District of Maryland

Greenbelt, Maryland – A federal jury today convicted Ronald Eugene Watson, also known as Sabir Muhammad, age 59, of Brandywine, Maryland, today on 23 counts of aiding and assisting in the preparation of false tax returns.  

The guilty verdict 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 the evidence presented at trial, Watson was a self-employed tax return preparer operating SW Accounting Associates (“SWAA”) in Largo, Maryland.  The evidence proved that from at least 2015 to at least 2017, Watson prepared and electronically filed with the IRS fraudulent Forms 1040 and related Schedules A and C for his taxpayer-clients.  Watson included inflated and fictitious tax deductions and fraudulent business profits and losses in order to obtain larger tax refunds to which the taxpayer-clients were not entitled.  According to witness testimony, Watson varied his preparation fees depending on the amount of the refund requested, with fees typically ranging from approximately $500 up to approximately $1,500.

“With filing season underway, the conviction of Mr. Watson is a timely reminder of the importance of choosing an honest, trustworthy preparer.  This conviction should also put unscrupulous preparers on notice about the consequences that await those who do not play by the rules,” said IRS-CI Acting Special Agent in Charge Kareem A. Carter. 

Watson faces a maximum of three years in federal prison for each of the 23 counts of aiding and assisting in the preparation of false tax returns.   U.S. District Judge Theodore D. Chuang has scheduled sentencing for June 13, 2023 at 2:30 p.m.

U.S. Attorney Barron and Acting Deputy Assistant Attorney General Goldberg commended the IRS-CI for their work in the investigation.  Mr. Barron and Mr. Goldberg also thanked Assistant United States Attorney G. Michael Morgan, Jr. 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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Greenbelt, Maryland – Franklyn Edgardo Sanchez, a/k/a “Freddy,” “Magic,” “Miclo,” and “Delinquente,” age 26, of Adelphi, Maryland, pleaded guilty today to his participation in a racketeering conspiracy, including two murders, related to his activities as part of the MS-13 gang.

The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; 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, 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.  On February 23, 2020, at the direction of an MS-13 leader, Sanchez and a co-defendant MS-13 member, shot and killed Victim 1, a former WLS member, in retaliation for the victim’s suspected cooperation with law enforcement.

According to the plea agreement, Victim 1 sat for interviews with local police following a robbery he committed with a fellow WLS member.  Victim 1’s co-defendant pleaded guilty prior to Victim 1’s murder.  In the weeks prior to the murder, Victim 1 had been in touch with WLS members over social media, text messages and voice calls.  Records show that WLS members told Victim 1 that if he met with gang members to make amends, his cooperation would be forgiven.  Victim 1 was instructed to wait on the side of a road at a location in or near Adelphi, Maryland, on February 23, 2020.  A junior WLS member drove Sanchez and f Sanchez’s co-defendant to the location, where they picked up Victim 1.  They drove to a location in or near Hyattsville, Maryland.  Sanchez, his co-defendant, and Victim 1 got out of the car and walked into a wooded area, where Sanchez and the co-defendant shot Victim 1.  Victim 1 died from his gunshot wounds.  As a result of his participation in the murder, Sanchez was promoted within the hierarchy of MS-13.

On August 8, 2020, WLS members, including Sanchez, were gathered at a park in Prince George’s County, Maryland.  Sanchez and several of the 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 nearby wooded area, a WLS leader called Victim 4 and told him to come to the wooded area to participate in a disciplinary beating of Sanchez.  In reality, as Sanchez knew, the gang intended to murder Victim 4.

Sanchez was armed with a revolver, and a second revolver was given 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.  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, other WLS members were called and ordered to bring shovels to the wooded area, where they dug a hole and buried Victim 4’s body.  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 defendant have agreed that, if the Court accepts the plea, Sanchez will be sentenced to 28 years in federal prison.  Sanchez will also be required to pay restitution in the full amount of the victims’ losses, including any funeral costs incurred by Victim 1 and Victim 4’s estates.  U.S. District Judge Paula Xinis has scheduled sentencing for May 19, 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 serve to reduce violent crime and make our neighborhoods safer for everyone.  PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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

United States Attorney Barron 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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Baltimore, Maryland – A federal jury convicted Cory Collin Fitzgerald Sanders, age 39, of Hagerstown, Maryland, late yesterday on federal charges of wire fraud, false claims, and making and using a false document in connection with his companies’ performance on federal contracts.  

The guilty verdict 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; and Acting Special Agent in Charge Michael D. Butler II of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office.

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 which 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.

Sanders faces a maximum sentence of 20 years in federal prison for each of 12 counts of wire fraud; a maximum of five years in federal prison for each of two counts of false claims; and a maximum of five years in federal prison for making and using a false document.  Chief U.S. District Judge James K. Bredar has scheduled sentencing for Sanders on July 14, 2023, at 10:00 a.m.

United States Attorney Erek L. Barron commended the Department of Labor – 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 Investigation 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 Joyce K. McDonald and Evelyn Lombardo Cusson, who are prosecuting the case.

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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Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Gregory Santos, age 49, of Baltimore, Maryland, to 102 months in federal prison, followed by five years of supervised release for illegal possession of a firearm in a school zone and for conspiracy to distribute cocaine and fentanyl.  

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 Commissioner Michael Harrison of the Baltimore Police Department.

According to his guilty plea, on September 17, 2019, Santos was driving in the area of 5th Street and East Patapsco Avenue.  Baltimore Police officers saw Santos roll through a stop sign.  When Santos saw the officers, he slammed on his brakes, ending up in the middle of the intersection.  Santos then sped through a school zone, failed to stop at a second stop sign, and almost collided with another vehicle as he drove onto the 300 block of Pontiac Avenue, a posted school zone near the Maree Garnett Farring Elementary School.  Officers attempted to perform a traffic stop, but Santos did not stop.  Santos eventually threw a firearm out of his window in the 3600 block of 5th Street.  Officers recovered  a 9mm semi-automatic pistol, which had disassembled after hitting the ground, and 11 9mm cartridges of ammunition.  Investigators were able to reassemble the handgun and fire it.  Santos admitted he possessed the loaded firearm while he was driving in the school zone.

Santos was arrested on a state warrant for illegal possession of a firearm on October 20, 2019.  While Santos was incarcerated, he instructed his girlfriend to get narcotics that were in their home and sell them.  A search warrant was executed at the residence on November 22, 2019, and law enforcement recovered more than 1,000 grams of powder cocaine and approximately 771.28 grams of fentanyl, as well as items used to mix and package narcotics for sale.  Santos admitted that he was conspiring with others to distribute narcotics.

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 FBI and the Baltimore Police Department for their work in the investigation.  Mr. Barron thanked Special Assistant U.S. Attorney Keelan Diana and Assistant U.S. Attorney Clinton J. Fuchs, who prosecuted the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – A federal jury today convicted Valfonso Dewitt, a/k/a “Valentino” and “Val,” age 72, of Bronx, New York, for conspiracy to distribute and possession with intent to distribute fentanyl and on two counts for using his cellular telephone to facilitate illegal drug distribution.  The jury acquitted Dewitt on three counts of using his cellular telephone to facilitate illegal drug distribution.

The guilty verdict 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.

James Isaac Gaston, age 74, and Jacqueline Shelton Gaston, age 52, both of Lanham, Maryland, previously pleaded guilty to their roles in the drug distribution conspiracy and are scheduled to be sentenced on May 8, 2023 and June 23, 2023, respectively.

Dewitt faces a mandatory minimum of 10 years and a maximum sentence of life in federal prison for the drug conspiracy and a maximum sentence of four years in federal prison for each count of using his cellular phone to facilitate a drug felony.  U.S. District Judge Paula Xinis has not yet scheduled a sentencing date for Dewitt.

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 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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A Maryland man was sentenced today to life in prison for racketeering, murder in aid of racketeering, and conspiring to destroy evidence connected to his participation in La Mara Salvatrucha (MS-13).

According to court documents and evidence presented at trial, Jose Domingo Ordonez-Zometa, aka Felon, 33, of Landover Hills, was a member of MS-13, a transnational criminal enterprise and one of the largest street gangs in the United States that is composed primarily of immigrants or descendants from El Salvador and other central American countries. Ordonez-Zometa and his co-conspirators – Jose Rafael Ortega-Ayala and Jose Henry Hernandez-Garcia – were members and associates of the Los Ghettos Criminales Salvatruchas (LGCS or Ghettos) clique of MS-13. Ordonez-Zometa was the leader of the LGCS clique.

Between August 2018 and April 2019, Ordonez-Zometa and his co-conspirators participated in the MS-13 criminal enterprise by engaging in acts of violence, including murder, the destruction of evidence, and witness tampering, among other crimes. Ordonez-Zometa and his fellow gang members committed these crimes to increase MS-13’s power in the Washington, D.C., metropolitan area, including Maryland and Virginia. 

As part of the conspiracy, MS-13 members were expected to protect the name, reputation, and status of the gang, using any means necessary to force respect, including acts of intimidation and violence. One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increases the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to promotion to a leadership position. 

On March 8, 2019, Ordonez-Zometa called a meeting of the LGCS clique at his house to discuss clique matters, including recent contacts that another LGCS clique member (Victim 1) had with the police. Ordonez-Zometa, his co-conspirators, Victim 1, and other MS-13 members participated in the meeting, during which Ordonez-Zometa questioned Victim 1 about his/her cooperation with police. During the questioning, Ordonez-Zometa, his co-conspirators, and at least one other MS-13 member assaulted Victim 1 based on their incorrect suspicions that Victim 1 was cooperating with law enforcement. They also assaulted another MS-13 member who attempted to defend Victim 1. The assault culminated with Ordonez-Zometa ordering that Victim 1 be killed. His co-conspirators and other MS-13 members then stabbed and murdered Victim 1 in Ordonez-Zometa’s basement. 

After the murder, Ordonez-Zometa ordered his co-conspirators and other LGCS clique members to conceal and destroy evidence of the murder. Ortega-Ayala and other MS-13 members transported the body of the victim to a secluded location in Stafford County, Virginia. They set the victim’s body on fire and then destroyed and concealed evidence of the murder from the vehicle used to transport the victim. Meanwhile, Ordonez-Zometa, Hernandez-Garcia, and another MS-13 member stayed at the crime scene and attempted to remove, destroy, and conceal evidence of the murder, including Victim 1’s blood. 

In December 2022, Ordonez-Zometa, Ortega-Ayala, and Hernandez-Garcia were convicted at trial of racketeering and murder in aid of racketeering conspiracies, committing murder in aid of racketeering, and conspiracy to destroy and conceal evidence.

Ortega-Ayala and Hernandez-Garcia also face a mandatory sentence of life in prison. Their sentencing dates have not yet been set.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Erek L. Barron for the District of Maryland, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.

The FBI, Homeland Security Investigations (HSI), the Stafford County Sheriff’s Office, the Prince George’s County Police Department, and the Fairfax County Police Department investigated the case, with valuable assistance from the Prince George’s County State’s Attorney Office.

Trial Attorneys Jared Engelking and Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Michael Morgan for the District of Maryland prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN 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.

Baltimore, Maryland – U.S. District Judge Paula Xinis today sentenced Jose Domingo Ordonez-Zometa, a/k/a “Felon,” age 33, of Landover Hills, Maryland, to life in federal prison for racketeering and murder in aid of racketeering conspiracies, for committing murder in aid of racketeering, and for conspiracy to destroy and conceal evidence connected to his participation in La Mara Salvatrucha, a transnational criminal enterprise also known as MS-13.  Ordonez-Zometa was convicted on December 16, 2022, after a two-week trial, along with co-defendants Jose Rafael Ortega-Ayala, a/k/a Impaciente,” age 30, of Greenbelt, Maryland; and Jose Henry Hernandez-Garcia, a/k/a “Paciente,” age 29, of Annandale, Virginia.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; Special Agent in Charge James C. Harris of Homeland Security Investigations, Baltimore Office; Stafford County Sheriff David P. Decatur; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Kevin Davis of the Fairfax County Police Department.

MS-13, one of the largest street gangs in the United States, is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries.  Branches or “cliques” of MS-13, operate throughout the United States, including in Maryland, Virginia, and Washington, D.C.  Ordonez-Zometa and his co-defendants were members and associates of the Los Ghettos Criminales Salvatruchas (“LGCS” or “Ghettos”) clique of MS-13.

The evidence at trial established that between August 2018 and April 2019, Ordonez-Zometa and his co-defendants participated in the MS-13 criminal enterprise by engaging in acts of violence, including murder, the destruction of evidence, and witness tampering, among other crimes.  The criminal acts were committed by gang members to increase MS-13’s power in the Washington, D.C. metropolitan area, including Maryland and Virginia. 

As part of the conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons, using any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence.  One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.  Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increases the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to promotion to a leadership position. 

As detailed during the trial, Ordonez-Zometa was the leader of the LGCS clique.  Ordonez-Zometa called a meeting of the LGCS clique at his house on March 8, 2019, to discuss clique matters, including recent contacts that an LGCS clique member (Victim 1) had with the police.  Ordonez-Zometa, Victim 1, the co-defendants, and other MS-13 members participated in the meeting, during which Ordonez-Zometa questioned Victim 1 about his/her cooperation with police.

During the questioning, Ordonez-Zometa, his co-defendants and at least one other MS-13 member assaulted Victim 1, based on their incorrect suspicions that Victim 1 was cooperating with law enforcement.  They also assaulted another MS-13 member who attempted to defend Victim 1.  The assault culminated with Ordonez-Zometa, as LGCS clique leader, ordering that Victim 1 be killed.  Ortega-Ayala, Hernandez-Garcia and other MS-13 members then stabbed and murdered Victim 1 in Ordonez-Zometa’s basement. 

According to trial testimony, after the murder, Ordonez-Zometa ordered Ortega-Ayala, Hernandez-Garcia, and other LGCS clique members and co-conspirators, to conceal and destroy evidence of the murder.  Ortega-Ayala and other MS-13 members transported the body of the victim to a secluded location in Stafford County, Virginia, and set the victim’s body on fire, then destroyed and concealed evidence of the murder from the vehicle used to transport the victim.  Meanwhile, Ordonez-Zometa, Hernandez-Garcia, and another MS-13 member stayed at the crime scene and attempted to remove, destroy, and conceal evidence of the murder, including the blood of Victim 1. 

Ortega-Ayala and Hernandez-Garcia also face a mandatory sentence of life in prison.  Their sentencing dates have not been set.

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 and Assistant Attorney General Kenneth A. Polite, Jr. commended the FBI, HSI, the Stafford County Sheriff’s Office, the Prince George’s County Police Department, and the Fairfax County Police Department for their work in the investigation and thanked the Prince George’s County State’s Attorney’s Office for its assistance.  Mr. Barron and Mr. Polite thanked Assistant U.S. Attorney Michael Morgan and Trial Attorneys Jared Engelking and Matthew Hoff of the Justice Department’s Criminal Division Organized Crime and Gang Section, who are prosecuting this case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – U.S. District Judge Lydia Kay Griggsby sentenced Robert A. DiNoto, age 48, of Huntington, New York, late yesterday to one year of incarceration to be served as six months in federal prison and six months of home detention, followed by three years of supervised release, for conspiracy to commit wire fraud, in connection with a fraudulent billing scheme involving a manufacturing company with facilities in Harford County, Maryland.  Judge Griggsby also ordered DiNoto to pay restitution and to forfeit a total of $514,352. 

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 Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to his guilty plea, Robert A. DiNoto, is the owner and President of American Pride Distributors (“American Pride”), located in, Woodbury, New York.  American Pride sold commercial drum containers used by manufacturers to store and transport products.  Robert DiNoto is the brother of Eugene DiNoto (E. DiNoto), a former longtime employee of Company 1, a family-owned global business headquartered in New York, but with manufacturing facilities in Belcamp and Abingdon, Maryland, both in Harford County. 

As detailed in his plea agreement, beginning no later than 2014, Robert and E. DiNoto agreed to execute a fraudulent billing scheme to defraud Company 1, through the submission of false invoices for undelivered drums.  As the facility manager for Company 1, E. DiNoto oversaw the purchasing and storing of drums for use at the Harford County manufacturing facilities and had the authority to review drum invoices and authorize payments to the drum vendors.  Robert DiNoto approached E. DiNoto about how he could start his own drum vending company.  E. DiNoto subsequently told Robert DiNoto about other drum vendors that were defrauding Company 1 using a fraudulent billing scheme.  Robert DiNoto, who was in the real estate business at the time, decided to use a company he owned, called Sandpiper Properties, Inc., trading as American Pride Distributors, to facilitate the scheme to defraud Company 1. 

Once American Pride Distributors was formed, Robert DiNoto began receiving drum purchase orders from E. DiNoto for Company 1 to establish a legitimate pattern of drum sales between American Pride and Company 1.  However, because Robert DiNoto was never in the business of manufacturing or reconditioning drums, he filled Company 1’s orders by buying the requisite number of drums from an actual drum manufacturer and arranging to ship them to Company 1’s facilities in Harford County, Maryland.  Robert DiNoto billed Company 1 for the drums using American Pride invoices, which E. DiNoto approved for payment via emails to Company 1’s accounting department in New York. 

Soon thereafter, Robert DiNoto began fraudulently invoicing Company 1 for drums that he and American Pride never delivered to the company.  To conceal the fraudulent invoices, he would intermittently send the bogus invoices before and after sending legitimate ones.  For example, in 2017, Robert DiNoto sent legitimate invoices #1555 through #1558 between February 15 and April 12 in the amounts of $19,223, $19,419, $18,038, and $20,908, respectively.  He then submitted a fraudulent invoice, #1559, and received a payment from Company 1 for $19,448 for a shipment of 358 “NEW 55 GALLON STEEL DRUMS” that were never delivered. 

Between December 2016 and August 2019, Robert DiNoto used American Pride’s invoices to bill and receive a total of approximately $257,181 from Company 1 for nonexistent drum deliveries.  Robert DiNoto used the proceeds from the fraudulent billings for personal expenses, including to pay his credit card bills. 

To avoid scrutiny throughout the conspiracy, the DiNotos kept their familial relationship with American Pride a secret from Company 1 employees.  Despite their best efforts, third-party vendors used by American Pride would sometimes inadvertently forward an email or invoice intended for Robert DiNoto to Company 1.  E. DiNoto would criticize Robert DiNoto for the mistake and ask him to remind his third-party vendors never to send correspondence to Company 1’s address.  On at least one occasion, Robert DiNoto used an alias to conceal his identity when communicating with Company 1 employees.   

Eugene Andrew DiNoto, age 51, of Bel Air, Maryland, previously pleaded guilty to conspiracy to commit wire fraud, engaging in an illegal monetary transaction, and filing a false tax return, in connection with schemes that defrauded his employer of more than $29 million.  He is awaiting sentencing. 

United States Attorney Erek L. Barron commended the FBI and IRS-CI for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.

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Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Malcolm Goods, age 31, of Baltimore, Maryland, today to two years in federal prison, followed by three years of supervised release, for illegal possession of a firearm within a school zone.  

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.

According to Goods’ guilty plea, on September 12, 2021, Baltimore Police officers received a call for an armed person at the intersection of Pennsylvania and Cumberland Avenues in Baltimore.  The person was carrying a gun, wearing a white construction hat and orange safety vest, and riding a bicycle.  An officer monitoring a closed-circuit television camera located an individual, later identified as Goods, matching that description in the 600 block of Cumberland Avenue.

When officers arrived on scene, Goods got on a bicycle and rode on the sidewalk for a few blocks.  Near the 1600 block of N. Carey Street, officers pulled over next to Goods told Goods to stop  in an area about one block away from Sandtown-Winchester Achievement Academy, a Baltimore public elementary and middle school.  Goods initially agreed to stop, then rode away on the bicycle.

After briefly losing sight of Goods, officers found him knocking on someone’s front door and placed him into custody.  An officer saw the grip of a firearm in Goods’ waistband and recovered a.40 caliber pistol with an obliterated serial number, loaded with 15 rounds of ammunition.  During his arrest, including after he was read his Miranda rights, Goods made several statements which indicated that he was aware that he possessed a firearm.  Goods agreed that he knew or had reasonable cause to believe that he was within 1,000 feet of the grounds of the Sandtown-Winchester Achievement Academy.

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 Brandon Moore and Special Assistant U.S. Attorney Sarah Simpkins, 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, Maryland – U.S. District Judge Stephanie A. Gallagher has sentenced August Candeloro III, a/k/a “Nick,” age 35, of Catonsville, Maryland, today to 15 years in federal prison, followed by lifetime supervised release, for a federal charge of possession of child pornography. 

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; Acting Superintendent of the Maryland State Police Colonel Roland L. Butler, Jr.; and Interim Chief Dennis J. Delp of the Baltimore County Police Department.

According to his guilty plea, beginning in 2019 Candeloro began using a messaging application to send images depicting the sexual abuse of children.  After additional investigation, law enforcement executed a search warrant at Candeloro’s residence and seized his cellular phone from his bedroom.  The phone was found to contain conversations between Candeloro and other users of the messaging application.  Candeloro also joined private chat groups on the messaging application, many of which had chatroom names indicative of trading child pornography.  Candeloro posted links to a secure cloud storage platform in many of the chatrooms.  The secure cloud storage platform allows the user to create links containing encrypted files and chats with keys controlled by the user.  Candeloro’s phone also revealed over 2000 images of suspected child pornography, including images involving prepubescent minors and depicting sadistic and masochistic conduct.

Candeloro was previously convicted in two cases for a second-degree sex offense involving a 13-year-old victim in Howard County and Baltimore County Circuit Courts.  As a result of those convictions, Candeloro was required to register as a sex offender.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.       

United States Attorney Erek L. Barron commended the HSI, Maryland State Police, and the Baltimore County Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Colleen E. McGuinn, who prosecuted the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – A federal grand jury has returned an indictment charging Stephen Kennedy, age 33, of Temple Hills, Maryland, and Donnell Kelly, age 33, of Washington, D.C., for conspiracy to commit arson, arson affecting interstate commerce, commercial robbery, and use of a destructive device in furtherance of a crime of violence, in connection with a series of convenience store robberies.  Kennedy and Kelly are also charged with being felons in possession of a firearm and an explosive device, respectively, and Kennedy is charged with carrying an explosive during the commission of a felony.  The indictment was returned on February 22, 2023, and was unsealed today upon the arrests of the defendants.  

The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Maryland State Fire Marshal Brian Geraci; St Mary’s County Sheriff Steven A. Hall; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Tiffany D. Green of the Prince George’s County Fire/EMS Department.

According to the 10-count indictment, from at least January 2021 to January 2022, the defendants conspired to commit arsons at 7-Eleven convenience stores so that they could obtain cash contained in ATMs in the stores.  Specifically, the indictment alleges that Kennedy and Kelly traveled to 7-Eleven locations while they were open for business and deployed explosive devices to set fire to the buildings, and on at least one occasion, demanded the contents of the cash register.  The defendants allegedly burned the stores to force their closure and shut off power to the security cameras, which would enable them to return to the unguarded locations to burglarize the ATMs unhindered.  The indictment alleges that this resulted in losses to the ATM company of at least $249,000.  To conceal the evidence of their crimes, Kennedy and Kelly allegedly burned vehicles used in the arson attacks and/or burglaries and/or made false police reports regarding stolen license plates.

If convicted, Kennedy and Kelly each face a mandatory minimum sentence of five years and a maximum sentence of 20 years in federal prison for the arson conspiracy and each of four counts of arson affecting interstate commerce; a maximum of 20 years in prison for an armed commercial robbery; a mandatory minimum sentence of 30 years and up to life in federal prison for using a destructive device in furtherance of a crime of violence; and a maximum of 10 years in federal prison for being felons in possession of an explosive device and firearm.  Finally, Kennedy faces a mandatory sentence of 10 years, consecutive to any other sentence imposed, for carrying an explosive during the commission of another federal felony.  Actual sentences for federal crimes are typically less than the maximum penalties.  A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.  The defendants each had an initial appearance today in U.S. District Court in Greenbelt before U.S. Magistrate Judge Ajmel A. Quereshi. Kelly and Kennedy agreed to remain detained pending detention hearings scheduled for Friday, March 3, 2023, at 1:00 p.m. and at 3:30 p.m., respectively. 

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

This case is part of 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 Office of the Maryland State Fire Marshal, the St. Mary’s County Sheriff’s Office, the Prince George’s County Fire/EMS Department, and the Prince George’s County Police Department for their work in the investigation and thanked the U.S. Attorney’s Office for the Eastern District of Virginia, the ATF Washington Field Division, the U.S. Marshals Service, and the Alexandria, Virginia Police Department for their assistance.  Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake and Special Assistant U.S. Attorney Joshua 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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Greenbelt, Maryland – A federal jury in Maryland has convicted Diape Seck, age 29, of Rockville, Maryland 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 by stealing checks from the mail of churches and religious institutions.  The guilty verdict was returned late on February 24, 2023.

The guilty verdict 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; Acting Special Agent in Charge Mike Serra 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 identity documents, 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 cash in exchange for him opening the fraudulent bank accounts.

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 Vlad Baceanu, age 38; Daniel Velcu, age 43; 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.  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; Mateus Vaduva, age 29, of Baltimore was sentenced to five years in federal prison and ordered to pay restitution of $1,320,885.84; 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; and Marius Vaduva, age 28, of Baltimore was sentenced to 42 months in federal prison and ordered to pay restitution of $1,334,230.84, after they previously pled guilty to conspiracy to commit bank and wire fraud.

Seck faces a maximum sentence of 30 years in federal prison for each of conspiracy to commit bank fraud; bank fraud; making false entries in bank records; and receipt of a bribe or reward by a bank employee.  U.S. District Judge Theodore D. Chuang has scheduled sentencing for Seck on June 2, 2023, at 2:30 p.m.

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 are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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A North Carolina woman and a Maryland man were each sentenced today to 30 months in prison for conspiring to defraud the United States, aiding in the preparation of false tax returns and stealing government funds.

According to court documents, between 2013 and 2016, Sandra Denise Curl of Charlotte, North Carolina, and Percy Leroy Jacobs of Prince Frederick, Maryland, filed estate and trust tax returns (Forms 1041) on behalf of multiple fraudulent trusts they owned, seeking refunds to which they were not entitled. Curl and Jacobs also filed false personal returns, claiming fictitious tax withholdings in order to generate refunds. In total, the defendants attempted to defraud the IRS of more than $2.2 million.

In addition to the terms of imprisonment, U.S. District Judge George J. Hazel ordered both defendants to serve three years of supervised release and to each pay $959,044 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorneys Jeffrey McLellan and George Meggali of the Tax Division and Assistant U.S. Attorney Michael Morgan for the District of Maryland prosecuted the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Sandra Denise Curl of Charlotte, North Carolina, and Percy Leroy Jacobs of Prince Frederick, Maryland late yesterday to 30 months each in federal prison, followed by three years of supervised release, for conspiring to defraud the United States, helping file false tax returns, and theft of government funds.  Judge Hazel also ordered the defendants to each pay $959,044 in restitution.  On March 21, 2022, a federal jury convicted the defendants after trial.

The sentences were announced by U.S. Attorney for the District of Maryland Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to evidence presented at trial, between 2013 and 2016, Curl and Jacobs filed tax returns on behalf of multiple fraudulent trusts they owned, seeking refunds to which they were not entitled.  Curl and Jacobs also filed false individual tax returns in their own names, claiming fictitious tax withholdings in order to generate refunds.  In total, the defendants attempted to defraud the IRS of more than $2.2 million.

U.S. Attorney Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division commended IRS-Criminal Investigation for its work in the case.  U.S. Attorney Barron and Acting Deputy Assistant Attorney General Goldberg thanked Assistant U.S. Attorney Michael Morgan and Trial Attorneys Jeffrey McLellan and George Meggali of the 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 www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach

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Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Jolen Michael Ghorbani, a/k/a “Jay,” age 28, formerly of Fairfax, Virginia, to 18 months in federal prison, followed by three years of supervised release, for bribery of a witness related to a federal criminal trial in which Ghorbani was a witness.  

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; and Chief Malik Aziz of the Prince George’s County Police Department.

According to his plea agreement, on February 3, 2021, Ghorbani was the victim of a kidnapping, assault, and robbery committed by Tray David Sherman and Sherman’s co-conspirators.  During the kidnapping, Ghorbani was transported from Maryland to Washington, D.C. where Sherman and his co-conspirators assaulted and robbed Ghorbani.  Sherman was indicted and arrested on March 31, 2021, for conspiracy to commit kidnapping.  On April 15, 2022, Ghorbani was served with a subpoena requiring his testimony at Sherman’s trial, which was initially scheduled to begin on July 11, 2022.

As detailed in the statement of facts, beginning on June 5, 2022, Ghorbani used a social media account to send a series of threatening and intimidating direct messages to Sherman, including a message where Ghorbani sent his telephone number to Sherman and said “[C]all me If you want to finesse trial.”  Approximately three weeks before the scheduled start of Sherman’s trial, Ghorbani sent another series of messages to Sherman through his social media account, this time soliciting a payment of $5,000 from Sherman in exchange for Ghorbani’s agreement to testify falsely or to refuse to testify at all at Sherman’s trial.  Ghorbani shared the messages he sent to Sherman with another individual, bragging that he (Ghorbani) was “[d]ancing with the devil,” and referring to Sherman, stating, “I’m auctioning off his freedom.”

On January 20, 2023, Tray Sherman, age 28, of Washington, D.C., the final member of the five-defendant kidnapping conspiracy, was sentenced to 126 months’ imprisonment.  Sherman and his coconspirators pleaded guilty to luring Ghorbani from a casino in Maryland to a building in Southeast Washington, D.C., where they threatened Ghorbani’s life, took his personal items, and held him hostage at gunpoint while Sherman and another co-conspirator returned to the casino to steal items from the victim’s hotel room.  The other four defendants all pleaded guilty to their roles in the conspiracy and were sentenced to between 10 and 14 years in federal prison.

United States Attorney Erek L. Barron commended the FBI Washington Field Office and the Prince George’s County Police Department for their work in the investigation and thanked the FBI Miami Field Office for its assistance.  Mr. Barron thanked Assistant U.S. Attorney Jeffrey J. Izant who prosecuted the case and thanked Assistant U.S. Attorney Leah B. Grossi for her 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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Two members of La Mara Salvatrucha (MS-13) were sentenced to life in prison for Racketeer Influenced and Corrupt Organizations (RICO) Act conspiracy and murder in aid of racketeering.

According to court documents, Luis Flores-Reyes, aka Maloso, aka Lobo, 41, of Arlington, Virginia, and Jairo Jacome, aka Abuelo, 40, of Langley Park, Maryland, were members of MS-13, an international criminal organization and one of the largest street gangs in the United States. MS-13 is organized into a series of sub-units or “cliques” that operate in specific geographic locations. Flores-Reyes was a leader within the powerful Sailors Clique, which held territory in Maryland, Virginia, New York, New Jersey, Texas, and El Salvador. Jacome was the highest-ranking member in a local clique called Langley Park Salvatruchas (LPS). Together, the two MS-13 cliques, including Flores-Reyes and Jacome, ran a protection scheme in and around Langley Park, extorting local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.” The gang also trafficked in illegal drugs, including heroin, marijuana, and cocaine. A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the gang’s illicit activities, using structured transactions and intermediaries to avoid law enforcement scrutiny.

Flores-Reyes and Jacome participated in at least four murders during the period of the conspiracy, mostly of victims they believed to be gang rivals.

Among the most important rules of MS-13 is the prohibition against talking to law enforcement, embodied by the maxim ver, oir, y callar – see, hear, and say nothing. The gang enforced this rule by placing a “green light” – an order to kill – on any member of MS-13 who was thought to be informing on the gang. On December 4, 2016, Jacome directed and participated in taking a 14 year-old boy from Langley Park to a wooded area outside Germantown, Maryland, and murdering him by repeated blows with a machete because Jacome suspected that the victim had provided information to the police about the gang. Jacome fled the murder scene in fear of being discovered by police but returned the next morning to bury the body. The victim was a missing person until his skeletal remains were recovered by law enforcement on June 6, 2018.  

In March 2017, a member of the Sailors Clique, who in an effort to hide from law enforcement was living in the Lynchburg, Virginia-area, had a dispute with a local high school student over marijuana. In response, Flores-Reyes authorized that a squad of MS-13 members drive to Lynchburg and murder the high school student. The gang members kidnapped the student from his front lawn and cut his hand off before killing him. After the murder, Flores-Reyes helped to hide and protect the killers from law enforcement.

In September 2022, Flores-Reyes, Jacome, and a third MS-13 member, Brayan Contreras-Avalos, were each convicted of racketeering conspiracy. Flores-Reyes and Jacome were additionally convicted of murder in aid of racketeering and extortion conspiracy, and Flores-Reyes and Contreras-Avalos were convicted of conspiracy to distribute controlled substances. Contreras-Avalos was sentenced to life in prison on Jan. 13.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.

The FBI Washington Field Office, HSI Baltimore, DEA New York Field Division, DEA Baltimore District Office, Prince George’s County Police Department, Montgomery County Police Department, Virginia State Police, Lynchburg Police Department, Prince William County Police Department, and Bedford County Sheriff’s Office investigated the case. The Nassau County District Attorney’s Office also provided valuable assistance.

Trial Attorney Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Timothy Hagan and Christopher Sarma for the District of Maryland prosecuted the case.

Baltimore, Maryland – Erek L. Barron, United States Attorney for the District of Maryland, announced today that Kandel & Associates, P.A., a Baltimore-based law firm, and Nelson R. Kandel, Esq., have entered into a settlement agreement with the United States to resolve allegations that they failed to reimburse the United States for certain Medicare payments the Government had previously made to medical providers on behalf of firm clients.

The Government’s investigation arose under the Medicare Secondary Payer (“MSP”) provisions of the Social Security Act, which authorizes Medicare, as a secondary payer, to make conditional payments for medical items or services under certain circumstances.  When an injured person receives a tort settlement or judgment, Medicare law requires persons or entities who receive the settlement or judgment proceeds, including the injured person’s attorney, to repay Medicare for its conditional payments.  If Medicare does not receive timely repayment, these same laws and regulations permit the Government to recover the conditional payments from the injured person’s attorney and others who received the settlement or judgment proceeds.

The Government alleges that, over many years, Medicare made conditional payments to healthcare providers to satisfy medical bills for firm clients.  During that period, the firm negotiated for and received settlement proceeds for the firm’s clients, but neither the firm nor its clients repaid Medicare for conditional payments it made to medical providers.  This settlement resolves the Government’s claims that the firm and Mr. Kandel failed to resolve at least twelve MSP debts.  The Government alleges that the firm disbursed settlement proceeds to clients without confirming the existence of an MSP debt.  Under the terms of the settlement agreement, the firm and Mr. Kandel agreed to pay the United States $39,828.66 to resolve the Government’s claims. 

The firm and Mr. Kandel also agreed to designate a person at the firm responsible for paying MSP debts; train the designated employee to ensure that the firm pays MSP debts on a timely basis; and periodically review any outstanding MSP debts with the designated employee to ensure compliance. 

The claims resolved by this settlement are allegations.  The settlement is not an admission of liability by the firm or Mr. Kandel, nor a concession by the United States that its claims are not well founded.

This settlement should remind attorneys of their obligation to reimburse Medicare for conditional payments after receiving settlement or judgment proceeds for their clients.  The attorneys’ obligation to reimburse Medicare for conditional payments exists regardless of whether they disburse settlement proceeds to their clients before the Centers for Medicare & Medicaid Services contacts them about the existence of an MSP debt.  When attorneys receive settlement funds in personal injury cases, they have an independent obligation to confirm whether their clients received conditional payments from Medicare. 

“Plaintiffs’ attorneys cannot simply rely on their clients’ representations about their status as Medicare beneficiaries and ignore their obligations to reimburse Medicare for its conditional payments,” said U.S. Attorney Erek L. Barron.  “This is the third matter our office has resolved with attorneys who fail to make good on their obligations to repay Medicare for its conditional payments, and we will continue to investigate these matters, regardless of when settlement distributions are made, and regardless of what clients tell their attorneys regarding their status as Medicare beneficiaries.”

U.S. Attorney Erek L. Barron commended Eric Wolfish, Assistant Regional Counsel, United States Department of Health and Human Services, Office of the General Counsel, Region III, for his work in the investigation.  Mr. Barron also thanked Assistant United States Attorney Alan C. Lazerow, who handled the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – U.S. District Judge Paula Xinis has sentenced Luis Flores-Reyes, a/k/a “Maloso,” “Lobo,”’ and “Viejo Lovvon,” age 42, of Arlington, Virginia and Jairo Jacome, a/k/a “Abuelo,” age 40, of Langley Park, Maryland, to life in federal prison, for charges related to a racketeering enterprise known as La Mara Salvatrucha, or “MS-13.”  Jacome and Flores-Reyes were convicted by a federal jury on September 29, 2022, of a racketeering conspiracy, murder in aid of racketeering, and an extortion conspiracy.  The jury also found Flores-Reyes guilty of a drug distribution conspiracy.  Flores-Reyes was sentenced yesterday and Jacome was sentenced today.

On January 12, 2023, Judge Xinis also sentenced co-defendant Brayan Contreras-Avalos, a/k/a “Anonimo” and “Humilde,” age 28, of Langley Park, Maryland, to life in federal prison for his participation in the same racketeering conspiracy.

The sentences were 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 Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; Special Agent in Charge Frank A. Tarentino III of the Drug Enforcement Administration – New York Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Marcus Jones of the Montgomery County Police Department.

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.  Jacome was the highest-ranking member of the local Langley Park Salvatrucha, or “LPS” clique.  Flores-Reyes and Contreras-Avalos were leaders within the Sailors Clique, which held territory in Maryland, Virginia, New York, New Jersey, Texas, and El Salvador.

At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang and to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence.  One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.  Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, 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 during the trial, Flores-Reyes, Jacome, and Contreras-Avalos participated in at least six murders, including two minor victims, during the period of the conspiracy.  Most of the victims were purported gang rivals except for one minor victim.  For example, in June 2016, members of MS-13, including Contreras-Avalos, stabbed to death two unhoused individuals, who gang members believed to be members of the 18th Street gang, in Hyattsville, Maryland.  The investigation revealed no evidence that the victims were in fact members of any gang.

Among the most important rules of MS-13 is the prohibition against talking to law enforcement, embodied by the maxim ver, oir, y callar – see, hear, and say nothing.  The gang enforced this rule by placing a “green light” – an order to kill – on any member of MS-13 who was thought to be informing on the gang.  In December 2016, Jacome directed and participated in the murder of a 14-year-old member of MS-13 who was suspected of talking to the police.  The boy’s remains were discovered more than 18 months later in a wooded area outside of Germantown, Maryland.

Additionally, in March 2017, a member of the Sailors Clique, who was hiding from law enforcement in the Lynchburg, Virginia, area, after committing a murder in 2016 in Gaithersburg, Maryland, had a dispute with a local high school student over marijuana.  In response, Flores-Reyes aided and abetted a squad of MS-13 members to drive down to Lynchburg and murder this high school student.  The gang members kidnapped the student from his front lawn and cut his hand off before killing him.  After the murder, Flores-Reyes helped to hide and protect the killers from law enforcement.

According to court documents and evidence presented at trial, the defendants also ran an extortion scheme in and around Langley Park, extorting local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.”  Flores-Reyes and Contreras-Avalos also trafficked illegal drugs, including marijuana, and cocaine.  A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the illicit activities of the gang, using structured transactions and intermediaries to avoid law enforcement scrutiny.

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 and Assistant Attorney General Kenneth A. Polite, Jr. commended the FBI, DEA, HSI, Prince George’s County Police Department, Montgomery County Police Department, Virginia State Police, Lynchburg Police Department, Prince William County Police Department, Nassau County District Attorney’s Office, the Bedford County Commonwealth’s Attorney’s Office and the Bedford County Sheriff’s Office for their work in the investigation.  Mr. Barron and Mr. Polite thanked Assistant U.S. Attorneys Timothy F. Hagan, Chris M. Sarma, William Moomau, Assistant Director Catherine Dick of the Department of Justice Consumer Protection Division and Trial Attorney Alexander Gottfried of the Justice Department’s Criminal Division, who prosecuted this case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile  and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland - Erek L. Barron, United States Attorney for the District of Maryland announced today that the Maryland U.S. Attorney’s Office has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy, released earlier today.  The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.

 The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations.  The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.

Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation.  A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.

The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company.  The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution.  If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.

 In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution.  Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.

The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo.  The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger.  Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md.

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Greenbelt, Maryland – A federal jury convicted Madani Ilara Tejan, a/k/a “Malik,” “Mylik,” and “Dani,” age 30, of Washington, D.C., late on February 17, 2023, for using a firearm in connection with murder and robbery, and for a drug distribution conspiracy. 

The guilty verdict 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; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Wayne Jacobs of the FBI Washington Field Office; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Chief Malik Aziz of the Prince George’s County Police Department; Chief Robert J. Contee of the Metropolitan Police Department; Director Corenne Labbé of the Prince George’s County Department of Corrections; and Director Thomas N. Faust of the D.C. Department of Corrections.

According to the evidence presented at this nine-day trial, on October 3, 2018, Tejan met with a drug customer, to whom Tejan had arranged to sell drugs.  During the meeting, Tejan shot and killed the drug customer, then stole the victim’s car, wallet, and other personal items.  On October 20, 2018, a search warrant was executed at a residence in Upper Marlboro, Maryland, associated with Tejan and law enforcement recovered the victim’s wallet, two bags of marijuana and a prepaid cellular phone.  Investigation revealed that the prepaid phone had been in contact with the victim’s phone several times on October 3, 2018 and was used interchangeably with Tejan’s registered phone to communicate with the victim in the hours before his murder.  Additionally, 1,013 fentanyl pills were seized from Tejan while he was residing in a government-run residential facility.  Tejan’s social media accounts and phone messages revealed that he distributed fentanyl marketed as oxycodone as well as other prescription drugs and marijuana to multiple individuals, including the victim.

Tejan faces a mandatory minimum of five years in federal prison and a maximum sentence of 40 years in federal prison for conspiracy to distribute and possession with the intent to distribute controlled substances; a maximum of 20 years in federal prison for possession with the intent to distribute controlled substances and for an armed commercial robbery; and a maximum of life in federal prison for use of a firearm to commit murder in relation to a crime of violence.  No sentencing date has been set for Tejan.

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 and Assistant Attorney General Kenneth A. Polite commended the FBI, DEA, Prince George’s County Police Department, Metropolitan Police Department, Prince George’s County Police Department; Prince George’s County Department of Corrections, D.C. Department of Corrections, for their work in the investigation and thanked the Prince George’s County State’s Attorney’s Office and the U.S. Attorney’s Office for the District of Columbia for their assistance in the investigation and prosecution.  Mr. Barron thanked Assistant U.S. Attorney Caitlin R. Cottingham and Trial Attorneys Gerald A. A. Collins and Lisa K. Man of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – Jerry Phillips, a/k/a “Tian Juzo,” age 25, of Capitol Heights, Maryland, pleaded guilty today to a federal 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. 

The guilty plea 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); Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration - Office of Inspector General, Eastern Region, and Acting Special Agent in Charge Mike Serra, of the Mid-Atlantic Region, Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG).

“Fraudsters like Jerry Phillips often commit other crimes, as demonstrated by his illegal possession of a ghost gun, which he modified to be a machine gun,” said United States Attorney Erek L. Barron.  “We will continue to use every legal means necessary to remove illegal guns from our communities and to hold criminals accountable.”

“Jerry Phillips conspired with his brother to defraud the UI, PPP, and EIDL pandemic relief programs of more than $750,000 in funds intended to assist those who were truly in need from the financial impact brought about by the COVID-19 pandemic,” said Troy W. Springer, Acting Special Agent in Charge of the National Capital Region, U.S. Department of Labor – Office of Inspector General. “My office will continue to work closely with the U.S. Attorney’s Office for the District of Maryland and our other law enforcement partners to pursue those who unwisely chose to commit pandemic-related UI fraud and hold them accountable for their criminal conduct.”

“During this pandemic, we have all too often seen people take advantage of programs meant to help those in need, stealing money away from those in crisis,” said Kareem A. Carter, Special Agent in Charge of the IRS-CI Washington D.C. Field Office.  “We will continue in our partnership with fellow federal agencies to investigate individuals who illegally use pandemic relief funds for personal financial gain.”

“Conspiring to fraudulently gain access to SBA program funds by falsifying personal identifying information is reprehensible,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”

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 EIDL and PPP 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 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 faces a maximum sentence of 30 years in federal prison.  U.S. District Judge Theodore D. Chuang has scheduled sentencing for April 14, 2023, at 9:30 a.m.

Jerry Phillips faces a maximum sentence of 30 years in federal prison for the wire fraud conspiracy; a mandatory sentence of two years in federal prison, consecutive to any other sentencing imposed, for aggravated identity theft; and a maximum of 10 years in federal prison for illegal possession of a machine gun.  Judge Chuang has scheduled sentencing for Jerry Phillips on May 16, 2023, at 2 p.m. 

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

United States Attorney Erek L. Barron commended the DOL-OIG, IRS-CI, SBA-OIG, FDIC-OIG, and the Mississippi Attorney General’s Office for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the federal case.  He also thanked the Office of Mississippi Attorney General Lynn Fitch-Public Integrity Division, for its assistance. 

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, Maryland – A federal jury convicted Jacky Lynn McComber (formerly Jacky Lynn Kimmel), age 50, of Elkridge, Maryland, on federal charges of submitting false claims and making false statements, in connection with the hours she claimed to have worked on a federal contract with the National Security Agency (NSA).  McComber was the CEO and owner of InfoTeK, an information technology (IT) services corporation, which had an ongoing contract with the NSA. 

The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Kevin Gerrity, Acting Inspector General of the National Security Agency; and Robert P. Storch, Inspector General of the Department of Defense. 

According to evidence presented at trial, from July 2011 until March 2018, the NSA had an ongoing contract, known as the Ironbridge contract, with InfoTeK to provide maintenance and enhancement support for the information technology and software requirements of the NSA’s National Security Operations Center (NSOC) and the Counter Terrorism Mission Management Center (CTMMC).  Because the subject matter of these contracts involved classified information, most of the work had to be performed at secure, access-controlled locations and there were severe limitations on the amount of work that could be performed off-site.  InfoTeK billed the NSA monthly for the hours worked by its employees and contractors.

According to the evidence presented at the four-week trial, the Ironbridge contract required InfoTeK to identify a Program Manager (PM) who would be responsible for overseeing InfoTeK’s performance of its contractual obligations and serve as InfoTeK’s point of contact with government officials.  From 2011 to 2013, several individuals, including McComber, served as the PM on the Ironbridge contract.  Starting in the summer of 2013, Individual A held the position of Senior Program Manager on the Ironbridge contract, until she was replaced by McComber in mid-March 2016.  McComber held the position through September 2017.  According to trial testimony, for 17 months, beginning in mid-March 2016 when McComber took over the PM position, she billed an average of 144 hours per month to the NSA for her supposed work.  In all, between March 14, 2016 and September 30, 2017, InfoTeK billed NSA for 2,603.5 hours of work on the Ironbridge contract purportedly performed by McComber in her role as Senior Program Manager.  NSA paid these charges in full, at a total cost of $388,878.78.

A subsequent review and comparison by the NSA OIG in the fall of 2017 of McComber’s NSA access control records with the time InfoTeK billed for her work on the Ironbridge contracts established that McComber was not within access control at the NSA’s Fort Meade location for 2,342.5 (90%) of the 2.603.5 hours she had recorded on her timesheets and that InfoTeK subsequently billed to NSA.  In addition to not being physically present at the worksite for the vast majority of hours she billed to the Ironbridge contract, the evidence showed that McComber did not work the number of hours on the Ironbridge contract that she recorded on her timesheet.  For example, on occasions when McComber billed a full eight-hour day to the Ironbridge contract, she participated in charity events, attended her high school reunion, vacationed in Texas and in Ocean City, Maryland, and performed business development efforts on behalf of InfoTeK that were unrelated to the Ironbridge contract.  Other testimony by former InfoTeK officers indicated that McComber was only in InfoTeK’s Columbia, Maryland offices irregularly and when she was there, she did not appear to be working on Ironbridge-related matters.  As a result of McComber’s false claims as to the time she worked on the Ironbridge contract between March 2016 and September 2017, the NSA substantially overpaid InfoTeK.

As further detailed in trial testimony, on October 3, 2017, McComber participated in a voluntary interview with NSA OIG investigators concerning allegations received from a whistleblower that she had charged the government for hours that she did not actually work.  McComber falsely claimed that her consistent billings of eight hours per day spent on Ironbridge-related work most days were legitimate and that she did not falsely fill out her timesheet or put any false information on it.  

McComber faces a maximum sentence of five years in federal prison for each of 19 counts of submitting false claims and for one count of making false statements.  U.S. District Judge Ellen L. Hollander has scheduled sentencing for May 12, 2023. 

United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite commended the National Security Agency Office of Inspector General and DCIS for their work in the investigation.  Mr. Barron and Mr. Polite thanked Assistant U.S. Attorney Jefferson M. Gray and Trial Attorney Peter L. Cooch of the Justice Department’s Fraud Section, who are prosecuting the case.

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Baltimore, Maryland – A federal grand jury in Maryland today returned an indictment charging Sarah Beth Clendaniel, age 34, of Catonsville, Maryland, and Brandon Clint Russell, age, 27, of Orlando, Florida, with conspiracy to destroy an energy facility.  The defendants have been detained since their arrest on February 3, 2023, on related charges.

The indictment 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.

The single-count indictment alleges that Russell and Clendaniel conspired to willfully damage the property of an energy facility, causing damage exceeding $100,000 and causing a significant interruption and impairment of a function of the facility.

An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. If convicted, Russell and Clendaniel each face a maximum sentence of 20 years in federal prison for conspiracy to damage an energy facility. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Erek L. Barron commended the Baltimore FBI Field Office for its outstanding work in the investigation and praised the Joint Terrorism Task Force, the Maryland State Police, the Baltimore County Police Department and the Tampa, Washington, and New York Field Offices of the FBI for their valuable assistance. Mr. Barron also thanked the Department of Justice’s National Security Division and the United States Attorney’s Office for the Middle District of Florida for their assistance. Mr. Barron thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case and thanked Assistant U.S. Attorney Christina Hoffman for her assistance. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach. To report a Maryland-based hate crime, contact the FBI Baltimore field office at (410) 265-8080 or www.tips.fbi.gov. 

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Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Garnell Eugene Graves, age 59, of Baltimore, to 50 years in federal prison, followed by lifetime supervised release, for four counts of sexual exploitation of a child related to his sexual abuse of five minor victims.  The sentence was imposed late on February 10, 2023.

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; Baltimore City State’s Attorney Ivan J. Bates, and Commissioner Michael Harrison of the Baltimore Police Department.

According to his guilty plea, from 2007 to 2020, Graves sexually abused five minors between the ages of 6 and 13 years old.  Beginning in 2007, Graves regularly sexually abused Minor Victim 1 from the time she was eight until she was 11 years old—and continued to exploit her until she was 16 years old.  Graves recorded some of the sexual encounters and sometimes showed Minor Victim 1 the videos of the abuse.  Graves also often gave Minor Victim 1 gifts, including a smartphone, in exchange for her “forgiveness” and to encourage her not to inform her mother.  Additionally, Graves placed a hidden camera in Minor Victim 1’s bedroom and recorded videos of Minor Victim 1 in various stages of undress. 

Graves admitted that he sexually abused Minor Victim 2 when Minor Victim 2 was 12 years old.  On three occasions, Graves photographed himself sexually abusing Minor Victim 2, who appeared to be sleeping at the time.    

As detailed in the plea agreement, Graves sexually abused Minor Victim 3 from age 6 through age 13.  In at least one instance, Graves told Minor Victim 3 that they would get married and have children in the future.  Graves also showed Minor Victim 3 images of Graves and Minor Victim 1 engaging in sex acts that were taken during his abuse of Minor Victim 1.  Graves admitted that to conceal his conduct and prevent Minor Victim 3 from disclosing Graves’ abuse to others, Graves provided Minor Victim 3 with food, money, and other gifts.  When Minor Victim 3 tried to end the abuse, Graves threatened Minor Victim 3 by telling her that if she stopped, he would abuse Minor Victim 5.  As a result, Graves continued to abuse Minor Victim 3—and ultimately sexually abused Minor Victim 5 anyway.  On at least 11 instances between 2014 and 2017, Graves sexually abused Minor Victim 3 and produced videos and images documenting that abuse. 

Graves further admitted that he sexually abused Minor Victim 4 when she was between 9 and 10-years old.  In 2017, Graves produced ten images Minor Victim 4 laying on a bed with her genitals exposed.  The images were located on Graves’ digital devices. As he had previously done with Minor Victim 1, Graves showed pornography to Minor Victim 3 and Minor Victim 4 on a social media platform and told the victims of his desire to engage in the same conduct with them.

Graves also admitted that he sexually abused Minor Victim 5.  Specifically, when Minor Victim 5 was approximately 6 or 7 years old, Graves entered the room where she was sleeping and took Minor Victim 5 to another room, where he sexually abused her.  After the encounter, Graves instructed Minor Victim 5 not to tell anyone. 

The videos and images documenting Graves’ abuse of Minor Victims 1, 2, 3, and 4, were located on his digital devices after his arrest in December 2020.

Graves has two previous convictions related to his sexual abuse of two other minor victims.  Specifically, in 1991, Graves was convicted of taking indecent liberties with a minor child in the Superior Court of the District of Columbia.  In 1998, Graves was convicted of sexual offense in the third-degree involving another victim, in the Circuit Court for Prince George’s County, Maryland.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.      

United States Attorney Erek L. Barron commended the FBI, the Baltimore City State’s Attorney’s Office, and the Baltimore Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

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A federal grand jury in Baltimore returned an indictment today charging a Maryland man with sexual exploitation of children and distribution, receipt, and possession of images and videos depicting the sexual abuse of children.

According to court documents, between 2013 and 2019, Paul Francis Blaisse, 63, of Walkersville, allegedly used internet chat applications to engage in sexually explicit video chats with minor children in southeast Asia. In 2013, Blaisse allegedly recorded a video chat with a prepubescent child engaged in sexually explicit conduct. Throughout 2019, Blaisse allegedly used Skype to communicate with multiple individuals located in southeast Asia who sent him images depicting the sexual abuse of prepubescent children. Blaisse also allegedly distributed child sexual abuse material (CSAM).

Blaisse came to the attention of law enforcement after Skype notified the National Center for Missing and Exploited Children that Blaisse had uploaded CSAM to his Skype account. The Frederick County Sheriff’s Office obtained a warrant to search Blaisse’s residence and, during their search, discovered multiple digital devices belonging to Blaisse that contained CSAM.

Blaisse is charged with two counts of sexual exploitation of children, five counts of distribution of child pornography, three counts of receipt of child pornography, and three counts of possession of child pornography. If convicted, he faces a mandatory minimum penalty of 15 years in prison.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Erek L. Barron for the District of Maryland, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office made the announcement.

The FBI and the Frederick County Sheriff’s Office are investigating the case.

Trial Attorney Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Michael Aubin for the District of Maryland are prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

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

Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced David Banks, age 29, of Baltimore, Maryland, yesterday to 25 years in federal prison, followed by five years of supervised release, for a carjacking and armed robbery conspiracy, including six armed robberies and a carjacking, during which three people were shot and two were killed.  

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Acting Chief Dennis J. Delp of the Baltimore County Police Department.

According to his guilty plea, Banks personally participated in a conspiracy to commit a series of carjackings and armed robberies.  In each of the robberies and carjackings a member of the conspiracy brandished a gun to threaten and intimidate the victims.  Two victims were shot and killed during a carjacking and robbery, respectively.  The conspirators would often use the stolen vehicles to commit additional criminal acts and they shared the proceeds of their exploits, with certain conspirators responsible for pawning any items recovered from the victims and the stolen vehicles.

Banks admitted that he personally participated in a carjacking on June 12, 2019, in which a victim was shot and killed, and that he intended to cause death or serious bodily injury to the victim.  Banks also participated in five armed robberies and an attempted robbery committed from July 7, 2019 to August 12, 2019.  As detailed in the plea agreement, a victim was shot during the attempted robbery on July 24, 2019, and another victim was shot and killed during an armed robbery committed four days later.

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 Police Department, and the Baltimore County Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Patricia C. McLane and Brandon K. Moore, 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, Maryland – 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, announced the filing of a federal criminal complaint charging Sarah Beth Clendaniel, of Catonsville, Maryland, and Brandon Clint Russell, of Orlando, Florida, with conspiracy to destroy an energy facility. 

The criminal complaint was unsealed upon the arrests of the defendants. An initial appearance for Clendaniel is scheduled for 2:00 p.m. today in the U.S. District Court in Baltimore before U.S. Magistrate Judge J. Mark Coulson. Russell will have his initial appearance at 1:30 today in U.S. District Court in Orlando, Florida.

“This alleged planned attack threatened lives and would have left thousands of Marylanders in the cold and dark,” said Maryland U.S. Attorney Erek L. Barron. “We are united and committed to using every legal means necessary to disrupt violence, including hate-fueled attacks.”

“The threat posed by domestic violent extremists is evolving and persistent,” said Special Agent in Charge Thomas J. Sobocinski of the FBI's Baltimore field office. “The FBI will continue to work closely with our law enforcement and private sector partners to identify and disrupt any potential threat to the safety of our citizens.”

“Driven by their ideology of racially-motivated hatred, the defendants allegedly schemed to attack local power grid facilities,” said Assistant Attorney General for National Security Matthew G. Olsen.  “The Justice Department will not tolerate those who threaten critical infrastructure and imperil communities in the name of domestic violent extremism.”

As alleged in the affidavit filed in support of the criminal complaint:

From at least June 2022 to the present, Russell conspired to carry out attacks against critical infrastructure, specifically electrical substations, in furtherance of Russell’s racially or ethnically motivated violent extremist beliefs. 

Russell posted links to open-source maps of infrastructure, which included the locations of electrical substations, and he described how a small number of attacks on substations could cause a “cascading failure.” Russell also discussed maximizing the impact of the planned attack by hitting multiple substations at one time.  

A Maryland-based woman identified as Sarah Beth Clendaniel, collaborated on a plan to carry out the attacks. Clendaniel conspired to secure a weapon  and identified five substations she planned to target. Clendaniel allegedly stated that if they hit a number of them all in the same day, they “would completely destroy this whole city,” and that a “good four or five shots through the center of them . . . should make that happen.” She further added, “[i]t would probably permanently completely lay this city to waste if we could do that successfully.”

A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings. If convicted, Russell and Clendaniel each face a maximum sentence of 20 years in federal prison for conspiracy to damage an energy facility. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Erek L. Barron commended the Baltimore FBI Field Office for its outstanding work in the investigation and praised the Joint Terrorism Task Force, the Maryland State Police, the Baltimore County Police Department and the Tampa, Washington, and New York Field Offices of the FBI for their valuable assistance. Mr. Barron also thanked the Department of Justice’s National Security Division and the United States Attorney’s Office for the Middle District of Florida for their assistance. Mr. Barron thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case and thanked Assistant U.S. Attorney Christina Hoffman for her assistance. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach. To report a Maryland-based hate crime, contact the FBI Baltimore field office at (410) 265-8080 or www.tips.fbi.gov. 

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A federal criminal complaint was unsealed charging Sarah Beth Clendaniel, 34, of Catonsville, Maryland, and Brandon Clint Russell, 27, of Orlando, Florida, with conspiracy to destroy an energy facility. 

The defendants were arrested on Feb. 3. Clendaniel will make her initial court appearance today in the U.S. District Court in Baltimore before U.S. Magistrate Judge Brendan Hurson. Russell will make his initial appearance today in U.S. District Court in Orlando, Florida, before U.S. Magistrate Judge Embry Kidd.

“Driven by their ideology of racially-motivated hatred, the defendants allegedly schemed to attack local power grid facilities,” said Assistant Attorney General for National Security Matthew G. Olsen.  “The Justice Department will not tolerate those who threaten critical infrastructure and imperil communities in the name of domestic violent extremism.”

“This alleged planned attack threatened lives and would have left thousands of Marylanders in the cold and dark,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We are united and committed to using every legal means necessary to disrupt violence, including hate-fueled attacks.”

“Attacks on multiple electrical substations in Maryland would have caused suffering to thousands of Americans going about their everyday lives, but the FBI and our partners put a stop to that threat,” said Assistant Director Robert R. Wells of the FBI's Counterterrorism Division. “According to the criminal complaint, the defendants allegedly were taking specific steps to carry out their plans, including selecting targets and trying to illegally acquire a rifle. The FBI and our partners will hold accountable all those who commit criminal acts that threaten the safety of those in our communities, regardless of their motivations.”

“The threat posed by domestic violent extremists is evolving and persistent,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “The FBI will continue to work closely with our law enforcement and private sector partners to identify and disrupt any potential threat to the safety of our citizens.”

As alleged in the affidavit filed in support of the criminal complaint:

From at least June 2022 to the present, Russell conspired to carry out attacks against critical infrastructure, specifically electrical substations, in furtherance of Russell’s racially or ethnically motivated violent extremist beliefs. As alleged, Russell encouraged the use Mylar balloons to short out a power transformer and, in a conversation on Oct. 25, 2022, Russell encouraged an attack be carried out “when there is greatest strain on the grid,” like “when everyone is using electricity to either heat or cool their homes.”

In his conversations on encrypted communications applications, Russell posted links to open-source maps of infrastructure, which included the locations of electrical substations, and he described how a small number of attacks on substations could cause a “cascading failure.” Russell also discussed maximizing the impact of the planned attack by hitting multiple substations at one time. 

A Maryland-based woman identified as Sarah Beth Clendaniel, collaborated on a plan to carry out the attacks. Specifically, Clendaniel discussed her desired rifle for the attack. In later conversations, Clendaniel allegedly stated that if they hit a number of electrical substations all in the same day, they “would completely destroy this whole city,” and that a “good four or five shots through the center of them . . . should make that happen.” She further added, “[i]t would probably permanently completely lay this city to waste if we could do that successfully.”

If convicted, Russell and Clendaniel each face a maximum sentence of 20 years in federal prison for conspiracy to damage an energy facility. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

The FBI Baltimore Field Office is investigating the case, with valuable assistance provided by the FBI’s Joint Terrorism Task Force and Tampa, Washington and New York Field Offices as well as the Maryland State Police and the Baltimore County Police Department.

Assistant U.S. Attorney Kathleen O. Gavin for the District of Maryland is prosecuting the case, with valuable assistance provided by Assistant U.S. Attorney Christina Hoffman for the District of Maryland and the National Security Division’s Counterterrorism Section.

A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Baltimore, Maryland – Gladstone Njokem, age 36, of Hyattsville, Maryland, pleaded guilty on February 3, 2023, to federal charges of conspiracy to commit wire fraud and aggravated identity theft, in connection with a scheme to fraudulently obtain more than $1.3 million in COVID-19 CARES Act unemployment insurance (UI) benefits.  

The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; Acting Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor - Office of Inspector General (DOL-OIG); Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; and Special Agent in Charge Andrea Peacock of the U.S. Department of the Treasury - Office of Inspector General.

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.  It expanded states’ ability to provide UI for many workers impacted by the COVID-19 pandemic, including for workers who are not ordinarily eligible for unemployment benefits.

According to his guilty plea, from February 2020 through February 2021, Njokem, co-defendants, Martin Tabe and Sylvester Atekwane, and others conspired to impersonate victims in order to obtain money, including by submitting fraudulent claims for UI benefits.  Njokem and his co-conspirators collected the personally identifiable information (PII) of victims, without the victims’ knowledge or consent, then shared the PII amongst themselves and with others to facilitate the fraud and then used the victims’ PII to submit fraudulent applications for UI benefits in Maryland, Arizona, District of Columbia, Georgia, Illinois, Michigan, Tennessee, and Virginia. 

In total, at least $1,313,325 in UI benefits, applied for using the names and PII of over 183 victims, are traceable to Njokem’s conspiracy based on common IP addresses, mailing addresses and/or email addresses used for the fraudulent UI claims.

Njokem and the government have agreed that, if the Court accepts the plea agreement, Njokem will be sentenced to between 24 and 70 months in federal prison.  U.S. District Judge Richard D. Bennett has scheduled sentencing for May 17, 2023 at 11:00 a.m.

Co-defendants Martin Tabe, age 34, of Bowie, Maryland and Sylvester Atekwane, age 33, of Hyattsville, Maryland previously pleaded guilty to their roles in the fraud scheme.  Judge Bennett has scheduled sentencing for Atekwane on April 13, 2023 at 11:00 a.m. and for Tabe on May 2, 2023 at 11:00 a.m.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud.  The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.  For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

United States Attorney Erek L. Barron commended the USPIS, the DOL-OIG, HSI, and the U.S. Department of the Treasury – OIG for their work in the investigation.  Mr. Barron thanked the Prince George’s County Police Department, the Baltimore County Police Department, and the Maryland Department of Labor for their assistance.  Mr. Barron also thanked Assistant U.S. Attorneys Sean R. Delaney and Darryl L. Tarver, who are prosecuting the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.

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Baltimore, Maryland - Summer Nichole McCroskey, age 25, of Elkton, Maryland, pleaded guilty today to federal charges related to her participation in a conspiracy to sexually abuse a child, from the age of approximately four months to two years old, to producing and distributing images documenting the sexual abuse of the child, and to possession of child pornography.

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; Cecil County State’s Attorney James Dellmyer; and Cecil County Sheriff Scott Adams.

At today’s plea hearing, McCroskey admitted that she and her co-conspirator sexually abused a child, starting at the time the victim was approximately four months of age through at least October 2021, when the victim was two years old, and produced videos and images of the abuse.  The abuse included oral, vaginal, and anal penetration, as well as bondage, and both McCroskey and her co-conspirator participated in the abuse.  Additionally, McCroskey distributed the files documenting the sexual abuse of the child to her co-conspirator and others using an encrypted messaging application.

McCroskey faces a mandatory minimum of 15 years and a maximum of 30 years in federal prison for conspiracy to sexually exploit a child and for each of seven counts of sexual exploitation of a child; a mandatory minimum of five years and a maximum of 20 years in federal prison for each of five counts of distribution of child pornography; and a maximum of 20 years in federal prison for each of three counts of possession of child pornography.  U.S. District Judge Richard D. Bennett has scheduled sentencing for McCroskey on May 18, 2023, at 11:00 a.m.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.   

United States Attorney Erek L. Barron commended the FBI, the Cecil County State’s Attorney’s Office and the Cecil County Sheriff’s Office for their work in the investigation and thanked Assistant U.S. Attorneys Paul E. Budlow and Colleen E. McGuinn who are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – U.S. District Judge Deborah J. Boardman sentenced Sherrie Lynne Bryant, age 55, of Bowie, Maryland, yesterday to 18 months in federal prison, followed by three years of supervised release, for wire fraud, relating to the submission of fraudulent Coronavirus Aid, Relief, and Economic Security (“CARES”) Act loan applications, and for violating her probation from a previous federal conviction for obstruction of an audit.  

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

Financial assistance offered through the CARES Act, which was enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic, included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, and Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations, both administered through the Small Business Administration (SBA).  An EIDL advance did not have to be repaid, and small businesses could receive an advance of up to $10,000, even if they were not approved for an EIDL loan.

According to her plea agreement, Bryant was the managing member of NOW LLC.  The company’s stated purpose was to “provide mentoring, education and training to underserved populations.  Also, to provide vocational rehabilitation and mental health support services to: children, youth and adults.”  In reality, NOW LLC has been awarded contracts for “janitorial services” for Amtrak at the New Carrollton, Maryland and Baltimore-Washington International Airport Amtrak stations.  They have also applied for SBA loans through various programs and cited their business as “construction and contractors.”  A review of checks from NOW LLC’s operating account indicate that they may be outsourcing janitorial work to subcontractors.

On March 30, 2020, Bryant submitted an EIDL loan application for $89,500, which falsely stated that NOW LLC earned approximately $475,610 in gross revenues during the prior 12 months and incurred cost of goods sold of $276,614 during the same time frame.  Further, Bryant falsely answered “No” to the question concerning whether she had been convicted…or been placed on any form of parole or probation.  In fact, Bryant was on probation for a previous federal conviction at the time she submitted the application.

As detailed in the plea agreement, Bryant received a $10,000 EIDL advance and was subsequently approved for, and received, loan proceeds of $89,400.  On April 22, 2021, Bryant submitted a request for a modification of the EIDL, specifically, approval to increase the loan amount to $388,000, based on the certifications in her prior EIDL application.  The loan increase was approved and on June 28, 2021, Bryant received additional loan proceeds of $298,500.

In the meantime, on April 28, 2020, Bryant also applied for, and subsequently received, PPP loan proceeds totaling $21,200.  Bryant again falsely responded to the question that asked, “within the last five years, for any felony, has the Applicant…(1) been convicted; (2) pleaded guilty; (3) pleaded nolo contendere; (4) been placed on pretrial diversion; or (5) been placed on any form of parole or probation (including probation before judgment)?”  Bryant answered “No” to that question, knowing that she was on federal supervised release at the time the application was submitted.

Bryant admitted that she fraudulently obtained at least $419,100 in COVID-19 CARES Act loan proceeds.  Bryant misappropriated a portion of the funds for her personal use, including paying for her car and a boat, paying for a vacation, and paying for tickets to sporting events.

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 for its work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Kelly O. Hayes and Joseph Wenner, who prosecuted the case. 

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.

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Baltimore, Maryland – Justin Kuchta, age 39, of Annapolis, Maryland, pleaded guilty today to a federal charge for threatening to murder a United States Member of Congress. 

The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Chief J. Thomas Manger of the United States Capitol Police; and Acting Superintendent of the Maryland State Police, Lt. Colonel Dalaine Brady.

“You have the right to your own opinions, but not the right to threaten a federal official’s life,” said United States Attorney for the District of Maryland, Erek L. Barron.  “We’ll continue prosecuting these threats to the fullest extent of the law.” 

According to his plea agreement, Kuchta made threats to murder a U.S. Member of Congress.  Specifically, a U.S. Member of Congress’ district office in Texas reported that on July 18, 2022, it received a threatening message via an event management website.  The website was being used by an event planner to coordinate an event held in the State of Missouri, being attended by Member of Congress 1.  The Subject line of that email read, in relevant part: “Rally in Missouri – Featured Guest [Member of Congress 1], [Individual 1], and [Individual 2].”  The message stated, “Thank you for the address!!! I’m coming to murder all of you Satanist f*ckers!!! Especially the chuckle-f*ck Zodiak [sic] Killer [Member of Congress 1]!! That fat fake f*cker ass will be the first on the gallows!! SEE ALL OF YOU F*CKERS REALLY SOON!!! With my fresh militia and weapons!!! Thanks for the info f*ckers!!!”  The Member of Congress’ Washington office reported that a similar message was sent on July 22, 2022, using the same event management website.

As detailed in the plea agreement, an investigation revealed that the IP address was registered to a private high-speed network operated by the State of Maryland.  Network records revealed that the IP address originated from a Virtual Private Network and computer assigned to Kuchta.  Kuchta was subsequently interviewed by Special Agents with the U.S. Capitol Police and investigators assigned to the Maryland State Police Computer Crimes Unit at his place of employment in Annapolis, Maryland, after being advised of his rights.  While Kuchta initially denied sending the email messages, he ultimately admitted that he sent the July 18, 2022, threatening message over the website.    

Kuchta faces a maximum sentence of five years in federal prison for interstate communication containing a threat to injure.  U.S. District Judge Richard D. Bennett has scheduled sentencing for April 27, 2023, at 11:00 a.m. 

United States Attorney Erek L. Barron commended the United States Capitol Police and the Maryland State Police for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Thomas M. Sullivan, who is prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, and its efforts to protect national security, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/anti-terrorism.

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Baltimore, Maryland – A federal grand jury returned an indictment yesterday charging Ryan E. Dales, age 34, of Baltimore, Maryland, with illegal possession of a firearm by a previously convicted felon and with wire fraud, relating to the submission of fraudulent applications for unemployment insurance (UI) benefits under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. 

The indictment 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; and Acting Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor, Office of Inspector General.

According to the two-count indictment, Dales illegally possessed a firearm on January 20, 2023. 

The CARES Act, enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic, created the Pandemic Unemployment Assistance (PUA) program, which expanded states’ ability to provide UI for workers impacted by the COVID-19 pandemic, including workers who otherwise wouldn’t be eligible for UI benefits.  The indictment alleges that beginning in December 2020 and continuing through about September 2021, Dales submitted applications for UI benefits that contained false statements, misrepresentations, and omissions related to his employment, his eligibility to received UI benefits, and his purported businesses, including their existence, operation, and profits.  Dales allegedly submitted a fictitious tax form in support of his applications. 

More information on the allegations against Dales may be found here.

If convicted, Dales faces a maximum sentence of 10 years in federal prison for being a felon in possession of a firearm and a maximum of 20 years in federal prison for wire fraud.  Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.  Dales is expected to have an initial appearance in U.S. District Court in Baltimore, but no date has been set.

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

The District of Maryland COVID-19 Fraud Strike Force is one of three strike forces established by U.S. Attorney General Merrick B. Garland and 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 DOL-OIG for their work in the investigation.  United States Attorney Barron and Assistant U.S. Attorney Paul A. Riley are prosecuting the case.  Mr. Barron also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber. 

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.

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Baltimore, Maryland – The State of Maryland Governor’s Office on Service and Volunteerism (“GOSV”), a division within the Governor’s Office on Community Initiatives (“GOCI”), has agreed to pay the United States $639,916 and enter into a compliance agreement to resolve a civil False Claims Act investigation relating to the operation of its AmeriCorps program. 

The settlement agreement was announced today by United States Attorney for the District of Maryland Erek L. Barron and AmeriCorps’ Inspector General Deborah Jeffrey.

“This settlement demonstrates our firm commitment to protect taxpayer money and to guard the integrity of federal grant funds,” said United States Attorney Erek L. Barron.  “State agencies, such as GOSV and GOCI, are required to properly account for their use of federal grant funds and when they fail to do so they will be held accountable,” said U.S. Attorney Barron.

“AmeriCorps depends on state service commissions to be partners in stewardship of national service funds.  The Maryland Governor’s Office on Service and Volunteerism failed in that trust by overstating its expenses and other irregularities that deprived at-risk communities of benefits intended for them,” said Deborah Jeffrey, AmeriCorps’ Inspector General.  “We thank the U.S. Attorney’s Office for the District of Maryland for their work in protecting the integrity of national service.”

AmeriCorps’ mission is to engage millions in service and national volunteer efforts. State Commissions, such as the State of Maryland Governor’s Office on Service and Volunteerism (“GOSV”), administer AmeriCorps programs which includes oversight and administration of AmeriCorps’ grant funds to subgrantees.  GOSV, which is part of GOCI, supports more than 800 AmeriCorps members each year in the State of Maryland through its grant-making program.  In 2016 AmeriCorps awarded GOSV a grant “[t]o promote and recognize volunteer activities throughout the state with events such as: Governor’s Service Awards, Governor’s Volunteer Appreciation Day at the Maryland State Fair, and Honor Rows to recognize youth groups who are active in their community the chance to attend a Baltimore Ravens game free of charge.”  Pursuant to the terms of the AmeriCorps’ grant, GOSV was required to maintain a financial management system that provided accurate, current, and complete disclosure of the financial results of each Federal award and retain records that identify adequately the source and application of funds.  GOCI provides accounting services to GOSV and other coordinating offices and thus was involved in the administration of the AmeriCorps grant awards.

The United States contends that GOSV and GOCI engaged in widespread violations of the AmeriCorps grant requirements, including distributing Orioles and Maryland State Fair tickets that were intended to be given to volunteers to individuals who were not eligible under the grant, including GOSV employees themselves, charging salaries of GOSV and GOCI employees, including the Director of GOSV, to the AmeriCorps grant without timesheets or time records to reflect the fact these individuals worked on the AmeriCorps grant, and overcharging AmeriCorps on certain Federal Financial Reports (“FFR”) that were submitted to AmeriCorps to demonstrate how GOSV expended the grant funds.  Additionally, GOSV and GOCI entered into an expansive, three year Compliance Agreement with AmeriCorps that will govern and monitor the AmeriCorps GOSV awards to ensure compliance with AmeriCorps grant procedures.

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

U.S. Attorney Erek L. Barron commended the investigation which was conducted by the AmeriCorps Office of Inspector General.  The case was handled by Assistant United States Attorney Thomas Corcoran.

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Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Norman Rosen, age 84, of Towson, Maryland, to four months of home detention as part of 18 months of probation, followed by three years of supervised release, for conspiracy to distribute and dispense oxycodone in connection with his operation of Rosen-Hoffberg Rehabilitation and Pain Management Associates, P.A., where he was Medical Director and part owner.    

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, Washington Division; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS-OIG); and Acting Chief Dennis J. Delp of the Baltimore County Police Department.

According to his guilty plea, Norman Rosen, is a doctor and was licensed to practice medicine in the State of Maryland.  He served as the Medical Director and part-owner of Rosen-Hoffberg Rehabilitation and Pain Management (the “Practice”).  Rosen primarily worked at the Practice’s Towson, Maryland locations.  Rosen’s partner in the business and the Practice’s Associate Medical Director was Howard Hoffberg. 

According to Rosen’s guilty plea, patients at the Practice were often prescribed high doses of oxycodone, and other opioid medications.  Some patients were issued prescriptions for opioids after routinely providing aberrant urine toxicology screens, including positive results for cocaine and heroin; positive results for controlled substances that were not prescribed by the Practice; and/or negative results for the controlled substances prescribed by the Practice.  Rosen knew that the Practice received complaints about the behavior of patients, including reports of suspected drug transactions in the parking lots near the Practice.  At times, patients were observed “nodding out” in the waiting area of the Practice.  Some patients tried to bring in urine that was not theirs in order to pass urine toxicology screens.  Some patients of the Practice overdosed and some of these patients required hospitalization and some died.  Several major pharmacies refused to fill any prescriptions issued by the Practice because of the high doses being prescribed.  Both Rosen and Hoffberg were aware of the conditions at the Practice and yet continued to prescribe medications to these patients.

As detailed in his plea agreement, as the Medical Director, Dr. Rosen established the rules for the Practice.  One of his rules was that the customer, i.e. the patient, is always right.  Sometimes, when other providers at the Practice discharged certain patients, Rosen continued to treat the patients at the Towson location.  At times, if a patient failed a urine toxicology screen because of illicit substances in their system such as heroin or cocaine, Rosen declined to discharge the patient and instead required the patient to return to the Practice more frequently for follow-up, sometimes as much as three times a week.

Rosen admitted that he issued prescriptions to some patients outside the bounds of the usual medical practice and not for a legitimate medical purpose.  For example, Rosen prescribed large doses of oxycodone and clonazepam to a patient who had eight toxicology screens that were positive for cocaine and whose children had been taken from her because of her drug problems.  Similarly, Rosen ignored the red flags and prescribed oxycodone and methadone to a patient who admitted to illicit drug use; had previously been criminally charged for prescription fraud and drug trafficking; had overdosed; had urine toxicology screens that were positive for heroin, cocaine, and marijuana; and had been accused of selling her pills.

In related cases, Rosen’s partner, Howard Hoffberg, age 66, of Reisterstown, Maryland, previously pleaded guilty to conspiracy to violate the anti-kickback statutes, in connection with a scheme to accept payments from a pharmaceutical company in exchange for prescribing a fentanyl-based drug.  He was sentenced to eight months in federal prison.  Also, a physician’s assistant at the Practice, William Soyke, age 69, of Hanover, Pennsylvania, previously pleaded guilty to conspiracy to distribute and dispense oxycodone, fentanyl, methadone, and alprazolam and was sentenced to 37 months in federal prison.

United States Attorney Erek L. Barron commended the FBI, the DEA, HHS-OIG and the Baltimore County Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Jason D. Medinger, 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 and click on the “Save A Life” link.

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Baltimore, Maryland – A federal criminal complaint has been filed charging Ryan Dales, age 34, of Baltimore, Maryland, with wire fraud, relating to the submission of fraudulent applications for unemployment insurance (UI) benefits, a Paycheck Protection Program loan, and an Economic Injury Disaster Loan (EIDL) under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.  The CARES Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.  The complaint was filed January 13, 2023, and unsealed today. 

A search warrant executed at Dales’ residence following his arrest recovered two firearms, including one privately made firearm, known as a “ghost gun,” suspected fentanyl and suspected drug manufacturing equipment (including a press, multiple scales, multiple sifters, capsules, baggies, and other packaging materials) five cell phones, and materials used to make fraudulent identification documents and access devices. The investigation is continuing.

The defendant is expected to have an initial appearance in U.S. District Court in Baltimore later this afternoon.

The criminal complaint 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; and Acting Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor, Office of Inspector General.

Financial assistance offered through the CARES Act included loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, administered through the Small Business Administration (SBA).  The SBA also offered an Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations.  In addition, the CARES Act created the Pandemic Unemployment Assistance (PUA) program, which expanded states’ ability to provide UI for workers impacted by the COVID-19 pandemic, including workers who otherwise wouldn’t be eligible for UI benefits.

According to the affidavit filed in support of the criminal complaint, Dales has a 2017 federal conviction for bank fraud conspiracy and aggravated identity theft, for which he was sentenced to 62 months in federal prison.  On December 9, 2020, Dales was transferred from prison to a halfway house in Baltimore, to complete his sentence.  Dales was released from custody on June 4, 2021.

The affidavit alleges that on December 15, 2020, soon after Dales arrived at the halfway house, an application for UI benefits was submitted on his behalf from an IP address that resolved to the halfway house.  The application stated that Dales was self-employed as a barber, and that he stopped being able to provide services on April 5, 2020, when Dales was actually in federal prison.  The application was denied because Dales had not earned sufficient wages in the previous year to be eligible for UI benefits. 

As detailed in the affidavit, on July 31, 2021, Dales re-opened his UI claim, seeking benefits under the PUA program.  Dales allegedly submitted fraudulent IRS documents to support his PUA claim.  The forms indicated that Dales was the sole member of “KNW Group,” and indicated a gross profit for the company in 2019 of $144,112.35, with total expenses of $45,031 and a net profit of $99,081.35.  As a result of the documentation, Dales was awarded PUA benefits with an effective date of December 2020.  Between August 2021 and September 2021, Dales was paid approximately $25,570 on the claim. Subsequent investigation found that the IRS had no record of any such forms being filed by Dales for the 2019 and 2020 tax years, during which time Dales was incarcerated.

Further, the affidavit alleges that on December 29, 2020, while he was in the halfway house, Dales filed a fraudulent EIDL application for business “Ryan Dales,” d/b/a “Dales Drop, Inc.”  According to information contained in the application, Dales Drop is an “agriculture” business established on March 15, 2018 (when Dales was federally incarcerated), with three employees and 2019 gross revenue of approximately $10,000, and $6,000 in costs of goods sold.  On the application, Dales allegedly answered “No” to the question “Within the last five years, for any felony, have you ever been convicted, plead guilty, plead nolo contendere, been placed on pretrial diversion, or been placed on any form or parole or probation (including probation before judgment)?  Dales’ 2017 fraud conviction made him ineligible for EIDL funding.  SBA records show that the EIDL application was ultimately denied due to “unsatisfactory credit history.” 

According to the affidavit, in March 2021, again, while Dales was still in the halfway house, a PPP loan application was submitted online from owner “Ryan Dales,” which asserted over $8,000 in average monthly payroll for the sole proprietorship, and sought more than $20,000 in funds for “payroll, rent/mortgage interest, utilities, and covered operations, expenditures, and covered supplier costs.”  The application listed a business start date of “08/2018”—a time when Dales would have been incarcerated.  The application included a purported 2019 IRS Form Schedule C, listing Dales’ “principal business” as “home improvement,” and listed a gross profit of $113,219, total expenses of $10,117, and a net income of $103,102.  Dales allegedly also responded “yes” to the question as to whether he did “materially participate in the operation of this business during 2019.”  In fact, Dales was incarcerated during all of 2019.

If convicted, Dales faces a maximum sentence of 20 years in federal prison for wire fraud.  Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. 

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

The District of Maryland COVID-19 Fraud Strike Force is one of three strike forces established by U.S. Attorney General Merrick B. Garland and 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 DOL-OIG for their work in the investigation.  United States Attorney Barron and Assistant U.S. Attorney Paul A. Riley are prosecuting the case.  Mr. Barron also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber. 

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.

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Baltimore, Maryland – A federal jury yesterday convicted former Correctional Officer Andre Davis, a/k/a “2 Chainz,” age 37, of Baltimore, for a racketeering conspiracy at the Chesapeake Detention Facility (CDF), in Baltimore, Maryland, after a seven-day trial.  Two other correctional officers (COs), four detainees, and two outside “facilitators” previously pleaded guilty to their roles in the conspiracy, which involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison.  

The guilty verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, 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 primarily used for the housing of federal pretrial detainees.  CDF is a maximum-security prison that houses approximately 500 male and female detainees.  There are six housing areas, or “pods” in CDF.

The evidence showed that from at least 2016, Davis, along with other employees, detainees and associates of CDF, participated in a conspiracy to smuggle contraband into CDF, including narcotics, cell phones, and tobacco.  According to the evidence at trial, Davis abused his position of trust as sworn officer of DPSCS by engaging in illegal activities to enrich himself. 

According to the trial testimony, Davis smuggled contraband into CDF for multiple detainees, including co-defendants Donte Thomas, Andre Webb, and Bernard Bey.  At the direction of the detainees, Davis met with outside facilitators to receive contraband and bribe payments.  The evidence showed that Davis smuggled Suboxone, tobacco, and cellular telephones and communication devices into CDF, in exchange for bribes.

As detailed during the trial, the defendant detainees and facilitators paid Davis and his co-defendant COs for smuggled contraband using cash and electronic payment platforms, including Cash App. 

Davis faces a maximum sentence of 20 years in prison for the racketeering conspiracy.  U.S. District Judge George L. Russell, III, has scheduled sentencing for April 3, 2023, at 9:30 a.m.

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 are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Travon Demetrius Hardie, a/k/a “Juug,” age 25, of Washington, D.C., to 54 months in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft, in connection with a scheme to use the stolen personal information of identity theft victims to obtain financing to purchase luxury vehicles.  Judge Xinis also ordered Hardie to pay restitution of $56,920.77 and entered a forfeiture money judgment in the amount of $697,041.13.  The sentence was imposed on January 17, 2023.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Ross Luciano of the United States Secret Service - Baltimore Field Office; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; and Chief Russell E. Hamill III of the Laurel Police Department.

According to his plea agreement, from November 2020 through February 2022, Hardie and co-defendants John Paul Thompson, Jr. and Nickolas Alexander Mathis, obtained the stolen personal identifying information (“PII”) of identity theft victims, manufactured fake identification documents with the stolen PII, and used those fake identification documents to attempt to obtain financing for the purchase of at least 31 luxury vehicles from dealerships in Maryland, Delaware, New Jersey, and Virginia.  Hardie admitted that he manufactured some of the fraudulent identification documents which were used to perpetuate the ongoing fraud scheme.

The attempted loss as a result of the scheme was at least $1,808,708.47, and the defendants used, without permission, the names and personal identifying information of at least 25 victims.  Hardie successfully obtained at least 11 automobiles, worth at least $697.041.13, as a result of the scheme.  In addition to paying restitution, Hardie must also forfeit: a rifle with no serial number; two high capacity drum magazines for the rifle; three handguns; eight magazines; more than 300 rounds of ammunition; and other items used to create the fraudulent identity documents, all of which were recovered during searches of locations related the fraud scheme.

Co-defendants Nickolas Alexander Mathis, age 38, of Laurel, Maryland, and John Paul Thompson, Jr., age 38, of Lanham, Maryland, have both pleaded guilty to their roles in the scheme.  Each faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and for wire fraud; and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft.  Judge Xinis has scheduled sentencing for Thompson and Mathis for February 1, 2023 and February 24, 2023, respectively. 

United States Attorney Erek L. Barron commended the U.S. Secret Service, the HSI, the U.S. Postal Inspection Service, and the Laurel Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Leah Grossi and Geonard Butler, who are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.

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Baltimore, Maryland – U.S. District Judge Julie R. Rubin today sentenced D’Andre Preston, age 26, of Baltimore, to 25 years in federal prison, followed by five years of supervised release, for participating in a violent racketeering conspiracy, specifically, the NFL Criminal Enterprise, including committing a murder.  The term NFL stands for Normandy, Franklin, and Loudon, which are three adjacent streets that run through the Edmondson Village.  Members of NFL have social and family ties to the Edmondson Village neighborhood 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, Washington Division; Chief Marcus Jones of the Montgomery County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.

According to his guilty plea, from at least 2016 through March 2020, D’Andre Preston was an associate of the NFL Criminal Enterprise, which engaged in a pattern of criminal racketeering activity including murder, narcotics trafficking and smuggling, illegal firearms possession, bribery, witness intimidation, and witness retaliation.  Preston admitted that he participated in illegal activities with other NFL Enterprise members, including committing a murder on the enterprise’s behalf.  As detailed in Preston’s plea agreement, in October 2018, a co-conspirator solicited co-defendant Darran Malik Butler to murder Leonard Shelley so that members of the NFL enterprise could collect a bounty that had been placed on Shelley.  On October 31, 2018, Preston and co-defendant Darran Butler followed Shelley into a convenience store and shot Shelley numerous times, killing him.  Following the murder, Darran Butler posted a picture on Instagram of himself holding the bounty proceeds for Shelley’s murder.  

On November 9, 2022, co-defendant Darran Malik Butler, age 23, of Baltimore, was also sentenced to 25 years in federal prison.  More than 30 defendants in this and related cases have pleaded guilty to their roles in the racketeering conspiracy.

This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN).  NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.  NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.  For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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 FBI, the DEA, the Montgomery County Department of Police and the Baltimore Police Department for their work in the investigation.  Mr. Barron commended the U.S. Postal Inspection Service; the City of Rockville Police Department; the Baltimore County and Howard County Police Departments; the Frederick County Sheriff’s Office; the Maryland State Police; the West Virginia State Police; the Virginia State Police; the Warren County (VA) Sheriff’s Department; the Winchester (VA) and Front Royal (VA) Police Departments; and the Frederick County and Howard County State’s Attorney’s Offices for their assistance in the investigation and prosecution.  Mr. Barron thanked Assistant U.S. Attorneys John W. Sippel, Jr., James T. Wallner, and Robert I. Goldaris, who are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.   

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Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Medard Ulysse, age 38, most recently of Miami, Florida, today to nine years in federal prison, followed by three years of supervised release, for wire fraud and conspiracy to commit mail fraud in relation to multiple fraud schemes, including an elder fraud “grandparent” scam and a COVID-19 CARES Act fraud related to unemployment benefits.  Judge Bennett also ordered Ulysse to pay restitution totaling $2,485,512.  Of that amount $1,866,745 is for the elder fraud scam and $618,767 is for the unemployment benefits scheme.

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 Acting Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor, Office of Inspector General.

“This is a despicable crime causing fear and emotional turmoil for some of the most vulnerable members of our society,” said Special Agent in Charge Thomas J. Sobocinski of the FBI's Baltimore field office.  “Ulysse used fraud and deceit to prey upon grandparents’ trust and love.  The FBI is committed to combatting elder fraud and financial exploitation and ensuring our seniors are protected.”

“As a part of multiple fraud schemes, Medard Ulysse conspired with others to use stolen identities to defraud pandemic Unemployment Insurance programs established under the CARES Act to unlawfully obtain over $618,000, which deprived those who were truly in need of assistance during the pandemic,” said Troy W. Springer, Acting Special Agent in Charge, National Capital Region, U.S. Department of Labor, Office of Inspector General. “I am grateful for the strong partnerships with the U.S. Attorney’s Office for the District of Maryland, the FBI, and our state workforce agency partners, as we continue focused efforts to hold accountable those who undermine the integrity of unemployment assistance programs.”

According to his guilty plea, from January 2018 to November 2019, Ulysse and others executed an elder fraud scam, called a “grandparent scam,” in which they persuaded elderly victims to send thousands of dollars in cash by posing as a police officer, lawyer, or other person in law enforcement and convincing victims that their grandchild needed money for bail or legal fees.  If the victims sent money, conspirators asked for more cash claiming that additional funds were needed for legal expenses, fines, or damages.  Conspirators called the elderly victim pretending to be the victim’s grandchild or other troubled relative to convince the victims to send cash.  To conceal the scheme, the conspirators told the victims that a gag order had been placed on the case or that the situation was embarrassing for the grandchild, and that the victim should not share the information with others. 

The victims were directed to send cash to residential addresses, that were either vacant or for sale, so no one would be at those locations at the time of the deliveries.  Ulysse recruited people to assist in retrieving the packages.  Co-conspirators opened the packages, counted the cash inside and sent Ulysse video recordings of the packages being opened and counted, then delivered the fraud proceeds to Ulysse and to other people involved in the scheme.  Ulysse distributed, and directed co-conspirators to distribute, cash payments to other members of the conspiracy for their participation in the scheme. 

As a result of the execution of the elder fraud scheme, Ulysse and his co-conspirators convinced at least 83 different victims to send a total of at least $2,420,280.  Ulysse’s criminal actions resulted in substantial financial hardship to at least five victims.        

From April 2020 to November 2020, Ulysse conducted an COVID-19 CARES Act unemployment benefit scheme to fraudulently obtain unemployment funds, including Federal Pandemic Unemployment Compensation (FPUC) and Pandemic Unemployment Assistance (PUA) established under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.  As part of the scheme, Ulysse and his conspirators used the identities of numerous victims to submit fraudulent unemployment claims to multiple state workforce agencies, including the Maryland Department of Labor and the California Employment Development Department.  The fraudulent applications listed individual victims’ names, social security numbers, and dates of birth.  The Maryland Department of Labor and other state workforce agencies disbursed benefits through debit cards issued in the names of the applicants and mailed to addresses provided in the applications, which were locations accessible to Ulysse and other members of the conspiracy.  Once conspiracy members obtained the funds on state issued debit cards, they used the funds for their personal benefit. 

In total, between April 2020 and November 2020, Ulysse and his co-conspirators submitted at least 143 fraudulent applications in the names of identity theft victims and obtained approximately $618,767 in fraudulent funds. 

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud.  The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.  For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

United States Attorney Erek L. Barron commended the FBI and the DOL-OIG for their work in the investigation, and thanked the Lowndes County Sheriff’s Department for its assistance.  Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Christine Goo, who prosecuted the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/elder-justice-initiative.

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Baltimore, Maryland – On January 17, 2023, U.S. District Judge Ellen L. Hollander sentenced Xavier Lee, a/k/a “X,” age 44, of Elkton, Maryland, to 150 months in federal prison, followed by 25 years of supervised release, for sex trafficking of a minor.  Judge Hollander also ordered Lee to pay restitution of $15,600 to a minor victim.  As a result of his conviction, upon his release from prison, Lee will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). 

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Lt. Colonel Dalaine Brady, Acting Superintendent of the Maryland State Police; Chief Carolyn Rogers of the Elkton Police Department; Anne Arundel County Police Chief Amal E. Awad; and Cecil County State’s Attorney James Dellmyer.

According to his plea agreement, for the past decade Lee has operated an illicit prostitution business for financial gain, including operating a website, where Lee posted advertisements of women whom he made available for commercial sexual acts with paying customers. That website was seized by the FBI, in conjunction with the United States Attorney’s Office and the Maryland State Police.  For a time, Lee also operated a different website, where he offered a subscription pornographic service to paying customers.

As detailed in the plea agreement, Lee admitted that he had sexual contact with a minor victim, beginning when the victim was 14 years old.  Lee recorded his sexual contact with the minor victim when she was 15 and 16 years old.  Investigators recovered eight separate videos from Lee’s electronic devices, each of which had been recorded by Lee and each of which documented the sexual abuse of the minor victim, depicting the minor victim engaged in sexual acts with Lee or with another adult man.  Lee admitted that he was aware of the minor victim’s true age.

For approximately the five years leading up to his arrest in 2019, Lee’s prostitution business was run almost exclusively out of a hotel located in Elkton, Maryland.  Not only did Lee primarily use the same hotel in Elkton to prostitute women, Lee always used the same room.  Lee ran his prostitution business according to a set pattern and protocol.  Lee posted advertisements of women whom he made available for commercial sex acts with paying customers.  The “profiles” of the females whom Lee was prostituting included photographs, descriptions, and fictitious names.  The website also listed the cost of prostitution appointments, described services that were available, and allowed customers to post comments. 

Finally, Lee admitted that in 2013, including in or about April 2013, Lee also had another minor victim who was sixteen to seventeen years old, to prostitution dates at Lee’s direction.  These prostitution dates were arranged through Lee’s website.  Lee was aware of the minor victim’s true age during the time because the minor victim advised Lee of her true age. 

The case was investigated by the FBI-led Maryland Child Exploitation Task Force, which was created to combat child prostitution, with members from ten state and federal law enforcement agencies.  The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.

MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking, while identifying and prosecuting offenders.  Members include federal, state and local law enforcement, as well as victim service providers and local community members.  For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.

United States Attorney Erek L. Barron commended the FBI, the Maryland State Police, the Elkton Police Department, the Anne Arundel County Police Department, and the Cecil County State’s Attorney’s Office for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake, who prosecuted the case.

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Baltimore, Maryland – On January 12, 2023, Malachi Carter-Bey, age 38, of Baltimore, Maryland, pleaded guilty to federal charges of illegally possessing a loaded firearm within 1,000 feet of a school, specifically Curtis Bay Elementary-Middle School.  

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 Commissioner Michael Harrison of the Baltimore Police Department.

According to his guilty plea, in the early morning hours of December 26, 2020, a Baltimore Police officer found what he thought was an abandoned Acura SUV running at the corner of Elmtree Street and Pennington Avenue in the Curtis Bay neighborhood of Baltimore.  The officer approached the car and saw that Carter-Bey and a passenger were asleep in the car.  Using a flashlight, the officer saw a large black revolver entirely exposed on the driver’s seat between the driver-side door and Carter-Bey.  Once back-up arrived, Carter-Bey and the passenger were removed from the car and the revolver, a .357-caliber revolver loaded with six rounds of ammunition, was also recovered.

Carter-Bey admitted that he knew that he possessed the firearm within 1,000 feet of the grounds of a school zone, specifically, Curtis Bay Elementary-Middle School.

U.S. District Judge Richard D. Bennett has scheduled sentencing for February 22, 2023 at 2:30 p.m. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone.  On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation.  Mr. Barron thanked Special Assistant U.S. Attorney Logan Hayes and Assistant U.S. Attorney Brandon Moore, who are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Turrell Davis, age 25, of Baltimore, Maryland for possessing a firearm within 1,000 feet of a school.  Davis has served more than 14 months and as part of his sentence Judge Hollander ordered that Davis be on federal supervised release for three years and participate in the Roca, Inc. - Baltimore’s community violence intervention and response services.

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); and Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.

According to his guilty plea, on November 9, 2020, Davis was arrested after police, using CCTV to monitor suspected drug activity in the 300 block of South Catherine Street, one block north of Frederick Elementary School, saw Davis, who appeared to be armed.  Officers in a marked car were sent to the location to investigate.  When Davis noticed the officers, he ran.  As he ran, Davis threw a .45-caliber handgun, loaded with 13 rounds of ammunition.  Body-worn camera, CCTV, and Foxtrot helicopter footage captured the firearm sliding across the street, stopping near the curb.  Davis also tossed a clear bag, later found to contain fentanyl, under a parked car and surrendered to police.  A search of Davis recovered additional fentanyl, a digital scale, and $623 in cash.  The quantity and packaging of the drugs indicated that Davis intended to distribute the fentanyl.

Davis admitted that he knowingly possessed the firearm and that he had reason to believe he was within 1,000 feet of a school zone, specifically, Frederick Elementary School. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone.  On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation.  Mr. Barron thanked Special Assistant U.S. Attorney Logan Hayes and Assistant U.S. Attorney Brandon Moore, 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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Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced James Albert Borum, age 20, of Washington, D.C., to 11 years in federal prison, followed by five years of supervised release for carjacking and for brandishing a firearm during and in relation to a crime of violence, in connection with a series of carjackings he committed in Montgomery and Prince George’s Counties.  

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; Chief Marcus Jones of the Montgomery County Police Department; Chief Malik Aziz of the Prince George’s County Police Department; Chief Jarod Towers of the City of Hyattsville Police Department; Chief Robert J. Contee III of the Metropolitan Police Department; United States Attorney for the District of Columbia Matthew M. Graves; Montgomery County State’s Attorney John McCarthy; and Prince George’s County State’s Attorney Aisha Braveboy.

According to his guilty plea, in June 2021, Borum and his accomplices committed a series of carjackings in Montgomery and Prince George’s Counties.  At the time, Borum was on pre-trial supervision related to charges in Washington, D.C. and was wearing an ankle monitor.  According to the plea agreement, Borum and an accomplice participated in four carjackings and an attempted carjacking.  Borum admitted that a firearm was brandished in three of the carjackings.

As detailed in the plea agreement, on June 4, 2021, Victim 1 was beaten and carjacked by Borum and an accomplice, who also stole the victim’s cell phone.  Victim 1’s wallet, which contained several items, including a bank card, was inside the vehicle at the time of the carjacking.  Law enforcement recovered Victim 1’s bank card and a social security card in the name of Victim 1’s spouse from Borum’s bedroom during a search on July 1, 2021. 

On June 10, 2021, Borum and his accomplice committed another carjacking in Silver Spring, Maryland.  After Victim 2 had parked his car, he began walking into a nearby apartment courtyard.  Borum and his accomplice followed Victim 2 and approached Victim 2 in the courtyard.  Borum and the accomplice pointed a handgun at Victim 2’s forehead and stated, “I’ll kill you.  Give me the keys.”  Victim 2 gave Borum and the accomplice his keys and the carjackers drove away in Victim 2’s car.  A global positioning device in Victim 2’s vehicle placed it near Borum’s home most of the time when the vehicle was not in use following the carjacking.

According to the plea agreement, on June 18, 2021, Borum and an accomplice attempted to carjack Victim 3 in a parking garage in the 8700 block of Cameron Street in Silver Spring.  Borum and his accomplice demanded Victim 3’s keys, but she refused to give them up.  Borum and the accomplice grabbed for Victim 3’s purse and a struggle ensued.  Neither Borum nor his accomplice were able to obtain Victim 3’s keys, and both men fled as another vehicle pulled into the parking garage.

Surveillance footage obtained from the Rhode Island Avenue, Silver Spring, and Wheaton Metro stations both before and after the attempted carjacking shows Borum and his accomplice wearing clothing that matched the clothing worn by the carjackers.  The footage also shows Borum wearing an ankle monitor and a distinctive white sweatshirt.  The sweatshirt was later recovered from Borum’s residence.

As detailed in the plea agreement, on June 18, 2021, Borum and his accomplice carjacked Victim 4, who was sitting in his car in the parking lot in the 3500 block of East West Highway in Hyattsville, Maryland.  Victim 4’s doors were unlocked and the windows were down.  Borum and the accomplice opened the driver’s side door, pointed a gun at Victim 4’s head, and told him to get out of the car.  Borum and the accomplice pulled Victim 4 out of the vehicle, pushed him to the ground, then got into Victim 4’s vehicle and drove away.  Law enforcement tracked and recovered the vehicle later that evening in the 1200 block of Douglas Street, N.E. in Washington, D.C.  The key to Victim 4’s car was found in Borum’s residence.

Finally, on June 23, 2021, Borum and an accomplice carjacked Victim 5 as Victim 5 was entering his car in a parking garage in the 8700 block of Colesville Road in Silver Spring, Maryland.  Borum and his accomplice approached Victim 5 from behind, held a black handgun at the left side of Victim 5’s head, and repeated, “Give me the keys!”  Victim 5 handed the carjackers his keys and wallet.  Borum and the accomplice then fled in Victim 5’s vehicle.  Victim 5’s vehicle was located by law enforcement five days later, parked on the same block as Borum’s residence.  Borum’s fingerprints were identified on the car.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

United States Attorney Erek L. Barron commended the FBI, the Montgomery County Police Department, the Prince George’s County Police Department, the City of Hyattsville Police Department, the Metropolitan Police Department, the U.S. Attorney’s Office for the District of Columbia, the Montgomery County State’s Attorney’s Office, and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Barron thanked Special Assistant United States Attorney Jared C. Engelking and Assistant United States Attorney Jessica Collins, 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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Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Brayan Contreras-Avalos, a/k/a “Anonimo,” “Humilde,” and “Malia,” age 28, of Langley Park, Maryland, late yesterday to the statutory maximum sentence of life in federal prison on charges related to his participation in a racketeering enterprise known as La Mara Salvatrucha, or “MS-13” and a concurrent five years in prison for a drug distribution conspiracy.  Contreras-Avalos was convicted after a three-week trial, along with co-defendants Luis Flores-Reyes, a/k/a “Maloso,” “Lobo,”’ and “Viejo Lovvon,” age 42, of Arlington, Virginia and Jairo Jacome, a/k/a “Abuelo”, age 40, of Langley Park, Maryland.

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 Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Special Agent in Charge Frank A. Tarentino III of the Drug Enforcement Administration – New York Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Marcus Jones of the Montgomery County Police Department.

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.  Contreras-Avalos, along with co-defendant Luis Flores-Reyes, was a leader within the Sailors Clique, which held territory in Maryland, Virginia, New York, New Jersey, Texas, and El Salvador.  Co-defendant Jairo Jacome was the highest-ranking member of the local Langley Park Salvatrucha, or “LPS” clique. 

At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang and 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.”  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 during the trial, Contreras-Avalos and his co-defendants participated in at least three murders, including four minor victims, during the period of the conspiracy.  Most of the victims were purported gang rivals except for one minor victim.  For example, in June 2016, members of MS-13, including Contreras-Avalos, stabbed to death two homeless persons who gang members believed to be members of the 18th Street gang, in Hyattsville, Maryland.  The investigation revealed no evidence that the victims were in fact members of any gang.  According to the evidence presented at trial, Contreras-Avalos sought on another occasion to kill a homeless man until permission was denied, and later approved an unrelated murder where the intended target survived the attack but an associate did not.

According to court documents and evidence presented at trial, the defendants ran an extortion scheme in and around Langley Park, extorting local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.”  Contreras-Avalos and Flores-Reyes also trafficked illegal drugs, including marijuana and cocaine.  A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the illicit activities of the gang, using structured transactions and intermediaries to avoid law enforcement scrutiny.

Co-defendants Luis Flores-Reyes, a/k/a “Maloso,” “Lobo,”’ and “Viejo Lovvon,” age 42, of Arlington, Virginia and Jairo Jacome, a/k/a “Abuelo”, age 40, of Langley Park, Maryland, were convicted for the racketeering conspiracy and for murder in aid of racketeering.  Jacome and Flores-Reyes were also convicted of extortion conspiracy.  Flores-Reyes and Jacome face a mandatory sentence of life in prison at their sentencing.  Judge Xinis has scheduled sentencing for Flores-Reyes on February 22, 2023 and for Jacome on February 23, 2023.

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 an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.    

Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.

United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite, Jr. commended the FBI, DEA, HSI, Prince George’s County Police Department, Montgomery County Police Department, Virginia State Police, Lynchburg Police Department, Prince William County Police Department, Nassau County District Attorney’s Office, the Bedford County Commonwealth’s Attorney’s Office and the Bedford County Sheriff’s Office for their work in the investigation.  Mr. Barron and Mr. Polite thanked Assistant U.S. Attorneys Timothy F. Hagan, Chris M. Sarma, William Moomau, Assistant Director Catherine Dick of the Department of Justice Consumer Protection Division and Trial Attorney Alexander Gottfried of the Justice Department’s Criminal Division, who are prosecuting this case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Lawrence Russoe, age 37, of Baltimore, Maryland, to the statutory maximum sentence of five years in federal prison, followed by three years of supervised release, for possession of a firearm within 1,000 feet of a school zone.  

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department (BPD).

“Schools should be sacred and free from fear.  Felon or no felon, if you’re caught with a gun around a school, we’re seeking to prosecute you federally,” said United States Attorney Erek L. Barron.

According to Russoe’s guilty plea, on June 7, 2021, BPD Detectives received notice of a stolen gray Hyundai vehicle at a fast-food drive-thru in the 2800 block of Greenmount Avenue in Baltimore.  Detectives attempted to stop the vehicle, but the driver, later identified as Russoe, refused to stop.  A BPD helicopter maintained surveillance of the vehicle as it fled at a high speed, driving recklessly.

As detailed in the plea, Russoe briefly stopped the car to let out a passenger, then continued driving until entering the 3500 block of Parklawn Avenue, where he abandoned the car while it was still in motion.  Russoe had a satchel draped across his body as he got out of the car and ran away, with BPD officers in pursuit.  Russoe was arrested a short time later.  Detectives searched the gray Hyundi and located an extended magazine, loaded with seven rounds of 9mm ammunition, on the rear driver’s side floorboard.  In the satchel that Russoe was carrying, law enforcement recovered a privately made firearm (PMF), commonly known as a “ghost gun,” specifically, a Polymer 80, 9mm semi-automatic pistol without a serial number, a scale, seven baggies of marijuana, one clear gelcap containing a mixture of cocaine, heroin, and fentanyl, and a cell phone. 

Russoe admitted that he had reasonable cause to believe he was within 1,000 feet of a school while he possessed the firearm, because he drove directly past the Belair-Edison Middle School and the firearm and ammunition were both found approximately 500 feet from the school. 

As detailed in his plea agreement, Russo is currently serving a sentence of seven years for a conviction in Baltimore City Circuit Court for first degree assault and possession of a firearm with a felony conviction.  Judge Bennett ordered that Russoe’s federal sentence will be served concurrent to his state sentence and that Russoe must forfeit the PMF, extended magazine, and seven rounds of 9mm 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 ATF and the Baltimore Police Department for their work in the investigation.  Mr. Barron thanked Special Assistant U.S. Attorney Jacob Gordin, who prosecuted the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.

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Baltimore, Maryland – U.S. District Judge Julie R. Rubin today sentenced Daquante Thomas, a/k/a “Glock,” age 20, of Baltimore, Maryland, to 35 years in federal prison, followed by five years of supervised release, for discharge of a firearm during a crime of violence resulting in death, in connection with a murder-for-hire conspiracy. 

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; Chief Gregory Der of the Howard County Police Department; and Howard County State’s Attorney Rich Gibson.

“This case is a tragedy for the victim and the affected families.  I am hopeful that our reenergized law enforcement and community partnerships will help break this cycle of violence,” said United States Attorney Erek L. Barron.

“Today’s sentencing is another example of the successful partnership that exists between our office and our law enforcement partners on the local, state, and federal level,” said Howard County State’s Attorney Rich Gibson.  “We are committed to working in a collaborative manner to solve cases, make arrests, and hold criminals, such as Daquante Thomas, accountable for their actions.”

“The prioritizing of money over humanity in this case shows just how little this defendant values the lives of others,” said ATF Baltimore Special Agent in Charge Toni M. Crosby.  “We cannot allow individuals like this to walk freely in our communities, willing to murder citizens for the right price.  ATF is proud to work alongside our local, state, and federal partners every day to identify and investigate the people responsible for committing acts of violence in Maryland.”

According to the plea agreement, on October 4, 2020, Howard County Police responded to a shooting in the area of Basket Ring Road in Columbia.  Victim Juan Ross was found shot and killed at the scene, sustaining multiple gunshot wounds to the head.  Investigation identified Daquante Thomas as one of the shooters.  As detailed in the guilty plea, co-conspirator 1 accused the victim, Juan Ross, age 23, of Columbia, Maryland, of cooperating with law enforcement, including on a live social media conversation on September 9, 2020, and in text message.  Thomas admitted that co-conspirator 1 solicited him and another conspirator to kill Juan Ross and that he accepted payment to commit the murder. 

According to the plea agreement, on October 3, 2020, Thomas and co-conspirator 2 texted each other about the address where they could find the victim.  The next day Thomas, co-conspirator 2 and co-conspirator 3 drove to the area of Basket Ring Road in Columbia to locate Juan Ross, then drove to a drug store nearby so that co-conspirator 2 could purchase an Uber card and leave the area.  A short time later, Thomas and co-conspirator 3 returned to the area of Basket Ring Road, shot and killed Juan Ross, then drove away together.

Two co-defendants, Jourdain Larose, a/k/a “JBlacc,” age 27, of Ellicott City, Maryland, and Tyrik Braxton, a/k/a “Son-Son,” age 26, of Baltimore, Maryland, are charged with a federal murder-for-hire conspiracy, use of interstate commerce facilities in the commission of a murder-for hire, and use and discharge of a firearm during a crime of violence resulting in death.  They remain detained while they await their trial.  An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. 

This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN).  NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.  NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.  For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

United States Attorney Erek L. Barron commended the ATF, the Howard County Police Department, and the Howard County State’s Attorney’s Office for their work in the investigation and prosecution and thanked the FBI, the Maryland State Police, the Anne Arundel County Police Department, the Baltimore County Police Department, and the Baltimore Police Department for their assistance.  Mr. Barron thanked Assistant U.S. Attorney Kim Y. 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-psnexile and https://www.justice.gov/usao-md/community-outreach.

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Greenbelt, Maryland – Behrouz Mokhtari, age 72, of McLean, Virginia and Tehran, Iran, a native of Iran and a naturalized citizen of the United States, pleaded guilty today to two conspiracies to violate sanctions imposed by the United States on Iran regarding the exportation, re-exportation, sale, or supply directly or indirectly, any goods, technology, or services to Iran.    

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 guilty plea, from at least March 2018 until at least September 2020, Mokhtari conspired 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 business 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.  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, from about February 2013 until at least June 2017, Mokhtari and a number of Iranian nationals engaged in a conspiracy 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 United States citizen, he was prohibited from engaging in business with or providing services to Iranian entities, without first obtaining a license or permission from OFAC to do so.  Neither Mokhtari, nor any of his co-conspirators ever applied for or obtained such a license.  Mokhtari 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.

As part of his guilty plea, Mokhtari must forfeit money, property, and/or assets derived from, obtained as the result of, or used to facilitate the commission of his illegal activities, including the residence he purchased in Campbell, California and a money judgment in the amount of approximately $2,862,598.12.

Mokhtari faces a maximum sentence of five years in federal prison for each of the two conspiracy counts.  U.S. District Judge George J. Hazel has scheduled sentencing for April 3, 2023 at 10:00 a.m.

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 is prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Behrouz Mokhtari, 72, of McLean, Virginia, and Tehran, Iran, a naturalized U.S. citizen, pleaded guilty today to two separate conspiracies to violate sanctions imposed by the United States on Iran regarding the exportation, re-exportation, sale, or supply, directly or indirectly, of any goods, technology, or services to Iran.

According to his guilty plea, from at least March 2018 until at least September 2020, Mokhtari conspired 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 U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).

Mokhtari held management positions and/or maintained ownership control of multiple business 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. 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, engaged in the petrochemical industry, and part of the FSR Network.

As stated in his guilty plea, from about February 2013 until at least June 2017, Mokhtari and several Iranian nationals engaged in a separate conspiracy to support illicit shipments of petrochemical products to and from Iran in violation of the Iranian sanctions. In furtherance of the scheme, Mokhtari created a Panama-based front company, East & West Shipping Inc., to purchase two liquid petroleum gas (LPG) tanker vessels 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 Vessels 1 and 2), Mokhtari transferred ownership of the vessels to other entities to conceal the conspirators’ financial and ownership interest. The conspirators then used another entity, Greenline Shipholding Inc., to control the 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 Vessels 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 U.S. financial system to engage in transactions related to 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 to conceal the fact that the vessels were transporting products to and from Iran in violation of 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 – one held in the name of Mori Construction and Development LLC and the other held in the name of 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, 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 over $1.5 million.

Mokhtari admitted that he knew that, as a U.S. citizen, he was prohibited from engaging in business with or providing services to Iranian entities without first obtaining a license or permission from OFAC to do so. Neither Mokhtari nor any of his co-conspirators ever applied for or obtained such a license. Mokhtari 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.

As part of his guilty plea, Mokhtari must forfeit money, property and assets derived from, obtained as the result of, or used to facilitate the commission of his illegal activities, including the residence he purchased in Campbell, California, and a money judgment in the amount of $2,862,598.12.

Mokhtari faces a maximum sentence of five years in federal prison for each of the two conspiracy counts. U.S. District Judge George J. Hazel scheduled sentencing for April 3.

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, Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division 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. Attorney 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.

Baltimore, Maryland – A federal criminal complaint has been filed charging Tomeka Glenn, age 46, and Kevin Davis, age 42, both of Windsor Mill, Maryland, for conspiracy to commit wire fraud,  relating to the submission of fraudulent COVID-19 CARES Act Paycheck Protection Program and Economic Injury Disaster Loan applications and their receipt of over $300,000 in fraudulently obtained funds.  The complaint was filed December 16, 2022, and unsealed today upon the arrests of the defendants.

The defendants are expected to have an initial appearance in U.S. District Court in Baltimore beginning at 2:00 p.m. this afternoon.

The charges were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Interim Chief Dennis J. Delp of the Baltimore County Police Department.

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

According to the affidavit filed in support of the criminal complaint, in September 2020, a Baltimore County Police Department detective investigating fraudulent PPP loans associated with targets of a criminal investigation identified several other individuals, including Glenn, who applied for and received PPP loans and EIDLs, using false and fraudulent information.  As detailed in the affidavit, a review of the PPP and EIDL applications submitted by Glenn for businesses that she owns and/or controls were found to contain false statements and misrepresentations as to the legitimacy of the business; the number of employees; the financial earnings and payroll expenses of the businesses; and the income taxes withheld by the businesses.  The affidavit alleges that how Glenn spent the loan proceeds was inconsistent with payroll and other business expenses allowable under the loan program. 

For example, on June 19, 2020, Glenn allegedly filed an EIDL application for “Kdonsvanity décor.”  An entity call K’Dons Vanity Décor was formed in Maryland on December 17, 2019.  Glenn was listed as the registered agent for the entity with her home address as the address of the company.  The application claimed that the business had gross revenues of $175,000 and had 10 employees.  IRS records indicate that there were no business tax filings for K’Don’s Vanity Décor LLC for tax years 2019 or 2020.  Glenn also responded “no’ to the question as to whether she had been convicted for any felony within the last five years.  In fact, Glenn had been convicted of felonious credit card fraud in Fairfax County, Virginia in 2016 and of access device fraud in York County, Pennsylvania.  Glenn received a $10,000 EIDL advance as a result of the application, but the larger EIDL loan sought in the application was ultimately declined by the SBA due to “unsatisfactory credit history.”

The affidavit alleges that Glenn submitted a similar fraudulent application for a PPP loan on behalf of K’Dons Vanity Décor and on August 8, 2020, received loan proceeds of $70,357.50.  A review of Glenn’s bank accounts reveals that shortly after receiving the PPP loan funds, Glenn made purchases inconsistent with those allowable under the PPP loan program.  For instance, Glenn purchased luxury goods, including multiple pairs of Christian Louboutin brand shoes, and resort travel with Davis.  On July 19, 2021, Glenn submitted an application for loan forgiveness, claiming that $67,390 of the PPP loan had been spent on payroll costs, and the loan was forgiven.

During the course of the investigation, law enforcement discovered multiple other business entities (or purported business entities) associated with Glenn that applied for EIDL or PPP loans, including TD Innovative Consulting, referenced above, and Epoxy By S.H.E. LLC, in addition to “Kaydon Vanity Décor.”  As detailed in the affidavit, the loan applications contained similar false statements as to the legitimacy of the businesses, number of employees, and financial condition of the entities and the loans were ultimately denied.

The affidavit further alleges that Glenn engaged in a scheme to assist Davis, with whom she is in a romantic relationship, to submit and receive fraudulent PPP and EIDL loans.  Specifically, Davis allegedly submitted a fraudulent PPP loan application on behalf of For Keepsake Investment Realty, which included false statements as to the number of employees and amount of payroll, as well as including a fraudulent bank statement and IRS Form 940—Employer’s Annual Federal Unemployment Tax Return for 2019—in support of the application.  Davis also responded “no’ to the question as to whether he had been placed on any form of parole or probation within the last five years, when in fact, on March 24, 2017, Davis began four years of supervised release for a 2013 federal conviction in Arizona for conspiracy to distribute marijuana.  On March 18, 2021, Davis received PPP loan proceeds of $145,369 on behalf of For Keepsake Investment Realty. 

Further, a fraudulent EIDL loan application on behalf of For Keepsake Investment Realty, listing Davis as the owner of the business, was submitted on June 30, 2020, which claimed, among other things, that the business had gross revenues of $250,000 and employed 10 employees.  On July 2, 2020, and July 15, 2020, Davis received an EIDL advance of $10,000 and EIDL loan proceeds of $64,900, respectively, on behalf of For Keepsake Realty. 

As detailed in the affidavit, in the months following the disbursement of the EIDL loans, Davis purchased multiple airline tickets, luxury goods, and paid for vacations.  Moreover, on December 7, 2021, For Keepsake Realty sent $7,000 via a teller transfer to KDons Vanity Décor LLC’s bank account, which was controlled by Glenn.

In addition to the fraudulent PPP and EIDL loans obtained by Glenn and Davis, the affidavit alleges that Glenn received approximately $21,000 and Davis received approximately $13,000 in unemployment compensation based on fraudulent applications they submitted.

If convicted, Glenn and Davis each face a maximum sentence of 20 years in federal prison for the wire fraud conspiracy.  Actual sentences for federal crimes are typically less than the maximum penalties.  A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. 

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

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

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.

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