeds of the robberies. Harris admitted that between 2015 and 2020, he and other Triple C members engaged in more than a dozen murders and numerous non-fatal shootings, robberies, and carjackings.
Also, Triple C members routinely used social media to identify and locate victims and to share information concerning possible retaliation for violent crimes committed by gang members. Triple C members and associates used at least 14 firearms to commit crimes, often trading with each other or other groups to avoid detection through ballistic evidence. They limited conversations about criminal plans to members of Triple C and critiqued each other after committing crimes regarding ways to improve their actions.
Harris admitted that he participated in two attempted murders on October 10 and 11, 2018, and a carjacking on October 10, 2018, during which at least one member of the conspiracy possessed a firearm. Harris also admitted that it was foreseeable to him, that his co-conspirators would commit other acts that he did not participate in, including at least 16 murders, 28 attempted murders, at least 22 robberies and attempted robberies, and three carjackings.
Co-defendants Rashaud Nesmith, a/k/a Shaud, age 21, and Michael Chester, a/k/a Mikkie, age 24, both of Baltimore, pled guilty to their participation in a racketeering conspiracy in June 2022 and were sentenced to 40 years and 20 years in federal prison, respectively.
Harris and the government have agreed that, if the Court accepts the plea agreement, Harris will be sentenced to 10 years in federal prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for October 5, 2023 at 10:00 a.m.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (“ATF”) National Integrated Ballistic Information Network (“NIBIN”). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the ATF, the Baltimore County Police Department, the Baltimore Police Department for their work in the investigation and thanked the FBI and the Office of the Baltimore City State’s Attorney for their assistance in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorney Patricia C. McLane and Michael C. Hanlon, who 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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Prince George’s County Man Sentenced to Seven Years in Federal Prison for a Conspiracy to Obtain over $1 Million in COVID-19 CARES Act Loans and Unemployment Insurance BenefitsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Jerry Phillips, a/k/a “Tian Juzo,” age 25, of Capitol Heights, Maryland, to seven years in federal prison, followed by three years of supervised release, for a wire fraud conspiracy, aggravated identity theft, and illegal possession of a machine gun, related to a scheme to fraudulently obtain more than $1 million in COVID-19 CARES Act Paycheck Protection Program loan applications (“PPP”), Economic Injury Disaster loan applications (“EIDL”), and unemployment insurance claims. Judge Chuang also ordered Phillips to pay restitution of $1,235,213.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor - Office of Inspector General (“DOL-OIG”); Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), Washington, D.C. Field Office; Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration - Office of Inspector General (“SBA-OIG”), Eastern Region, and Special Agent in Charge Jeffrey D. Pittano, of the Mid-Atlantic Region, Federal Deposit Insurance Corporation Office of Inspector General (“FDIC-OIG”).
“Once again, the Maryland U.S. Attorney’s Office’s COVID fraud enforcement strategy is taking illegal guns out of the hands of criminals,” said United States Attorney Erek L. Barron. “This case highlights two of our office priorities—taking illegal guns off the streets and holding accountable those who fraudulently took advantage of the COVID-19 pandemic to line their pockets.”
According to his plea agreement, from March 2020 to February 2022, Phillips worked with his brother and co-defendant, Jaleel Phillips, and at least one other person. to fraudulently obtain COVID-19 related benefits, including filing fraudulent PPP loan applications, EIDL loan applications, and unemployment insurance claims. As detailed in the statement of facts, Phillips and his co-conspirators created fictitious aliases, used the personal identifying information of real people, and used defunct corporate entities or new business entities with no actual business operations to apply for PPP and EIDL loans, and unemployment benefits.
As part of the scheme, Phillips admitted that he created and used multiple fake identities to submit fraudulent PPP and EIDL loan applications and used the personal identifying information of more than 20 real people in furtherance of fraudulent unemployment claims. The fraudulently obtained PPP and EIDL loans and unemployment insurance claims were deposited into the bank accounts opened in the names of the aliases. The money was then withdrawn by Phillips and his co-conspirators through ATM withdrawals and purchases made on the associated debit and credit cards or transferred between the various financial accounts established in the aliases’ names. Phillips used $65,538.95 of the fraudulently obtained funds to purchase a 2020 Chevrolet Camaro, which he registered in his name at the Maryland Motor Vehicle Administration. Jerry Phillips also admitted that he personally obtained and controlled more than $1 million in fraud proceeds from the fraudulent PPPs and EIDLs.
A search of the defendant’s residence recovered more than 25 fake driver’s licenses from multiple states and multiple identification documents from different jurisdictions with Jerry Phillips’ photograph and the same alias. Law enforcement also recovered four “ghost guns” which Jerry Phillips purchased online, using an alias. Phillips admitted that he illegally modified one of the ghost guns into a machine gun capable of firing multiple rounds with one pull of the trigger.
Jaleel Phillips, age 25, of Capitol Heights, Maryland, previously pleaded guilty to his role in the wire fraud conspiracy and was sentenced on June 22, 2023, to 30 months in federal prison and was ordered to pay restitution in the amount of $1,142,769.
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 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.
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, IRS-CI, SBA-OIG, FDIC-OIG, and the Mississippi Attorney General’s Office for their work in the investigation and thanked the Office of Mississippi Attorney General Lynn Fitch-Public Integrity Division, for its assistance. Mr. Barron also thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the case and 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 report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Baltimore Man Sentenced to 54 Months in Federal Prison for Possession of a Stolen Firearm and for Possession with Intent to Distribute Methamphetamine and CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah L. Boardman today sentenced Davon Hemphill, age 40, of Baltimore, Maryland, to 54 months in federal prison, followed by three years of supervised release, for possession of a stolen firearm and for possession with intent to distribute controlled substances.
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; Acting Commissioner Richard Worley of the Baltimore Police Department.
According to his guilty plea, on January 1, 2022, Baltimore Police Department officers were monitoring a closed-circuit television (“CCTV”) camera that captured the area between the intersections of Carey and Baltimore Street and Carey and Hollins Street, an area known for its high level of drug activity and violence. Officers saw Hemphill make two hand-to hand exchanges, which officers believed were drug transactions. Officers also noted that Hemphill was wearing clothing identical to clothing worn by a person of interest in a homicide that had occurred in the same area the prior week.
As detailed in the plea agreement, the officers relayed their observations to other officers in the area so they could initiate a stop. The responding officers walked north on Carey Street and saw Hemphill walking toward them. As the officers walked toward him, Hemphill fled, holding his front waistband area as if he were supporting the weight of an object, which the officers suspected was a firearm. After a short foot-chase, Hemphill was arrested. A subsequent search of his person recovered a stolen 9mm handgun loaded with seven rounds of ammunition, approximately 65 pills of methamphetamine, one small vial containing a white rock substance, later determined to be cocaine, approximately $2,843 in cash, one clear plastic bag and one clear green flip-top container containing suspected marijuana, and a cell phone.
Hemphill admitted that he possessed the methamphetamine and cocaine with the intent to distribute them and that he knew or had reasonable cause to believe that the firearm was stolen at the time that he possessed it.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Jonathan S. Tsuei and Patricia C. McLane, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Man Sentenced to 14 Months in Federal Prison for Fraudulently Obtaining More Than $1.2 Million in COVID-19 CARES Act LoansRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Alexander Barabash, age 52, of Baltimore, Maryland, today to 14 months in federal prison, followed by six months of home detention as part of three years of supervised release, for wire fraud relating to the submission of fraudulent Coronavirus Aid, Relief, and Economic Security (“CARES”) Act loan applications. The CARES Act was enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.
Chief Judge Bredar ordered that Barabash pay a fine of $400,000, a money judgment in the amount of $1,295,000 and pay restitution of $1,317,352.05. Barabash must forfeit $504,869.54 in funds seized from the iDesignBuild business bank account and his interest in a property in Sparks Glencoe, Maryland, both of which will be applied to the money judgment.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Ross Luciano of the United States Secret Service - Baltimore Field Office.
Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program (“PPP”), administered through the Small Business Administration (“SBA”) and participating lenders.
According to his plea agreement, between April 2020 and January 2021, Barabash submitted three fraudulent PPP loan applications on behalf of his construction company iDesignbuild LLC (“iDesignBuild”).
As detailed in the plea agreement, on April 9, 2020, Barabash, the CEO of iDesignBuild, submitted a PPP loan application falsely stating that the company had four employees and an average monthly payroll of $18,750. In fact, the company did not have any employees, but engaged independent contractors for work-related matters. Based on the representations made in the fraudulent application, on April 23, 2020, Barabash received $46,800 in PPP loan proceeds in the iDesignBuild bank account. On April 25, 2020, Barabash submitted a second fraudulent PPP loan application on behalf of iDesignBuild, stating that the company had seven employees and an average monthly payroll of $38,777.60. In support of the application, Barabash submitted IRS Forms 941 for each quarter of 2019 and a 2019 IRS Form 940 for iDesignBuild, signed by Barabash and his tax preparer, knowing that they had never been filed with IRS.
Barabash admitted that on January 20, 2021, he submitted a third fraudulent loan application on behalf of iDesignBuild, representing that the company had 37 employees and an average monthly payroll of $525,227. In support of the application, Barabash again submitted fraudulent IRS Forms 941 for each quarter of 2019 and a fraudulent 2019 IRS Form 940. Compared to the fraudulent forms submitted with the unsuccessful April 25, 2020 PPP loan application, the forms submitted in January 2021 reported more than six times the number of employees and nearly $1.5 million more in wages in each quarter. The forms were again signed by Barabash and his tax preparer. Barabash knew that the forms did not accurately reflect iDesignBuild’s wages or revenues, nor had they been filed with the IRS. Based on Barabash’s false representations, the bank funded a PPP loan of $1,295,000, which was credited to iDesignBuild’s bank account on February 26, 2021.
Barabash used the fraudulently obtained loans to facilitate the purchase of two properties in Sparks Glencoe, Maryland, and to purchase a 2016 Chevrolet Corvette. Barabash admitted that he knew those were not permissible uses of PPP funds and the transactions would not have been made without the receipt of the PPP funds.
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 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 IRS-CI and U.S. Secret Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Darryl L. Tarver, who is prosecuting the case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber and Paralegal Specialist Juliette Frase.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Maryland Man Pleads Guilty to Evading Payment of at Least $2.8 Million in Taxes Owed to the United StatesRead the Press Release
Baltimore, Maryland – John H. Worthington, age 60, of Owings Mills, Maryland, pleaded guilty yesterday to federal charges for willful failure to account for and pay over employment taxes and for filing a false personal tax return. Worthington admitted that he evaded payment on taxes due and owing to the United States of at least $2,813,348.94.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Acting 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, Worthington owned and operated The Grill at Harryman House restaurant since 1995. As part of managing the restaurant, Worthington issued Forms W-2 to his employees and withheld federal income taxes and Social Security and Medicare (“FICA”) taxes from their wages. Worthington admitted that from 2010 through 2021, he did not file with the IRS the required Employer’s Quarterly Federal Tax Returns (Forms 941) reporting these employment taxes and did not pay the withholdings over to the IRS. As detailed in his plea agreement, instead of meeting his tax obligations, Worthington used funds from his business to pay other creditors and for a variety of personal expenses, including golf club membership dues, season tickets to the Baltimore Orioles, international vacations, and salaries for himself and his wife. In total, Worthington did not report or pay approximately $2,813,348.94 in employment taxes due and owing to the IRS.
Additionally, Worthington filed a joint 2016 personal tax return (Form 1040) that falsely claimed $24,207 in federal income tax withholdings from his own wages from the restaurant, which he knew had not been paid to the IRS. This resulted in a $9,096 refund to which he was not entitled. Had Worthington accurately reported $0 in withholdings for that year, he would have owed $15,111.
According to his plea agreement, Worthington also failed to timely file his personal income taxes for tax years 2017 through 2021, despite having received wages and compensation from the restaurant. Worthington also failed to timely file corporate tax returns for tax years 2016 through 2021, even though the corporation was active and generated gross receipts or sales of more than $15 million during that time frame.
Worthington faces a maximum penalty of five years in prison for willfully failing to account for and pay over the employment taxes and three years in prison for filing a false tax return. He also faces a period of supervised release, monetary penalties, and restitution. U.S. District Judge Julie R. Rubin has scheduled sentencing for September 13, 2023, at 2:00 p.m.
U.S. Attorney Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg commended the IRS-CI for its work in the investigation and thanked Assistant U.S. Attorney Sean R. Delaney and Assistant Chief Jorge Almonte and Trial Attorney Matthew L. Cofer 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 and https://www.justice.gov/usao-md/community-outreach.
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Washington State Man Sentenced to Two Years in Federal Prison for Bank Fraud ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin sentenced Oyeniyi Oworu, age 45, of Washington, yesterday to two years in federal prison, followed by three years of supervised release, for conspiracy to commit bank fraud. Judge Rubin also ordered Oworu to pay restitution of $296,779.84
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration.
According to his guilty plea, between February 2017 and July 2020, Oworu conspired with co-defendant Babatunde Ajibawo, Sadiq Folawiyo, Oyekanmi Oworu, and others to fraudulently obtain checks made out to legitimate businesses, then fraudulently register shell companies to obtain state business certificates in the identical or similar name of the legitimate businesses to which the checks were made payable.
As detailed in his plea agreement, Oworu and his co-conspirators attempted to conceal their criminal actions and evade law enforcement by relocating the fraud scheme to other jurisdictions, including the states of Washington and Georgia. A substantial part of a fraudulent scheme was committed from outside the United States, specifically Nigeria. In total, Oworu and his co-conspirators intended to cause a loss of at least $4.1 million to victim businesses and caused an actual loss of at least $756,175.30. To perpetrate the scheme to defraud, Oworu and his co-conspirators used the stolen PII of more than 50 individual victims and established approximately 50 fraudulent or shell businesses.
Co-defendants Babatunde Ajibawo, age 55, of Essex, United Kingdom; Oyekanmi Oworu, age 35, of Hyattsville, Maryland; and Sadiq Folawiyo, age 47, of Glen Burnie, Maryland all previously pleaded guilty to their participation in the bank fraud conspiracy. Ajibawo was sentenced to four years in federal prison and Oyekanmi Oworu and Folawiyo were each sentenced to three years in federal prison.
United States Attorney Erek L. Barron commended the Treasury Inspector General for Tax Administration for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
For more information on fraud and how to report instances of fraud, including identity theft, please visit https://www.justice.gov/usao-md/report-fraud.
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Baltimore Felon Sentenced to Almost Six Years in Federal Prison for Illegal Possession of a Firearm and AmmunitionRead the Press Release
Baltimore, Maryland – U.S. District Judge Lydia K. Griggs today sentenced Marquis Johnson, age 34, of Baltimore, Maryland, to 71 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 Jarod Forget of the Drug Enforcement Administration - Washington Division; and Acting Commissioner Richard Worley of the Baltimore Police Department.
“The actions of the DEA and the Baltimore City Police Department, in coordination with the U.S. Attorney’s Office, literally stopped a felon with a bulletproof vest before he used a gun on Baltimore’s streets,” said U.S. Attorney Erek L. Barron. “We will swiftly respond to those who would bring violence to our communities.”
According to his guilty plea, on September 21, 2021, Johnson robbed someone who was standing near his residence on Chapel Street in Baltimore City. Immediately after the robbery, Johnson claimed in a call he made to a friend from his cell phone that 10 to 15 shots were fired at him. The call was intercepted as part of a months-long DEA investigation of several individuals, including Johnson.
As detailed in the plea agreement, Johnson asked his associates to help him find the individual who shot at him so he could retaliate, telling them, “I already know which one it was.” Shortly after the calls, DEA investigators saw Johnson walking in East Baltimore along with several of his associates. While investigators watched Johnson, he got into an argument with the driver of a van on the street. Knowing that Johnson was on his way to retaliate against the individual who shot at him and was most likely armed, investigators stopped Johnson and conducted a pat down for weapons. Investigators recovered a .45 caliber handgun loaded with 12 rounds of .45 caliber ammunition, with one in the chamber, from Johnson’s waistband. Johnson was also wearing a bulletproof vest.
Johnson knew that he was prohibited from possessing a firearm or ammunition as the result of a previous felony conviction. Further, the investigation showed that the gun had been reported stolen on June 21, 2021.
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 DEA and the Baltimore Police Department for their work in the investigation and thanked the Maryland Department of Public Safety and Correctional Services, the Baltimore County Police Department, and the U.S. Marshals Service for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Kim Y. Oldham and Ari Evans, 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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New York Man Sentenced to over 10 Years in Federal Prison for Conspiracy and Possession with Intent to Distribute FentanylRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Valfonso Dewitt, a/k/a “Valentino” and “Val,” age 72, of Bronx, New York, to 121 months in federal prison, followed by five years of supervised release, for conspiracy to distribute and possession with intent to distribute fentanyl and for two counts of using his cellular telephone to facilitate a felony drug offense.
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; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; and Chief Marcus Jones of the Montgomery County Police Department.
According to the evidence presented at his four-day trial, from January 2019 through at least September 2019, Dewitt conspired with co-defendant James Isaac Gaston, Gaston’s wife Jacqueline Shelton Gaston, and others to distribute fentanyl. The evidence proved that in September 2019, Dewitt distributed nearly half a kilogram of pure fentanyl—enough to kill almost 250,000 people—to James Gaston just outside Memphis, Tennessee. Approximately 14 hours later, law enforcement seized the fentanyl during a traffic stop on Gaston’s car shortly after Gaston drove over the I-495 bridge from Virginia into Prince George’s County, Maryland. The jury acquitted Dewitt on three counts of using his cellular telephone to facilitate a felony drug offense.
James Isaac Gaston, age 74, of Lanham, Maryland, was sentenced to six years in federal prison for his role in the drug distribution conspiracy. Co-defendant Jacqueline Shelton Gaston, age 52, also of Lanham, Maryland, also pleaded guilty to her role in the conspiracy and is scheduled to be sentenced on June 23, 2023.
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.
U.S. Attorney Erek L. Barron commended the DEA, the FBI, and the Montgomery County Police Department for their work in the investigation and thanked the Prince George’s County Police Department and the Maryland State Police for their assistance. Mr. Barron thanked Assistant United States Attorneys Jeffrey J. Izant and Geonard F. Butler II, who prosecuted the case and recognized Intelligence Research Specialist Angelina Thompson and Paralegal Specialists Andrew Branigan, Mark Phares, and Derek Harwerth 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 https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Member of Southwest Baltimore “NFL” Gang Sentenced to 30 Years in Federal Prison for Participating in a Racketeering Conspiracy, Including Murder and a Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin today sentenced James Henry Roberts, a/k/a “Bub,” age 33, of Baltimore, Maryland, to 30 years in federal prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise related to his activities in the Normandy, Franklin, and Loudon (“NFL”) gang, which operated in the Edmondson Village area in Southwest Baltimore.
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; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Baltimore District Office; Secretary Carolyn J. Scruggs of the Maryland Department of Public Safety and Correctional Services; Chief Marcus Jones of the Montgomery County Police Department; and Acting Commissioner Richard Worley of the Baltimore Police Department.
According to Robert’s guilty plea, from 2016 to March 2020, Roberts was a member of the NFL gang, which was an enterprise, and participated in its illegal activities with other members, including the NFL drug trafficking organization (“DTO”). Members of the NFL gang have social and familial ties to the Edmondson Village neighborhood of Southwest Baltimore.
During the conspiracy, NFL gang members distributed large quantities of heroin and cocaine to drug customers and re-distributors from Maryland, Virginia, West Virginia and Pennsylvania. Roberts admitted that he obtained narcotics from multiple sources of supply and stored the narcotics in stash houses that the NFL gang controlled. Over the course of the charged conspiracy, Roberts and his co-conspirators distributed over one kilogram of heroin and more than 280 grams of cocaine base.
As detailed in his plea agreement and court documents, Roberts paid members and associates of the NFL gang to commit multiple murders on behalf of the enterprise. For example, in 2018, Roberts and others offered a bounty in exchange for the murder of Victim 1, who Roberts believed was cooperating with law enforcement. On June 16, 2018, an NFL gang member (Co-conspirator 1) murdered Victim 1 as well as a bystander (Victim 2). Shortly after the murders, Roberts paid Co-conspirator 1 with money from another NFL related enterprise.
Additionally, in October 2018, Roberts learned of a bounty for the murder of Victim 3. To try to collect the bounty, Roberts recruited two NFL gang members to murder Victim 3 and share the proceeds. Ultimately, the two NFL gang members shot and killed Victim 3 on October 31, 2018, then notified Roberts of Victim 3’s murder.
More than 30 defendants in this and related cases have pleaded guilty and been sentenced to between 30 years and time served.
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.
This case is also 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 FBI, DEA, DPSCS, the Montgomery County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys John W. Sippel, Jr., James T. Wallner, and Robert I. Goldaris who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Maryland Correctional Officer Pleads Guilty to Federal Civil Rights ViolationsRead the Press Release
Greenbelt, Maryland – Former Correctional Officer Owen Nesmith, age 54, of Baltimore, Maryland, pleaded guilty today to federal charges, including three counts of deprivation of rights under color of law and to making a false statement, all related to his sexual contact with three victims who were incarcerated at the Maryland Correctional Institution Jessup.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Carolyn J. Scruggs of the Maryland Department of Public Safety and Correctional Services.
According to his guilty plea, Nesmith was employed as a Correctional Officer (“CO”) Lieutenant at Maryland Correctional Institution Jessup (“MCIJ”). Nesmith admitted that from 2005 to 2017, he deprived three incarcerated individuals of their civil rights by sexually assaulting them. Specifically, in February 2005, Nesmith followed Victim 1 back to his cell. No other inmates were present in the housing unit at that time. Nesmith told Victim 1 that he wanted Victim 1 to perform a sex act on Nesmith, which he did. Victim 1 did not consent to this act, which was a deprivation of rights under color of law.
As detailed in the plea agreement, in July 2015, Victim 2 needed an identification badge (“ID”) and Nesmith offered to take Victim 2 to the ID office. On the way to the office, Nesmith grabbed Victim 2’s genital area, then shut a gate in the area and told Victim 2 that he needed to conduct a strip search. After removing Victim 2’s pants, Nesmith sexually assaulted Victim 2, causing him pain and bodily injury.
Nesmith further admitted that in December 2017, he engaged in a sex act with Victim 3, without his consent, when Victim 3 came to Nesmith’s office to discuss obtaining a job in sanitation. At that time, Nesmith was the acting lieutenant of the building and Victim 3 needed Nesmith’s approval to obtain that job.
Finally, Nesmith admitted that when questioned by law enforcement, he falsely stated that he had never had any inappropriate relationships or sexual contact with any inmates while he was at MCIJ.
Nesmith is the last of 20 defendants charged with federal racketeering and related charged to plead guilty. Five other correctional officers/employees previously pleaded guilty to their roles in a racketeering conspiracy.
Nesmith faces a maximum of 17 years in prison for deprivation of rights under color of law and for making false statements. U.S. District Judge Paula Xinis has not set a sentencing date.
U.S. Attorney Erek L. Barron commended the FBI and the Maryland Department of Public Safety and Correctional Services for their work in the investigation. Mr. Barron thanked Assistant United States Attorneys Sean R. Delaney and Katelyn Semales, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Health Care Information Technology Contractor Agrees to Pay More Than $1.7 Million to Resolve False Claims Act Allegations for Charging Unallowable Costs to the National Institutes of HealthRead the Press Release
Baltimore, Maryland – Maryland-based Capital Technology Information Services, Inc., (“CTIS”), a health care information technology company, has agreed to pay the United States $1,712,949.44 to resolve federal False Claims Act allegations that it billed the National Institutes of Health (“NIH”) for costs that were unallowable for reimbursement.
The civil settlement was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
“Federal contractors are required to bill only for costs that are properly reimbursable and not for purely personal expenses unrelated to the contract work,” said United States Attorney for the District of Maryland Erek L. Barron. “This settlement represents our continuing commitment to holding companies accountable who do not follow the rules for federal contracting and grants and take advantage of taxpayer funded programs.”
“Federal grantees and contractors have a responsibility to ensure all charges they submit are for allowable expenses,” said Maureen Dixon, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to protecting valuable taxpayer dollars, and the programs they fund, from fraud, waste, and abuse.”
The core business of CTIS involved health data analytics and the provision of related website infrastructure to its customers to capture, store and use health and biomedical data. CTIS received a five-year grant from NIH, through the National Institute of Minority Health and Health Disparities (“NIMHD”), to establish a consortium of educational and for-profit organizations to study the impact of health delivery systems in a selected minority community, to understand possible disparities, and find innovative ways to eliminate the identified disparities. CTIS was also awarded an NIH Cancer Therapy Evaluation Program (“CTEP”) Task Order cost-reimbursable contract to provide information technology and telecom solutions in support of NIH for CTEP. Under the contract and the grant, NIH would reimburse CTIS only for allowable expenses incurred during the performance period of the contract or grant.
The settlement resolves allegations that between July 1, 2013, through June 30, 2018, CTIS knowingly billed the NIH for unallowable costs on both the NIH grant and the CTEP Task Order, including for such personal expenses as the costs of luxury vehicles, residential mortgage payments, housekeeping services, the cost of a wedding, and other unreasonable and/or non-contract-related work or for work not actually performed. The costs were falsely represented as incurred specifically in support of the work performed on the NIH grant and CTEP Task Order and as necessary to the overall operation of the business of CTIS.
The civil settlement also resolves lawsuits filed under the whistleblower provision of the False Claims Act in United States ex rel. Sherette Rhodes, et. al., v. Capital Technology Information Services, Inc., Civ. No. GJH-17-0609 and in United States ex rel. Connie Ezerski v. CTIS, Inc., et. al., Civ. No. GJH-18-0486 (D.Md). The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the United States’ recovery. As part of the civil resolution, two of the Relators will receive $171,294.94, collectively, and the other will receive $171,294.94.The claims resolved by this settlement are allegations. The settlement is not an admission of liability by CTIS, nor a concession by the United States that its claims are not well founded. CTIS cooperated throughout the ensuing federal investigation conducted by the United States Attorney’s Office for the District of Maryland.
United States Attorney Erek L. Barron commended the DHHS-OIG for its work in this investigation. Mr. Barron thanked Assistant U.S. Attorney Tarra DeShields who handled this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Florida Man Convicted in Maryland After Six-Day Trial for Nationwide Scheme that Defrauded Elderly Victims of More Than $2.5 MillionRead the Press Release
Baltimore, Maryland – A federal jury convicted Eghosasere Avboraye-Igbinedion a/k/a “Ego” and “Ghost,” age 28, of Miramar, Florida, for a federal charge of conspiracy to commit mail fraud and four counts of mail fraud, in connection with a scheme in which he and his co-conspirators defrauded more than 85 elderly victims of more than $2.5 million. The verdict was returned on June 15, 2023, after a six-day trial.
The guilty verdict 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.
“Avboraye-Ibginedion was part of a scheme that targeted elderly victims by falsely claiming that a grandchild was in trouble and needed money and convincing the victims to send them thousands of dollars,” said U.S. Attorney Erek L. Barron. “If you or someone you know is a victim of financial fraud, please report it by contacting the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
“Sophisticated scams like this one take advantage of a grandparent’s relationship with their loved ones,” said Special Agent in Charge Thomas J. Sobocinski of the FBI's Baltimore field office. “The FBI is working to educate and protect victims as we identify and bring to justice those seeking to defraud our most vulnerable community members.”
According to the evidence presented at trial, from January 2018 through November 2019, Avboraye-Ibginedion was part of a conspiracy to defraud elderly victims by persuading them to send thousands of dollars in cash to members of the conspiracy, falsely stating that the money would be used to help the victims’ relatives pay legal or other expenses for crimes and other incidents that had not actually occurred. Conspirators targeted elderly victims throughout the United States, calling and posing as a police officer, lawyer, or other individual, falsely telling the victim that a relative, typically the victim’s grandchild, had been incarcerated in connection with a car accident or traffic stop involving a crime, and needed money—often tens of thousands of dollars—for bail, legal fees, and other expenses.
Witnesses testified that during the telephone calls, the conspirators directed victims to send cash to particular addresses via an overnight delivery service. The conspirators even posed as the victims’ relatives to further induce them to send the cash. Once the victims did send money, the conspirators called the victims asking for more cash, regularly obtaining tens of thousands of dollars from the retirement savings of victims. To prevent the victims from sharing the information with anyone, the conspirators told the victims that a “gag order” had been placed on the case requiring secrecy, or that the situation was embarrassing for the grandchild and they didn’t want anyone else to know about it.
The evidence proved that Avboraye-Ibginedion’s part in the scheme was to retrieve packages of cash sent by elderly victims and deliver the packages to a co-defendant, Medard Ulysse. Avboraye-Ibginedion and other conspirators traveled from Florida to Maryland and other states and identified residential locations where the cash should be sent, typically locations that were either vacant or for sale, so that no one would be at those locations at the time of the deliveries. Once the packages were delivered, Avboraye-Ibginedion and others retrieved the packages of cash. Avboraye-Ibginedion and other conspirators also relayed directions to other participants in the scheme about where and when to retrieve packages of cash. Avboraye-Ibginedion then delivered the packages to Ulysse or to other conspirators.
Avboraye-Ibginedion faces a maximum sentence of 20 years in federal prison for mail fraud conspiracy. U.S. District Judge Richard D. Bennett has not yet scheduled sentencing Avboraye-Ibginedion.
Co-defendant Medard Ulysse, age 38, most recently of Miami, Florida, was sentenced earlier this year to nine years in federal prison, for wire fraud and conspiracy to commit mail fraud in relation to multiple fraud schemes, including the elder fraud “grandparent” scam. Judge Bennett also ordered Ulysse to pay restitution totaling $2,485,512, of which $1,866,745 is for the elder fraud scam.
Reporting from consumers about fraud and fraud attempts is critical to law enforcement efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps, including identifying appropriate reporting agencies, providing information to callers to assist them in reporting or connecting them with agencies, and providing resources and referrals on a case-by-case basis. The hotline is staffed from 10:00 a.m. to 6:00 p.m. Monday through Friday. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation and thanked Canadian Sûreté du Québec for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Christine Goo, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help seniors, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/elder-justice-initiative.
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Baltimore Man Pleads Guilty to Federal Charge for Illegal Possession of a Firearm in a School ZoneRead the Press Release
Baltimore, Maryland – Ronnie Peoples, age 36, of Baltimore, Maryland, pleaded guilty yesterday to a federal charge of illegal possession of a firearm in a school zone, specifically, the New Hope Academy.
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; and Acting Commissioner Richard Worley of the Baltimore Police Department.
According to his guilty plea, on April 29, 2020, Peoples was seen engaging in what appeared to be hand-to-hand drug transactions in the 500 block of Orchard Street. Peoples then got into a maroon Nissan Ultima and Baltimore Police officers conducted a traffic stop and arrested Peoples. Law enforcement recovered a revolver, loaded with six rounds of ammunition, and 34 flip-top containers of approximately 14.5 grams of cocaine from Peoples’ jacket pocket.
Peoples admitted that he knew he had the firearm and ammunition and had reasonable cause to believe he was within 1,000 feet of the New Hope Academy.
Peoples faces a maximum sentence of five years in federal prison for possession of a firearm in a school zone. U.S. District Judge George L. Russell, III has scheduled sentencing for September 6, 2023, at 9:30 a.m.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the ATF and 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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Maryland U.S. Attorney’s Office Joins with State Agencies and Non-Profits to Combat Financial Exploitation of Older AdultsRead the Press Release
Baltimore, Maryland - The U.S. Attorney’s Office has partnered with AARP Maryland, the Maryland Attorney General, the Comptroller of Maryland, the Maryland Department of Aging, the Maryland Department of Human Services, and the Office of Financial Regulation in the Maryland Department of Labor, as well as businesses and consumer groups to sponsor PROTECT Week to raise awareness and help prevent financial fraud targeting older adults. A press conference was held today to kick-off PROTECT Week, held June 12-16, 2023. PROTECT Week offers opportunities to learn about the many forms of abuse, neglect, and financial exploitation of older Marylanders. The U.S. Attorney’s Office is participating in events all month, including public outreach events such as a tele-town hall, and educational programming.
“Targeting vulnerable elderly victims is unconscionable and PROTECT Week is a great time to learn about scams targeting older adults and how to avoid them,” said Erek L. Barron, United States Attorney for the District of Maryland. “But if you, or someone you know, is a victim of financial fraud, I urge you to report it. Help is available through the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311) and you could prevent someone else from becoming a victim.”
PROTECT WEEK EVENTS:
Interview with Shawn Perry of the Senior Zone – airing June 12 at 10:00 a.m.
Maryland U.S. Attorney Erek L. Barron will participate in an interview with Shawn Perry of the Senior Zone AM radio program to promote PROTECT Week. The interview will discuss tips for recognizing and avoiding scams, the importance of reporting fraud, and the Department of Justice’s Elder Fraud Hotline.
Tele-town Hall – June 15 at 11:30 a.m.
U.S. Attorney Erek Barron, Maryland Comptroller Brooke Lierman, and Karen Straughn with the Maryland Office of the Attorney General’s Consumer Protection Division will participate in an AARP tele-town hall. The tele-town hall will discuss Maryland’s new Transnational Elder Fraud Strike Force, trends in fraud schemes, and resources for reporting fraud. The tele-town hall reaches thousands of Marylanders in every county throughout the state.
Now in its sixth year, PROTECT Week 2023 includes World Elder Abuse Awareness Day, observed on June 15. More information on World Elder Abuse Awareness Day can be found here. For a list of PROTECT Week coalition members and to register for events, visit www.aarp.org/md.
Reporting from consumers about fraud and fraud attempts is critical to law enforcement’s efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available through the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed from 10:00 a.m. to 6:00 p.m. Monday through Friday. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help older adults, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/elder-justice-initiative.
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Baltimore Man Sentenced to 25 Years in Federal Prison for the Robbery and Murder of a Drug DealerRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced George Fields, a/k/a “Chin,” age 49, of Baltimore, Maryland, to 25 years in federal prison, followed by five years of supervised release, for conspiracy to commit a Hobbs Act robbery and for using, carrying, brandishing, and discharging a weapon during and in relation to a crime of violence.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to their plea agreements, on September 29, 2020, Fields and co-defendants Joseph Williams and Deron Johnson 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 Fields and Williams.
As detailed in the plea agreements, Fields and Williams approached Johnson’s van and Fields held out money as though he was ready to make a purchase. Fields and Williams 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, Fields, and Williams then got into the van and 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. Fields, Williams, and Johnson 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, a photograph of Johnson with Fields and Williams, and Fields’ contact information was in Johnson’s contacts.
Joseph Williams, a/k/a “Blue,” age 33, of Baltimore, previously pleaded guilty to his role in the conspiracy and faces a mandatory minimum sentence of 10 years in federal prison and up to life in prison for using, carrying, brandishing, and discharging a firearm in furtherance of a crime of violence and a maximum of 20 years in federal prison for the robbery conspiracy. Judge Russell has scheduled sentencing for Williams on July 7, 2023, at 9:30 a.m.
On May 24, 2023, co-defendant Deron Johnson, a/k/a “DJ,” age 52, of Baltimore, pleaded guilty to the conspiracy and to committing the robbery. Johnson and the government have agreed that, if the Court accepts the plea agreement, Johnson will be sentenced to at between 15 and 20 years in federal prison. Judge Russell has scheduled sentencing for Johnson on September 6, 2023, at 11:00 a.m.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Kim Y. Oldham, 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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Maryland Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
Baltimore, Maryland – Elias Nick Costianes, age 44, formerly of Nottingham, Maryland, pleaded guilty today to possession of firearms and ammunition by an unlawful user of any controlled substance.
The guilty plea 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 at Costianes’s residence, his vehicle, and on 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. Constianes admitted that not only did he purchase cocaine and testosterone for his personal use, but that he also conspired to distribute, and did distribute, cocaine and testosterone to others.
Costianes and the government have agreed that, if the Court accepts the plea agreement, the government will recommend that Costianes not be sentenced to more than 37 months in prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for September 25, 2023, at 10 a.m.
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 are prosecuting the federal case. Mr. Barron also thanked Paralegals Andrew Branigan, Mark Phares, Matthew Kerrigan, and Derek Harwerth, 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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Columbia Man Pleads Guilty to Illegally Exporting Firearms to GhanaRead the Press Release
Baltimore, Maryland – Eric Nana Kofi Ampong Coker, age 41, of Columbia, Maryland, pleaded guilty today to the illegal export of firearms.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) Baltimore Field Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; and Stephen Maloney, Director of Field Operations for the Baltimore Field Office of U.S. Customs and Border Protection (“CBP”).
According to his guilty plea, since 2017 Ampong Coker has purchased at least 81 firearms from three separate Maryland Federal Firearms Licensees (“FFLs”) and in 2019 received Regulated Firearms Collector status through the Maryland State Police, which waived the restriction on the number of firearms he could purchase during a 30-day period.
As detailed in the plea agreement, investigators also determined that prior to 2021 Ampong Coker had shipped passenger vehicles to Ghana. In May 2021, federal agents surveilled Ampong Coker as he retrieved firearms purchased from one of the FFLs and was then observed in a variety of locations, including a business that packaged and shipped items from the Port of Baltimore. A shipping vehicle was subsequently seen departing that location on May 27, 2021. On May 29, 2021, Ampong Coker was searched as he was departing the United States from Detroit, Michigan, bound for Ghana. Among other items seized in his luggage were foam cutouts used for packaging and securing firearms in gun cases.
In early June 2021, HSI and CBP agents identified a shipping container scheduled to depart the Port of Baltimore for Tema, Ghana, on June 14, 2021. Included in the listed contents of the container was a 2018 Toyota Corolla registered to Ampong Coker. The list of contents of the container did not include any firearms. On June 8, 2021, HSI, ATF, CBP and other agents searched the contents of the shipping container. Within the trunk of the 2018 Toyota Corolla, which had the Defendant’s name on cardboard on top of the vehicle, the agents found a grey suitcase. Secreted in the lining of the suitcase, the agents found five 9mm handguns previously purchased by Ampong Coker.
Law enforcement authorities identified another shipping container bound for Ghana containing other vehicles associated with Ampong Coker. The vessel on which this container was loaded sailed from the Port of Baltimore in May 2021, was intercepted at sea on June 14, 2021, and returned to Baltimore on August 20, 2021, without having been off-loaded in Ghana or any other port enroute. On August 25, 2021, this container was searched, revealing six 9mm handguns and 16 9mm pistol magazines found in the vehicles associated with Ampong Coker.
Ampong Coker admitted that all of the firearms and magazines were identified on the U.S. Department of Commerce Control List, and he had not obtained the required license or written approval to export the weapons to Ghana.
Ampong Coker faces a maximum sentence of 20 years in federal prison for illegally exporting firearms. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for September 6, 2023, at 2:00 p.m.
U.S. Attorney Erek L. Barron commended the ATF, HSI, and CBP for their work in the investigation. Mr. Barron also thanked Assistant United States Attorney P. Michael Cunningham, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former U.S. Postal Service Employee Pleads Guilty to Using Her Position to Obtain the Personal Information of Victims as Part of a Conspiracy to Commit Bank Fraud and Wire FraudRead the Press Release
Baltimore, Maryland – Breanna Lee Cartledge, age 28, of Clinton, Maryland, pleaded guilty today to conspiracy to commit bank fraud and wire fraud, in connection with a scheme to defraud financial institutions by creating fake checks using information Cartledge intercepted as a Clerk with the U.S. Postal Service (USPS).
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland and Acting Special Agent in Charge Peter Brown of the U.S. Postal Service – Office of Inspector General (USPS-OIG).
According to her guilty plea, Cartledge utilized her position as a USPS employee to wrongfully access USPS money orders and individual mail to illegally obtain the personal information of victim individuals and businesses, which she and her co-conspirators used without the victims’ authorization.
For example, after a co-conspirator texted Cartledge requesting pictures of checks, Cartledge sent the co-conspirator images of at least nine separate money orders or checks that contained personal identifying information with the intent that the information be used to create fake checks to steal from victim accounts.
As detailed in the plea agreement, on May 28, 2020, Cartledge negotiated a counterfeit check fraudulently drawn for $4,900 from the account of a victim, but the transaction was reversed by the bank. Cartledge admitted that she abused her position as a USPS Clerk to facilitate the commission or concealment of the offense.
Cartledge faces a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud and wire fraud. U.S. District Judge Lydia K. Griggsby has scheduled sentencing for October 19, 2023, at 2:00 p.m.
U.S. Attorney Erek L. Barron commended the USPS-OIG for its work in the investigation. Mr. Barron also thanked Assistant United States Attorneys G. Michael Morgan and Darren Gardner, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Maryland Man Sentenced to over Five Years in Federal Prison for COVID-19 Fraud and Aggravated Identity Theft SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Olaolu Alabi, age 40, of Owings Mills, Maryland, to 66 months in federal prison, followed by three years of supervised release, after Alabi pleaded guilty to conspiracy to commit wire fraud, conspiracy to commit access device fraud and aggravated identity theft, in relation to multiple financial fraud schemes. Judge Gallagher also ordered Alabi to pay a forfeiture money judgment of $500,000 and will determine the amount of restitution at a later date.
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 (“HIS”) Baltimore; Special Agent in Charge Karen L. Brown Cleveland of the U.S. Department of State, Diplomatic Security Service (“DSS”), Washington Field Office; Special Agent in Charge Troy Springer, of the National Capital Region of the 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 – Washington Division.
According to his plea agreement, from June 2019 until August 5, 2020, Alabi conspired with multiple individuals to defraud victim businesses, individuals and financial institutions through business email compromise schemes and/or COVID-19 Coronavirus Aid, Relief, and Economic Security (“CARES”) Act unemployment insurance (“UI”)fraud schemes to obtain more than $1.5 million. From March 2020 to August 2020, Alabi and his co-conspirators used and trafficked in unauthorized access devices and in that scheme alone, they obtained more than $400,000 in UI and other COVID-19 related benefits that were loaded onto debit cards. Alabi admitted that he personally obtained at least $500,000 from his participation in these fraud schemes, which he used for his personal benefit, including a trip to Hawaii for himself and two friends.
As detailed in the plea agreement, Alabi used the personal identifying information (“PII”) of individuals without their knowledge or permission to fraudulently obtain identity documents and obtain UI benefits. For example, Alabi obtained a driver’s license in the name of one victim and obtained fraudulent UI benefits in the names of two other victims. Alabi also used at least two aliases, obtaining fake passports and backup documentation for each of his aliases. Alabi used the fraudulent documents to open bank accounts in the names of identity theft victims and in his aliases, which were used to deposit proceeds of the fraud schemes. In addition, Alabi created limited liability companies (“LLCs”) which were used in the fraud schemes to hide the conspirators’ identities and frustrate the efforts of financial institutions and law enforcement.
Alabi admitted using an encrypted text messaging application to communicate with his co-conspirators, including Idowu Raji, about the timing of victim fund deposits into accounts Alabi controlled, withdrawing the fraud proceeds from the bank accounts receiving the funds, and using debit cards loaded with UI funds. Alabi also had in-person conversations with co-conspirator Raji.
Further, on September 30, 2019, Alabi deposited a $44,180.55 check, made payable to one of the LLCs he’d established, into a bank account opened in the name of that company. The check was part of more than $300,000 that had been obtained from a victim business, Victim T. As part of a business email compromise (“BEC”) scheme, Victim T sent the money to accounts controlled by Alabi’s co-conspirators, thinking that it was paying its actual debts. A cashier’s check for $44,173.50, also part of the $300,000 obtained from Victim T, was deposited into another bank account controlled by Alabi. In another instance, fraudulent emails from Alabi’s co-conspirators about paying an invoice caused Victim LSI, a company in Ohio, to send or transfer more than $500,000 to accounts controlled by Alabi and the co-conspirators.
Alabi also admitted that in April 2020 a separate victim, a community college lost $293,565, based on fraudulent emails purporting to be from one of its vendors. The emails advised that the vendor was no longer accepting checks for payment and provided wiring instructions. The emails came from the vendor point of contact’s real email address after the conspirators gained access to the account. The victim community college wired the funds into a bank account controlled by the conspirators, who then transferred the funds to other accounts and purchased cashier’s checks. Eventually, the vendor reached out to the victim community college about the overdue amount and the community college then realized it had been defrauded, causing a significant hardship for the community college.
On August 5, 2020, federal agents executed a search warrant at Alabi’s residence and seized and searched his cell phone. Conversations in the messaging app included exchanges related to fraudulent unemployment insurance claims. For example, as detailed in messages, on June 30, 2020, Alabi travelled to Raji’s residence and picked up debit cards containing unemployment insurance benefits obtained using the personal identifying information of real persons. Alabi then went to a U.S. Post Office where he used the debit cards from Raji to purchase a total of 19 separate $1,000 money orders.
On May 20, 2022, co-conspirator Idowu Raji, age 41, of Baltimore County, Maryland, was sentenced to 94 months in federal prison for conspiracy to commit access device fraud, access device fraud, and aggravated identity theft. The Court also ordered Raji to pay $1,793,472 in restitution.
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 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, DSS, DOL-OIG, and the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Harry M. Gruber, 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 Bank Employee Sentenced to Three Years in Federal Prison for Fraudulently Opening Bank Accounts as Part of a Larger Bank Fraud Scheme Targeting Churches and Religious OrganizationsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Diape Seck, age 29, of Rockville, Maryland, to three years in federal prison, followed by three years of supervised release, for his role in a bank fraud scheme in which he and his co-conspirators obtained or attempted to obtain almost $2 million by fraud, including the theft of checks from the mail of churches and religious institutions. Judge Chuang also ordered Seck to pay restitution in the amount of $1,708,446.49, and to forfeit $114,647.50. A federal jury convicted Seck on February 24, 2023.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Jeffrey D. Pittano of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG); Chief Marcus Jones of the Montgomery County Police Department; Chief Terry Sult of the Cary, North Carolina, Police Department; and Sheriff Dusty Rhoades of the Williamson County, Tennessee, Sheriff’s Office.
According to the evidence presented at his eight-day trial, from at least January 2019 to January 2020, Seck, a customer service representative with Bank A, conspired with Mateus Vaduva, Marius Vaduva, Vlad Baceanu, Nicolae Gindac, Florin Vaduva, Marian Unguru, Daniel Velcu, Vali Unguru and others to commit bank fraud. Specifically, the evidence showed that Seck fraudulently opened bank accounts in fake identities in exchange for cash bribes. Co-conspirators engaged in fraud that included fraud involving rental cars and the deposit of checks stolen from the incoming and outgoing mail of churches and other religious institutions, into the fraudulently opened bank accounts. The co-conspirators then withdrew the funds and spent the fraudulently obtained proceeds.
As detailed in the trial evidence, Diape Seck facilitated the opening of hundreds of bank accounts at Bank A for his co-conspirators, who used purported foreign identities, often but not universally Romanian, to fraudulently open bank accounts with him at Bank A, as well as bank accounts at other victim financial institutions. Seck opened accounts for co-conspirators without their presence in the bank, without verifying identity information, and opened accounts for co-conspirators who opened multiple accounts at a time under different identities. To conceal his improper activities, Seck opened accounts for the co-conspirators at the same time he conducted legitimate bank activities. The co-conspirators paid Seck up to $500 in cash in exchange for each of the fraudulent bank accounts he opened.
According to court documents and witness testimony, Seck violated numerous bank policies in opening approximately 412 checking accounts in a one-year period from approximately January 2, 2019 through January 3, 2020, relying predominantly on purported Romanian passports and driver's license information. Checks payable to and written from churches and other religious institutions from around the country were deposited into many of the 412 checking accounts which were not opened in the names of the churches.
The co-conspirators fraudulently negotiated the stolen checks by depositing them into the victim bank accounts, including the fraudulent accounts opened by Seck at Bank A, often by way of automated teller machine (ATM) transactions. After depositing the stolen checks into the bank accounts, the conspirators made cash withdrawals from ATMs and purchases using debit cards associated with the bank accounts. Co-conspirators also used fraudulently obtained debit cards to rent cars which they used and then failed to return, resulting in charges by the rental car companies which had to be “written off” by Bank A.
According to court documents, co-conspirators deposited at least approximately $780,064.04 in stolen checks into the accounts Seck personally opened on their behalf and the bank had to write off at least approximately $921,590.50 from the co-conspirators’ rental car fraud in the accounts Seck opened for them.
Co-conspirators Vlad Baceanu, age 38; Marian Unguru, age 36; and Vali Unguru, age 20, all of Baltimore, Maryland, previously pled guilty to conspiracy to commit bank fraud and wire fraud. Mateus Vaduva, age 29, of Baltimore was sentenced to five years in federal prison and ordered to pay restitution of $1,320,885.84; Nicolae Gindac, age 52, of Dania Beach, Florida was sentenced to 54 months in federal prison and ordered to pay restitution of $1,096,660.11; Florin Vaduva, age 31, of Dania Beach, Florida was sentenced to 51 months in federal prison and ordered to pay restitution of $1,096,660.11; Marius Vaduva, age 28, of Baltimore was sentenced to 42 months in federal prison and ordered to pay restitution of $1,334,230.84; and Daniel Velcu, age 43, of Baltimore was sentenced to 34 months in federal prison and ordered to pay restitution of $1,313,499.79, after they previously pled guilty to conspiracy to commit bank fraud and wire fraud.
United States Attorney Erek L. Barron commended the U.S. Postal Inspection Service, HSI, the FDIC Office of Inspector General, the Montgomery County Police Department, the Cary (North Carolina) Police Department, and the Williamson County (Tennessee) Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Elizabeth Wright and Darren Gardner, 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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MS-13 Gang Member Sentenced to 26 Years in Federal Prison for Racketeering Conspiracy Involving a Violent Murder and for Drug Distribution and Firearms ViolationsRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced El Salvadoran national Jose Lopez Rivera, age 27, of Elmont, New York, formerly residing in Maryland, to 26 years in federal prison for a racketeering conspiracy involving a violent murder connected to his participation in La Mara Salvatrucha, a transnational criminal enterprise also known as MS-13, and for possession with intent to distribute cocaine, possession of a firearm and ammunition by an illegal alien, and possession of a firearm in furtherance of a drug trafficking crime.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; 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 Office; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Jason Lando of the Frederick City Police Department; Frederick County Chief Deputy, Colonel David Benjamin of the Frederick County Sheriff’s Office; Frederick County State’s Attorney J. Charles Smith, III; Chief Amal E. Awad of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Chief Malik Aziz of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 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, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. Since at least 2015, Lopez Rivera was a member of the Fulton Locos Salvatruchas (“FLS”) MS-13 clique.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations, and reputation, including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.” One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible. MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase 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 his plea agreement, on August 31, 2015, while Lopez Rivera and other MS-13 gang members were drinking in Wheaton, Maryland, they went to a coffee shop where they saw Victim 5. Victim 5 was wearing Nike Cortez sneakers, which according to MS-13 rules, were only to be worn by gang members. A MS-13 member had previously warned Victim 5 about wearing those sneakers. As they walked past Victim 5, he spit on one of the gang members who then punched Victim 5 in the mouth. Victim 5 threw a beer at one of the MS-13 gang members and ran. Lopez Rivera and another gang member chased Victim 5 away from the coffee shop and Victim 5 was then stabbed to death. Following the murder, the gang members reported to their leadership that they had killed a rival gang member.
According to his plea agreement, on July 22, 2021, investigators searched an apartment in Elmont, New York, where Lopez Rivera was living at the time and recovered a shotgun, ammunition, and a brick of packed white powder, which tested positive for cocaine. Lopez Rivera admitted that he possessed the cocaine to distribute it and possessed the firearm in furtherance of his drug distribution. Further, Lopez Rivera knew that he was in the United States illegally and therefore was prohibited from possessing a firearm or ammunition.
More than 30 MS-13 gang members and associates have been convicted in this and related cases.
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 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 commended the FBI; HSI; ATF; the Frederick Police Department; the Frederick County Sheriff’s Office; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in these investigations, and the Baltimore County Police Department for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Kenneth S. Clark and Anatoly Smolkin, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Man Pleads Guilty to Federal Charge in Connection with Scheme to Obtain More Than $550,000 in Fraudulent COVID-19 Cares Act LoansRead the Press Release
Baltimore, Maryland – Lawrence A. Walker, age 63, of Baltimore, Maryland, pleaded guilty yesterday to conspiracy to commit wire fraud, for 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.
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 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% 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. As part of his plea agreement, Walker must forfeit the cash seized during the search, the Mercedes-Benz, and pay a money judgment of $262,252. Walker must also pay restitution of $262,252.
Walker faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 31, 2023.
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 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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The United States and Montgomery County Based Pharmacy and Pharmacist Reach a Consent Decree over Allegations of Illegally Dispensed Controlled SubstancesRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte approved the United States’ consent decree with Abtin Youssefi-Rashti, a Montgomery County based pharmacist, and Upton Care Pharmacy, Inc. (“Upton Care”), resolving the United States’ civil allegations that Youssefi-Rashti and Upton Care violated the Controlled Substances Act (“CSA”) in illegally dispensing controlled substances. Under the consent decree, in addition to paying a $100,000 civil monetary penalty, Youssefi-Rashti agrees to surrender his pharmacist’s license to the Maryland Board of Pharmacy and not to reapply for three years. Additionally, Upton Care agreed to voluntarily surrender its DEA registration to dispense controlled substances for cause.
The consent decree was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Jarod A. Forget of the Drug Enforcement Administration – Washington Field Division.
“Under the Controlled Substances Act, pharmacists have a responsibility to ensure the legitimacy of the prescriptions they fill,” said U.S. Attorney Erek L. Barron. “The U.S. Attorney’s Office intends to use all tools at its disposal—criminal and civil—to hold responsible those at every step in the supply chain who violate the CSA and fan the flames of the present opioid epidemic.”
Special Agent in Charge Jarod A. Forget stated, “Pharmacists have a crucial role in correctly dispensing controlled substances, safeguarding patients and preventing drug diversion. It’s essential to pay attention to warning signs to prevent the opioid epidemic from getting worse. DEA is dedicated to investigating those who ignore the signs and to ensuring the community is safe.”
The government alleges that between 2018 and when Upton Care closed its doors in 2022, Youssefi-Rashti and Upton Care knowingly filled fraudulent prescriptions for controlled substances, ignoring red flags indicating that the prescriptions were not legitimate. For example, the government alleges that Youssefi-Rashti dispensed controlled substances to more than 300 people that traveled more than 180 miles from their homes to Upton Care. Additionally, Youssefi-Rashti dispensed prescriptions for both opioids and stimulants—a dangerous and potentially lethal combination—to the same patient concurrently. Youssefi-Rashti also regularly filled prescriptions for controlled substances that were paid for with cash even though the patient had insurance available to pay for the patient’s prescriptions. Although the Centers for Disease Control and Prevention generally recommends that primary care clinicians should avoid daily dosages of opioids over 90 morphine milligram equivalents (“MME”), Youssefi-Rashti routinely dispensed prescriptions to patients causing their MME levels to be many times that amount—and upwards of 1800 daily MME. The government alleges that Upton Care is liable for these deficiencies.
As part of the Consent Decree, Youssefi-Rashti and Upton Care are required to identify certain red flags—including when filling a prescription would cause the patient to take more than 90 daily MME; and when the patient pays in cash despite having insurance available to pay for the prescription. Before filling prescriptions bearing those red flags, the consent decree requires Youssefi-Rashti and Upton Care to document in detail any indications of abuse or diversion and the steps they took to ensure that the prescription was valid and was issued for a legitimate medical purpose, and that the prescription would not be abused or diverted for illegitimate purposes. Additionally, under the consent decree, Youssefi-Rashti and Upton Care are prohibited from filling certain prescriptions, including a combination of an opioid and a stimulant, and prescriptions for buprenorphine without naloxone without reliable documentation from the prescriber that the patient is pregnant, a nursing mother, or has had an actual adverse reaction to naloxone.
Under the consent decree, if the DEA determines that Youssefi-Rashti or Upton Care have violated any provision of the consent decree or if Youssefi-Rashti or Upton Care do not implement the corrective action the DEA orders, the DEA can order Youssefi-Rashti and Upton Care to cease ordering, distributing, or dispensing controlled substances immediately.
The consent decree is not an admission of liability by Youssefi-Rashti or Upton Care, nor a concession by the United States that its claims are not well founded.
The Court’s approval of this consent decree should remind pharmacists and pharmacies of their corresponding responsibility to confirm the legitimacy of the prescriptions that they fill and that that the Department of Justice intends to use all tools at its disposal—both criminal and civil—to combat the controlled substances epidemic which continues to plague our country, including here in Maryland.
U.S. Attorney Erek L. Barron commended the DEA Washington Division’s Office of Diversion Control and Diversion Investigator Samantha A. Merriss for their work in the investigation, along with the Montgomery County Police Department and the FBI’s Baltimore Field Office. Mr. Barron 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 report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Former Social Media Influencer Pleads Guilty to Federal Charges for Scheming to Obtain More Than $1.2 Million in COVID-19 Cares Act LoansRead the Press Release
Greenbelt, Maryland – Denish Sahadevan, a/k/a “Danny Devan,” age 31, of Potomac, Maryland, pleaded guilty today to wire fraud, aggravated identity theft and money laundering, relating to his scheme to defraud lenders and the Small Business Administration (“SBA”) of more than $1.2 million in Paycheck Protection Program (“PPP”) loans and Economic Injury Disaster Loans (“EIDL”).
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 John T. Perez, Special Agent in Charge, Headquarters Operations, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the PPP, as well as EIDLs to help small businesses meet their financial obligations, both administered through the SBA.
According to the plea agreement, beginning in about March 2020, Sahadevan submitted EIDL and PPP application on behalf of four Maryland entities that he controlled, often creating fraudulent and fabricated documents, such as tax forms and bank statements, to be used in the applications. In addition, Sahadevan used the identifying information belonging to a tax preparer that he knew, without that person’s knowledge or agreement, to legitimize the fabricated tax forms he created and submitted.
Specifically, Sahadevan admitted that he used his home in Rockville, Maryland to create the fabricated documents and electronically apply for EIDL and PPP loans. Sahadevan applied for approximately 71 PPP loans totaling approximately $941,794.75, and successfully obtained approximately $146,000 in PPP benefits. Sahadevan applied for and received eight EIDLs totaling $283,900. On the EIDL loans, Sahadevan induced his father into becoming a co-signer for the loan, then forged his father’s signature on the loan application. Sahadevan’s father would not have agreed to sponsor the loan had he known of its fraudulent nature and contents.
As detailed in the plea agreement, Sahadevan caused the fraud proceeds to be deposited into bank accounts he opened specifically for that purpose, then laundered the funds by engaging in several monetary transactions, including purchasing and trading securities and cryptocurrency, settling personal debts and making payments to his girlfriend.
In addition, between December 16, 2021 and January 10, 2022, Sahadevan applied to a financial institution for a $1,336,000 loan to purchase a property in Potomac, Maryland. In the loan application, Sahadevan failed to disclose the $283,900 he owed to the United States for the EIDL benefits he fraudulently received. Relying on Sahedevan’s representations, the financial institution approved the loan, which was used to purchase the Potomac property.
On February 24, 2023, law enforcement executed a search warrant at Sahadevan’s Potomac residence and recovered multiple electronic devices, a can containing approximate 18 driver’s licenses belonging to other individuals, what appeared to be a gold physical Bitcoin in a black case, and approximately $17,043 in cash found in a suitcase in a bedroom closet. The cash and Bitcoin constitute proceeds of the fraud scheme.
As part of his plea agreement, Sahadevan will forfeit the cash and Bitcoin seized during the search on February 24, 2023 and will be required to pay restitution and a forfeiture money judgement of at least $429,906.
Sahadevan faces a maximum sentence of 20 years in federal prison for wire fraud; a maximum of 10 years in federal prison for money laundering; and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed for aggravated identity theft. U.S. District Judge Deborah L. Boardman has scheduled sentencing for September 21, 2023 at 2:00 p.m.
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 Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the FBI and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Bijon A. Mostoufi, who 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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Pasadena Man Sentenced to over Four Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Raymond Martin Shamer, III, age 21, of Pasadena, Maryland, late yesterday to 50 months in federal prison, followed by 45 years of supervised release for possession of child pornography. Shamer admitted that he also distributed child pornography. Judge Hollander also ordered that, upon his release from prison, Shamer 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 and Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore.
According to his guilty plea, from at least July 7, 2019 through June 24, 2020, Shamer used online accounts to communicate with others about child pornography, to distribute child pornography, and to collect child pornography. Many of the files Shamer collected documented adults sexually abusing of infants and toddlers while they are bound and subjected to other violent conduct.
Shamer admitted that he used a secure communication application to upload images of children engaged in sexually explicit conduct, and that he shared links to those images with a group of users with whom he engaged in group chat conversations.
On June 24, 2020, a search warrant was executed at Shamer’s residence and investigators seized Shamer’s cell phones and computer. A subsequent forensic examination of the devices revealed a total of more than 1,000 images of child pornography on Shamer’s devices.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended HSI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Maryland Resident Sentenced to over Five Years in Federal Prison for Illegally Transporting Firearms with Obliterated Serial Numbers and Smuggling Firearms to NigeriaRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Wilson Che Fonguh, age 41, of Bowie, Maryland, yesterday to 63 months in federal prison, followed by two years of supervised release, for conspiracy, for transporting firearms with obliterated serial numbers, and for smuggling firearms and ammunition from the United States to Nigeria. Judge Bennett also ordered Fonguh to pay a fine of $25,000. Fonguh was convicted of those charges on May 6, 2022, along with co-defendants Eric Fru Nji, age 42, of Fort Washington, Maryland and Wilson Nuyila Tita, age 47, of Owings Mills, Maryland, after a two-week trial.
On May 22, 2023, Judge Bennett sentenced co-conspirator Roger Akem, age 52, of Woodbury, Minnesota, to two years in federal prison, followed by two years of supervised release, for his role in the smuggling operation.
The sentence 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; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) Baltimore Field Division; and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (“DCIS”) - Mid-Atlantic Field Office.
According to the evidence presented at trial, from at least November 2017 through July 19, 2019, Fonguh and his co-defendants conspired with each other and with others to export firearms, ammunition and other military typed items from the United States to Nigeria. Specifically, the evidence at trial established that Fonguh and his co-conspirators secreted 38 firearms, 28 of which had the obliterated serial numbers in a shipping container that they sent out of the Port of Baltimore in January of 2019. The guns included sniper rifles, SKS assault rifles (some with bayonets), other rifles and several handguns. There were 44 high-capacity magazines, two rifle scopes and over 35,000 rounds of ammunition.
As detailed in trial testimony, Fonguh and his co-conspirators contributed funds for the purchase of firearms, ammunition, reloading materials and other equipment for shipping overseas to separatists fighting against the Government of Cameroon. According to their plea agreements, co-defendant Tamufor St. Michael, Roger Akem and others purchased the ammunition, firearms, and other military-type items, both online in in person. The evidence proved that Fonguh and his co-conspirators concealed the firearms, ammunition, rifle scopes, and other items in duffle bags and heavily wrapped packages inside sealed compressor units, placing those items into a shipping container destined for Nigeria. Fonguh and his co-conspirators communicated about their efforts and plans to ship weapons and ammunitions using an on-line encrypted messaging application and code words in order to conceal their activities.
Tamufor St. Michael, age 42, of Rosedale, Maryland, Akem, and three co-conspirators pleaded guilty to their roles in the conspiracy and were sentenced to between two years and 46 months in federal prison. A ninth co-conspirator also pleaded guilty and is awaiting sentencing.
United States Attorney Erek L. Barron commended HSI, the ATF and DCIS for their work in the investigation. Mr. Barron recognized the U.S. Department of Commerce, Office of Export Enforcement; the U.S. Department of State, Diplomatic Security Service; the Naval Criminal Investigative Service; and the U.S. Postal Inspection Service for their contributions to the investigation. U.S. Attorney Barron thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Chinese National Sentenced to 54 Months in Federal Prison for a $1 Million Fraudulent Gift Card SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Liang Liang Zeng, age 58, a Chinese national residing in Staten Island, New York, to 54 months in federal prison, followed by three years of supervised release, for wire fraud related to a fraudulent gift card scheme resulting in more than $1 million in losses to dozens of victims. Liang Zeng was also ordered to pay restitution of $145,229 and to forfeit $43,633.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police; and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration (“TIGTA”) Washington Field Division.
According to Zeng’s plea agreement, from at least July 2018 through July 2021, Liang Zeng was involved in a scheme to fraudulently obtain gift cards from retail stores, which he and his co-conspirators used to purchase high end electronics, including cell phones, iPads, and laptop computers. For example, a conspirator called victim J.G., a resident of South Carolina, claiming to be a representative of the Internal Revenue Service (“IRS”). The called informed the victim that she owed taxes to the IRS and would be arrested if the outstanding taxes were not paid. The caller advised J.G. that she could resolve the debt by purchasing gift cards from Target and Walmart and providing the caller with the numbers on the back of each card. J.G. remained on the phone with the caller while she traveled to a Target store where she purchased a gift card in the amount of $2,000 and provided the caller with the number and access code on the back of the card. J.G. later learned that she had been defrauded.
As detailed in the plea agreement, transactional records and video footage from Target revealed that less than one hour later, Liang Zeng (“L. Zeng”) and co-defendant Wen Fu Zeng (“W. Zeng”) redeemed the gift card purchased by J.G. at a Target store in Abingdon, Maryland, to purchase Apple products. Transactional records and video footage from other Target stores in the mid-Atlantic region revealed numerous examples of Liang Zeng and Wen Fu Zeng redeeming Target gift cards to purchase high-value Apple products.
Investigation revealed that L. Zeng and W. Zeng were working with co-defendants Yong Chen and Bin Tang. A search warrant was executed at their home in Owings Mills, Maryland on March 3, 2020. Law enforcement recovered four boxes containing new high-end electronics, including dozens of iPad tablets and Apple watches that were purchased with proceeds of the fraud scheme. A notebook that served as a ledger for the gift card scheme was found in Chen’s bedroom and contained the dates that gift cards were fraudulently obtained and how they were redeemed, including the names of the people Chen and Tang paid to use the cards. The purchased electronics were intended to be sold to foreign buyers. The notebook also listed the projected profit for each product purchased. Cell phone belonging to Chen and Tang were seized and subsequently searched, revealing messages on a Chinese messaging platform between Chen, Tang and L. Weng discussing the scheme.
Two weeks after the execution of the search warrant at Chen and Tang’s home, L. Zeng moved out of his home in Maryland to a residence in Staten Island, New York. Investigators recovered a notebook ledger similar to the one found at Chen’s home and Target store receipts from L. Zeng’s trash in Maryland and New York indicating the purchase of electronics and other items using multiple Target gift cards from stores in New Jersey and Pennsylvania.
On July 13, 2021, a search warrant was executed at L. Zeng’s residence. Law enforcement recovered cell phones belonging to L. Zeng, prepaid credit and retail cards, store receipts, brand new Apple products, and over $43,000 in cash, some of which was tied up in Target store bags. A subsequent search of L. Zeng’s phone showed that he used the Chinese messaging platform to discuss the illegal gift card scheme with W. Zang and others. L. Zeng also sent fraudulently obtained gift card numbers to W. Zeng and instructed him to purchase items using the card numbers, which W. Zeng did. W. Zeng then delivered to products to L. Zeng. L. Zeng paid W. Zeng for working as a buyer in the gift card scheme.
According to the plea agreement, dozens of victims in many different states were defrauded and the cards purchased by the victims were primarily redeemed in the mid-Atlantic region to illegally purchase approximately $1,061,000 of Target products.
Co-defendants Wen Fu Zeng, age 55, of Brooklyn, New York and Yong Chen, age 34, of Owings Mills, Maryland have pleaded guilty to their roles in the scheme and are awaiting sentencing. Law enforcement is looking for Bin Tang, age 33, who fled.
United States Attorney Erek L. Barron praised the Maryland State Police and TIGTA for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Martin J. Clarke, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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United States Army National Guardsman and Former Rockville, Maryland Police Officer Sentenced to 42 Months in Federal Prison for Possessing over 12,000 Depictions of Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge Stephanie A. Gallagher today sentenced Daniel Morozewicz, age 38, of Frederick, Maryland, to 42 months in federal prison, followed by lifetime supervised release, for possession of child pornography. Judge Gallagher also ordered that Morozewicz must pay $14,000 in restitution.
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; Frederick County State's Attorney J. Charles Smith; and Colonel David Benjamin, Chief Deputy of the Frederick County Sheriff's Office.
According to his guilty plea, from September 2020 to January 2021, while employed as a Rockville Police Officer and an Army National Guardsman, Morozewicz received, possessed, and distributed child pornography on the BitTorrent file sharing network. Morozewicz also used multiple electronic devices to download and distribute child pornography involving prepubescent minors.
During that time, Morozewicz repeatedly distributed child pornography to undercover law enforcement officers. On at least four instances in 2020, investigators determined that the devices associated with Morozewicz’s IP address downloaded and shared child pornographic files on the BitTorrent; including eight packages of child pornography.
As stated in his guilty plea, on March 4, 2021, Morozewicz received a tip that federal law enforcement wished to conduct an in-person interview with him. The next day, on March 5, 2021, law enforcement executed a series of search and seizure warrants on Morozewicz’s residence, vehicle, and his person. As a result of the search of Morozewicz’s person, law enforcement seized a smartphone which had been recently factory reset and erased in light of the impending visit from federal law enforcement. He also admitted that he discarded his computer in anticipation of a visit from law enforcement. Morozewicz’s actions were viewed as an attempt to impede the investigation and prosecution of his child pornography offenses.
Multiple electronic devices were seized in connection the warrants executed at Morozewicz’s residence and in his vehicle. A forensic examination of Morozewicz’s devices revealed that he possessed over 12,300 depictions of child pornography and erotica, including over 200 depicts involving the sexual abuse of infants and toddlers, and over 90 child pornographic images involving sado-masochistic conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended HSI, the Frederick County State’s Attorney’s Office, and the Frederick County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley and Special Assistant U.S. Attorney Joyce King, Chief Counsel with the Frederick County State’s Attorney’s Office, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Maryland MS-13 Gang Member Sentenced to 28 Years in Federal Prison for Participating in A Racketeering Conspiracy, Including Two MurdersRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Franklyn Edgardo Sanchez, a/k/a “Freddy,” “Magic,” “Miclo,” and “Delinquente,” age 26, of Adelphi, Maryland, to 28 years in federal prison, followed by five years of supervised release, for his participation in a racketeering conspiracy, including two murders, related to his activities as part of the MS-13 gang. Judge Xinis also ordered that Sanchez must pay restitution in the full amount of the victims’ losses, including any funeral costs incurred by Victim 1 and Victim 4’s estates.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite, Jr. 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 the State of Maryland, including Montgomery County, Prince George’s County, and 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 and other court documents, from at least August 2018 through July 2021, Sanchez was a member and associate of Weedams Locos Salvatrucha, (WLS) an MS-13 clique operating primarily in Adelphi, Maryland.
According to the plea agreement, on February 23, 2020, at the direction of an MS-13 leader, Sanchez and co-defendant MS-13 member Hernan Yanes-Rivera, shot and killed Victim 1, a former WLS member, in retaliation for the victim’s suspected cooperation with law enforcement. As a result of his participation in the murder, Sanchez was promoted within the hierarchy of MS-13.
As detailed in court documents, on August 8, 2020, Sanchez and several WLS members agreed to the murder of Victim 4, who was suspected of cooperating with law enforcement and to whom Sanchez owed a debt. After driving to a wooded area in Prince George’s County, Maryland, WLS leader Brayan Alexander Torres called Victim 4 and told him to come to the wooded area to participate in a disciplinary beating of Sanchez. In fact, Sanchez knew that the gang intended to murder Victim 4.
Sanchez was armed with a revolver, and Torres gave a second revolver to another MS-13 member to participate in the murder. When Victim 4 arrived, Sanchez and the other MS-13 member each fired multiple shots at Victim 4, causing Victim 4 to fall to the ground. Sanchez then pistol-whipped Victim 4 and stabbed him with a knife. Torres and other WLS members dragged Victim 4’s body to a stream and left it there. As he was leaving the woods, Sanchez noticed he was bleeding and became concerned that his DNA was 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 the wooded area, where they dug a hole and buried Victim 4’s body. Victim 4’s body was later recovered with a bullet wound to the head.
Sanchez also participated in money laundering by transferring gang funds to MS-13 members and associates in El Salvador. Sanchez knew the money he transferred was the proceeds of the gang’s extortion activities.
The government and the defendants have agreed that, if the Court accepts their guilty pleas, Brayan Alexander Torres, a/k/a “Spooky,” age 29, of Adelphi, Maryland, will be sentenced to 28 years in federal prison, and Hernan Yanes-Rivera, a/k/a “Recio,” age 22, of Adelphi, Maryland and Agustino Eugenio Rivas Rodriguez, a/k/a “Terrible,” age 25, of Silver Spring, Maryland, will be sentenced to 22 years and 16 years in federal prison, respectively. U.S. District Judge Paula Xinis has scheduled sentencing for Torres on August 31, 2023; for Rivas Rodriguez on July 21, 2023; and for Yanes-Rivera on July 28, 2023.
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 serves 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 and Assistant Attorney General Polite commended the FBI, HSI and the Prince George’s County Police Department for their work in the investigation and thanked the Montgomery County Police Department and U.S. Immigration and Customs Enforcement for their assistance. Mr. Barron thanked Assistant U.S. Attorney Joel Crespo, and Trial Attorneys Brendan Woods and Christopher Taylor of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney's Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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