District of Maryland
Press releases recorded for this federal judicial district.
Former Executive Director of Maryland Environmental Service Facing Federal and State Charges for Allegedly Fraudulently Obtaining More Than $276,731 from His Employer, and State Felony Violations of the Maryland Wiretap StatuteRead the Press Release
Baltimore, Maryland – As a result of a collaborative investigation, today a federal grand jury returned an indictment, and a state criminal information has been filed, charging Roy C. McGrath, age 52, of Naples, Florida, for allegedly fraudulently obtaining funds from Maryland Environmental Service corporation. The criminal information also alleges that McGrath illegally recorded private conversations with senior Maryland state officials.
McGrath is expected to have an initial appearance in U.S. District Court in Baltimore and a state court appearance in Anne Arundel County Circuit Court, but no dates have been set for those hearings.
The federal and state charges were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Maryland State Prosecutor Charlton Howard III; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
“It is an honor and privilege to serve one’s community, and public officials are entrusted to place the interests of citizens above their own,” said Acting United States Attorney Jonathan F. Lenzner. “Our federal and state law enforcement team in Maryland will always hold accountable public officials who betray the public trust for their personal gain. Maryland residents should always demand honesty and integrity from those in government, and hopefully this indictment offers the public some level of confidence that we are committed to prosecuting those who violate that trust.”
“Our office will seek to hold accountable any public official who abuses the privileges of their office for corrupt reasons or illicit personal gain. The Office of the State Prosecutor will continue to work collaboratively with our partners to ensure the public’s interests are protected,” said Maryland State Prosecutor Charlton Howard.
“According to this indictment, Roy McGrath misappropriated public money for his own benefit. From personal travel to even obtaining a certificate from one of the most prestigious universities in the nation, McGrath’s alleged actions were self-serving and ultimately self-sabotaging,” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “The FBI and our law enforcement partners are committed to rooting out public corruption and holding officials like him accountable.”
According to the six-count federal indictment filed today in U.S. District Court and the 27-count criminal information filed in the Circuit Court for Anne Arundel County, on December 27, 2016, McGrath was appointed by the Governor of Maryland to serve as Executive Director of Maryland Environmental Service (MES), a corporation owned by the State of Maryland to provide environmental services such as water and wastewater management, solid waste management, composting, recycling, dredged material management and other services to state and local government agencies, federal government entities, and private clients. MES, which was headquartered in Millersville, Maryland, generated its operating funds from fees charged to governmental and private clients for its services, as well as from federal grants and funding from federal agencies, including the Environmental Protection Agency, the U.S. Department of the Interior, and the U.S. Department of Transportation. MES functioned as an independent state corporation which did not pay its employees according to the state government pay scale, but did require its employees to comply with state travel regulations, annual leave policies, and policies regarding compensatory leave, and time and attendance reporting. McGrath resigned from MES as of May 31, 2020, to become the Governor’s Chief of Staff effective as of June 1, 2020.
The federal and state charges allege that from March 2019 through December 2020, McGrath personally enriched himself by using his positions of trust as the Executive Director of MES and the chief of staff for the Governor of Maryland to cause MES to make payments to McGrath, or on his behalf, to which he was not entitled.
Specifically, the federal indictment and state criminal information allege: that McGrath caused MES funds to be paid to a museum where he was a member of the Board of Directors instead of using his personal funds to pay his pledge to the museum; that McGrath caused the MES Board of Directors to approve paying McGrath a $233,647.23 severance payment—equal to one year’s salary—upon his departure from MES by falsely telling them that the Governor was aware of and approved the payment; that McGrath caused MES to pay tuition benefits for McGrath after he left MES by personally approving reimbursements for payments made by Subordinate Employee #1 on McGrath's behalf; and that McGrath falsified his time sheets, reporting that he was at work while on two separate vacations in 2019.
The state criminal information also alleges that, during his tenure at MES and later as the Governor’s Chief of Staff, McGrath illegally recorded private conversations involving senior state officials without their permission,
The indictment alleges that to conceal the payments and circumstances surrounding the payments from the Governor of Maryland and the MES Board of Directors, McGrath falsely told the MES Board that the Governor was aware of and consented to the severance payment. As detailed in the indictment, when the Governor learned about the severance package and questioned McGrath about it, McGrath falsely stated that the MES Board of Directors had offered him the severance payment in accordance with their usual practice. McGrath also attempted to delete or caused to be deleted from the public minutes of the MES Board of Directors meeting, any mention of compensation of McGrath or the Executive Director of MES, or the amount $233,647.23, or the description of the compensation as a “year’s salary.”
If convicted of the federal charges, McGrath faces a maximum sentence of 20 years in federal prison for each of four counts of wire fraud; and a maximum of 10 years in federal prison for each of two counts of embezzling funds from an organization receiving more than $10,000 in federal benefits. 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.
In the state case, McGrath faces a maximum penalty of any sentence that is not cruel or unusual for Misconduct by a Public Official, and a maximum of five years in prison for Felony Theft, Felony Theft Scheme, Misappropriation, and for each violation of the Maryland Wiretap Statute.
Criminal charges are not a finding of guilt. An individual charged by indictment or criminal information is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner and State Prosecutor Charlton Howard commended the FBI and Special Agent Daniel Bralove at the Office of the State Prosecutor for their work in the investigation. Mr. Lenzner and Mr. Howard thanked Assistant U.S. Attorney Joyce K. McDonald and Deputy State Prosecutor Sarah R. David, who are prosecuting the federal and state cases, respectively.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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U.S. Attorney’s Office Announces Convictions in Six Federal Firearms and Fentanyl Cases This Week Involved in the Project Safe Neighborhood Gun Violence Reduction ProgramRead the Press Release
Baltimore, Maryland – Today, the U.S. Attorney’s Office for the District of Maryland announced convictions in six federal cases involving firearms and fentanyl that are being prosecuted in U.S. District Court in Baltimore. These six cases were brought pursuant to initiatives of the U.S. Attorney’s Office designed to reduce gun violence and to stop the sale of fentanyl in Baltimore.
“The successful prosecutions and convictions in these six firearms and fentanyl cases demonstrates the United States Attorney’s Office’s commitment to addressing gun violence and the trafficking of fentanyl,” said Acting United States Attorney Jonathan F. Lenzner. “Our strategy to reduce violent crime in Baltimore relies on enforcement efforts to prosecute those individuals who are driving the violence and importing deadly drugs, as well as community outreach and prevention efforts to help potential offenders make better choices for themselves and their families and communities. I would like to thank all of the prosecutors, investigators and community outreach specialists for their dedication to making our communities safer places to live for all residents. All of us in Baltimore are in this fight against violent crime together.”
The six project safe neighborhood convictions from this week include:
United States v. Sedrick Sutton: On September 17, 2021, U.S. District Judge Ellen L. Hollander sentenced Sutton to five years in federal prison for being possessing a stolen firearm. As a result of an altercation observed on a city watch camera, law enforcement identified Sutton as an individual that was present at the altercation. At the time of the altercation, Sutton possessed a handgun in his waistband. Officers arrived at the scene and located Sutton. As a result of a search of Sutton’s persons, officers recovered a loaded handgun from his waistband.
United States v. Daiquan Mayo: On September 29, 2021, U.S. District Judge Ellen L. Hollander sentenced Mayo to 50 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm. Mayo was apprehended for his participation in a non-fatal West Baltimore shooting near Edmonson Village. Mayo was a passenger in a vehicle involved in the shooting. As law enforcement officers stopped the vehicle, Mayo fled on foot and threw a loaded .40 caliber pistol off of his persons. Ballistics analysis concluded that the firearm Mayo threw matched the gun used in the shooting minutes earlier.
United States v. Damien Parker: On September 28, 2021, U.S. District Judge Richard D. Bennett sentenced Parker to 60 months in federal prison for being a felon in possession of a firearm. The sentencing comes as a result of officers observing Parker conducting a suspected drug transactions Baltimore, Maryland. Officers also observed the Parker conducting "security checks" which is a characteristic of an armed individual. Patrol officers responded to the block and arrested Parker. As a result of a search, officers recovered a loaded firearm, 43 jugs of suspected cocaine packaged for distribution.
United States v. Jeffrey Keyser: On September 28, 2021, U.S. District Judge Richard D. Bennett sentenced Keyser to 44 months in federal prison for being a felon in possession of a firearm. The sentencing comes as a result of a traffic stop on a vehicle that Keyser was operating. As officers approached Keyser’s vehicle, Kesyer sped away and crashed into another car. When pulling Keyser out of the vehicle, police found a firearm on the floor by the driver-side front door. Swabs from non-bloodied portions of the gun returned a match for Keyser's DNA. Keyser also made incriminating statements over jail calls.
United States v. George Graham: Today, Graham is scheduled to be sentenced before U.S. District Judge Stephanie A. Gallagher for possession of a firearm as a prohibited person. The sentencing comes as a result of officers using real time investigations, and conducting a traffic stop of Graham’s vehicle for illegal tint and a cracked windshield. During the stop, officers noted the order of marijuana coming from the vehicle and asked the Graham to step out of the vehicle. Graham admitted to having marijuana on his person. As officers searched the vehicle, Graham attempted to flee the scene. As a result of the search, officers recovered a loaded firearm from the center console.
United States v. Qarier Lovelace: Today, Lovelace is expected to enter a guilty plea for being a felon in possession of a firearm before U.S. District Judge Stephanie A. Gallagher. The plea comes as a result of officers responding to a hospital alter for an non-fatal shooting victim. Upon responding, officers spoke with a male who advised he had been shot while present at a dispute between his girlfriend and another woman. While present at the scene, a male walked through the parking lot before approaching the group, advising the women to resolve their dispute, and shooting the male in the leg. Upon reviewing a photo, a victim identified Lovelace as the shooter. Based on this, officers obtained and executed a search warrant associated with Lovelace. As a result of the search warrant, Officers recovered a safe with two loaded firearms, ammunition, two knotted bags of white powder, and paperwork bearing Lovelace’s name. One of these firearms was reported stolen from a federal firearm license in 2017. Lovelace’s fingerprints were located on the firearm. Officers also recovered parts of a revolver, ammunition, bags of white and brown powders, drug paraphernalia, and a digital scale. CDS analysis showed the presence of heroin and cocaine. During a post-Miranda interview, the defendant admitted to living at the residence, ownership of the drugs, and ownership of the safe.
The continued success of the firearm reduction initiative in Baltimore is in part due to the work of the Special Assistant U.S. Attorneys (SAUSAs) who work in the U.S. Attorney’s Office and are employed by the Maryland Attorney General’s Office and the Office of the State’s Attorney for Baltimore City and funded through grants from the Governor’s Office of Crime Prevention, Youth & Victim Services.
In the effort to positively influence and encourage previous offenders to pursue a crime-free lifestyle, the United States Attorney’s Office for the District of Maryland supports and often participates in previous offender re-entry efforts. On October 13, 2021, the USAO-MD is supporting a re-entry resource fair hosted by the Bridge Center at Adam’s House, the Prince George’s County Reentry Advisory Board, the Prince George’s County State’s Attorney Office, and the Prince George’s County Department of Corrections at the Palmer Park Community Center from 10 a.m. to 2 p.m. The re-entry event will connect past offenders with employment opportunities as well as educational, financial, health resources, and more. For more information on the re-entry event, please visit https://twitter.com/USAO_MD/status/1444010091896836130.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
For more information on the Maryland U.S. Attorney’s Office’s Project Safe Neighborhoods program (PSN), a unified and comprehensive strategy to combat gun crime that combines local, state and federal law enforcement efforts; community outreach; and public awareness, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile.
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Father and Son Facing Expanded Charges for Robbing and Murdering a 23-Year- Old Marijuana Dealer; Father Further Charged with Conspiracy to Destroy Evidence Related to These CrimesRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned a second superseding indictment charging Scott Anthony Williams, age 45, of Laurel, Maryland and Taeyan Raymond Williams, age 26, of Morgantown, West Virginia with various federal charges arising out of the robbery, extortion, and kidnapping resulting in death of Victim 1, as well as related drug trafficking and firearms charges. Scott Williams is further charged with conspiracy to destroy and conceal evidence related to these crimes.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to the nine-count indictment, from approximately October 2017 until Victim 1’s murder on April 6, 2018, Scott Williams, and his son, Taeyan Williams, allegedly participated in the exchange and sale of marijuana and cocaine. Victim 1 allegedly sold and distributed marijuana and marijuana products to the defendants, which the defendants then allegedly sold to other distributors and drug customers. Victim 1 also allegedly purchased and received cocaine from the defendants and sold that cocaine to other distributors.
As alleged in the indictment, in April 2018, Victim 1 planned to meet the defendants to discuss a debt that the defendants owed to Victim 1, and to provide the defendants with marijuana and marijuana products.
On April 5, 2018, and April 6, 2018, Victim 1 retrieved controlled substances from his storage unit in Jessup, Maryland and stayed at a short-term rental property in Baltimore, Maryland.
On the afternoon of April 6, Victim 1 traveled from Baltimore to Laurel, Maryland, where Scott Williams had a home. Location data reflects that at 1:32 p.m., Victim 1 was approximately 1.5 miles from the defendants’ residence.
On April 6, 2018, at approximately 1:52 p.m., Victim 1 saved a note to his email account in which it is alleged Victim-1 maintained a ledger and accounting of controlled substances that Victim 1 sold to Taeyan Williams and monies paid or owed from him.
As alleged in the indictment, Scott and Taeyan Williams thereafter kidnapped, robbed, extorted and murdered Victim 1 and disposed of Victim 1’s body. In particular, the indictment alleges that the defendants took by force and the threat of force Victim-1’s marijuana and marijuana products, Victim-1’s PIN number for the Jessup storage unit, Victim-1’s rental vehicle, and the marijuana, marijuana products, cash and other property stored in Victim-1’s storage unit.
Specifically, the indictment alleges that on April 7, 2018, Scott Williams and other conspirators drove Victim 1’s vehicle to a Baltimore parking lot where they parked the vehicle, wiped it down with a rag, and then entered Scott Williams’s car before driving away. As stated in the indictment, Victim 1’s DNA and blood were later recovered from the rear bumper, lift gate, passenger side door frame, and trunk carpeting of Victim 1’s abandoned vehicle.
The indictment further alleges that between April 6, 2018 and June 6, 2018, the defendants hid Victim-1’s narcotics throughout their home. When searched on June 6, 2018, the home contained large quantities of marijuana, cocaine, and methamphetamine as well as four firearms: a 9mm handgun, 7.62 caliber-rifle, .38 caliber handgun, and .25 caliber handgun.
The last count of the indictment alleges that between June 6, 2018 and his initial appearance on federal charges in January 2019, Scott Williams sought to conceal and destroy evidence related to the ongoing investigation including by asking a conspirator to “wipe” his electronic storage account and phone.
If convicted, Scott and Tayean Williams face a maximum sentence of life in federal prison or death for kidnapping resulting in death; a maximum of 20 years in federal prison for conspiracy to interfere with interstate commerce by robbery and extortion and interference with interstate commerce by robbery and extortion; a maximum of 20 years in federal prison for possession with intent to distribute controlled substances and conspiracy to distribute controlled substances; and, a mandatory minimum of 7 years in federal prison for the possession, use, and brandishing of a firearm in furtherance of a crime of violence and a drug trafficking crime. In addition, Scott Williams faces a mandatory minimum sentence of 10 years imprisonment for possessing with the intent to distribute 500 grams or more of methamphetamine; a mandatory consecutive sentence of 5 years imprisonment for possession and use of a firearm in furtherance of a drug trafficking crime; and a maximum of 20 years imprisonment for conspiracy to conceal and destroy evidence. 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. Both defendants have been detained pending trial, which is set to begin March 7, 2022.
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.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, HSI, and the Maryland State Police for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys William D. Moomau, Dana J. Brusca, and Dwight J. Draughon who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Baltimore Serial Armed Robber Pleads Guilty to Robbing 35 Businesses and Brandishing a Firearm in Relation to a Violent CrimeRead the Press Release
Baltimore, Maryland – Darnell Gerald Gaither, Jr., age 27, of Baltimore, Maryland, pleaded guilty today to affecting commerce by robbery and brandishing a firearm in relation to a violent crime, specifically in relation to 35 armed robberies committed throughout Baltimore County, Maryland.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Chief Melissa R. Hyatt of the Baltimore County Police Department, and Commissioner Michael Harrison of the Baltimore City Police Department.
According to his guilty plea, from December 2018 to November 24, 2019, Gaither committed at least 35 robberies throughout Maryland. In at least one robbery, Gaither brandished a firearm and in least five occasions, he robbed the stores while partially revealing a handgun. In all other robberies, Gaither passed notes to an employee that stated he possessed a gun.
Specifically, on October 25, 2019, Gaither robbed a Baltimore, Maryland smoothie franchise by entering the store and handing the cashier a note that read “I have a gun give me all the cash”. When the cashier refused to open the register, Gaither produced a handgun. The victim reported that Gaither stated that he would kill the victim if she did not open the register. The cashier opened the register and Gaither then ordered the cashier and two other employees to the floor while he removed the cash from the register. Gaither then proceeded to order three employees to open the safe in a back area and hand him additional cash. Gaither took funds from the franchise and fled the store.
Five days later on October 30, 2019, Gaither robbed a Baltimore, Maryland general store by posing as a customer. After approaching the register with a bag of candy, Gaither handed the cashier a note that stated, “You know what it is”, while displaying what appeared to be a handgun inside his waistband. The cashier believed that Gaither possessed a real firearm and feared for her safety. The cashier handed $197 in U.S. currency to Gaither, who then fled the store.
The stores Gaither robbed included fast-food restaurants, general stores, cell phone stores, gaming stores, a gym, and chain pharmacies. Gaither robbed a number of the stores on more than one occasion.
The tellers, fearing for their personal safety, often provided Gaither with cash from their registers, ranging from a couple hundred dollars to $1,900.
Gaither faces a maximum of 20 years in prison for affecting commerce by robbery and a minimum seven years in federal prison for brandishing a firearm in furtherance of a violent crime followed by five years of supervised release. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for December 6, 2021 at 9:30 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, Baltimore County Police Department and the Baltimore City Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
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Baltimore Police Officer Facing Federal Indictment for Stealing $1,000 in Informant Funds from the Baltimore Police DepartmentRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment today charging Ethan Glover, age 49, of Baltimore, Maryland, for the federal charges of false statements to law enforcement. Glover joined the Baltimore Police Department (BPD) on February 19, 2003. He became a federal task force officer (TFO) with the Drug Enforcement Administration in 2013.
The superseding indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
The superseding indictment alleges that Glover stole $1,000 in informant funds from the Baltimore Police Department.
Allegedly, in August 2018, Glover offered to pay a witness for information regarding a Baltimore City, Maryland vehicular homicide. Glover allegedly contacted the witness to arrange a date, time, and location to meet and exchange the information for a $1,000 payment. Once the witness signed paperwork provided by Glover and another individual, Glover paid the witness $1,000 sourced from the Baltimore Police Department Fiscal Section.
After the meeting with Glover, the witness ultimately decided not to serve as a BPD informant and wanted to return the $1,000 payment to Glover. The witness then returned the payment to Glover. Allegedly, Glover subsequently kept the $1,000 for himself and did not return it to BPD.
The original two-count indictment alleges, on April 8, 2016 Glover participated in the execution of a search warrant on John Avenue as a member of DEA Group 51. Law enforcement recovered three duffel bags containing large amounts of cash and a handwritten document with currency totals stating there was $2,428,900 in the house. Glover transported the cash from the residence to another location where a search warrant had been executed, and then to the DEA Baltimore Office, alone in his vehicle the entire time. The indictment alleges that during the drive from John Avenue to the DEA Baltimore Office, Glover stole a portion of the cash seized at the John Avenue residence. Ultimately, Glover took the seized cash to a professional counting service due to the large amount. The counting service found that the amount of cash seized, inclusive of any suspected counterfeit bills, totaled $2,419,125, which is $9,775 less than what was actually seized at the John Avenue residence, according to the handwritten document recovered within the home.
The indictment further alleges that Glover went to his then-girlfriend’s apartment with what he described to her as $10,000 in cash. Glover allegedly hid the funds in her bathroom. During conversations about the money, Glover told his girlfriend that he was followed by another law enforcement while driving the cash from the search warrant site and that the money came from a “big case” that had been recently featured on the news. Approximately one week later, Glover allegedly moved the money from his girlfriend’s apartment to his home.
On April 23, 2016, Glover allegedly used some of the cash stolen from the John Avenue search to buy his then-girlfriend a pair of shoes valued at $295 from a mall in Pennsylvania. According to the indictment, in June 2016, his then-girlfriend moved into his home and saw a large sum of money hidden behind Glover’s refrigerator.
As detailed in the indictment and superseding indictment, on February 28, 2020, Glover participated in a voluntary interview with the FBI about a seizure that had occurred with the officer-in-charge of BPD’s Gun Trace Task Force. Before being questioned, Glover confirmed that he understood that it was a crime to lie to the FBI agents interviewing him. When questioned, Glover asked the interviewing agent how much the arrestee “is saying is missing? Is it money or drugs? How much did he say he had? A million?” or words to that effect. Glover told investigators that he did not witness any officer steal money during this seizure. Glover also stated that he did not steal money from this particular seizure or any other case, saying, “I’ve never stolen anything in my life. Never money or drugs.”
If convicted, Glover faces a maximum sentence of 10 years in federal prison for theft of government property and five years in federal prison for making false statements to federal law enforcement. 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. No court appearance is currently scheduled for Glover.
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.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Leo J. Wise and Christine Goo, who are prosecuting this case.
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Corrupt Department Head at Walter Reed Sentenced to Federal Prison for Accepting Cash, Event Tickets, and Other Gratuities from a Maryland Company That Received More Than $25 Million in Government BusinessRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced David Laufer, age 64, of Pittsburgh, Pennsylvania, formerly of Bethesda, Maryland, today to eight months in federal prison, followed by one year of supervised release, four months of which is to be served in home confinement, for acceptance of gratuities by a public official. Judge Chuang also ordered Laufer, the former Chief of the Prosthetics and Orthotics Department at Walter Reed Medical Center, to pay restitution in the amount of $7,890.62.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, from 2009 until May 2019, Laufer worked as the Chief of the Prosthetics and Orthotics Department at Walter Reed National Military Medical Center, the largest joint military medical center in the United States. Walter Reed is located in Bethesda and provides medical services, including orthotic and prosthetic services to U.S. service members and their dependents, including wounded soldiers. Bruce Thomas lived in Montgomery County and owned, operated, and controlled Pinnacle Orthopedic Services (Pinnacle), located in Germantown, Maryland. Pinnacle provided prosthetics and orthotics materials to Walter Reed in return for payments from the government.
“David Laufer accepted thousands of dollars in cash and other gifts from a company to which he steered government business worth millions in taxpayer funds,” said Acting United States Attorney Jonathan F. Lenzner. “Laufer’s illegal acts not only unfairly helped Pinnacle Orthopedic Services, his actions also hurt other businesses and caused the U.S. government to pay more for goods and services than it should have. We are committed to holding accountable public officials like David Laufer who undermine the market and abuse their positions in government to benefit themselves at the expense of the taxpayers.”
“Attempting to defraud the government is a losing proposition,” said Frank Robey, director of the U.S. Army Criminal Investigation Division's Major Procurement Fraud Unit. “This sentencing is yet another example of the great cooperation among federal law enforcement agencies to put a stop to fraud within the contracting community.”
As detailed in the plea agreement, from 2010 until May 2019, the Walter Reed Prosthetics and Orthotics department used Blanket Purchase Agreements (BPAs) to order and purchase prosthetics and orthotics materials. This allowed the department to obligate funds to purchase materials that employees could order without charging a credit card each time or engaging in a formal contract for each purchase. Thomas regularly interacted with Laufer about Pinnacle’s business with Walter Reed, including the award of BPAs, future BPA funding, orders charged against the BPAs, and fulfillment of orders. Walter Reed awarded multiple BPAs to Pinnacle, which the Prosthetics and Orthotics department used to order and purchase prosthetics and orthotics materials from Pinnacle.
According to court documents, between 2012 and 2016, Laufer and his wife received things of value, that is the airlines travel, lodging and entertainment tickets, as well as direct cash payments, for and because of Laufer’s official acts as the Chief of the Prosthetics and Orthotics department and Laufer’s official acts in connection with the purchase of prosthetics and orthotics materials from Pinnacle. Laufer admitted that he undertook official acts in connection with the gratuities, including seeking renewal of BPAs with Pinnacle, sending multiple purchase requests obligating millions of dollars to Pinnacle for prosthetics and orthotics materials, and causing the repeated ordering of supplies from Pinnacle.
Laufer admitted that he restricted the availability of BPAs to some of the manufacturers and distributors from whom Pinnacle purchased products, thereby inhibiting those companies from doing business directly with Walter Reed, and actively encouraged and directed those companies to sell to Walter Reed through Pinnacle, knowing that it would result in a higher price to the government. At the same time that he was funneling business through Pinnacle, Laufer was personally involved in ordering materials and causing materials to be ordered from Pinnacle, as well as taking official acts that impacted Pinnacle.
According to the plea agreement, Laufer’s job required him to complete annual Confidential Financial Disclosure forms which required him to report: all sources of outside income greater than $200; any business outside the U.S. Government in which Laufer or his spouse was an employee or consultant, whether or not compensated; any agreements or arrangements concerning past, current, and future employment; and travel-related reimbursement or other gifts totaling more than $350 from any one source during the reporting period. Laufer’s financial disclosure filings from 2014 to 2019 failed to disclose the financial benefits received from Pinnacle.
Furthermore, when interviewed by federal agents as part of a corruption investigation at Walter Reed, Laufer denied receiving any financial benefits from Pinnacle. Laufer also was interviewed by federal agents several times between 2017 and 2019 concerning unexplained cash deposits. On each occasion, Laufer lied to the agents, initially stating that he earned extra money from the purchase and sale of bicycles and small collectibles at swap meets, then falsely stating that he earned cash by working for Person C and Company C, and finally stating that the unexplained cash came from moonshine and liquor sales.
On September 9, 2021, Judge Chuang sentenced Thomas, to eight months in federal prison, followed by one year of supervised release, with four months of that to be served in home confinement, for paying gratuities to a public official in exchange for official acts. Judge Chuang also ordered Thomas to pay a fine of $50,0000 and forfeit and pay restitution in the amount of $27,890.62.
In a related case, another employee of the Walter Reed Prosthetics and Orthotics Department, Timothy Hamilton, age 60, of Columbia, Maryland, is expected to be sentenced in November 2021. Hamilton previously pleaded guilty to conspiracy to commit health care fraud and to acts affecting a financial interest. Hamilton admitted that beginning in 2009, he allowed Person A to use his orthotist certification for Person A’s business, Company A. Hamilton was aware that Company A used his certification to obtain national accreditation and as part of its documentation for Medicare credentialing, which allowed Company A to bill insurers for medical treatment that required the involvement of a certified orthotist, even though Hamilton was not providing those services in the vast majority of cases. Hamilton admitted that he received monthly financial payments from Company A from 2009 until October 2015, totaling more than $45,000. From 2011 to 2015, Company A used Hamilton’s credentials to submit more than 225 fraudulent insurance claims of more than $150,000.
Further, Hamilton admitted receiving more than $15,000 in gift cards, checks, and other benefits such as tickets and lodging, from Bruce Thomas and Pinnacle. During the time that Hamilton was receiving payments from Company A and Pinnacle, Hamilton ordered products on behalf of Walter Reed from both companies.
Acting United States Attorney Jonathan F. Lenzner commended the DCIS, HHS OIG, and the FBI for their work in the investigation and thanked the U.S. Department of Veterans Affairs Office of Inspector General, the U.S. Army Criminal Investigation Division’s Major Procurement Fraud Unit, the Office of Personnel Management Office of Inspector General, DOD Cyber Crimes Center Defense Cyber Forensics Laboratory, and the Defense Contract Audit Agency for their assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Harry M. Gruber and Dana Brusca, who are prosecuting the case.
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Two Individuals Charged with Identity Theft After Using Stolen Identities of Deceased and Elderly Victims to Purchase Vehicles, a House, and to Obtain a False PassportRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Lloyd Linwood Comer, age 59, of Brandywine, Maryland, and Doreen Gilmore, age 54, of Brandywine, Maryland for the federal charges of conspiracy to commit wire fraud and bank fraud, the substantive charge of bank fraud, false statement in a passport application, and aggravated identity theft.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Chief of the Criminal Investigations Division of the U.S. Department of State’s Diplomatic Security Service (DSS) Jessica Moore; and Special Agent in Charge Michael McGill of the Social Security Administration Office of Inspector General, Philadelphia Field Division.
According to the four-count indictment, from January 2019, from January 2021, Comer and Gilmore conspired with others to finance the purchase of vehicles by using the stolen identities of real persons, fraudulent checks, and misappropriated bank account numbers. Allegedly, in at least one occasion, the defendants did not make payments on fraudulently obtained loans and retained the vehicles for themselves.
Specifically, the indictment alleges that the defendants fraudulently obtained the vehicles by inserting false loan application information with misappropriated names, dates of birth, social security numbers, and fraudulent proof of identity submitted to lenders. Lenders then approved financing for vehicle loans based on the false applications.
The indictment continues to allege that Comer applied for a United States passport by falsely stating that he was Victim 1, a deceased man. In order to obtain the passport, Comer allegedly provided a fraudulently obtained identification card in Victim 1’s identity and provided Victim 1’s birth certificate as proof of identity, allegedly obtained by Gilmore. As alleged in the indictment, Comer contacted the Social Security Administration to report Victim 1’s death as erroneous and attributed the error to the fact that Victim 1’s name is the same name as Victim 1’s deceased father. Soon after obtaining the false documents, Comer allegedly traveled to Jamaica with Gilmore under Victim 1’s identity and passport.
In addition, Comer and Gilmore allegedly submitted a mortgage application in the name of a 76-year-old woman for the purchase of a residence in Brandywine, Maryland in the amount of $541,500. As stated in the indictment, the application falsely represented the woman’s employment status as a full-time employee of two separate business entities. On the mortgage application, Comer and Gilmore allegedly listed their contact information under the woman’s contact information, submitted fraudulent financial documents, and falsely stated the woman’s income and finances.
Further, Comer and Gilmore allegedly resided in the home instead of the 76-year-old woman and did not make any payments on the mortgage loan.
If convicted, Gilmore and Comer face a maximum of 30 years in federal prison for conspiracy to commit bank and wire fraud; a maximum of 30 years in federal prison for bank fraud; 10 years in federal prison for passport fraud; and two years in federal prison consecutive to any sentence imposed for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the DSS and SSA OIG for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Michael F. Davio and Assistant U.S. Attorney Matthew J. Maddox, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach. For more information on how to report fraud, please visit https://www.justice.gov/usao-md/report-fraud.
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Mississippi Teen Sentenced to 37 Months in Federal Prison for ArsonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Cornelius Hendrix, age 19, of Starkville, to Maryland to 37 months in federal prison, followed by five years of supervised release, for arson within special maritime and territorial jurisdiction.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Fire Chief Trisha L. Wolford of the Anne Arundel County Fire Department.
According to his guilty plea, on August 21, 2020 Hendrix poured lighter fluid in areas of his father’s and stepmother’s Fort Meade military home, including outside his parents’ bedroom door, and the front door welcome mat. The presence of an ignitable liquid was also detected at the top of the stairs near his father’s and stepmother’s bedroom.
Hendrix then ignited a fire within the home before jumping off the rear porch and injuring his leg.
As stated in his plea agreement, the fire was extinguished with minimal property damage and no physical injuries. However, Hendrix’s father and stepmother’s lives were placed in jeopardy as a result of Hendrix’s conduct.
After being medically evaluated and cleared, Hendrix was taken to Fort Meade Military Police Department for an interview. Hendrix knowingly and voluntarily acknowledged spreading the lighter fluid and lighting the fire.
Hendrix remains in custody pending transport to face two unrelated counts of attempted murder in Oktibbeha County, Mississippi, stemming from an alleged shooting which preceded the arson in August of 2020. That matter is charged by criminal complaint, which 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.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, FBI, the Anne Arundel County Fire Department, the Howard County State Fire Marshal’s Office, the Fort Meade Fire Department and the Fort Meade Military Police for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Judson T. Mihok who is prosecuting the case.
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Laurel Narcotics Trafficker Pleads Guilty to Bringing Large Quantities of Fentanyl, Cocaine and Marijuana from California to MarylandRead the Press Release
Baltimore, Maryland – Michael Fisher, a.k.a. Mark Wilson, age 47, of Laurel, Maryland, pleaded guilty on September 24, 2021, to conspiracy to distribute and possess with intent to distribute fentanyl, cocaine, and marijuana and distribution and possession with intent to distribute fentanyl.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Superintendent Colonel Woodrow W. Jones III of the Maryland State Police; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office.
“Our law enforcement team here in Maryland is focused on prosecuting individuals like Michael Fisher who are importing large quantities of fentanyl and other dangerous drugs into the state,” said Acting United States Attorney Jonathan Lenzner. “The members of this nationwide narcotics conspiracy were responsible for the distribution of hundreds of kilograms of dangerous drugs. This investigation reflects the positive impact that law enforcement can have on our communities, not only here in Maryland but across the country.”
According to his guilty plea, since November 2019, the Maryland State Police (“MSP”), Drug Enforcement Administration (“DEA”), United States Postal Inspection Service (“USPIS”) were investigating a drug trafficking conspiracy involving Michael Fisher (a.k.a. Mark Wilson) who was distributing fentanyl, cocaine, and marijuana in the Baltimore/Washington Metropolitan areas. During the investigation, investigators obtained court-authorized wiretaps of Fisher and Co-Conspirator 1 in which they discussed the distribution of fentanyl, cocaine, and marijuana with each other and with other individuals. Investigators also conducted surveillance during which they observed drug transactions by both the Defendant and Co-Conspirator 1.
During the conspiracy, Fisher and Co-Conspirator 1 traveled to California multiple times to obtain kilograms of cocaine and fentanyl. Once in possession of the narcotics, Fisher or Co-Conspirator 1 used the U.S. Mail to ship the narcotics back to Maryland for distribution.
In May 2020, during drug interdiction activities at a Unite States Postal Service processing and distribution center in Capitol Heights, Maryland, postal inspectors interdicted multiple U.S. Mail parcels, including a parcel bound for a location in Laurel, Maryland that was identified as a location maintained by Fisher. On May 22, 2020, the Honorable Charles B. Day authorized a search warrant for this parcel, and investigators recovered approximately 2 kilograms of cocaine from the parcel.
Between June 1, 2020 and June 3, 2020, investigators intercepted several telephone calls between Fisher and Co-Conspirator 2. Based on the content of the intercepted phone calls, investigators believed that Fisher and Co-Conspirator 2 were arranging a drug transaction. On June 3, 2020, investigators intercepted a call between Fisher and Co-Conspirator 2 during which they agreed to meet in Hanover, Maryland. During surveillance, investigators observed Co-Conspirator 2 exit his vehicle, walk to Fisher’s vehicle, and retrieved an object from Fisher. The object was later determined to be a heat-sealed bag containing approximately 501 grams of fentanyl. Co-Conspirator 2 walked back to his vehicle and placed the object into the vehicle’s trunk.
Later that day, at the request of investigators, Troopers with MSP conducted a traffic stop of Co-Conspirator 2’s vehicle and located a heat-sealed bag containing a pink powdery substance, later revealed to be fentanyl with a net weight of approximately 501.9 grams. Fisher admits that he distributed the fentanyl to Co-Conspirator 2 during their earlier meeting that day in Hanover, Maryland.
A few months later, on August 6, 2020, USPIS received an alert that two Priority Mail parcels had been sent from the El Segundo Branch Post Office in El Segundo, CA on the previous day, August 5, 2020. The parcels were bound for locations in Maryland associated with Fisher and the conspiracy. These two parcels were seized by investigators in Maryland before they were delivered. On August 13, 2020, the Honorable Thomas M. DiGirolamo authorized a search and seizure warrant for both of the parcels. One parcel was found to contain approximately 2,086 grams of cocaine and the second parcel contained approximately 2,110 grams of fentanyl. Investigators obtained video surveillance from the El Segundo Branch Post Office, which showed Co-Conspirator 1 at the post office at the time the parcels were mailed.
On August 4, 2020, court-authorized cell phone location data showed Co-Conspirator 1’s cell phone in the area of 3828 North Peck Rd, El Monte, California. On August 13, 2020, investigators located Fisher driving along California Interstate 15 South, in a rented Nissan Sentra. Investigators followed Fisher to the Northgate Market parking lot located at 3828 North Peck Rd, El Monte, California—the same location where Co-Conspirator 1’s cell phone was located several days earlier. After circling the parking lot several times, Fisher parked. Shortly thereafter, investigators observed a white Honda SUV with a female driver and a male passenger park next to Fisher’s vehicle. Fisher exited his vehicle, removed a box from the trunk of his vehicle, and placed the box inside of the Honda SUV. Fisher returned to his vehicle and departed, and the two occupants in the Honda departed in a different direction. Investigators conducted a traffic stop of the Honda shortly thereafter and obtained consent to search the vehicle from the driver and from the passenger, Co-Conspirator 3. After searching the vehicle, investigators located the box that Fisher had placed in the Honda. The box contained several packages of bulk currency, totaling approximately $190,020.
Co-Conspirator 3 then gave investigators consent to search his residence. A search of the residence revealed two duffle bags containing approximately 30 kilograms of cocaine, along with two additional duffle bags that contained narcotics proceeds. The amount of currency located in the residence totaled approximately $193,980, not including the approximately $190,020 that the Defendant provided to Co-Conspirator 3 earlier that day.
On August 14, 2020, the Honorable Thomas M. DiGirolamo authorized search warrant for the six locations in Maryland. On August 17, 2020, the Honorable Cam Ferenbach, United States Magistrate Judge for the District of Nevada, authorized a search warrant for a residence in Las Vegas, Nevada. These search warrants were executed on August 17, 2020. In addition, on September 1, 2020, investigators executed a search warrant at a house in Hanover, Maryland, which was an additional residence used by Fisher. During the execution of the search warrants, investigators seized numerous firearms, kilogram quantities of narcotics, and large amount of U.S. Currency.
Investigators also executed search warrants on cellular telephones seized from Fisher and others. One of Fisher’s cell phones contained photographs of a drug ledger, which was sent to Fisher from a source of supply of narcotics. The ledger confirms that between November 2019 and May 2020, the conspiracy obtained more than 115 kilograms of cocaine and 2 kilograms of fentanyl from California and mailed it back to Maryland for distribution. In several instances, the dates and quantities on the ledger correspond to CCTV footage of Fisher in a Los Angeles Post Office mailing packages back to Maryland. For example, the ledger indicates that Fisher obtained 10 kilograms of cocaine on December 11, 2019, which corresponds to CCTV footage of Fisher on December 11, 2019 in a Los Angeles-area Post Office personally mailing 5 packages to Maryland. In total, between July 2019 and August 2020, the conspiracy was responsible for mailing approximately 121 parcels from Los Angeles-area Post Offices to locations in Maryland. The narcotics accounted for in the drug ledger represent only 47 of those parcels.
In total, during this investigation, investigators seized 15 firearms—9 firearms from Fisher and 6 firearms from Co-Conspirator 1—along with approximately 35 kilograms of cocaine, approximately 6.5 kilograms of fentanyl, and approximately 50 kilograms of marijuana. In addition, investigators seized approximately $1,501,308, which Fisher admits constituted proceeds from the sale of narcotics.
Fisher and the Government have agreed that, if the court accepts the guilty plea, Fisher will be sentenced to between 12 and 15 years in federal prison. U.S. District Judge Stephanie A. Gallagher has not scheduled a sentencing hearing at this time.
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.
The overdose crisis continues to devastate our states and local communities. If you believe you may need substance use disorder treatment or recovery services, please call 1800-662-HELP (4357). You may also visit the United States Attorney’s Office for the District of Maryland for further information and resources on opioid awareness at /media/1138691/dl?inline.
Acting United States Attorney Jonathan F. Lenzner commended the MSP, USPIS, and DEA for their work in the investigation. Mr. Lenzner also thanked the Los Angeles Police Department, Los Angeles DEA, Assistant U.S. Attorney Anatoly Smolkin, and Special Assistant U.S. Attorney Christopher J. Romano, who are prosecuting the case.
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Georgia Man Pleads Guilty to Bank and Mail Fraud Conspiracy Involving 30 Victim Financial InstitutionsRead the Press Release
Greenbelt, Maryland – Willie R. Trimble, age 68, of Statesboro, Georgia, pleaded guilty yesterday to conspiracy to commit mail and bank fraud.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; and Harford County Sheriff Jeffrey R. Gahler.
According to his guilty plea, from 2015 to 2016, Trimble conspired with at least two other individuals to steal, alter, and cash checks written by victim businesses and individuals from U.S. Postal Service (“USPS”) mail receptacles.
In furtherance of the conspiracy, Trimble cashed a counterfeit check for $6,850 at a victim Baltimore financial institution, allowed a co-conspirator to insert his picture onto a fraudulent Georgia State driver’s license under the fake identity of “David Cleveland”, and burglarized a Mississippi U.S. Post Office in which he stole mail and USPS equipment.
Additionally, in November 2017, Trimble used the Cleveland alias and counterfeit Georgia State driver’s license to withdraw funds from a victim South Carolina bank. He also attempted to cash a stolen and altered business check under the same fraudulent identity. In the same month, surveillance footage captured Trimble attempting to cash a stolen check and disposing of stolen mail behind a convenience store.
As part of the scheme to defraud, Trimble and his co-conspirators recruited dozens of individuals to cash altered or counterfeit checks made out to them in exchange for a portion of the proceeds. At times, Trimble supervised and transported groups of cashers to victim financial institutions where the victim businesses banked.
During Trimble’s participation in the conspiracy, the mail and bank fraud scheme resulted in the total loss of at least $119,212.50 to victim individuals, approximately 30 business victims, and 15 federally insured financial institutions within Maryland, Pennsylvania, Virginia, Georgia, South Carolina, and elsewhere.
Trimble faces a maximum sentence of 30 years in prison followed by five years of supervised released for conspiracy to commit bank and wire fraud. U.S. District Judge Stephanie A. Gallagher has not scheduled a sentencing hearing at this time.
Acting United States Attorney Jonathan F. Lenzner commended the USPIS and the Harford County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Adam K. Ake and Special Assistant U.S. Attorney Jason X. Hamilton, who are prosecuting the case.
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Armed Bowie Narcotics Trafficker Pleads Guilty and is Sentenced to Eight Years in Federal Prison for Conspiracy to Distribute Five Kilograms of CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Dwayne Douglas, age 39, of Bowie, Maryland, to eight years in federal prison followed by four years of supervised release for being a member of a conspiracy to distribute and possession with the intent to distribute five kilograms of cocaine.
The guilty plea and sentence were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office (DEA); Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division (USPIS); Lieutenant Colonel Kevin M. Anderson, Chief of the Maryland Transportation Authority Police (MDTA Police); Chief Melissa R. Hyatt of the Baltimore County Police Department (BCPD); and Chief Marcus Jones of the Montgomery County Police Department (MCPD).
“Our law enforcement team here in Maryland is focusing on individuals and groups who are driving the violence and bringing large quantities of narcotics into our communities,” said Acting United States Attorney Jonathan Lenzner. “As a large-scale narcotics dealer who also illegally possessed firearms, Dwayne Douglas endangered communities in our state. I would like to commend and thank the local, state and federal law enforcement agencies who worked together to hold accountable Douglas and other members of the conspiracy.”
According to his guilty plea, in furtherance of the narcotics conspiracy, Douglas met with co-conspirators on several occasions. In one meeting, Douglas transferred drug proceeds directly to an individual who unbeknownst to Douglas was a confidential informant (CI). In order to conduct the transactions, the CI would call a third party to arrange the transfer and a code would be assigned. Thereafter, the CI would meet Douglas and, after Douglas received the code from the CI, Douglas would transfer the drug proceeds to the CI.
Specifically, in October 2016, Douglas delivered approximately $250,000 in narcotics to a CI in a Bowie, Maryland hotel parking lot. In March 2017, Douglas delivered approximately $149,960 to a CI in the parking lot of a College Park, Maryland restaurant.
Additionally, in November 2016, a CI received a notification and the description of a vehicle that would transfer drug proceeds and gave that description to law enforcement. Law enforcement then conducted a traffic stop of the vehicle, in the vicinity of Hyattsville, Maryland. Douglas was the driver of the vehicle. During the car stop, law enforcement observed an open box in the back passenger seat filled of U.S. Currency. Douglas informed law enforcement that there was “a lot” of money in the car. Following a positive canine sniff, law enforcement searched the vehicle and recovered a total of $158,609.
One day later, law enforcement executed a federal search warrant in which Douglas was the target in Lanham, Maryland. As a result of the search warrant, law enforcement recovered numerous items including a scale with cocaine residue, Douglas' personal items, and a loaded semi-automatic pistol. A federal search and seizure warrant was authorized the next month for Douglas’ DNA. DNA found on the firearm was compared to Douglas’ DNA and the chances of an individual other than Douglas being the DNA contributor was one in 7.24 octillion. The DNA that matched Douglas was found on the grip and trigger of the firearm.
As stated in his plea agreement, on July 28, 2020, investigators executed federal search and seizure warrant on Douglas’ Silver Spring, Maryland apartment. Investigators recovered a pistol loaded with 14 rounds of ammunition, 10 rounds of .45 caliber bullets, two magazines, four separate boxes of ammunition, more than 10 cellular phones, a money counter machine, a food-saver heat sealer machine, packaging materials for controlled substances, latex gloves and three digital scales. Within a safe, DEA agents recovered approximately $25,241.00. DEA agents arrested Douglas, who was inside his apartment.
In his plea agreement, Douglas agrees that it was reasonably foreseeable to him that the conspiracy distributed five kilograms or more of cocaine. Douglas further admits and agrees that he possessed the two above-described firearms even though he was prohibited from doing so due to a prior felony conviction.
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.
The overdose crisis continues to devastate our states and local communities. If you believe you may need substance use disorder treatment or recovery services, please call 1800-662-HELP (4357). You may also visit the United States Attorney’s Office for the District of Maryland for further information and resources on opioid awareness at /media/1138691/dl?inline.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, HSI, the MDTA Police, the BCP, U.S. Postal Inspectors, and the MCPD for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys James Warwick and Zachary B. Stendig, who prosecuted the case.
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Baltimore Businessman Charles Nabit Sentenced to 18 Months in Federal Prison for Transportation of Women to Engage in ProstitutionRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Charles “Chuck” Nabit, age 66, of Baltimore, Maryland, today to 18 months in federal prison, followed by three years of supervised release, for transportation of an individual to engage in prostitution. Judge Russell also ordered Nabit to pay a fine of $55,000 and a special assessment of $5,100. Nabit, who owns residences and resides in Bethany Beach, Delaware and Deerfield Beach, Florida, is the owner of Westport Group, LLC. and previously owned Mountain Manor Treatment Center, a comprehensive drug treatment center. As agreed to in the plea agreement, Nabit regularly paid money for commercial sex with women that he knew regularly used narcotics or were severely addicted to narcotics, including one victim who died from a drug overdose, and another victim that Nabit supplied with cocaine.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Lisa Myers of the Howard County Police Department.
“Charles Nabit paid thousands of dollars for commercial sex with victims that he knew were addicted to narcotics, including one woman that he personally supplied with cocaine and another who died from an overdose. Rather than use his abundant resources to help these victims, Nabit perpetuated their victimization for his own gratification,” said Acting U.S. Attorney Jonathan Lenzner. “One would hope that a businessman with means who previously owned a drug treatment center would help these victims rather than further their drug addiction and reliance on commercial sex. Charles Nabit not only violated federal law, he also used his wealth and stature to gratify himself while perpetuating the victimization of these women.”
“The sentencing today serves as a bittersweet moment for the victims of Charles Nabit’s reprehensible actions,” said HSI Special Agent in Charge James R. Mancuso. “HSI is proud to have partnered with the Howard County Police Department and the U.S. Attorney’s office to hold Mr. Nabit accountable for his crimes.”
According to his guilty plea, beginning in 2017 until his arrest on June 10, 2020, Nabit regularly paid for commercial sex, including in at least 52 payments via Cash App to an adult man who has been charged with sex trafficking. The seven women whom Nabit admitted he paid for commercial sex (Victims 1 through 7) either regularly used narcotics or suffered from serious substance abuse disorders during the time periods in which Nabit engaged in commercial sex with them.
Nabit admitted that from August 2018 to May 2020, he paid at least $90,000, as well as an additional unknown amount of cash, to women with whom he had commercial sex. This includes 52 Cash App transactions to an individual who he knew to be someone other than the victim he was seeing for commercial sex. For example, on April 11, 2019, Nabit received a message from the Cash App account registered to De’Angelo Johnson requesting $140 for “coming thru on a good girl and a hot girl.” The victim, Victim 1, had requested that Nabit pay her directly, sending a message to Nabit’s CashApp account, but Nabit refused to pay her and sent $145 payment to the Cash App account registered to Johnson with a message indicating the payment was “for (the first name of Victim 1).” De’Angelo Johnson has been charged in federal court with sex trafficking in a separate indictment and is scheduled for trial beginning in March 2022.
As detailed in his plea agreement, Nabit regularly transported victims to and from his Baltimore office for commercial sex, either in his vehicle or by using a rideshare car service. In separate encounters with Victim 1, Victim 3, and Victim 5, Nabit also recorded their sex acts with a Go Pro camera despite their objections to being filmed. Nabit was aware of Victim 5’s substance abuse as she discussed her struggles with addiction and depression. Nabit knew that, more than likely, some of the money provided to Victim 5 was being used to fund her drug use.
According to the plea agreement, beginning no later than February 2019, Nabit began seeing Victim 6 for commercial sex and travel dates. She discussed her addiction struggles with Nabit on several occasions. During their sexual encounters, Nabit provided Victim 6 with monetary payment and cocaine. For example, Nabit paid $5,000 to Victim 6 for her to accompany him to Fort Lauderdale, Florida and engage in commercial sex. During that trip, Nabit also provided Victim 6 with cocaine. Nabit also traveled with Victim 6 to a hotel in Richmond, Virginia on at least three separate occasions to engage in commercial sex. Victim 6 was paid at least $1,000 in cash for one of these trips. Hotel records revealed multiple overnight stays by Nabit between August 2019 and March 2020.
Until her death in May 2019, Nabit admitted that he also regularly engaged in commercial sex with Victim 7. Victim 7 repeatedly discussed her drug addiction in text messages with Nabit and expressed to Nabit her desire to obtain treatment for her substance abuse. Specifically, on August 13, 2018, Victim 7 told Nabit she completed an application for Mountain Manor Treatment Center and Nabit replied, “As you recall, I used to own MM and my ex-partner still does.” Nabit and Victim 7’s mother spoke on several occasions about Victim 7’s drug use. For example, on August 18, 2018, Nabit texted Victim 7’s mother about Victim 7 going to drug rehabilitation. Nabit stated that Victim 7 began using opiates again but that “she seemed to handle crack ok for weeks.” On May 23, 2019, Victim 7’s mother informed Nabit that Victim 7 had overdosed on drugs and died.
On December 9, 2019, Nabit and his attorney met with investigators for an interview in relation to a sex trafficking investigation involving alleged sex trafficker De’Angelo Johnson and Victims, 1, 2, 3, and 4. During this interview Nabit was asked whether he was aware that the sex trafficking victims were drug users. He was shown pictures of four victims and claimed to have only been aware of one victim’s drug use. He also claimed he had never seen signs of drug use in the remaining victims, as he had owned a drug treatment facility for 10 years and he would have recognized signs of drug use.
Nabit was arrested on June 10, 2020, and law enforcement executed federal search warrants for his person, his electronics, his Baltimore office, and his vehicle. Law enforcement recovered numerous sex toys and filming equipment, including five Go Pro cameras, from Nabit’s office. Nabit’s office also had a large sectional sofa that converted to a bed which had a sheet on it. A forensic analysis of Nabit’s cell phone and Go Pro cameras recovered numerous messages related to commercial sex as well as images and videos of victims engaging in commercial sex with Nabit.
Acting United States Attorney Jonathan F. Lenzner commended HSI and the Howard County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Mary W. Setzer and P. Michael Cunningham, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Maryland Man Facing Federal Indictment for Fraudulently Obtaining $3.5 Millions in COVID Relief FundsRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Rudolph Elwood Brooks, Jr., age 45, of Bowie, Maryland, with federal wire fraud and money laundering charges.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Shimon R. Richmond of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC OIG); Acting Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Inspector General Hannibal “Mike” Ware of the U.S. Small Business Administration Office of Inspector General (SBA OIG).
The nine-count indictment charges Brooks with three counts of wire fraud relating to Brooks’ transmission of loan applications submitted through the Paycheck Protection Program (“PPP”) in the names of three entities controlled by Brooks: Cars Direct by Gavawn HWD Bob’s Motors (“Cars Direct”), Madaro, LLC (“Madaro”), and Kingdom Tabernacle of Restoration of Ministries (“Kingdom Tabernacle”). As alleged in the indictment, Brooks electronically submitted PPP loan applications in the name of Cars Direct, Madaro and Kingdom Tabernacle containing false statements regarding the number of employees and payroll expenses of the entities. In support of the PPP loan applications, Brooks also submitted false tax forms not on file with the Internal Revenue Service.
On May 9, 2020, the Cars Direct PPP loan was approved and on May 12, 2020 $1,556,589 in loan proceeds were deposited into an account controlled by Brooks. On May 11, 2020, the Madaro PPP loan was approved and on May 13, 2020 $204,266 in loan proceeds were deposited into an account controlled by Brooks. On May 14, 2020, the Kingdom Tabernacle PPP loan was approved and on May 15, 2020 $1.8 million in loan proceeds were deposited into an account controlled by Brooks.
In total, on the basis of the false and fraudulent PPP loan applications, Brooks obtained at least $3,560,855 in PPP loan proceeds. Brooks used the PPP loan proceeds for his personal benefit and on payments and purchases not permissible under the Paycheck Protection Program, including payments for a residence, the purchase of a luxury vehicle, purchases at restaurants, retail stores, grocery stores, cash withdrawals and transfer to other bank accounts controlled by Brooks.
The indictment also charges Brooks with three counts of money laundering for wire transfers derived from the criminal proceeds of the PPP loans that were used for the purchase of a 2018 Tesla Model 3, a real property in Baltimore, Maryland, and a real property in Upper Marlboro, Maryland. The indictment also charges Brooks with three counts of money laundering for the April 5, 2021 purchase of three $100,000 cashier’s check payable to “Rudolph Brooks” from the proceeds of the fraudulent PPP loans.
To date, the United States has recovered more than $1.6 million in proceeds of the fraudulent PPP loans as well as a 2018 Tesla Model 3 purchased with proceeds of the Cars Direct PPP loan. As alleged in the indictment, if convicted, the United States will seek forfeiture of the seized property as well as the Upper Marlboro, Maryland property purchased with fraud proceeds. The United States also filed a parallel civil forfeiture complaint against the Upper Marlboro, Maryland property on August 12, 2021 alleging that the property was purchased with more than $500,000 in proceeds traceable to the Kingdom Tabernacle and Cars Direct PPP loans.
As detailed in the indictment, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering from the economic consequences of COVID-19. The CARES Act authorized up to $659 billion in forgivable loans to small businesses for employee retention and certain business expenses through the Paycheck Protection Program (“PPP”). The business must use PPP loan proceeds on payroll costs, mortgage interest, rent, and utilities. Initially, the program allowed the principal to be forgiven if the business spent the loan proceeds on qualifying expenses within eight weeks of loan issuance and used at least 75 percent of the loan for payroll. On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 went into effect. This law extended the period from eight weeks to 24 weeks that the loan proceeds had to be spent and reduced the requirement that the loan proceeds be spent on payroll from 75 percent to 60 percent.
If convicted, Brooks faces a maximum sentence of 20 years in federal prison for wire fraud and money laundering followed by three years of supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FDIC OIG, the IRS-CI, the FBI, and the SBA OIG for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Sean R. Delaney, Jessica C. Collins, and Jennifer L. Wine, who are prosecuting the case.
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.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Hagerstown Man Facing Federal Charges for Allegedly Falsifying Documents in Order to Obtain COVID FundsRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Jeffrey Bearden, age 47, of Hagerstown, Maryland, with false statements and bank fraud. The criminal complaint alleges that in May 2020, Bearden applied for a loan through the Paycheck Protection Program (PPP). The complaint was signed on September 22, 2021 and unsealed upon Bearden’s arrest on September 23, 2020.
The federal charge was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Inspector General Hannibal “Mike” Ware of the U.S. Small Business Administration Office of Inspector General (SBA OIG).
According to the affidavit filed in support of the criminal complaint, on May 1, 2020 Bearden electronically signed falsified documents attesting to inaccurate statements in order for his company, B&D Consulting, to receive $734,609.00 through the PPP for use in paying business costs consisting primarily of employee salaries. At that time, the company had no employees, nor reported paying any earnings and wages for any employee to the Maryland Department of Labor and Licensing (DLLR) in 2020.
As detailed in the affidavit, on May 18, 2020, the funds were approved and deposited into Bearden’s bank account. That same day, the $734.609 was transferred to a different bank account. The next month, $600,000 was transferred to Bearden’s brokerage account that was used to purchase stocks in a variety of publicly-traded companies, including one that produced a vaccine for COVID-19. The purchase of stocks is not an approved use of PPP loan funds by the Small Business Administration.
In February 2021, Bearden applied for a second PPP loan of a similar amount, attaching a fraudulent bank statement for a B&D Consulting account for the month of March 2020 showing the company was paying salaries to at least 19 individuals. Records show that no deposits or withdraws had been made from that account in March 2020 and the account balance was in the negative.
If convicted, Bearden faces a maximum sentence of 30 years in federal prison for each of these charges. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Beth P. Gesner ordered that Bearden be released pending his trial.
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.
Acting United States Attorney Jonathan F. Lenzner commended the HSI and SBA OIG for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Aaron S.J. Zelinsky, who is prosecuting the federal case.
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.
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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D.C. Felon Sentenced to 30 Months in Federal Prison for Illegal Possession of A .40 Caliber "Ghost Gun" Firearm and 10 Rounds of AmmunitionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Martrel Rayshard Reeves, age 31, of Washington, D.C. to two years and six months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Malik Aziz of the Prince George’s County Police Department.
“The gun violence in Prince George’s County is simply unacceptable, and the proliferation of ghost guns in the region is part of the problem,” said Acting United States Attorney Jonathan F. Lenzner. “Working in collaboration with our federal and local law enforcement partners, we are committed to taking ghost guns off the streets and prosecuting those who illegally possess and sell them in order to make our community safer. Firearms trafficking and illegal firearms are a priority of the Department of Justice, and we hope this federal sentence will deter others from illegally possessing ghost guns.”
According to his plea agreement, on July 8, 2018, law enforcement executed a traffic stop on Reeves’ vehicle for traffic violations. The car was occupied by Reeves and a female passenger. At the time of the traffic stop, Reeves did not possess a driver’s license or other identification. A subsequent check of his driving record revealed that his license had been suspended. When officers asked Reeves to step out of the car, officers smelled alcohol on Reeves’ breath and the odor of marijuana on his person. During the search of his vehicle, law enforcement recovered a .40-caliber pistol, loaded with 10 rounds of ammunition. Reeves admitted at the scene that the firearm belonged to him, following which, he was arrested.
As detailed in Reeves’ plea agreement, the pistol was test-fired and found to function as a firearm. The gun recovered in Reeves’ car is what is known as a “ghost gun”—in that it was made from a firearm parts kit. These kits can be purchased from various kit manufacturers or secondary retailers, including Internet websites. Ghost guns frequently lack serial numbers, which generally make the firearms legally unregistrable and difficult to track.
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.
Acting United States Attorney Jonathan F. Lenzner praised the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Rajeev R. Raghavan and Erin B. Pulice, who prosecuted the case.
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Baltimore Man Sentenced to Seven Years in Federal Prison for Bank FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge Paula Xinis sentenced Allen Lamin, a/k/a “Allen Simon”, age 33, of Baltimore, Maryland, to seven years in federal prison, followed by five years of supervised release, for bank fraud.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division.
Lamin pled guilty to the indictment, which charged him with five counts of depositing fraudulently altered postal money orders at financial institutions. As proven by the Government at sentencing, between February 2019 and April 2020, Lamin stole blank postal money orders from at least five different Maryland United States Post Offices and one Georgia United States Post Office on at least seven occasions. After each theft, Lamin used printers to alter the money orders to reflect high-dollar amounts, most frequently in the amounts of $800 and $1,000. Then, Lamin deposited the fraudulent money orders into accounts that he controlled at financial institutions. These bank accounts were in the names of real persons or fictitious entities.
As part of his scheme to defraud, Lamin commonly entered post office locations posing as a customer in need of general mail services. For example, on December 3, 2019, Lamin entered the post office and asked for a forwarding card. Lamin then returned to the counter, said that he would not be submitting the forwarding card, and asked to purchase a $20 money order with cash. After purchasing the postal money, Lamin asked the employee if there were any moving boxes in the back. Once the employee left, Lamin stole blank postal money orders from behind the counter. The witness employee noticed the theft an hour later when a customer came in and requested to purchase a postal money order. Lamin was caught on surveillance camera employing the same scheme on two separate occasions at another post office in Maryland.
Law enforcement executed search warrants at two of Lamin’s residences located in Baltimore City and Gwynn Oak, Maryland. Following execution of these two search warrants, Lamin fled Maryland and was subsequently arrested in Dallas, Texas, on May 20, 2020. During searches of Lamin’s two Maryland residences and his Dallas residence, agents recovered several pieces of evidence, including stolen postal money orders with misprinted fraudulent information, blank stolen money orders, and receipts for the deposit of blank stolen money orders, that tied Lamin to other postal money order thefts at post offices in Maryland and Georgia. At the residences, agents also recovered bank statements, fraudulent drivers’ licenses displaying Lamin’s photograph and the personal identifying information of victims, and credit and debit cards in the names of victims.
During the course of the conspiracy, Lamin and his coconspirators negotiated $392,500.72 in stolen money orders.
Acting United States Attorney Jonathan F. Lenzner commended the USPIS for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Rajeev R. Raghavan, who prosecuted the case.
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Cecil County Cocaine Supplier Sentenced to Seven Years in Federal Prison for Conspiracy to Distribute Controlled Substances and Possession with Intent to Distribute CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Mark Williams, a/k/a Swanny, age 52, of Elkton, Maryland, to seven years in federal prison, followed by five years of supervised release, for conspiracy to distribute controlled substances and possession with the intent to distribute cocaine.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Superintendent Colonel Woodrow W. Jones III of the Maryland State Police; and Cecil County Sheriff Scott Adams.
According to his guilty plea, the Maryland State Police, Cecil County Sheriff’s Office, and the Department of Homeland Security identified Williams, Troy Neal, and Kevin Johnson as suppliers of cocaine after an extended investigation dating back to 2019. The conspiracy members distributed crack cocaine to multiple customers in Elkton, Maryland.
During the investigation, the Cecil County Circuit Court issued an order to authorize the interception of wire and electronic communications of Williams and his co-conspirators. Intercepted text and telephone communications revealed Williams as a member of the drug distribution conspiracy.
Law enforcement intercepted at least eight instances in which Williams, or his co-conspirators, conversed in coded conversations about drug activity. For example, on May 27, 2020, after a series of calls between Neal and a customer, police observed Williams and Neal visit a customer’s residence. Shortly after their arrival, two male customers entered the residence. After one of the two male customers left the residence, police conducted a traffic stop and seized 3.6 grams of crack cocaine.
As stated in his plea agreement, after a series of coded calls between Williams and the conspiracy members, law enforcement covertly surveilled Neal, Johnson, and Williams depart Neal’s residence and travel to the Bronx in New York. The next day, on June 14, 2020, law enforcement observed the three men travel back to a Maryland residence. Law enforcement executed a search warrant at a co-conspirator’s residence and recovered 497 grams of compressed suspected cocaine, several bags of suspected marijuana, a digital scale, and several cell phones.
Police arrested Williams, Neal and Johnson. Each were charged in Cecil County with various drug-related crimes.
Other evidence corroborates Williams’s involvement in drug trafficking including a lack of legitimate employment to support his life expenses. According to the IRS, Williams had reportable wages of approximately $6,000 in 2019 and less than $5,000 in 2020. Additionally, two witnesses would advise that they regularly purchased crack cocaine from Williams and Neal from February 2020 to May 2020.
Co-defendant Kevin Johnson was sentenced to eight years in federal prison followed by five years of supervised release for conspiracy to distribute controlled substances and possession with the intent to distribute cocaine on August 23, 2021. Co-defendant Troy Neal pleaded guilty to the same charges on July 16, 2021. Neal’s sentencing hearing is scheduled for October 26, 2021 at 11 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the HSI, the Maryland State Police Department, and the Cecil County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Sandra Wilkinson and Kim Y. Oldham, who are prosecuting the case.
Maryland Criminal Intelligence Network funding provided through Governor Larry Hogan's Office of Crime Prevention, Youth, and Victim Services, played a key role in this operation.
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Former Member of Baltimore’s Safe Streets Program Sentenced to over 11 Years in Federal Prison for Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Ronald Alexander, age 50, of Baltimore, Maryland to 135 months in federal prison, followed by eight years of supervised release, for conspiracy to distribute fentanyl, heroin, and powder and crack cocaine. While he was participating in the narcotics conspiracy, Alexander was employed by “Safe Streets,” an organization whose purpose is to reduce violence and crime in Baltimore through intervention. While he was engaged in the distribution of fentanyl and other dangerous narcotics, Alexander used his affiliation with Safe Streets to evade law enforcement in Baltimore, including on one occasion to avoid arrest when police seized from him a large quantity of fentanyl.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Alexander’s plea agreement, law enforcement obtained judicial authorization to intercept communications to and from cellular telephones used by Alexander from May through July 23, 2020. Alexander’s conversations revealed that he operated a “drug shop” in the vicinity of Spaulding Avenue and Palmer Avenue in Northwest Baltimore. Alexander and co-defendant Thomas Corey Crosby corresponded every week or two concerning the sale of narcotics, including heroin and fentanyl. After these conversations, which were often very brief, the pair would meet. Most meetings took place at a gas station located at the intersection of Druid Park Avenue and Liberty Heights in Baltimore, where Crosby supplied drugs to Alexander. Investigators conducted surveillance of many of these meetings and obtained surveillance video from the gas station.
“Ronald Alexander not only polluted the Baltimore community with dangerous drugs and illegally possessed a firearm, but he also risked undermining Safe Streets and other community outreach efforts,” said Acting U.S. Attorney Jonathan F. Lenzner. “Our violence reduction strategy is based on strong enforcement efforts focused on those driving the violence and distributing large quantities of narcotics while also providing robust community outreach and prevention initiatives. Hopefully this sentence will encourage others to put down the gun and give up the drug trade and choose to invest in themselves and their community instead.”
“The investigation and subsequent sentencing of Ronald Alexander shows that narcotics trafficking and violence has immersed itself in every aspect of our lives, even in areas that are supposed to help stem the tide of drug related violence in the city,” said Assistant Special Agent in Charge Orville O. Greene. “DEA will, with the help and assistance of our federal and local partners, continue to lead the effort of bringing these violators to justice.”
As detailed in his plea agreement, on August 5, 2020, a Baltimore Police officer conducted a traffic stop of Alexander after Alexander rolled through a stop sign. During the encounter, Alexander used his affiliation with Safe Streets and the Baltimore City Mayor’s Office to try to deter further police investigation. Alexander called an associate afterwards, and said, “Yeah. Police hopped on me. Told me to get off the phone. You know they scared, you know they scared of the Mayor Office, I said man I work for Safe Streets from the Mayor Office. I was just coming from one of my participant house, in need with this, it was in need of food due to the pandemic. He say oh, ok ok.”
On August 9, 2020, Alexander received a call from Crosby arranging to meet at the gas station. At the gas station, Crosby was seen entering Alexander’s vehicle and the two had a brief conversation. Crosby then placed an item in the center console area of Alexander’s vehicle and then got out of the car. Alexander pulled away from the gas station and investigators performed a traffic stop and searched Alexander’s vehicle, recovering what was later determined to be 100 grams of fentanyl from a bag found in the center console. Alexander again informed law enforcement that he worked for Safe Streets and provided law enforcement with a letter from the Baltimore City Mayor’s Office. When asked about the bag in the center console, Alexander stated that he had taken the drugs from a member of the community as part of his work with the Safe Streets program in an attempt to prevent crime. According to court documents, law enforcement seized the drugs, but permitted Alexander to leave without being arrested. After the traffic stop, Alexander called Crosby and they met again at the same gas station. After the meeting, Crosby disposed of his cell phone, which investigators had obtained authorization to intercept and track.
On August 14, 2020, search warrants were executed at locations related to the investigation, including Alexander’s residence in the 1200 block of North Augusta Avenue and a second residence where Alexander sometimes stayed in the unit block of North Culver Street, both in Baltimore. Alexander was located at his residence. There, law enforcement seized a 9mm semi-automatic pistol and six cartridges of ammunition, a digital scale and drug packaging material, suspected cutting agents, and Safe Streets apparel. At the residence on North Culver Street, investigators located 80 grams of a heroin and fentanyl mixture, more than 100 grams of powdered caffeine, and a digital scale.
Alexander was prohibited from possessing a firearm and ammunition as the result of a 2001 conviction in the United States District Court for the District of Maryland for conspiracy to distribute and possess with intent to distribute heroin. Alexander was sentenced to 20 years in federal prison in that case and was released from the Bureau of Prisons in approximately May 2018.
Thomas Corey Crosby, age 51, of Woodlawn, Maryland, previously pleaded and was sentenced to 10 years in federal prison, for conspiracy to distribute controlled substances, specifically, 40 grams or more of fentanyl. Judge Russell also ordered Crosby to forfeit $134,499 in cash, seized during a search of his residence on August 14, 2020.
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.
Acting United States Attorney Jonathan F. Lenzner commended the DEA and BPD for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Matthew DellaBetta who prosecuted the federal case.
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Baltimore Career Offender Sentenced to Life in Prison for His Role in the Murder of a Baltimore Woman Believed to be a Witness in a Federal CaseRead the Press Release
Baltimore, Maryland – U.S. District Judge George J. Hazel sentenced Clifton Mosley, age 43, of Baltimore, Maryland to four life terms in federal prison for two counts of conspiracy to murder a witness and one count each of witness retaliation murder and witness tampering murder, related to the murder of Latrina Ashburne, age 41, on May 27, 2016. Mosley was also convicted of a federal marijuana distribution charge for which he was sentenced to a concurrent five-year sentence.
A federal jury in Baltimore convicted Mosley and co-defendant, Davon Carter, age 41, also of Baltimore, on January 29, 2020, after a three-week trial.
The sentence was announced by United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Maureen Dixon of the Department of Health and Human Services Office of Inspector General; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
“Clifton Mosley and Davon Carter not only attempted to disrupt our justice system, they also took the life of an innocent woman from Baltimore. The loss of Latrina Ashburne is a tragedy and a deep loss to her family and to the community, and those responsible will now spend the remainder of their lives in federal prison,” said Acting United States Attorney Jonathan F. Lenzner. “As demonstrated by this case, the U.S. Attorney’s Office and our law enforcement team will never cease to aggressively pursue and hold accountable those who attempt to harm or intimidate witnesses.”
According to the evidence presented at their three-week trial, Carter and Mosley conspired to kill a witness who had provided information to law enforcement about a good friend of Carter’s, Matthew Hightower. In June 2015, Hightower was charged federally in a health care fraud scheme. While on release in the health care fraud case, the federal grand jury began investigating crimes of violence for which Hightower was implicated, including the murder of David Wutoh. In July or August 2015, Hightower learned the identity of the health care fraud whistleblower (the witness) who also had incriminating information against him relating to the Wutoh murder. Contrary to his release conditions, he began communicating with witnesses who had been in the grand jury. All the while, Carter and Mosley remained in frequent and regular contact with Hightower.
On April 19, 2016, the grand jury returned a sealed superseding indictment against Hightower charging both Hightower and Harry Crawford with extortion and using interstate facilities for extortion resulting in the death (murder) of David Wutoh. Ten days later, the government filed a motion requesting revocation of Hightower’s release conditions based on the new charges and his prohibited contact with grand jury witnesses. The motion was granted on May 4, 2016 and Hightower was detained. Hightower was ultimately convicted of extortion resulting in Wutoh’s murder by a federal jury on September 22, 2016, after a seven-day trial and was sentenced to 380 months in federal prison.
The evidence at trial proved that on May 27, 2016, Ms. Ashburne was murdered in the early morning as she got into her car outside the home she shared with her mother in the 2900 block of Rosalind Avenue in Baltimore’s Cylburn neighborhood. A neighbor reported that an unknown male approached and shot Ms. Ashburne in the upper body as she tried to run. She was not robbed. At the time, the police also released a video they said showed the suspect running away from the scene.
The witness targeted by Hightower lived next door to Ms. Ashburne, the murder victim. The witness contacted law enforcement to report the murder and that she believed she was the intended target. The investigation showed that Mosley’s phone was in the area at the time of the murder and in contact with Carter’s phone. In addition, vehicles owned by the mother of Carter’s girlfriend and by Hightower were captured on surveillance video driving slowly through the area as if the driver were looking for someone. The evidence at trial established that Carter and Mosley each drove one of the vehicles and that the two men were in contact with one another both the night before the murder and in the early morning hours before the shooting. The evidence at trial also showed that Mosley searched a public court database on May 26 in a possible effort to confirm a court appearance for the witness on May 27, therefore, giving an approximate time when the witness would leave her home the morning of the shooting. Ms. Ashburne left her home at or about the same anticipated time, resulting in her mistaken execution.
Davon Carter was previously sentenced to four life terms in federal prison for two counts of conspiracy to murder a witness and one count each of witness retaliation murder and witness tampering murder on May 20, 2021.
Acting United States Attorney Jonathan F. Lenzner commended the HHS-OIG, the FBI, the Baltimore County Police Department, the Baltimore Police Department, and the ATF for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Sandra Wilkinson and Kim Oldham, who are prosecuting the case and also thanked Assistant U.S. Attorneys Judson T. Mihok and Aaron S.J. Zelinsky, who prosecuted the Hightower case, for their assistance.
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Pennsylvania Man Sentenced to Six Years in Federal Prison for Selling Methamphetamine in Cecil County, MarylandRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Nakir Ali Kiett, age 25, of Philadelphia, Pennsylvania, to six years in federal prison, followed by five years of supervised release, for possession with intent to distribute approximately 211 grams of methamphetamine in Cecil County, Maryland.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and the members of Cecil County Drug Task Force, including Chief Carolyn Rogers of the Elkton Police Department, Cecil County Sheriff Scott Adams, Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police, and Cecil County State’s Attorney James Dellmyer.
According to his plea agreement, in the fall of 2019, Cecil County Drug Task Force officers received information that an individual known as “Omar” was selling methamphetamine in Cecil County, Maryland. “Omar” was later identified as Kiett.
In August 2019, a confidential informant introduced an undercover officer to Kiett. Between August 28 and September 30, 2019, the undercover officer then arranged and conducted five separate controlled purchases of methamphetamine from Kiett, totaling approximately 150 grams of methamphetamine.
As stated in the plea agreement, on October 9, 2019, investigators obtained a search warrant for Kiett’s vehicle. On October 10, 2019 investigators arranged for a controlled purchase of methamphetamine from Kiett. When Kiett arrived at the agreed-upon meeting location, investigators detained him and searched Kiett and his vehicle pursuant to the search warrant. During the search of the vehicle, investigators recovered approximately 61 grams of methamphetamine located in a space behind the vehicle’s radio.
In total, investigators purchased or seized approximately 211 grams of methamphetamine from Kiett between August 2019 and October 2019. Kiett agrees and admits that he knowingly and intentionally possessed the above-referenced methamphetamine with the intent to distribute it.
Acting United States Attorney Jonathan F. Lenzner commended the Department of Homeland Security and the Cecil County Drug Task Force (CCDTF), comprised of the Elkton Police Department, the Cecil County Sheriff's Office, the Maryland State Police, the Cecil County State's Attorney's Office, for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Anatoly Smolkin who prosecuted the case.
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Three Maryland Men Facing Federal Indictment for Filing More Than 600 Fraudulent Claims for Unemployment Resulting in Losses of More Than $2.7 MillionRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging three Maryland men on federal charges related to a scheme to fraudulently obtain more than $2.7 million in unemployment benefits. The indictment was returned on August 30, 2021, and unsealed today upon the arrests of the defendants. Charged in the indictment are:
Gladstone Njokem, age 34, of Hyattsville, Maryland;
Martin Tabe, age 32, of Bowie, Maryland; and
Sylvester Atekwane, age 31, of Hyattsville.The defendants will have initial appearances today beginning at 1:30 p.m., in U.S. District Court in Baltimore before U.S. Magistrate Judge Beth P. Gesner.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Derek Pickle, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore.
As detailed in the indictment, in Maryland, Michigan, and Tennessee, individuals who have lost a job can contact the appropriate state agency to submit a claim for unemployment insurance (UI) benefits. Claims for UI benefits in all three states are typically submitted electronically through the use of the Internet or Internet-capable devices. If the former employee meets certain requirements, they become eligible to receive UI benefits. Prior to April 2021, an approved claimant for UI benefits in Maryland received a Prepaid VISA debit card with the claimant’s name on it through the mail. Claimants in Michigan and Tennessee also had the option of having UI benefits deposited to a prepaid debit card. In each state, the appropriate state agency would authorize the electronic application of UI benefits to the debit card and continue to do so on a periodic basis if the claimant continued to qualify for benefits.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law on March 27, 2020. 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. The CARES Act created the Pandemic Unemployment Assistance (“PUA”) program, under which states are permitted to provide PUA to individuals who are self-employed, seeking part-time employment, or otherwise would not qualify for regular UI compensation. The CARES Act also established the Pandemic Emergency Unemployment Compensation (“PEUC”) program, which covers most individuals who have exhausted all rights to regular UI compensation under state or federal law and who are able to work, available for work, and actively seeking work as defined by state law. Finally, the CARES Act also established the Federal Pandemic Unemployment Compensation (“FPUC”) program. From April 4, 2020 through July 31, 2020, FPUC allowed states to give an additional $600 per week to individuals collecting UI compensation. From January 2021 through September 6, 2021, FPUC allowed states to provide an additional $300 per week to individuals collecting UI compensation,.
According to the 13-count indictment, from February 2020 through February 2021, Njokem, Tabe, Atekwane and others conspired to impersonate victims in order to submit fraudulent UI claims. To accomplish this, the defendants obtained the personally identifiable information (PII) of victims, often under false pretenses. For example, Njokem obtained PII from at least one victim by falsely claiming to sell puppies. The defendants allegedly shared the PII amongst themselves and with others and used the victims’ PII to submit fraudulent applications for UI benefits in Maryland, Michigan, and Tennessee.
The indictment alleges that the fraudulent applications contained false representations concerning the victims’ contact information, address, work availability, and that they were newly unemployed. The defendants allegedly used false physical addresses for UI applications, such that any UI benefits that were paid by the state would be received by the defendants, rather than the victims. In some instances, the defendants used their own physical addresses in UI applications to receive the victims’ UI benefits. In other instances, the defendants used the addresses of nearby vacant residences to receive UI applications in an effort to avoid detection by government authorities.
As detailed in the indictment, once the defendants received the fraudulently obtained debit cards, they made cash withdrawals and other transactions throughout Maryland and used the cash for their own benefit and for the benefit of others who also were not entitled to the money.
The indictment alleges that as a result of the conspiracy, Njokem, Tabe, Atekwane, and others caused at least 600 fraudulent UI claims to be submitted in Maryland, Michigan, Tennessee, and at least sixteen other states, resulting more than 2.7 million dollars in actual losses.
If convicted, the defendants face a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud and for each of the nine counts of wire fraud. The defendants each also face a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the USPIS, the DOL-OIG, HSI, and the U.S. Department of the Treasury – OIG for their work in the investigation. Mr. Lenzner thanked the Prince George’s County Police Department, the Baltimore Police Department, and the Maryland Department of Labor for their assistance. Mr. Lenzner also thanked Assistant U.S. Attorneys Zachary H. Ray, Sean R. Delaney, and Matthew Maddox, who are prosecuting the federal case.
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.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Police Officer Who Fled After Sentencing Pleads Guilty to Failing to Surrender for SentencingRead the Press Release
Baltimore, Maryland – James Ian Piccirilli, age 40, of Mt. Airy, Maryland, pleaded guilty today to failing to surrender for service of sentence. Piccirilli also admitted to illegally possessing additional firearms while on the run.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Tim Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and U.S. Marshal Johnny Hughes.
According to his guilty plea, on January 14, 2020, U.S. Circuit Judge Stephanie Thacker sentenced Piccirilli to 30 months’ imprisonment for possessing an unregistered fully automatic firearm in violation of the National Firearms Act (“NFA”).
The National Firearms Act regulates certain firearms, known as “NFA firearms,” such as short-barreled rifles; fully automatic firearms; firearms that can be readily made fully automatic; parts that can make a firearm fully automatic; and silencers. Individuals may not possess an NFA firearm that is not registered in the National Firearms Registration and Transfer Record (NFRTR), nor can a person sell or transfer an NFA firearm without the prior approval of the ATF.
According to his November 2019 guilty plea, on October 5, 2018, Piccirilli took an MKE 5.56mm caliber firearm, which had been altered to convert it into a fully automatic short-barreled rifle, bringing the firearm under the regulation of the NFA, to the home of another individual, who was a licensed gun dealer in Maryland. Piccirilli, formerly a police officer in Brunswick, Maryland, legally owned non-NFA firearms and had the skill and expertise to convert non-NFA firearms into NFA firearms.
Piccirilli admitted that the firearm belonged to him, but it was not registered to him, in violation of the NFA. According to information presented to the Court, Piccirilli tried to launder the unregistered firearm by attempting to have the gun dealer register the illegal firearm and/or sell it, so that the sale of the gun would appear to be legal. In December 2018, Piccirilli attempted to sell the firearm to an ATF undercover agent without ATF’s prior approval and in text messages and recorded calls tried to conceal the nature of the transaction. On December 14, 2018, as Piccirilli left his house to complete the transaction, he was apprehended by ATF agents. Investigators executed search warrants on his house and two vehicles, seizing 10 unregistered fully automatic firearms, one unregistered short-barreled rifle, and seven unregistered silencers.
The District Court ordered Piccirilli to surrender by 2:00 p.m. on March 16, 2020, to begin serving his sentence. The Court communicated the order to Piccirilli orally during the sentencing hearing and in writing in his judgment. Piccirilli’s girlfriend, Kellie Nicole Warfield, age 30, of Mt. Airy, Maryland was present at the January sentencing hearing.
As stated in his September 2021 plea agreement, on January 24, 2020, Piccirilli’s probation officer received an alert that Piccirilli had disabled his ankle monitor and had failed to return home by his curfew. Soon after, law enforcement discovered that Piccirilli and Warfield disposed of their cell phones and sold their vehicle.
As a part of their investigation, ATF investigators and U.S. Marshals interviewed family members, friends, and associates of the couple. As a result of gathered intelligence, investigators discovered that the couple relocated to Ramsey, Indiana.
Further investigation revealed Warfield received Kansas temporary tags for a truck that she and Piccirilli purchased while evading law enforcement. Subsequently, in September 2020, Warfield used her real personal information to apply for an Indiana driver’s license and registration for the truck.
As stated in his plea agreement, on October 13, 2020, investigators arrested Piccirilli and Warfield at a New Salisbury, Indiana restaurant where Warfield worked. At the time, the couple was living in a camper attached to a truck.
As a result of search warrants executed on the truck and camper, law enforcement recovered a 9 mm caliber pistol bearing no serial number, loaded with a full magazine of ammunition, two fully loaded magazines, a A-15 .223/5.56mm caliber rifle, and additional rounds of ammunition. The rifle had a selector switch, converted it into a fully automatic rifle, bringing the firearm under the regulation of the NFA.
In addition, a witness informed investigators that Piccirilli identified himself under the alias of “Jack Davis” and, at one point, asked her to hold a 9 mm caliber pistol and silencer. The witness possessed a bag containing the firearm and silencer belonging to Piccirilli. The silencer lacked a serial number, as required by the NFA. Piccirilli had no NFA firearms registered to him in the NFRTR.
Piccirilli agrees that he was on release for another criminal charge and that he was required by court order to surrender for service of sentence by March 16, 2020. Despite being aware of that requirement, he knowingly and willfully failed to surrender. In addition, he agrees that he knowingly possessed NFA firearms that were not registered to him in the NFRTR. He knew that those objects were NFA firearms.
Piccirilli and the government have agreed that, if the Court accepts the plea agreement, Piccirilli will be sentenced to between 30 to 46 months in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for November 19, 2021 at 10 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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 Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Acting United States Attorney Jonathan F. Lenzner commended the Baltimore and Louisville ATF, U.S. Marshals Service, the Southeast Indiana Regional SWAT Team, and the Indiana State Police for their work in the investigation. Mr. Lenzner also thanked the U.S. Attorney’s Office for the Southern District of Indiana, and Assistant U.S. Attorneys Brandon K. Moore and Patricia McLane, who are prosecuting the case.
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Chevy Chase Man Facing Federal Indictment for Allegedly Posing as an Investment Advisor to Steal $750,0000 from a Non-Profit Organization Providing Services to Combat and Wounded Military VeteransRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Brian McQuade, age 70, of Chevy Chase, Maryland, for the federal charges of wire fraud related to a scheme to steal $750,000 from a non-profit organization providing services to military veterans. The indictment was returned on September 2, 2021 and unsealed today upon McQuade’s arrest. McQuade had an initial appearance scheduled today at 1:30 p.m., in U.S. District Court in Greenbelt before U.S. Magistrate Judge Charles B. Day.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to the two-count indictment, from June 2018 until August 2021, McQuade perpetrated a fraud scheme to obtain money from a non-profit organization that provided services to combat and military veterans (the “Foundation”). During that time, McQuade allegedly held himself out as an investment advisor to clients, including the Foundation, falsely telling clients that he would manage investment accounts on their behalf. Instead, McQuade allegedly misappropriated the funds provided by clients, including the Foundation, for his personal use.
The indictment alleges that McQuade represented to the Foundation and its principals that he was worked as an investment advisor through an entity called Columbia Financial Advisors, LLP (“Columbia Financial”), which McQuade represented was the investment advisory arm affiliated with an established DC accounting firm. In reality, the Indictment alleges, McQuade had not been formally affiliated with the accounting firm since at least 2015. McQuade also represented to the Foundation that he was a licensed, registered investment advisor, including on an “Investment Advisory Agreement” he provided to the Foundation before the Foundation made its investment. McQuade allegedly told the Foundation that he would place the Foundation’s funds in a brokerage account that he would manage on behalf of the Foundation and McQuade provided the Foundation with a completed brokerage account application.
Based on McQuade’s representations, the Foundation wired McQuade $750,000 to invest on the Foundation’s behalf. According to the indictment, McQuade never opened a brokerage account on behalf of the Foundation and, instead, McQuade misappropriated the Foundation’s funds for his personal benefit, including transferring the funds to personal accounts and spending the money on restaurants, country club dues, luxury car payments, mortgages, and other personal items. To conceal his misappropriation of the Foundation’s funds, McQuade allegedly continued to make misrepresentations to the Foundation about their investment—even providing a fabricated account statement, to create the false appearance that the Foundation’s funds were held in an investment account for the benefit of the Foundation. To date, despite repeated requests, the Foundation has been unable to recover any of its funds.
If convicted, McQuade faces a maximum sentence of 20 years in federal prison for each of two counts of wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Caitlin R. Cottingham and Jessica C. Collins, who are prosecuting the federal case.
The Maryland U.S. Attorney’s Office and the FBI are continuing to investigate this matter. If you believe that you may have been a victim of or have information about McQuade or any other investment fraud scheme, please contact the FBI, Baltimore Field Office at 1-800-CALL-FBI.
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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Repeat Sex Offender Sentenced to 30 Years in Federal Prison for Enticement of a Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Jeffrey Cummings, age 36, of Baltimore, Maryland to 30 years in federal prison, followed by a lifetime of supervised release, for a federal charge for enticement of a minor to engage in illegal sexual activity during a period of time when Cummings was required to register as a sex offender. Judge Blake also ordered that, upon his release from prison, Cummings must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). Cummings has been detained since his arrest on July 19, 2019.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division.
According to his plea agreement, from March 2017 to July 2019, Cummings attempted to coerce dozens of minor victims to engage in sexually explicit conduct on a popular social media platform. Using a smartphone and computers, Cummings communicated with at least six minor victims. During that time, Cummings was required to register as a sex offender, as the result of a 2008 conviction in Anne Arundel County, Maryland for sexual contact with a 10-year-old boy.
"Cummings was a repeat sex offender who preyed on children, deceiving them to send him illegal images, and threatening to kill them if they refused to comply”, said Acting U.S. Attorney Jonathan F. Lenzner. “We hope this sentence will deter others like Cummings from victimizing children, and we hope this case will remind parents that there are predators, like this defendant, lurking on the internet. Every parent should familiarize themselves with the social media platforms their children may use and their online contacts. Educate your child on the dangers of communicating with persons online, even those that may seem non-threatening, and how to report suspicious persons to an adult."
“Online safety for today’s children is constantly changing as advancing technology poses new risks”, said Inspector in Charge Daniel A. Adame, Washington Division of the U.S. Postal Inspection Service. “Postal Inspectors continue their long tradition of working with our law enforcement partners to investigate those predators who seek to sexually exploit children.”
The investigation into Cummings’ illegal conduct began after the National Center for Missing and Exploited Children received a CyberTip from a guardian of two minor boys. The guardian alerted authorities to a suspicious individual who had contacted her minor nephews on the internet and asked the minor boys to send dirty socks in the mail.
According to his plea agreement, from March 2017 through July 2019, Cummings operated multiple social media accounts using a variety of aliases, including elaborate, false female personas, to communicate with minor boys under the false pretense that he was a minor girl. Using his accounts, Cummings coerced and enticed at least six minor male victims, ranging in age from 13 to 16 years old, to send Cummings pictures and videos of themselves engaged in sexually explicit conduct. Cummings also admitted that he further distributed some of the sexually explicit photos received from the victims.
As detailed in the plea agreement, during his conversations with the victims, Cummings, posing as a teenage girl, requested the victims to send “her” a sexually explicit photograph or video. Thinking that they were communicating with a teenage girl, and often after Cummings sent the victims pictures of a teenage girl purported to be pictures of “herself,” including nude images of a pubescent female’s genital area, at least five of the minor victims sent Cummings sexually explicit images of themselves.
Throughout his conversations with several of the victims, Cummings requested that the victims send him their previously worn socks by mail. Cummings claimed that they were for a “science project,” and even offered one victim “$20 a pair”.
If the victims declined to comply with Cummings’ demands, he threatened the victims including death threats, threatening to publicly post the victims’ home addresses, distribute the victims’ sexually explicit videos to their teachers and school, or post the victims’ sexually explicit videos to social media. For example, in a group chat that included a minor boy and at least two of Cummings’ alias social media accounts, Cummings threatened to publicly post a sexually explicit video of a minor victim if the victim did not meet his demands. Despite the minor boy’s objections, Cummings subsequently posted the video to a group chat on a social media platform. Using his alias accounts, Cummings continued to taunt the minor boy and threatened to post the victim’s video and address online and send the video to the victim’s teachers.
Law enforcement executed a search warrant at Cummings’ residence on July 19, 2019, and seized his cell phone, which contained images of child pornography, including sexually explicit images of the victims. The phone also had accessed several of Cummings’ alias social media accounts. After his arrest that same day, Cummings agreed to speak with investigators. Cummings made numerous statements attributing exchanges of nude photos on social media and the solicitation of dirty socks for a sexual fetish to his teenage son, stating that he had two sons, ages 15 and nine, who lived with his mother in Pennsylvania. Further, Cummings stated that he asked his brother to pick up socks from his post office box and deliver them to his son in Pennsylvania. In fact, Cummings is an only child, has not fathered or raised any children, and his mother has never raised or kept any children for Cummings.
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.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Postal Inspection Service and FBI for their work in the investigation, and thanked the Baltimore Police Department for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Mary W. Setzer and Christine L. Duey, who are prosecuting the federal case, and recognized Assistant U.S. Attorney Zachary A. Myers for his 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Owings Mills Couple Facing Federal Indictment for Charges Relating to a $20 Million Life Insurance SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging James William Wilson, Jr., age 74, of Owings Mills, Maryland; and Maureen Ann Wilson, age 73, of Owings Mills, Maryland with federal charges of conspiracy, mail fraud, wire fraud, money laundering, and filing a false tax return. James Wilson has also been charged with aggravated identity theft.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the 21-count indictment, from at least 1996 until the present, the Wilsons conspired to fraudulently obtain more than 30 life insurance policies, worth more than $20 million in life insurance benefits, on behalf of applicants. Specifically, the Indictment alleges that the life insurance applications contained material misrepresentations about the applicant, including the amount of the applicant’s existing life insurance coverage, the applicant’s health, and the applicant’s income.
The indictment further alleges that the Wilsons fraudulently obtained money from victim investors to pay the premiums on life insurance policies. Allegedly, the Wilsons obtained these funds by misleading victim investors to believe their money was being used as either a loan or an investment that would be repaid with interest, when, in fact, the money was being used to pay premiums on fraudulently-obtained life insurance policies.
The indictment further alleges that the Wilsons forged signatures to make themselves and other nominees they controlled the owners and the beneficiaries of the life insurance policies. The Indictment alleges that when certain insureds died, the Wilsons received more than $8 million in life insurance proceeds.
Further, the indictment alleges the Wilsons attempted to launder and conceal the fraudulently-obtained funds by controlling multiple bank accounts, opening bank accounts with nominee owners, and causing fraud proceeds to move through bank accounts owned by others.
The indictment further alleges that Wilsons filed false tax returns in 2018 and 2019 when they failed to report millions of dollars of fraudulently-obtained life insurance proceeds.
If convicted, James and Maureen Wilson face a maximum sentence of 20 years in federal prison for each count of conspiracy, wire fraud, mail fraud, and money laundering with intent to conceal; and three years in federal prison for each count of filing a false tax return. James Wilson faces a mandatory sentence of two years, consecutive to any other sentence imposed, for each of two counts of aggravated identity theft. Maureen Wilson faces 10 years in federal prison for transactional money laundering. Actual sentences for federal crimes are typically less than the maximum penalties.
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.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-Criminal Investigation, the Maryland Insurance Administration, and the Maryland Office of the Attorney General for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Matthew Phelps and Stephanie Williamson, and Trial Attorney Shawn Noud of the Justice Department’s Tax Division, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Three Men Convicted After a 10-Day Trial of Federal Charges Related to a Series of Home BurglariesRead the Press Release
Baltimore, Maryland – A federal jury today convicted three men for conspiracy, and for transportation of stolen property, taken during a series of burglaries committed in Maryland and Georgia. The jury returned the guilty verdicts for the following defendants late yesterday after three hours of deliberation:
Demar A. Brown, age 37, of Paterson, New Jersey and Winston-Salem, North Carolina;
Jashon C. Fields, age 37, of Atlanta, Georgia; and
Kamar O. Beckles, age 35, of Teaneck, New Jersey.The convictions were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to the evidence presented at the 10-day trial, from November 29, 2017 through January 26, 2018, the defendants committed a series of break-ins at residences in Baltimore County, Maryland and Milton, Georgia, in order to steal property, including: cash; foreign currency; safes; jewelry; designer purses, bags, and clothing; personal electronics; collectibles; personal identity documents; and items of sentimental value, such as historical medals, rare coins, and other memorabilia. The defendants intended to sell the stolen property out-of-state for cash.
Witnesses testified that the defendants wore masks and gloves during the break-ins and communicated with each other using two-way radios and mobile phones. One of the conspirators often remained in the getaway car while the other conspirators committed the burglaries. Brown, Fields, and Beckles rented hotel rooms in Maryland where they would store the proceeds of the burglaries they committed (until the property and proceeds were transported out of state). Brown and Beckles transported the stolen property outside Maryland, including to two residences to which Brown had access in Winston-Salem, North Carolina.
As detailed during the trial, on January 26, 2018, the defendants were arrested not far from two residences that had recently been burglarized. Brown was arrested after officers responding to the burglary noticed a dark green Ford Explorer with North Carolina tags traveling slowly down the street. The vehicle was identical to a suspect vehicle seen in surveillance footage from some of the earlier burglaries. An officer pulled in behind the vehicle and, after a short vehicle chase, Brown was eventually arrested after trying to flee from the SUV.
Beckles and Fields were arrested in a nearby wooded area, about a half mile from one of the burglarized homes. At the time of his arrest, Beckles was wearing a distinct jacket with a reflective emblem on the back – identical in appearance to the insignia visible in surveillance footage from some of the earlier burglaries. Additional responding officers were able to view through the vehicle’s windows a safe matching the description of a safe stolen during the robbery, along with what appeared to be bags of other property stolen that evening and over $2500 in loose change – later determined to have been stolen from a home in Milton, Georgia.
A search of each defendant turned up hotel key cards, and one of the defendants was carrying over $1,000 cash in his sock. Brown also had a breakfast ticket from the hotel matching the key card, where law enforcement learned Beckles had rented two rooms in his name.
A search warrant for the rented rooms was obtained and executed, and a second search of one of the rooms occurred a couple of days later. During the searches of the rooms, law enforcement recovered jewelry stolen from a residence on January 25, 2018, property from homes burglarized in Milton, Georgia on January 24th, as well as property from homes burglarized in Baltimore County on December 28, 2017, December 29, 2017, January 9, 2018, and January 10, 2018. They also recovered a mask, a pair of gloves, a diamond tester, a scale, and a gold testing kit. In the second room, they located, among other things, Fields’ license, mail in the name of Beckles, and various phones.
On January 27, 2018, after obtaining a search warrant, law enforcement searched the Ford Explorer driven by Brown the previous day. They discovered, among other things, various tools and clothing for use in connection with burglaries, including a pry bar, a drill and hole saw, a mallet, three chisels, a reciprocating saw, multiple pairs of gloves, black knit hats, a balaclava style mask, two-way radios, and flashlights.
Law enforcement officers searching the vehicle also discovered many of the pieces of property stolen during two burglaries the previous day, as well as notes concerning a pawn shop and a jewelry shop in North Carolina.
On January 30, 2018, law enforcement obtained search and seizure warrants for Brown’s residences in Winston-Salem, North Carolina. There they located property from three earlier burglaries in Baltimore County—including numerous pieces of fine jewelry. Additionally, evidence on the nine phones seized from the defendants, the SUV, and the defendants’ hotel rooms showed, among other things, Brown and Beckles photographing many pieces of the jewelry and other items taken during some of the burglaries.
In total, 21 homes were burglarized in connection with the conspiracy, and the victims reported that $850,000 worth of property was stolen. Only some of that stolen property has been recovered and returned to its owners; for a few victims, the vast majority of their property has yet to be recovered.
The defendants each face a maximum sentence of five years in federal prison for the conspiracy; and a maximum of 10 years in federal prison for each count of interstate transportation of stolen property or attempted interstate transportation of stolen property. U.S. District Judge George J. Hazel will schedule sentencings at a later date.
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.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Paul A. Riley and Christopher M. Rigali, 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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Maryland Acting U.S. Attorney Jonathan F. Lenzner Announces over $1.8 Million in Federal Grants to Address Victims of Sexual Assault and Domestic ViolenceRead the Press Release
Baltimore, Maryland – Acting U.S. Attorney Jonathan F. Lenzner today announced $1,827,899 in U.S. Department of Justice grants to address violence against women. These grants from the Legal Assistance for Victims (LAV) Program of the Department of Justice’s Office on Violence Against Women. Nationally, the LAV Program is awarding nearly $36 million in victim legal assistance funding to organizations across the country.
Acting U.S. Attorney Jonathan F. Lenzner stated, “These grants will be used to provide long term legal services to victims and survivors of sexual assault and domestic violence in areas such as family law, housing and employment. This will enable these victims and survivors to achieve lasting safety and economic independence for themselves and their families.”
The Legal Assistance for Victims (LAV) Program is intended to increase the availability of civil and criminal legal assistance needed to effectively aid adult and youth victims of sexual assault, domestic violence, dating violence, and stalking by providing funds for comprehensive direct legal services to victims in legal matters relating to or arising out of that abuse or violence. Comprehensive legal services extend beyond representation in emergency and non-emergency protection order hearings to address the broad spectrum of legal issues that victims encounter, including family matters such as divorce, child custody or child support, immigration, administrative agency proceedings, and consumer or housing matters.
The following organizations in Maryland received funding:
- Heartly House in Frederick, Maryland received $427,999 to hire an attorney for long term legal services for victims and survivors of intimate partner violence, sexual assault, dating violence, and child abuse.
- House of Ruth in Baltimore, Maryland received $600,000 in order to provide free legal representation to low-income, high-risk victims of domestic violence in family law cases in order to help those victims achieve lasting safety, and economic independence.
- The Maryland Coalition Against Sexual Assault (MCASA) in Silver Spring, Maryland received $800,000 to provide holistic legal representation to survivors/victims of sexual assault in civil and criminal matters resulting from the sexual assault, with a focus beyond intimate partner sexual assault.
The Office on Violence Against Women provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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MS-13 Member Sentenced to 35 Years’ Imprisonment for Racketeering Conspiracy and Other Violent CrimesRead the Press Release
A Maryland man was sentenced yesterday to 35 years in prison for conspiracy to participate in a racketeering enterprise, murder and attempted murder in aid of racketeering, and other charges in connection with his La Mara Salvatrucha, aka “MS-13” gang, activities between 2015 and 2019.
Moises Alexis Reyes-Canales, aka Psicopata, aka Convicto, 23, of Annapolis, pleaded guilty to the offenses on May 5. According to court documents, Reyes-Canales was a member and associate of MS-13 and participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery and drug trafficking. Specifically, in 2016, Reyes-Canales participated in the murder of a suspected rival gang member and conspired and attempted to murder two victims in Annapolis. In addition, between January 2016 and February 2017, Reyes-Canales and other MS-13 members/associates sold cocaine and marijuana to raise funds for the gang. The drug proceeds were used to purchase more narcotics and weapons, and to send to MS-13 members and associates in other states and in El Salvador.
“Due to the diligent work of our law enforcement partners and the department prosecutors in this case, Reyes-Canales and his MS-13 co-defendants will no longer be able to victimize the Annapolis community,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Reyes-Canales and his co-defendants murdered one victim and attempted to murder two others, causing irreparable harm to the victims and their families. We will never stop pursuing those MS-13 gang members who intimidate and harm our communities.”
Co-defendants Marlon Cruz-Flores, 25, Fermin Gomez-Jimenez, 23, and Manuel Martinez-Aguilar, aka “El Lunatic” and “Zomb,” 22, all of Annapolis, previously pleaded guilty to the racketeering conspiracy and gun charge; both Gomez-Jimenez and Cruz-Flores were sentenced to 38 years in prison and Martinez-Aguilar was sentenced to 24 years. Co-defendant David Diaz-Alvarado, 20, of Annapolis, pleaded guilty to murder in aid of racketeering in connection with his MS-13 gang activities. Co-defendant Juan Carlos Sandoval-Rodriguez, 23, of Annapolis, was convicted on Oct. 31, 2019, of murder in aid of racketeering and conspiracy to commit murder in aid of racketeering for the murder of Victim 1 after an 11-day jury trial; he faces a mandatory sentence of life in prison at his sentencing, which is scheduled for Feb. 10, 2022. All of the defendants remain detained.
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.
Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Anne Arundel Police Department, the Annapolis Police Department and the Anne Arundel State’s Attorney Office investigated the case.
Trial Attorneys Matthew Hoff and Samantha Mildenberg Loiero of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Zachary Stendig of the District of Maryland are prosecuting the case.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tip lines 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.
Dark Web Child Pornography Facilitator Sentenced to 27 Years in Prison for Conspiracy to Advertise Child PornographyRead the Press Release
A dual national of the United States and Ireland was sentenced yesterday to 324 months, or 27 years, in federal prison followed by a lifetime of supervised release for conspiracy to advertise child pornography.
Eric Eoin Marques, 36, of Dublin, Ireland, pleaded guilty on Feb. 6, 2020 to conspiracy to advertise child pornography. According to court documents, between July 24, 2008 and July 29, 2013, Marques operated a free anonymous hosting service located on the dark web, an area of the internet that is only accessible by means of special software, allowing users and website operators to remain anonymous or untraceable. The hosting service hosted websites that allowed users to view and share images documenting the sexual abuse of children, including the abuse of prepubescent minors and violent sexual abuse. The investigation revealed that the hosting service contained over 200 child exploitation websites that housed millions of images of child exploitation material. Over 1.97 million of these images and/or videos were not previously known by law enforcement. Many of these images involved sadistic abuse of infants and toddlers.
“The defendant’s web service anonymously hosted hundreds of insidious criminal communities dedicated to the sexual exploitation of children, which openly and notoriously spread millions of images of child sexual abuse across the globe,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This complex, global investigation, lengthy and successful extradition, and substantial jail sentence are proof of the Department’s steadfast and unwavering commitment to identifying and bringing to justice criminals who hide behind anonymous networks to abuse and exploit the world’s children.”
“Eric Marques was one of the largest facilitators of child pornography in the world,” said Acting U.S. Attorney Jonathan F. Lenzner for the District of Maryland. “This is an egregious case where one individual hosted and helped others to share millions of horrific images and videos of the abuse of children, including more than a million not previously known to law enforcement, and attempted to keep the abuse hidden on the dark web. We are grateful to our law enforcement partners here and abroad for helping us to bring Eric Marques to justice. We will continue to do everything we can to find and prosecute those who use the anonymity of the internet to perpetuate the cruel and heartless business of the sexual abuse of children.”
“Today’s sentencing of Eric Marques sends a clear message to perpetrators of this egregious crime that no matter where you are in the world, law enforcement will hold you accountable and bring you to justice,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The FBI combats crimes against children and stands up for vulnerable children across the globe.”
“Europol is pleased to have played its part in what ranks as one of the most important investigations ever conducted into child sexual abuse,” said Head of the European Cybercrime Centre Edvardas Šileris of Europol. “I applaud the great work of the FBI and our many other law enforcement partners in Europe and beyond for their cooperation on a global scale to tackle this most heinous crime and bring this dangerous individual before court. Ensuring the safety of children by identifying those who have been victimized and educating children to avoid these harms remains a top priority for Europol.”
As described in public documents, this case was a part of a path-marking global investigation that targeted thousands of users of more than 200 websites operating on the Tor network and dedicated to the trade of child pornography. The Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the FBI and Europol conceived of and executed a globally coordinated criminal investigation of then-unparalleled scope, which pooled resources of over a dozen countries that deployed over 70 law enforcement agents to Europol, which served as the hub for operational support, facilities, and information sharing. Through this investigation, more than 200 child sexual exploitation websites were taken offline (along with hundreds of other sites sponsoring or facilitating criminal activity); the activities of tens of thousands of online child pornographers were disrupted; over four million images and videos of child sexual abuse were seized (including more than 100 previously unknown series of child abuse images and new images from more than 50 existing series); and dozens of offenders were identified and prosecuted throughout the world.
The FBI’s Violent Crime Section, Child Exploitation Operational Unit and the Violent Crimes Against Children International Task Force conducted the investigation with significant assistance from the Legal Attaché London Office, An Garda Síochána, and Europol. The Department of Justice’s Office of International Affairs provided significant assistance in bringing Marques to the United States and procuring foreign evidence during the investigation.
Deputy Chief Keith A. Becker and Trial Attorney Ralph Paradiso of CEOS and Assistant U.S. Attorney Thomas M. Sullivan of the District of Maryland prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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.
Dark Web Child Pornography Facilitator Sentenced to 27 Years in Prison for Conspiracy to Advertise Child PornographyRead the Press Release
A dual national of the United States and Ireland was sentenced today to 324 months, or 27 years, in federal prison followed by a lifetime of supervised release for conspiracy to advertise child pornography.
Eric Eoin Marques, 36, of Dublin, Ireland, pleaded guilty on Feb. 6, 2020 to conspiracy to advertise child pornography. According to court documents, between July 24, 2008 and July 29, 2013, Marques operated a free anonymous hosting service located on the dark web, an area of the internet that is only accessible by means of special software, allowing users and website operators to remain anonymous or untraceable. The hosting service hosted websites that allowed users to view and share images documenting the sexual abuse of children, including the abuse of prepubescent minors and violent sexual abuse. The investigation revealed that the hosting service contained over 200 child exploitation websites that housed millions of images of child exploitation material. Over 1.97 million of these images and/or videos were not previously known by law enforcement. Many of these images involved sadistic abuse of infants and toddlers.
“The defendant’s web service anonymously hosted hundreds of insidious criminal communities dedicated to the sexual exploitation of children, which openly and notoriously spread millions of images of child sexual abuse across the globe,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This complex, global investigation, lengthy and successful extradition, and substantial jail sentence are proof of the Department’s steadfast and unwavering commitment to identifying and bringing to justice criminals who hide behind anonymous networks to abuse and exploit the world’s children.”
“Eric Marques was one of the largest facilitators of child pornography in the world,” said Acting U.S. Attorney Jonathan F. Lenzner for the District of Maryland. “This is an egregious case where one individual hosted and helped others to share millions of horrific images and videos of the abuse of children, including more than a million not previously known to law enforcement, and attempted to keep the abuse hidden on the dark web. We are grateful to our law enforcement partners here and abroad for helping us to bring Eric Marques to justice. We will continue to do everything we can to find and prosecute those who use the anonymity of the internet to perpetuate the cruel and heartless business of the sexual abuse of children.”
“Today’s sentencing of Eric Marques sends a clear message to perpetrators of this egregious crime that no matter where you are in the world, law enforcement will hold you accountable and bring you to justice,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The FBI combats crimes against children and stands up for vulnerable children across the globe.”
“Europol is pleased to have played its part in what ranks as one of the most important investigations ever conducted into child sexual abuse,” said Head of the European Cybercrime Centre Edvardas Šileris of Europol. “I applaud the great work of the FBI and our many other law enforcement partners in Europe and beyond for their cooperation on a global scale to tackle this most heinous crime and bring this dangerous individual before court. Ensuring the safety of children by identifying those who have been victimized and educating children to avoid these harms remains a top priority for Europol.”
As described in public documents, this case was a part of a path-marking global investigation that targeted thousands of users of more than 200 websites operating on the Tor network and dedicated to the trade of child pornography. The Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the FBI, and Europol conceived of and executed a globally coordinated criminal investigation of then-unparalleled scope, which pooled resources of over a dozen countries that deployed over 70 law enforcement agents to Europol, which served as the hub for operational support, facilities, and information sharing. Through this investigation, more than 200 child sexual exploitation websites were taken offline (along with hundreds of other sites sponsoring or facilitating criminal activity); the activities of tens of thousands of online child pornographers were disrupted; over four million images and videos of child sexual abuse were seized (including more than 100 previously unknown series of child abuse images and new images from more than 50 existing series); and dozens of offenders were identified and prosecuted throughout the world.
The FBI’s Violent Crime Section, Child Exploitation Operational Unit and the Violent Crimes Against Children International Task Force conducted the investigation with significant assistance from the Legal Attaché London Office, An Garda Síochána, and Europol. The Department of Justice’s Office of International Affairs provided significant assistance in bringing Marques to the United States and procuring foreign evidence during the investigation.
Deputy Chief Keith A. Becker and Trial Attorney Ralph Paradiso of CEOS and Assistant U.S. Attorney Thomas M. Sullivan of the District of Maryland prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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.
Cecil County Felon Sentenced to More Than Four Years in Federal Prison for Illegal Possession of Firearm and Narcotics ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Kenneth Clark, Jr., a/k/a “Man” and “Play,” age 30, of Port Deposit, Maryland, yesterday to 52 months in prison, followed by three years of supervised release, for a narcotics conspiracy and being a felon in possession of a firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Cecil County Sheriff Scott Adams.
According to his guilty plea, on February 20, 2020, a Cecil County Sheriff’s deputy saw a vehicle speeding and failing to stop at a stop sign. The deputy initiated a traffic stop, activated his mobile video recorder, capturing video through the windshield of his patrol car as he approached vehicle.
After the vehicle came to a stop, the deputy observed the vehicle shake as the driver and passenger switched seats. The deputy asked both occupants to produce identification documents and vehicle registration. The person in the driver’s seat produced identification while Clark, who was in the passenger seat, informed the officer that he did not have a license. Clark then grabbed the vehicle’s gear shifter and commanded the driver to go. However, the car did not move and the deputy was able to turn off the vehicle. Clark opened the passenger door and ran away. The deputy’s in-car video camera captured Clark holding a black semi-automatic handgun as he exited the passenger side. The driver also ran away, but he and Clark were apprehended by law enforcement.
After his arrest, Clark was searched and officers recovered $1,802 in cash on Clark’s person. The deputy returned to the area where he saw Clark throw the firearm and recovered a .22 LR handgun loaded with 11 hollow-point .22 LR live rounds. The slide of the handgun was pulled back, exposing a chambered .22 LR bullet, and the weapon was jammed. Clark’s vehicle was also searched and the deputy recovered approximately six grams of marijuana inside the passenger’s side door and two cell phones. Clark requested evaluation by Emergency Medical Services. As Clark got out of the patrol car, the deputy recovered a small plastic baggie containing approximately one gram of crack cocaine on the floorboard next to where Clark was seated.
Law enforcement later learned that the firearm in Clark’s possession was reported stolen a few days before it was recovered from Clark. Clark knew that he was prohibited from possessing firearms due to previous felony convictions, including a 2016 conviction for second-degree assault and a 2017 conviction for having an illegal handgun on his person—both in Cecil County Circuit Court. At the time of his arrest, Clark was on supervised probation in Cecil County.
According to Clark’s plea agreement, between the first and second week of February 2020, a concerned citizen contacted Maryland State Police to report possible cocaine transactions in the Port Deposit area of Cecil County by a male nicknamed “Man”. During the investigation of a non-fatal overdose that occurred on January 29, 2020, Maryland State Police (MSP) identified Clark as the likely source of the narcotics supply leading to the overdose. Numerous messages downloaded from the overdose victim’s cellular phone resolved to the phone number assigned to the phone in Clark’s possession at the time of his most recent arrest.
Additionally, MSP found several photos of Clark displaying, brandishing, and discharging firearms on his public social media accounts. For example, on February 18, 2020, Clark posted two public photographs holding a semi-automatic handgun with an extended magazine, which matches the description of the firearm seized after Clark’s arrest during the traffic stop. A subsequent review of Clark’s social media messages revealed conversations regarding the distribution of controlled substances, including cocaine and methamphetamine.
As detailed in his plea agreement, while incarcerated at the Cecil County Detention Center, which records outgoing calls from detainees, Clark made several phone calls to two associates asking them to retrieve several items hidden at his father’s residence. Clark spoke in code terms about what investigators believe were drugs and firearms, while providing specific instructions on where to find the items. On February 28, 2020 Maryland State Police searched the residence of one of the associates and recovered a 9mm semi-automatic handgun, that matched the description of the firearm depicted in Clark’s social media pictures. The associate advised law enforcement that he obtained the firearm from Clark’s father’s residence at Clark’s direction.
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.
Acting United States Attorney Jonathan F. Lenzner commended the Maryland State Police Department and the Cecil County Sheriff’s Office their work in the investigation and thanked Homeland Security Investigations for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Sandra Wilkinson who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Annapolis Ms-13 Member Sentenced to 35 Years in Federal Prison for Racketeering Conspiracy, Discharging a Firearm Related to a Murder, and Two Attempted MurdersRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Moises Alexis Reyes-Canales, a/k/a “Sicopita”, age 23, of Annapolis, to 35 years in federal prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise and to using, carrying, and discharging a firearm during a crime of violence, in connection with his MS-13 gang activities, including a murder and two attempted murders.
According to his plea agreement and other court documents, since about March 11, 2016, Reyes-Canales was a member and associate of MS-13, and participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery, and drug trafficking. Specifically, Reyes-Canales admitted that he participated in the murder of a suspected rival gang member, and conspired and attempted to murder two victims in Annapolis. In addition, between January 2016 and February 2017, Reyes-Canales and other MS-13 members/associates sold marijuana to raise funds for the gang. The drug proceeds were used for, among other purposes, the purchase of more narcotics, weapons, and to send to MS-13 members and associates in other states and in El Salvador.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge James Mancuso of Homeland Security Investigations (HSI) Baltimore Office; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Amal Awad of the Anne Arundel County Police Department; Chief Edward Jackson of the Annapolis Police Department; and State’s Attorney Anne Colt Leitess of the Anne Arundel County State’s Attorney Office.
“Reyes-Canales is a violent gang member who killed and seriously injured multiple victims, and in the process brought horror and despair to the victims and their families as well as chaos and fear to communities in Annapolis. The United States Attorney’s Office would like to thank community members and our international and local law enforcement partners who assisted in this investigation,” said Acting U.S. Attorney Jonathan F. Lenzner. “This sentence of 35 years in federal prison should serve as a warning to those who are in MS-13 and are considering joining the gang that we will be relentless in prosecuting anyone who is involved in violence.”
“Due to the diligent work of our law enforcement partners and the department prosecutors in this case, Reyes-Canales and his MS-13 co-defendants will no longer be able to victimize the Annapolis community. Reyes-Canales and his co-defendants murdered one victim and attempted to murder two others, causing irreparable harm to the victims and their families,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “We will never stop pursuing those MS-13 gang members who intimidate and harm our communities."
As part of the racketeering conspiracy, Reyes-Canales admitted that on March 11, 2016, he and other MS-13 members and associates planned and agreed to murder Victim 1, whom the gang suspected of being a rival gang member. Prior to the murder, Reyes-Canales received authorization to commit the murder from MS-13 leadership. Juan Carlos Sandoval-Rodriguez and another MS-13 member/associate lured Victim 1 to Quiet Waters Park in Annapolis, Maryland, and once Victim 1 arrived at the park, members of the gang struck Victim 1 in the head with a branch or stick. Reyes-Canales, co-defendants Marlon Cruz-Flores, Fermin Gomez-Jimenez, and other members and associates of MS-13, then stabbed Victim 1 repeatedly, killing him. Reyes-Canales directed everyone during the murder. While Reyes-Canales and other members of the gang stabbed Victim 1, Co-conspirator 1 and other MS-13 members/associates stood watch outside of the park to ensure no one entered or left the park, and to watch for police presence, so that the gang could complete the murder of Victim 1. During this time, Co-conspirator 1 communicated by phone and through text messages with Reyes-Canales and Cruz-Flores inside the park, to let them know no one entered the park and they could complete the murder. After Victim 1 was killed, Gomez-Jimenez left the park to stand watch, so that other MS-13 associates could enter the park help bury Victim 1 in a shallow grave inside the park, at the direction of Reyes-Canales. Law enforcement did not locate Victim 1’s body until August 28, 2017, when it was exhumed by law enforcement.
As detailed in their plea agreements, on October 23, 2016, Reyes-Canales, Gomez-Jimenez, and other members and associates of the MS-13 Hempstead clique in Annapolis, devised a plan to murder Victim 2, an unlicensed taxi driver. Reyes-Canales, Gomez-Jimenez, Cruz-Flores, co-defendant Manuel Martinez-Aguilar, and other members and associates of MS-13, met at Quiet Waters Park to discuss the plan to murder Victim 2. At the meeting, each member of the conspiracy was assigned a task to complete the murder and dispose of the evidence. The group planned to use machetes, knives, and guns to kill the victim. Reyes-Canales and Cruz-Flores each had a firearm and all the members of the conspiracy were aware that guns would be used in the murder.
A co-conspirator called Victim 2 using another member’s cell phone to arrange for an unlicensed taxi ride. Victim 2 arrived with another passenger, Victim 3. Cruz-Flores asked Victim 2 to drive to the area of the 700 block of Annapolis Neck Road in Annapolis. When they arrived, Reyes-Canales approached the vehicle and pointed a gun at the victims and Cruz-Flores also produced a gun and pointed it at the victims. Victim 3 attempted to run away and Cruz-Flores shot Victim 3 in the leg, while another MS-13 member repeatedly attacked Victim 3 with a machete. Victim 2 also tried to run. Reyes-Canales attempted to shoot Victim 2, but his gun failed to discharge. Co-defendant Martinez-Aguilar and another MS-13 member took Victim 2’s vehicle and attempted unsuccessfully to run him over with the car. Reyes-Canales, Gomez-Jimenez, and other conspirators chased Victim 2 and Gomez-Jimenez repeatedly stabbed Victim 2 with a knife. The conspirators fled when they heard police sirens. A short time later, police arrested Gomez-Jimenez nearby with Victim 2’s blood on his hands and clothes. A surveillance camera in the area captured Gomez-Jimenez assaulting Victim 2 and the attempt to run over Victim 2 with Victim 2’s vehicle. DNA subsequently confirmed that the blood on Gomez-Jimenez’ hands matched Victim 2’s blood. Both victims were transported to the University of Maryland Shock Trauma Center with life threatening injuries. Both victims survived but have permanent injuries as a result of the attack.
Co-defendants Marlon Cruz-Flores, age 25, and Manuel Martinez-Aguilar, a/k/a “El Lunatic” and “Zomb,” age 22, both of Annapolis, Maryland, previously pleaded guilty to the racketeering conspiracy and gun charge. Cruz-Flores was sentenced to 38 years in federal prison and Martinez-Aguilar was sentenced to 24 years in federal prison. Co-defendant Fermin Gomez-Jimenez, age 23, of Annapolis, Maryland pleaded guilty to conspiracy to participate in a racketeering enterprise and to using, carrying, and discharging a firearm during a crime of violence, and David Diaz-Alvarado, age 20, also of Annapolis, pleaded guilty to murder in aid of racketeering in connection with his MS-13 gang activities. Co-defendant, Juan Carlos Sandoval-Rodriguez, age 23, of Annapolis was convicted on October 31, 2019, of murder in aid of racketeering and conspiracy to commit murder in aid of racketeering after a nine-day jury trial for the murder of Victim 1. His sentencing hearing is scheduled for February 10, 2011 at 10 a.m. He faces a mandatory sentence of life in prison. All of the defendants remain detained.
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 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.
Acting United States Attorney Jonathan F. Lenzner and commended HSI, the ATF, the Anne Arundel County Police Department, the Annapolis Police Department, and the Anne Arundel State’s Attorney Office for their work in the investigation and prosecution. Mr. Lenzner and Mr. Polite thanked Assistant U.S. Attorney Zachary Stendig, and Trial Attorneys Matthew Hoff and Samantha Mildenberg Loiero of the Criminal Division’s Organized Crime and Gang Section, who prosecuted the case.
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Two Bel Air Men Facing Federal Indictment for $13 Million Scheme to Defraud Their Employer, Including Money Laundering and Tax EvasionRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Eugene Andrew DiNoto, age 50, and Elliott Dennis Kleinman, age 67, both of Bel Air, Maryland, for the federal charges of conspiracy to commit wire fraud, wire fraud, mail fraud, money laundering, illegal monetary transactions and tax evasion, related to a $13 million scheme to defraud their employer. The indictment was returned on September 1, 2021, and unsealed today upon the arrest of the defendants. Elliott Kleiman has an initial appearance scheduled today at 3:45 pm, in U.S. District Court in Baltimore before U.S. Magistrate Judge Copperthite. Eugene DiNoto’s initial appearance in the Middle District of Florida where he was arrested has not yet been scheduled.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the 22-count indictment, Company A was a global business headquartered in New York that formulated and produced oils and extracts used in the food industry. Its affiliate, Company B, produced flavoring ingredients and seasonings for the food industry. Company A and Company B (the “Companies”) had manufacturing facilities in Belcamp and Abingdon, Maryland. To ship their products, the companies used large plastic, metal, or fiber drums, which they purchased from vendors located in various states. Kleinman was employed as the facility manager for the Companies until approximately 2012, when DiNoto took over his position, remaining in that position until approximately January 2020. As facility managers, Kleinman and DiNoto arranged and negotiated the prepurchase, transportation and storage of the drums needed to ship the Companies’ products from Business A and its affiliate, Business B, (the “drum vendors”), located in Carlstadt, New Jersey, then reviewed and authorized the payment of drum invoices submitted by drum suppliers doing business with the Companies. Once approved, the drum invoices were sent to the accounting department at the Companies’ headquarters to pay. Kleinman continued to maintain a relationship with the drum vendors after leaving his employment with the Companies.
The indictment alleges that from January 2015 until about January 2020, Kleinman and DiNoto, devised and executed a scheme to defraud the Companies, without the Companies’ knowledge or consent, by making a secret arrangement with the drum vendors to receive kickbacks for intentionally overlooking inflated charges that the drum vendors included on invoices submitted to the Companies. Specifically, the defendants approved the drum vendors’ false and inflated purchase invoices and submitted those fraudulent invoices to the Companies for payment. In exchange, the drum vendors paid the defendants approximately 50 percent of the inflated invoice amounts, which DiNoto and Kleinman split approximately 75/25, respectively.
For example, the indictment alleges that when asked by Company representatives to review the accuracy of the drum vendor invoices, DiNoto intentionally ignored false and inflated charges for tens of thousands of drums that the vendors never sent to the Companies, certified the accuracy of the invoices, and authorized their payment, submitting them to the Companies’ accounting department in New York for payment.
To conceal the nature and purpose of the payments from the drum vendors, DiNoto and Kleinman had the drum vendors issue checks payable to businesses that they established, with the notation “drums” written on the front. DiNoto registered the tradename “Sandpiper Enterprises” in the state of Maryland and opened and maintained a commercial bank account in that name. The address of record for Sandpiper Enterprises was DiNoto’s residence. Kleinman was the owner and sole shareholder of EDK Management Ltd. (EDK). EDK’s business address was the same as Kleinman’s residence. Kleinman opened two commercial bank accounts for EDK, one in the name “EDK Management Ltd” and the other in the name “EDK Management Ltd t/a Main Street Cigars. Main Street Cigars was a retail store located in Bel Air, Maryland.
As detailed in the indictment, the drum vendors sent checks to the defendants’ residences using a commercial interstate mail carrier. The indictment alleges that DiNoto then deposited the checks into the Sandpiper bank account, then transferred all or part of the funds into personal bank accounts, eventually withdrawing the funds as cash or spending them on personal expenses. Kleinman allegedly deposited the drum vendor checks into EDK’s business account, where it was withdrawn as cash, spent on personal expenses, or transferred to the EDK/Main Street Cigars account.
For example, the indictment alleges that on February 19, 2019, Kleinman transferred $7,500, which were proceeds from mail fraud, from the EDK commercial bank account to the EDK/Main Street Cigars account, in order to disguise the nature, source, ownership, and control of the illegal proceeds. In addition, the indictment alleges that DiNoto illegally transferred $26,000 derived from wire fraud from the Sandpiper account to other accounts he controlled.
Finally, the indictment alleges that for the 2017 through 2019 tax years the defendants underreported their taxable income on their Individual Income Tax Return, Form 1040, resulting in thousands of dollars in taxes due and owing. For example, for tax year 2017 DiNoto and Kleinman allegedly reported that their taxable income for the year was $3,153 and $58,365, respectively. According to the indictment, in fact, DiNoto’s taxable income in 2017 was $1,214,557, with tax owing of approximately $430,395, and Kleinman’s taxable income was $421,829, with tax owing of approximately $106,623.
If the defendants are convicted, the indictment seeks the forfeiture of a money judgment in the amount of $13,000,000; a 2016 BMW 6 Series coupe; a recreational vehicle; a bank account; and Kleinman’s residence, as property involved in the offenses of conviction or traceable to the criminal activity.
If convicted, the defendants face a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud; a maximum sentence of 20 years in federal prison or each of five counts of wire fraud; a maximum of 20 years in federal prison for each of six counts of mail fraud; and a maximum of five years in federal prison for each of three counts charging each defendant with tax evasion. Kleinman faces a maximum of 20 years in federal prison for money laundering. DiNoto also faces a maximum of 10 years in federal prison for each of three counts of engaging in an illegal monetary transaction. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and IRS – CI for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Dark Web Child Pornography Facilitator Sentenced to 27 Years in Federal Prison for Conspiracy to Advertise Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Eric Eoin Marques, age 36, of Dublin, Ireland, to 27 years in federal prison, followed lifetime supervised release, for conspiracy to advertise child pornography on the dark web. Marques, a dual national citizen of the United States and Ireland, pleaded guilty to that charge on February 6, 2020, after he was extradited by Irish authorities. Marques arrived in the United States on March 23, 2019, to face federal criminal charges filed in Maryland on August 8, 2013.
According to his plea agreement, between July 24, 2008 and July 29, 2013, Marques conspired to advertise child pornography by operating a free, anonymous web hosting service (AHS) located on the “dark web”, an area of the Internet that is only accessible by means of special software, allowing users and website operators to remain anonymous or untraceable. The defendant’s hosting service hosted websites that allowed users to view and share images documenting the sexual abuse of children, including the abuse of prepubescent minors, violent sexual abuse, and bestiality. The investigation revealed that the hosting service contained over 200 child exploitation websites that housed millions of images of child exploitation material. Over 1.97 million of these images and/or videos involved victims that were not previously known by law enforcement. Many of these images involved sadistic abuse of infants and toddlers to include bondage, bestiality and humiliation to include urination, defecation and vomit.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; and Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division.
“Eric Marques was one of the largest facilitators of child pornography in the world,” said Acting United States Attorney for the District of Maryland Jonathan F. Lenzner. “This is an egregious case where one individual facilitated the abuse of more than a million new child victims and attempted to keep the abuse hidden on the dark web. We are grateful to our law enforcement partners here and abroad for helping us to bring Eric Marques to justice. We will continue to do everything we can to find and prosecute those who use the anonymity of the Internet to perpetuate the cruel and heartless business of the sexual abuse of children for personal gain, in order to keep our children safe.”
“The defendant’s web service anonymously hosted hundreds of insidious criminal communities dedicated to the sexual exploitation of children, which openly and notoriously spread millions of images of child sexual abuse across the globe,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This complex, global investigation, lengthy and successful extradition, and substantial jail sentence are proof of the Department’s steadfast and unwavering commitment to identifying and bringing to justice criminals who hide behind anonymous networks to abuse and exploit the world’s children.”
“Today’s sentencing of Eric Marques sends a clear message to perpetrators of this egregious crime that no matter where you are in the world, law enforcement will hold you accountable and bring you to justice,” said FBI Assistant Director Calvin Shivers. “The FBI combats crimes against children and stands up for vulnerable children across the globe.”
During 2012 and 2013, FBI special agents and employees using computers in Maryland downloaded more than one million files from that website. As part of the investigation, those files were reviewed and nearly all of the files depict children who are engaging in sexually explicit conduct with adults or other children, posed nude and/or in such a manner as to expose their genitals, in various state of undress, or depict child erotica. A substantial majority of the images downloaded by the FBI depict prepubescent minor children who are fully or partially nude or engaged in sexually explicit conduct.
Marques admitted in his guilty plea that this offense also involved the distribution of child pornography, which involved minors who were less than twelve years old, to include infants and toddlers, and sadistic or masochistic material or depictions of violence. Marques further admits that he willfully obstructed or impeded the administration of justice with respect to the investigation into this offense.
The Marques prosecution was a part of a path-marking global investigation that targeted thousands of users of more than 200 websites operating on the Tor network and dedicated to the trade of child pornography. The Criminal Division’s Child Exploitation and Obscenity Section (CEOS), FBI, and Europol conceived of and executed a globally coordinated criminal investigation of then-unparalleled scope, which pooled resources of over a dozen countries who deployed over 70 law enforcement agents to Europol, which served as the hub for operational support, facilities and information sharing. Through this investigation, more than 200 child sexual exploitation websites were taken offline (along with hundreds of other sites sponsoring or facilitating criminal activity); the activities of tens of thousands of online child pornographers were disrupted; over four million images and videos of child sexual abuse were seized (including more than 100 previously unknown series of child abuse images and new images from more than 50 existing series); and dozens of offenders were identified and prosecuted throughout the world.
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 Jonathan F. Lenzner and Assistant Attorney General Kenneth A. Polite, Jr. commended the FBI’s Violent Crime Section, Child Exploitation Operational Unit and Violent Crimes Against Children International Task Force with significant assistance from the Legal Attaché London Office, Irish law enforcement authorities, An Garda Síochána and EUROPOL. The Department of Justice’s Office of International Affairs provided significant assistance in bringing Marques to the United States and procuring foreign evidence during the investigation.
Mr. Lenzner and Mr. Polite thanked Assistant U.S. Attorney Thomas M. Sullivan, and Deputy Chief Keith A. Becker and Trial Attorney Ralph Paradiso of the Justice Department’s Criminal Division’s Child Exploitation and Obscenity Section, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Penn North Fentanyl Dealer Sentenced to Nine Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Jerold Gilliam, age 40, of Baltimore, Maryland to nine years in federal prison, followed by three years of supervised release, for conspiracy to distribute a substance containing fentanyl and possession with the intent to distribute a substance containing fentanyl.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office.
“The defendant was dealing the deadly narcotic fentanyl in the Penn North area of Baltimore, which is a neighborhood that our Strike Force has prioritized in its enforcement efforts,” said Acting United States Attorney Jonathan F. Lenzner. “Jerold Gilliam was a narcotics trafficker who polluted our communities with deadly narcotics, and as a result he will spend nearly a decade in federal prison.”
According to his plea agreement, in July 2019, investigators from Drug Enforcement Administration’s Strike Force Group 1 initiated an investigation into the area surrounding the intersection of Pennsylvania and North avenues in Baltimore City.
Over the course of the investigation, investigators intercepted electronic and wire communications involving Gilliam and drug trafficking activities including the supply, cost, and proceeds of drug transactions. Visual surveillance corroborated calls between co-conspirators including Gilliam retrieving packages and engaging in hand-to-hand narcotics retail sales. On some occasions, Gilliam met other co-conspirators to provide narcotics for co-conspirators to sell to customers. As a result of the investigation, investigators identified Gilliam as an associate of the Bullseye Drug Trafficking Organization (DTO).
Between July 2019 and October 2019, investigators conducted controlled purchases from co-conspirators who had discussed drug trafficking with Gilliam. Chemical analysis of these purchases identified the presence of fentanyl.
As stated in his plea agreement, investigators executed a search warrant on November 21, 2019 for Gillam’s person. Law enforcement recovered 50 gelatin capsules containing approximately 18 grams of fentanyl.
In addition, law enforcement executed a search warrant at various locations associated with the Bullseye DTO and suspected residences acting as narcotics and packing and storage locations. As a result of two executed search and seizure warrants, law enforcement recovered a total of 138 grams of a fentanyl and quinine mixture, 19 grams of fentanyl, a bag containing 268 grams of a fentanyl and acetylfentanyl mixture, cutting agents used in preparing controlled substances, paraphernalia, and packaging materials for drug distribution.
Throughout the course of his involvement, Gilliam agrees that it is reasonably foreseeable that he or other members of the conspiracy distributed at least 400 grams of a mixture containing fentanyl during the conspiracy.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
Acting United States Attorney Jonathan F. Lenzner praised the DEA their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Charles Austin, who prosecuted the case.
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Money Launderer and Wholesale Supplier of Narcotics to East Baltimore Monument Street Drug Trafficking Organization Sentenced to 10 Years in Federal Prison and Ordered to Forfeit $472,000Read the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Anton Williams, age 43, of Baltimore, to 10 years in federal prison, followed by four years of supervised release for conspiracy to distribute five kilograms or more of cocaine in the Monument Street area of East Baltimore; possession with intent to distribute fentanyl; and for money laundering. Judge Hollander also ordered Williams to forfeit $472,000, a .38-caliber revolver and eight rounds of .38-caliber ammunition. The sentence was imposed on September 10, 2021.
Judge Hollander also sentenced co-defendant Wardell Roundheart, age 44, of Baltimore, to 68 months in federal prison, followed by four years of supervised release, for conspiracy to distribute cocaine and for possession with intent to distribute a fentanyl and cocaine mixture.
The sentences were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA), Baltimore District Office; Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“This Monument Street case in East Baltimore is the kind of impactful investigation that federal, state and local partners can build through collaboration and a dedicated commitment to improving our communities,” said Acting United States Attorney Jonathan Lenzner. “Getting wholesale narcotics dealers like Anton Williams off the streets is an important component of our efforts to address the violence associated with drug dealing. The illicit funds and real estate that law enforcement seized in this investigation reflect our commitment to disrupting drug organizations by going after the proceeds of their trade.”
"We are proud to be partners in these vital investigations which remove criminal elements involving drugs and violence from the streets. IRS-CI will continue to lend our financial expertise in these cases,” said Darrell J. Waldon, IRS-CI Acting Special Agent in Charge.
According to Williams’ and Roundheart’s guilty pleas, in July of 2018, DEA Strike Force Group 1—part of the Baltimore OCDETF Strike Force—began an investigation of the Monument Street corridor in East Baltimore, which is known to support a high volume of street-level drug distribution and acts of violence associated with the drug trafficking. During the investigation, law enforcement identified multiple street-level drug trafficking “shops,” with the two most prominent located in the 400 block of North Montford Avenue at Jefferson Street (“the Montford DTO”) and in the 2400 block of East Monument Street at Port Street (the “Out the Mud,” or “OTM DTO”). Investigators conducted controlled purchases of narcotics from drug distributors in the shops, including Roundheart, utilizing confidential informants and undercover Baltimore Police Department (“BPD”) officers. These undercover purchases also identified the drugs shops’ sources of supply of narcotics, including Anton Williams.
As detailed in their plea agreements, investigators intercepted calls between Williams and co-conspirators and Roundheart and other members of the conspiracy discussing the distribution of controlled substances including cocaine, heroin and fentanyl. On February 19, 2019, Roundheart distributed a tramadol/fentanyl mixture to an undercover detective who believed he was purchasing heroin. On February 22, 2019, Roundheart directed another undercover detective to an individual to purchase of four clear top vials of cocaine and 10 gelatin capsules of what the detective thought was heroin, but was a tramadol/fentanyl mixture.
The total proceeds obtained by Williams from supplying controlled substances to co-conspirators was at least $472,000. Investigators discovered that Williams had acquired multiple properties, including Rosie’s Bar, located at 482 S. Bentalou Street, Baltimore, where Williams met with co-conspirators. Williams used limited liability companies (“LLC”), associates, or family members to purchase the properties to conceal the ownership of the properties, as well as to conceal the source of funds used to purchase the properties. Investigators intercepted calls between Williams and a lender discussing the payment for Rosie’s Bar. Based on the intercepted conversations, investigators believe Williams purchased the bar with drug trafficking proceeds. Additionally, Williams and his co-conspirators used this location to meet with drug customers for the purposes of collecting money and providing controlled substances to them. Investigators also identified seven other properties in Baltimore that Williams either owned or leased.
Investigators recovered a total of $363,233 from various bank accounts associated with Williams, all of which is believed to be drug proceeds. Since Williams is not known to have a job, all of the properties are believed to be purchased with drug proceeds.
On May 22, 2019, law enforcement executed a search warrant at Williams’ residence and recovered: a firearm; a money counter; 10 cell phones, including two phones intercepted during court ordered wiretaps; and $206,444 in cash, believed to be drug proceeds. Search warrants were also executed on two vehicles used by Williams. Investigators recovered multiple bags of suspected cocaine and heroin, as well as 76 grams of fentanyl.
Throughout the course of their involvement, it was reasonably foreseeable to Williams and Roundheart, and within the scope of the conspiracy that Williams or other members of the conspiracy would distribute more than 5 kilograms of cocaine and that Roundheart or other members of the conspiracy would distribute between 500 grams and two kilograms of cocaine, as well as quantities of crack cocaine, heroin and fentanyl during the course of and in furtherance of the conspiracy.
Of the 25 defendants indicted in this case, 24—including Williams and Roundheart—have pleaded guilty or been found guilty at trial. Over the course of the Monument Street investigation, law enforcement seized kilo quantities of drugs, loaded guns, and more than $535,781 in drug proceeds.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, IRS-CI, and the Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys LaRai Everett and James T. Wallner, 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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Captain Phip’s Seafood Pleads Guilty to Visa Fraud Resulting in Foreign Workers Being Paid Lower Wages Than Those to Which They Were EntitledRead the Press Release
Baltimore, Maryland – Phillip J. “Jamie” Harrington III, age 50, of Dorchester, Maryland, and his company, Capt. Phip’s Seafood Inc. pleaded guilty today to unlawful employment of undocumented workers and to visa fraud, respectively, related to the employment of temporary workers employed at Harrington companies.
The guilty pleas were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Andrew Wroblewski of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service (DSS); and Special Agent in Charge Derek Pickle, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General (DOL-OIG).
“Over a five-year period, Capt. Phips Seafood and its owners engaged in a calculated pattern of visa fraud that not only deceived the government but also resulted in lower wages to their employees,” said Acting U.S. Attorney Jonathan Lenzner. “Rather than play by the rules that other businesses follow, the defendants manipulated the H2-B visa program for the sole purpose of increasing their profits at the expense of their employees and the fair market.”
Philip J. Harrington, Jr. was Capt. Phip’s owner, President, and sole Director until his death on February 13, 2018. Since March 6, 2019, Capt. Phip’s has been owned and operated by Philip Harrington’s, son, Jamie Harrington. The primary business of Capt. Phip’s is the production and distribution of ice as well as the processing of seafood. For more than a decade, Capt. Phip’s has participated in the H-2B work visa program through which it has obtained temporary foreign workers to fill seasonal positions.
According to the company’s guilty plea, from 2013 through 2018, Captain Phip’s Seafood Inc. routinely sought prevailing wage determinations for multiple job descriptions, and then filed petitions for H-2B visas for only the jobs with the lowest prevailing wage, regardless of the actual work duties of the employees. The H-2B Visa Program is a temporary non-agricultural worker program in which an employer may seek temporary authorization for foreign workers to legally enter and work in the U.S. To obtain an H-2B Visa, the U.S. Department of Labor (DOL) must ensure the positions have been advertised to U.S.-based workers and assign the appropriate wage to be paid (“prevailing wage”) based on the job description.
As stated in the plea agreement, Captain Phip’s willfully submitted false and inaccurate job descriptions to obtain lower prevailing wages for its foreign workers. Capt. Phip’s omissions about the full scope of the job duties to be performed by its temporary foreign workers resulted in the DOL approving Capt. Phip’s to pay lower prevailing wage than it would have been authorized if Capt. Phip’s had provided truthful information.
For example, in 2016, Capt. Phip’s requested and received prevailing wage determinations for three position: ice conveyor operators with a prevailing wage of $12.51; oyster production workers with a prevailing wage of $16.96; and ice machine operators (ice production workers) with a prevailing wage of $11.10. Capt. Phip’s then filed a petition for ice production workers with the U.S. Citizenship and Immigration Services (USCIS). The petition was approved and the Department of State (DOS) issued 24 H-2B visas to non-immigrant Mexican nationals authorizing them to work for Capt. Phip’s as ice production workers in the United States. Once the Mexican ice production workers entered the United States, Capt. Phip’s used these workers for jobs beyond ice production, including for oyster processing, as maintenance workers, truck drivers and drivers’ assistants. Capt. Phip’s admits that it intentionally and falsely claimed that the foreign workers would only be engaged in ice production in order to pay them the lower prevailing wage. Had Capt. Phip’s truthfully filed for H-2B visas for many of these duties, these employees would have been entitled to a higher wage.
As stated in the company’s plea agreement, on August 31, 2017, a USCIS officer and government agents conducted a site visit at Capt. Phip’s location in Secretary, Maryland. At that time, Capt. Phip’s H-2B workers were authorized only to engage in oyster production work. During the site visit, three H-2B visa beneficiaries were interviewed through an interpreter and indicated that their current duties involved ice packing duties rather than oyster production work.
A USCIS officer and agents also interviewed Phillip Harrington, Jr., who signed all the H2-B visa petitions for Capt. Phip’s and his son, Jamie Harrington, who identified himself as the Vice President of Capt. Phip’s, responsible for “running the business,” to include the buying and selling of product, managing the levels of product, and hiring and/or firing. Jamie Harrington admitted that all of Capt. Phip’s H-2B workers were packing ice, and none of them were currently processing any oysters. The workers’ H-2B visas for 2017 only permitted them to work in oyster processing. Jamie Harrington admitted that Capt. Phip’s visa petitions should have been for workers for both ice and oyster processing.
During the August 31, 2017 interview, Jaime Harrington stated that he was also the President of Easton Ice Company, Inc. (“Easton Ice”). The principal office for Easton Ice is the same physical address as Capt. Phip’s premises in Secretary, Maryland. A subsequent interview of a recipient of multiple H-2B visas filed by Capt. Phip’s including in 2017, when the H-2B workers were only authorized for oyster processing, revealed that their duties that season were to drive a truck and deliver ice. In September 2017, an agent observed this person driving a truck bearing the name “Easton Ice.” The agent also saw another Capt. Phip’s H-2B recipient delivering ice and riding in the truck. Easton Ice did not apply for H-2B visas in 2017, and workers with H-2B visas obtained through Capt. Phips were not authorized to work for Easton Ice Company. Nevertheless, Jamie Harrington admitted that Capt. Phip’s H-2B visa recipients were routinely directed to perform work for Easton Ice and other businesses controlled by Philip and Jamie Harrington.
On August 9, 2018, government agents interviewed Jamie Harrington at Capt. Phip’s premises in Secretary, Maryland. Jamie Harrington admitted that the company was not in compliance with the requirements of the H-2B visa program and that some of Capt. Phip’s H-2B workers were driving trucks or performing other duties outside the scope of their visas, including performing work for other companies controlled by Philip and Jamie Harrington, including Easton Ice, Woodfield Ice Company, Inc. (“Woodfield Ice”), as well as two Ocean City, Maryland, motels owned by members of the Harrington family. Agents pointed out to Jamie Harrington that if the H-2B applications had been truthful about the location and job duties for workers at Woodfield Ice the prevailing wage would have been much higher because that business is in the Washington, D.C. metro area.
Between approximately 2013 and 2018, Capt. Phip’s filed petitions for H-2B visas for approximately 142, nonimmigrant workers. Capt. Phip’s officers involved in the H-2B process were aware that the nonimmigrant workers were intended to be employed to engage in work beyond the job descriptions authorized by the workers’ visas. Capt. Phip’s realized unlawful benefits through the use of fraudulently low prevailing wages between April 2013 to December 2018, although the exact amount cannot be determined. Capt. Phip’s has not participated in the H-2B visa program since at least January 2019.
Jamie Harrington is also the owner and operator of multiple other businesses involved the production and distribution of ice as well as processing of seafood, rental machinery, housing development, oyster farming, and other ventures including: Easton Ice; Woodfield Ice; PJH Oyster; Two Sons R.S., LLC; Philson Properties, LLC; Two Sons C.P. LLC; P&N Farms; Atlantic Rental, LLC; DMS Hurlock, LLC; The Preserve at Wright’s Wharf Homeowners Association; and Super Transporter, LLC. (together with Capt. Phip’s, the “Harrington Companies.”
Harrington admitted in his plea agreement that, beginning in 2013 and continuing through at least August 9, 2018, he engaged in a pattern and practice of hiring and employing workers without lawful immigration status at the Harrington Companies. Most of the unauthorized workers were Mexican citizens and nationals. Some of the undocumented workers Jamie Harrington hired and employed entered the United States lawfully and overstayed their visas, others never had lawful status to be present in the United States. Analysis of payroll and other records shows that approximately 89 undocumented workers were employed by the Harrington Companies between 2013 and 2018. Harrington continued to employ several of the workers even after he knew they had been placed into removal proceedings by immigration officials because they did not have lawful status to be present or working in the United States.
Jamie Harrington faces a maximum sentence of six months in federal prison and a $267,000 fine for the unlawful employment of undocumented workers. Captain Phip’s Seafood faces a maximum sentence of five years’ probation and a $500,000 fine for the unlawful employment of undocumented workers. U.S. District Judge Ellen L. Hollander has scheduled sentencing for both on November 23, 2021 at 10:00 a.m.
Acting United States Attorney Jonathan F. Lenzner commended HSI, DSS, and DOL-OIG for their work in the investigation and thanked the Baltimore District Office of the U.S. Department of Labor’s Wage and Hour Division for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Zachary A. Myers and Judson T. Mihok, who are prosecuting the case.
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Suitland Felon Sentenced to Three Years in Federal Prison for Illegal Possession of a Loaded FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Avante Daquan Lee, age 28, of Suitland, Maryland, today to three years in prison, followed by three years of supervised release, for being a felon in possession of a firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to Lee’s guilty plea, on March 15, 2020, a Prince George’s County police officer observed Lee in a Temple Hills, Maryland parking lot attempting to restart a dirt bike that did not have a license plate, as required. The uniformed police officer pulled his unmarked vehicle in front of Lee, who then dropped the dirt bike and fled into a wooded area followed by the police officer, who gave Lee several verbal commands to stop.
During the chase, Lee threw a 9x19mm-caliber semi-automatic pistol into underbrush near a chain link fence. Lee stopped running when he reached the chain link fence and began to reach into his waistband. Believing that Lee was attempting to retrieve a weapon, the police officer who was pursuing Lee advised Lee that he was under arrest and ordered him to the ground.
Prince George’s County police officers who arrived on the scene during the chase saw an object fly through the air and land in the underbrush near where Lee was running. They searched the area where the object landed and recovered the pistol, which was loaded with 10 cartridges. The frame of the firearm was orange and the slide was silver. Further investigation revealed the gun had been stolen on April 25, 2016.
Lee was searched incident to his arrest and officers discovered a .40-caliber semi-automatic pistol in Lee’s left pant leg. The firearm was loaded with 10 cartridges and an additional cartridge chambered in the barrel. Two additional magazines—one loaded with 10 cartridges and the other loaded with seven cartridges—were recovered from Lee’s right front pocket.
Lee’s cellphone was also recovered from his right front pants pocket. Law enforcement subsequently obtained a search warrant for Lee’s cellphone and discovered numerous pictures and videos of Lee with firearms, including the stolen handgun Lee threw prior to his arrest, and the pistol recovered from Lee’s left pant leg when he was arrested.
Lee knew that he was prohibited from possessing firearms or ammunition as a result of two previous felony convictions in the Circuit Court for Prince George’s County—a 2011 conviction for robbery with a dangerous weapon and a 2017 conviction for firearm possession.
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.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Jessica Harvey and Assistant U.S. Attorney Kelly O. Hayes, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Statement Regarding the Death of Caroline County Circuit Judge Jonathan NewellRead the Press Release
Baltimore, Maryland – Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Dorchester County State’s Attorney William H. Jones and Caroline County State’s Attorney Joe Riley provided the following statement regarding the death of Jonathan Newell:
This morning agents with the Federal Bureau of Investigation went to the residence of Jonathan Newell, age 50, of Henderson, Maryland, to arrest him on a federal criminal complaint filed on September 9, 2021. Upon entering the residence the agents found Newell suffering from an apparent self-inflicted gunshot wound. He was pronounced dead at 6:43 a.m. Maryland State Police will lead the investigation into the apparent suicide.
The criminal complaint has been unsealed and is publicly available, Case No. 1:21-mj-02533-JMC.
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 you or someone you know would like assistance obtaining counseling regarding this matter, please contact the FBI Baltimore Field Office at (410) 265-8080.
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Owner of Maryland Company Providing Prosthetics and Orthotics Materials to Walter Reed National Military Medical Center Sentenced to Federal Prison for Paying GratuitiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Bruce Thomas, age 53, of Germantown Maryland, yesterday to eight months in federal prison, followed by one year of supervised release, with four months of that to be served in home confinement, for paying gratuities to a public official in exchange for official acts. Judge Chuang also ordered Thomas to pay a fine of $50,0000 and forfeit and pay restitution in the amount of $27,890.62. Thomas is the owner and operator of Pinnacle Orthopedic Services, Inc., also located in Germantown.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, from at least 2012 to 2019, Pinnacle provided prosthetics and orthotics materials to the Prosthetics and Orthotics Department at Walter Reed National Military Medical Center (Walter Reed), the largest joint military medical center in the United States, in return for payments from the government. Walter Reed provides health services to military families and individuals serving on active duty, individuals returning from war, veterans, and elected officials. The Walter Reed Prosthetics and Orthotics Department provided a full range of prosthetic and orthotic services, including state of the art prosthetic limbs, and nationwide support of wounded warriors. From about 2011 to 2017, Thomas and Pinnacle received more than $20 million in payments from the Prosthetics and Orthotics Department at Walter Reed for prosthetics and orthotics materials.
From about 2009 until May 2019, David Laufer (Laufer) was a public official and civilian employee of the Department of Defense, working as the Chief of the Prosthetics and Orthotics Department at Walter Reed. As such, Laufer represented Walter Reed in ordering and purchasing prosthetics and orthotics materials, including purchases made from Thomas and Pinnacle.
Thomas admitted that from about 2012 to 2017, he gave and promised things of value to Laufer for, and because of, official acts performed by Laufer. Specifically, Thomas provided Laufer with cash, airlines flights, meals, entertainment, and other benefits because of Laufer’s official acts as the Chief of the Walter Reed Prosthetics and Orthotics Department, and Laufer’s official acts in connection with the purchase of prosthetics and orthotics materials from Pinnacle.
As detailed in the plea agreement, from 2010 until May 2019, the Walter Reed Prosthetics and Orthotics department used Blanket Purchase Agreements (BPAs) to order and purchase prosthetics and orthotics materials. This allowed the department to obligate funds to purchase materials so that employees could order materials without charging a credit card each time or engaging in a formal contract for each purchase of materials. Thomas regularly interacted with Laufer about Pinnacle’s business with Walter Reed, including the award of BPAs, future BPA funding, orders charged against the BPAs, and fulfillment of orders. Pinnacle was awarded multiple BPAs by Walter Reed, which the Prosthetics and Orthotics department used to order and purchase prosthetics and orthotics materials from Pinnacle.
Thomas admitted that between 2012 and 2016, he provided Laufer with things of value, including cash gratuities on a regular basis, totaling at least $20,000; food, drinks, and other financial benefits; airline travel; lodging benefits; and entertainment tickets. In exchange, Laufer undertook official acts in connection with the gratuities including sending multiple purchase requests obligating at least $14.75 million to Pinnacle for prosthetics and orthotics materials and personally ordering and causing to be ordered prosthetics and orthotics material from Pinnacle.
Laufer also restricted the availability of BPAs to some of the manufacturers and distributors from whom Pinnacle purchased products, thereby inhibiting those companies from doing business directly with Walter Reed, and actively encouraged and directed those companies to sell to Walter Reed through Pinnacle. As detailed in Laufer’s plea agreement, Laufer knew that having the other companies sell to Walter Reed through Pinnacle would result in a higher price to the government.
On October 20, 2020, David Laufer, age 63, of Pittsburgh, Pennsylvania, formerly of Bethesda, Maryland, pleaded guilty to acceptance of gratuities by a public official, and faces a maximum of two years in federal prison. He is awaiting sentencing.
Acting United States Attorney Jonathan F. Lenzner commended the Department of Defense Office of Inspector General, Defense Criminal Investigative Service; HHS OIG; and the FBI for their work in the investigation. Mr. Lenzner thanked the Department of Veterans Affairs Office of Inspector General; the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit; the Office of Personnel Management Office of Inspector General; DOD Cyber Crimes Center Defense Cyber Forensics Laboratory; and the Defense Contract Audit Agency for their assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Harry M. Gruber and Dana J. Brusca, who are prosecuting the case.
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Former Eastern Shore Resident Sentenced to More Than Five Years in Federal Prison for Conspiring to Sell More Than $3.5 Million in Stolen Goods and for Tax FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Saurabh Chawla, age 36, of Aurora, Colorado, to 66 months in federal prison, followed by three years of supervised release on federal charges of conspiracy, interstate transportation of stolen goods, and tax evasion. Judge Blake ordered Chawla to pay restitution to the Internal Revenue Service in the amount of $713,619, and signed an order of forfeiture requiring Chawla to forfeit a 2013 Tesla Model S and $2,308,062.61 from accounts held in his name and the sale of property in Aurora, Colorado.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore.
According to his guilty plea and other court documents, from 2009 through 2019, Chawla purchased over $3.5 million of stolen goods from individuals with “insider” access to the goods and merchandise, such that they could steal the items and sell them to Chawla without detection. Chawla initially sold goods and merchandise on eBay through the eBay stores thecheetahexpress, eurotronics_4_less, and eurotronics-4-less; the latter two were associated with Chawla’s relatives. On about April 27, 2014, eBay suspended the thecheetahexpress and eurotronics_4_less stores from operating on eBay because “recent account activity has raised serious security concerns.”
“Saurabh Chawla coordinated a $3.5 million scheme - purchasing items from co-conspirators that he knew had been stolen, including electronics that were intended to help underprivileged New Mexico school children, and selling them for his personal gain,” said Acting United States Attorney Jonathan F. Lenzner. “To add insult to injury, Chawla underreported his income on his tax returns and aided the tax evasion of a relative, causing a tax loss totaling more than $700,000 to the U.S. government. These are not victimless crimes. This criminal behavior cheats all the honest businesses and taxpayers who play by the rules. Hopefully, this sentence sends the message that we will continue to coordinate with our law enforcement partners to bring these criminals to justice.”
“This prosecution showcases what law enforcement agencies are capable of achieving when we work together. Criminals and those who refuse to obey the laws don’t stand a chance against a unified team of dedicated officers and agents working toward a common goal,” said Special Agent in Charge for HSI Baltimore Field Office James Mancuso. “HSI will continue to partner with our law enforcement friends to keep our communities safe and pursue justice for victims of these crimes.”
“When criminals like Chawla traffic stolen goods and willfully underreport their income to evade taxes, we all lose,” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington D.C. Field Office. “Taxes pay for services, and criminal schemes like this one undermine the integrity of our nation’s tax system. We will continue to collaborate with our investigative partners to stop these divisive schemes and fulfill our mission to ensure the integrity and fairness of our tax system.”
Shortly thereafter, and continuing until law enforcement executed search warrants in 2019, Chawla convinced James Bender, who was a good friend from college, to allow him to sell goods and merchandise online through eBay accounts Bender controlled in exchange for Chawla paying Bender a commission. Bender controlled and operated multiple online eBay and Amazon accounts, including “HiddenGemFurniture” (“HGF”), which was registered to Person A, “EddiesAffordableGear” (“EAG”) and “AffordableGoodies4You” (“AG”). Bender used, operated and controlled a PayPal account ending in 4211 (“PayPal 4211”), which was linked to HGF, EAG, and AG. Over time, Chawla offered and sold a large amount of stolen goods and merchandise for sale through HGF, other eBay stores, and other online marketplaces. At one point, Chawla had 400 active listings for goods and products on eBay.
As detailed in plea agreements, Chawla purchased Apple products from Kristy Stock from 2012 to 2018. Stock was a New Mexico public school employee responsible for overseeing a program to provide Apple iPods to school children with the intent to benefit underprivileged Native American children in New Mexico. Stock stole more than 3,000 iPods purchased by the school district and sold them to Chawla. Chawla initially purchased the iPods from Stock on eBay, and they later dealt directly with each other, in emails, texts, and phone calls. Stock repeatedly advised Chawla of the items she had obtained, providing details such as the model, color and number of Apple products available. Chawla and Stock then negotiated a price, and Stock shipped the items to Chawla’s relative on the Eastern Shore in Maryland. Chawla paid Stock through PayPal. Stock admitted that she received more than $800,000 in illegal proceeds from selling stolen iPods worth more than $1 million. In 2019, Chawla purchased Apple products that he believed had been stolen by a different person working at another school district in New Mexico, including 25 iPads for $5,000 in May 2019. After his relative received the stolen goods, Chawla listed them for sale online through eBay at a substantial markup.
According to plea agreements, from 2009 through 2019 Chawla also purchased large quantities of goods from former FedEx employee Joseph Kukta, who obtained most of the items he sold to Chawla from bulk purchases shipped via FedEx and intended for delivery to FedEx customers, including a Walmart Distribution Center in Smyrna, Delaware. Kukta was able to steal the goods in such a way that FedEx never detected the crime, and Kukta then delivered the stolen goods and merchandise to Chawla’s relative in Maryland. Kukta sent Chawla “weekly lists of available goods and merchandise,” and Chawla typically paid 50% of the retail price for the goods and merchandise Kukta had stolen. As with Stock, Chawla sold the goods and merchandise from Kukta to eBay customers at significant markups (often at a 100% price increase). In total, Chawla paid Kukta more than $1.5 million for goods and merchandise that Chawla resold for more than $3 million.
In furtherance of the fraud scheme, Chawla and Bender repeatedly deceived online platforms such as Amazon, eBay, as well as the manufacturers and distributors, as to the source of the goods and merchandise being sold, including the iPods that Stock stole from the New Mexico school district and goods and merchandise that Kukta stole from the Delaware FedEx facility. Chawla and Bender repeatedly crafted deceptions and caused false information to be presented to cover up the true origins of the goods and merchandise offered online. For example, in May 2014, Chawla caused Kukta to create a fake invoice that had false information about the parties involved in the transaction and the price paid per unit purchased. As part of his participation in the fraud scheme, Bender received more than $10,000 per year from the eBay sales of stolen goods and merchandise.
Chawla further admitted in his plea agreement that he filed false tax returns for the tax years 2009 through 2017, falsely inflating the cost of goods sold and expenses for his businesses and underreported his adjusted gross income and tax due. As a result, Chawla agreed that he failed to pay at least $640,000 in additional taxes due for tax years 2009 to 2017.
From 2009 to 2017, Chawla also knowingly aided and abetted the tax evasion crimes of his relative and Chawla is therefore responsible for the tax losses stemming from his relative’s tax evasion. This mainly involved the underreporting of the relative’s $60,000 per year of wages from Cheetah Express, resulting in a tax loss of more than $70,000.
In total, Chawla caused a tax loss of more than $700,000 to the United States relating to the income of Chawla and his relative.
Co-conspirators Kristy Stock, age 46, of Waterflow, New Mexico, James Edward Bender, age 36, of Baltimore, Maryland and Joseph Kukta, age 45, of Laurel, Delaware, have pleaded guilty to their roles in the fraud scheme and are awaiting sentencing.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-Criminal Investigation and HSI for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Harry M. Gruber and Paul A. Riley, who are prosecuting these cases.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Man Sentenced to More Than Nine Years in Federal Prison for Three Armed Robberies Where Victims Were Zip-Tied and One Victim Was Hit in the HeadRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Javaughn Berry, age 26, of Baltimore, Maryland, to 115 months in federal prison, followed by three years of supervised release, for three armed commercial robberies.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation (FBI), Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Chief Amal E. Awad of the Anne Arundel County Police Department.
According to his guilty plea, from October 2019 to December 2019, Berry and a co-conspirator committed three armed commercial robberies—one each in Baltimore City, Anne Arundel County, and Baltimore County. In each robbery, the robbers brandished a firearm and stole a victim’s vehicle to flee the scene. Investigators with the FBI obtained cell phone records which revealed that Berry and his co-conspirator’s phones were in close proximity to each of the victim businesses around the time of the robberies.
As detailed in Berry’s plea agreement, on October 13, 2019, Berry and a co-conspirator robbed a Baltimore pharmacy. After the robbery, Baltimore Police Department officers responded to the scene and spoke to a victim who reported that the two male suspects wore black masks, black gloves, glasses, and yellow reflective vests. Prior to the robbery, both men were picking up trash in the parking lot. When the pharmacy opened at 8:00 a.m., the suspects entered. One suspect pointed a black revolver at a victim employee and demanded access to the safe. The suspects took $1,630 in cash from the safe and tied the victim’s hands with zip ties. They took also took the victim’s keys and fled in the victim’s vehicle.
Berry and his co-conspirator also robbed a retail store in Millersville, Maryland, on November 17, 2019. Victims reported to Anne Arundel County Police officers that two men entered the store as it was closing and demanded money. Both suspects wore masks and had black handguns. The suspects stole $3,200 in cash and zip-tied the employees. One of the suspects struck a victim on the head and pulled her to the ground. The victim sustained a cut to her right ear and was treated by medics on scene. As in the pharmacy robbery, Berry and his co-conspirator fled the scene by stealing an employee’s vehicle.
Finally, Berry admitted that on December 13, 2019, he and his co-conspirator robbed a Parkville, Maryland chain restaurant. On the morning of December 13, 2019, Baltimore County Police Department (“BCPD”) detectives responded to the restaurant and found the shift manager and his co-worker inside. According to the victim employees, around 7:00 a.m., the shift manager and co-worker unlocked the front doors and two male suspects entered the store wearing dark, hooded sweatshirts and masks. Berry’s co-conspirator approached the shift manager, pulled out a revolver, and demanded that he open the safe. Berry’s co-conspirator stole $3,393.37 in cash, then put the shift manager’s wrists and ankles in zip ties. Berry approached the co-worker and put zip ties on his wrists and ankles. As in the previous robberies, Berry and the co-conspirator stole the shift manger’s vehicle and fled the scene, leaving behind the stolen vehicle from the November retail robbery.
On December 14, 2019, a BCPD officer found the vehicle stolen during the restaurant robbery parked a few blocks away from Berry’s residence. BCPD officers placed a GPS device on the vehicle to track its movements. FBI investigators had also gotten a warrant to track the co-conspirator’s phone in real time.
Berry and the co-conspirator were arrested on December 16, 2019, after BCPD tracked the stolen vehicle to the intersection of Joppa Road and Harford Road in Carney, Maryland. The co-conspirator was driving behind the stolen vehicle and was stopped by officers and arrested. Law enforcement obtained a search warrant for the car and found a black replica handgun, several black gloves, black zip ties, and a yellow reflective vest.
Investigators continued following the stolen vehicle, which was being driving by Berry. Berry abandoned the car and fled on foot. Investigators found Berry walking along Harford Road soon afterward. It was dark, cold, and snowing, yet Berry was wearing very little clothing. Given the hour and the weather, Berry was the only person walking in the area. He showed investigators the call log on his phone, which revealed several recent completed and missed calls to the co-conspirator’s number, After waiving his Miranda rights, Berry told officers that he saw the stolen car earlier that morning and wanted to take it for a joy ride.
Berry’s phone was seized. A search warrant executed on the device recovered photos of Berry holding large amounts of cash that were taken on the morning of the first robbery. A search warrant executed on the co-conspirator’s phone recovered a picture of a vehicle similar to the vehicle stolen from the employee in the second robbery. Metadata revealed that the picture first appeared on the co-conspirator’s phone after the robbery.
Berry admitted that he committed the December 13, 2019 robbery of the victim restaurant. Berry also agreed that he took money from the victims, against the victims’ wills, by using actual or threatened force, violence, or fear of injury.
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.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, the Baltimore County Police Department, the Baltimore City Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Brandon K. Moore, 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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Talbot County Cocaine Supplier Sentenced to 10 Years in Federal Prison for Narcotics ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Tavon Dwayne Banks, age 37, of Cambridge, Maryland, to 10 years in federal prison, followed by five years of supervised release, for conspiracy to distribute narcotics and possession with the intent to distribute cocaine and cocaine base.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Talbot County Sheriff Joseph Gamble.
According to his guilty plea, during an investigation that began in September 2019, the Talbot County Narcotics Task Force and Homeland Security identified Banks as a multi-ounce cocaine supplier through hundreds of intercepted telecommunications targeted towards a co-conspirator. Banks distributed narcotics throughout Talbot and Dorchester Counties. For example, on June 25, 2020, Banks and a co-conspirator discussed arranging a meeting with a cocaine supplier. Investigators believe that Banks and his co-conspirator combined funds to purchase five ounces of cocaine to refresh their supply.
On July 16, 2020, investigators observed Banks and a co-conspirator meet with an unknown narcotics supplier at a predetermined location to obtain cocaine. Additionally, investigators also observed Banks visiting an Easton, Maryland stash house and conduct suspected drug transactions.
On July 17, 2020, investigators executed a search warrant at Banks’ residence. As a result of the search warrant, investigators recovered $30,100 located under a couch cushion, 196 grams of cocaine, 18.2 grams of crack cocaine, a digital scale, bags with trace amounts of a white powdery substance, and a cell phone.
A forensic examination of the cell phone revealed messages and photos relating to Banks’ distribution of cocaine, including a photo of Banks cooking crack cocaine.
Acting United States Attorney Jonathan F. Lenzner commended HSI, the Talbot County State’s Attorney’s Office, the Dorchester County State’s Attorney’s Office, and the Talbot County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Kim Y. Oldham, who prosecuted the case.
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Maryland Man Who Threatened Maryland Congressman Sentenced to Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Sidhartha Kumar Mathur, age 35, of West Friendship, Maryland to two years’ probation including eight weekends in the federal bureau of prisons and six months of home detention with electronic monitoring for making false statements to federal agents, relating to the death threats he sent to a Member of Congress representing Maryland. Judge Bennett also ordered Mathur to preform 100 hours of community service.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Chief Tom Manger of the United States Capitol Police.
According to his guilty plea, in December 2020, Mathur communicated a threat in a webmail message on a congressional representative’s website. Mathur’s threats included violent statements such as “I will kill you and blow up your office if you try to take my vote away” and “I know where you and your family lives. You will be ended.” Mathur listed the name and previous address of a former classmate and neighbor (Individual B) for the webmail contact information.
Mathur also left a threatening voice message on the same Representative’s District Office voicemail stating similar threats including, “If you even mess with my vote, I’m going to come and slit your throat and I’ll kill your family.”
During an interview with special agents of the United States Capitol Police, Mathur confirmed the phone number used to place the threatening voicemail belonged to him and that he called the congressional member out of anger.
As detailed in his plea agreement, Mathur further acknowledged that Individual B was a former neighbor and classmate. However, Mathur falsely denied responsibility for the webmail threat submitted in Individual B’s name. The agents reiterated that providing false statements to federal agents was a felony offense. Mathur continued to falsely deny responsibility for the threatening webmail messages written in Individual B’s name. When given a final opportunity to correct his false statement, Mathur again falsely denied making the webmail threat.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Capitol Police for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Zachary A. Myers who prosecuted the case.
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Former Fairmount Heights Police Officer Facing Federal Civil Rights Indictment for Allegedly Sexually Assaulting a Woman After a Traffic StopRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging former Fairmount Heights Police officer, Martique Cabral Vanderpool, age 32, of Fairmount Heights, Maryland, for deprivation of civil rights under color of law, for allegedly sexually assaulting a woman he arrested after a traffic stop. The indictment was returned on September 8, 2021.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Azziz of the Prince George’s County Police Department.
According to the single-count indictment, on September 6, 2019, Vanderpool arrested a 19-year-old female after a traffic stop. Vanderpool allegedly deprived the woman of the right to be free from unreasonable seizure by a person acting under color of law, which includes the right to be free from unwanted sexual assault by a police officer.
The indictment alleges that Vanderpool transported the victim to the Fairmount Heights police station, where he sexually assaulted her. The indictment also alleges that the civil rights violation included: kidnapping; the use, attempted use, and threatened use of a firearm; and aggravated sexual abuse and attempted aggravated sexual abuse of the victim.
If convicted, Vanderpool faces a maximum sentence of life in federal prison Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Vanderpool will have an initial appearance scheduled in U.S. District Court in Greenbelt at a later date.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner and Assistant Attorney General Kristen Clarke commended the FBI and the Prince George’s Police Department for their work in the investigation. Mr. Lenzner and Ms. Clarke thanked Assistant U.S. Attorneys Dwight J. Draughon and Caitlin R. Cottingham and Trial Attorney Elizabeth Hutson of the Justice Department’s Civil Rights Division, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/civil-rights and https://www.justice.gov/usao-md/community-outreach.
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Boonesboro Man Sentenced to More Than 12 Years in Federal Prison for Coercion and Enticement of a Minor to Produce Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge Stephanie A. Gallagher today sentenced James Maynard, Jr., age 53, of Boonesboro, Maryland, to 150 months in federal prison, followed by 25 years of supervised release, for a federal charge for coercion and enticement of a minor in order to produce and distribute child pornography. Judge Gallagher also ordered that Maynard pay $5,729.24 in restitution to his victim. Finally, Judge Gallagher ordered that upon his release from prison, Maynard must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Jason Lando of the Frederick Police Department.
According to Maynard’s guilty plea, on November 27, 2019, Maynard used a social media account to meet a 14-year-old female, Victim 1, During his initial conversation with the victim over social media, the victim informed Maynard that she was 14 years old and he identified himself as a 52-year-old man. While they did not begin that way, Maynard’s conversations with the victim became increasingly sexual. On the second day of their online communications, November 28, 2019, Maynard asked Victim 1 to send him nude photographs of herself. Victim 1 subsequently took the photos that Maynard requested, using her tablet computer to take the photo while she was in her bedroom. Victim 1 sent the photos to Maynard via her social media account. Maynard made numerous sexually explicit comments about Victim 1’s genitals, and what he wanted to do to her. Maynard persuaded Victim 1 to take and send him more photos. Maynard also sent images of his penis to Victim 1.
After Victim 1 sent Maynard the photographs, she began to feel upset about the social media communications with Maynard. She tried to delete the images of herself, and she asked a trusted adult for help. Around this same time, City of Frederick Police Department detectives and the Federal Bureau of Investigation initiated an investigation and forensically analyzed the tablet computer and social media records. Investigators discovered additional evidence that Maynard was using the internet to exploit Victim 1.
On December 5, 2019, a search warrant was executed at Maynard’s residence and his cell phone was seized. A forensic analysis of the phone revealed several images relevant to the investigation, including an image of Victim 1. Forensic analysis of another computer located in Maynard’s residence revealed that Maynard used the internet to search topics involving minors and sex.
Investigators interviewed Maynard, who initially claimed that he thought Victim 1 was 19-years-old. However, when investigators showed Maynard the content of his online messages with Victim 1, Maynard admitted that he knew the victim was 14-years-old at the time that he communicated with her on social media.
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.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the City of Frederick Police Department for their work in the investigation and thanked the Frederick County State’s Attorney’s Office for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Christine Duey and Special Assistant U.S. Attorney Joyce King, Chief Counsel with the Frederick County State’s Attorney’s Office, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Man Pleads Guilty to the Sexual Abuse of a Two-Year-Old and a Seven-Year-Old Child in Order to Produce Images of the AbuseRead the Press Release
A Maryland man pleaded guilty today to two counts of production of child pornography and one count of possession of child pornography, in connection with his sexual abuse of two minor children.
According to court documents, Brian Anthony Gilbert, 33, of District Heights, uploaded and advertised at least two video files of child pornography depicting an approximately seven-year-old female victim (Victim 1) on an online bulletin board dedicated to child pornography. The videos were approximately 10 minutes and 15 minutes in length and depicted sexual acts between Gilbert and Victim 1. In Gilbert’s posts on the online bulletin board, Gilbert admits to having produced both videos.
As detailed in his plea agreement, on Sept. 11, 2020, law enforcement executed a search warrant at Gilbert’s residence. Gilbert was in the residence at the time. Gilbert waived his rights and agreed to speak to law enforcement. Gilbert advised law enforcement that approximately five times between January 2019 and August 2020, Gilbert video recorded sexual acts between himself and Victim 1 in Gilbert’s bedroom and at Victim 1’s residence. He also stated that he had video recorded sexual acts between himself and another victim, who was approximately two-years old (Victim 2) at the time. Gilbert told law enforcement that he distributed the child sex abuse material that he produced on the Tor network, a computer network that is designed specifically to facilitate anonymous communication over the internet.
During the execution of the search warrant, law enforcement also seized a number of electronic devices from Gilbert’s bedroom. A subsequent forensic analysis of Gilbert’s electronic devices revealed over 2,000 files depicting child pornography. Among those files were six videos of Gilbert engaging in sexual acts with Victim 1 and Victim 2 in Gilbert’s bedroom or in Victim 1’s residence. Some of the child pornography located on Gilbert’s devices included pre-pubescent children under the age of 12 as well as sadistic or masochistic conduct, including the use of instruments or tools on children, and sexual acts between adults and children.
Gilbert faces a mandatory minimum sentence of 15 years in prison and a maximum of 30 years in federal prison for each of the two counts of production of child pornography and a maximum of 20 years in federal prison for possession of child pornography. U.S. District Judge Paul W. Grimm has scheduled sentencing for Dec. 8 at 9:30 a.m.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Jonathan Lenzner of the District of Maryland; Special Agent in Charge Thomas J. Sobocinski of the FBI's Baltimore Field Office; and Chief Malik Aziz of Prince George’s County Police Department made the announcement.
The FBI is investigating the case, with valuable assistance provided by the Prince George’s County Police Department.
Assistant U.S. Attorney Joseph R. Baldwin of the District of Maryland and Trial Attorneys Alicia Bove and Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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.
District Heights Man Pleads Guilty to Federal Charges for the Sexual Abuse of a Two-Year-Old and a Seven-Year-Old Child in Order to Produce Images of the AbuseRead the Press Release
Greenbelt, Maryland – Brian Anthony Gilbert, age 33, of District Heights, Maryland, pleaded guilty today to federal charges for two counts of production of child pornography and one count of possession of child pornography, in connection with his sexual abuse of two minor children.
The plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Attorney General Kenneth A. Polite, Jr.; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Aziz of the Prince George’s County Police Department.
“Brian Gilbert is a predator who sexually abused young children for his personal gain,” said Acting United States Attorney Jonathan F. Lenzner. “This conduct is reprehensible and criminal, and tragically Gilbert’s crimes will impact these vulnerable victims for the rest of their lives. This case sends a clear message that we will bring to justice those who victimize innocent children.”
According to his guilty plea, in August 2020, Gilbert uploaded and advertised at least two video files of child pornography depicting an approximately seven-year-old female victim (Victim 1) on an online bulletin board dedicated to child pornography, which was hosted over the Tor network, a computer network that is designed specifically to facilitate anonymous communication over the Internet. The videos were approximately 10 minutes and 15 minutes in length and depicted sexual acts between Gilbert and Victim 1. In Gilbert’s posts on the online bulletin board, Gilbert admits to having produced both videos.
As detailed in his plea agreement, on September 11, 2020, law enforcement executed a search warrant at Gilbert’s residence. Gilbert was in the residence at the time. Gilbert waived his rights and agreed to speak to law enforcement. Gilbert advised law enforcement that approximately five times between January 2019 and August 2020, Gilbert video recorded sexual acts between himself and Victim 1 in Gilbert’s bedroom and at Victim 1’s residence. He also stated that he had video recorded sexual acts between himself and another victim, who was approximately two-years old (“Victim 2”) at the time. Gilbert told law enforcement that he distributed the child sex abuse material that he produced on the Tor network.
During the execution of the search warrant, law enforcement also seized a number of electronic devices from Gilbert’s bedroom. A subsequent forensic analysis of Gilbert’s electronic devices revealed over 2,000 files depicting child pornography. Among those files were six videos of Gilbert engaging in sexual acts with Victim 1 and Victim 2 in Gilbert’s bedroom or in Victim 1’s residence. Some of the child pornography located on Gilbert’s devices included prepubescent children under the age of 12 as well as sadistic or masochistic conduct, including the use of instruments or tools on children, and sexual acts between adults and children.
Gilbert faces a mandatory minimum sentence of 15 years in prison and a maximum of 30 years in federal prison for each of the two counts of production of child pornography; and a maximum of 20 years in federal prison for possession of child pornography. U.S. District Judge Paul W. Grimm has scheduled sentencing for December 8, 2021 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner and Assistant Attorney General Kenneth A. Polite commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Lenzner and Mr. Polite thanked Assistant U.S. Attorney Joseph R. Baldwin and Trial Attorneys Jessica Urban and Alicia Bove from the Justice Department’s Child Exploitation and Obscenity Section who are prosecuting federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Crownsville Man Sentenced to Six Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher today sentenced Jared Johnson, age 36, of Crownsville, Maryland, to six years in federal prison, followed by 15 years of supervised release, for possession of child pornography. Judge Gallagher also ordered Johnson to pay $45,000 in restitution to the victims. Finally, Judge Gallagher ordered that, upon his release from prison, Johnson must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Chief Amal E. Awad of the Anne Arundel County Police Department; and Anne Arundel County State’s Attorney Anne Colt Leitess.
According to his guilty plea, from May 2020 to August 2020, an internet cloud storage service provider sent the National Center of Missing and Exploited Children five cybertipline reports detailing hundreds of child pornography images uploaded to an account within its internet platform. The account was associated with Johnson’s cellular number and IP address located at Johnson’s Crownsville, Maryland residence. Over the course of five reports, the internet storage provider reported over 2,500 images of child pornography uploaded to Johnson’s account.
During a search of Johnson’s residence on July 24, 2020, Anne Arundel County detectives recovered Johnson’s cell phone and computer. The devices were hidden in the basement, submerged underwater within the basement’s sump pump system. A forensic analysis of the computer revealed that Johnson possessed over 12,000 images and videos of child pornography on the computer system.
After examination of Johnson’s online cloud account, Anne Arundel County Police detectives discovered thousands of images and videos containing child pornographic material, including a 38-minute video compilation depicting prepubescent children engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the HSI, the Anne Arundel Police Department, and the Anne Arundel State’s Attorney’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Christine Duey who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Previously Convicted Baltimore Bank Robber Pleads Guilty to Committing Two Bank Robberies at the Same Bank Within One WeekRead the Press Release
Baltimore, Maryland – Lloyd Phillip Simon, age 71, of Baltimore, Maryland, pleaded guilty today to bank robbery, in connection with two 2019 bank robberies at the same bank within one week.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; 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 August 13 and August 19, 2019, Simon robbed a bank located in the University of Maryland Medical Center. In each instance, Simon entered the lobby of the Medical Center, partially obscuring his face by wearing a baseball hat and large glasses. Upon entering the bank, Simon approached a teller and demanded money. In the first robbery, Simon told the teller he had a gun. Fearing for their safety, the tellers gave Simon money and he left the bank.
Specifically, on August 13, 2019, a video surveillance camera captured Simon walk into the lobby of the Medical Center wearing a black jacket, white shirt, black and white shorts, and black and white shoes. He also wore a purple and gold lanyard around his neck. His face was partially hidden by a grey baseball hat and large glasses. Simon obtained a white wristband from the receptionist, which allowed him access to the food court and bank area of the Medical Center. As Simon walked toward the bank, he reached into a donation bin located in the atrium and took one of the donations placed there - a black backpack. He then approached the bank and placed his black jacket and the newly acquired black backpack on a bench outside the bank. Simon immediately approached Bank Teller #1, who was in the process of counting money from the bank’s night drop. Simon demanded money from Bank Teller #1, stating, “Give me that money. I have a gun. No dye packs.” Fearing for her safety, Bank Teller #1 gave Simon all of the money that she had been counting. Simon left the bank, grabbing the backpack and black jacket, as he quickly walked away. Simon donned the black jacket to cover his white shirt and as he exited the Medical Center, he took off his hat and glasses. Simon’s face was captured on an outdoor video surveillance camera.
On August 19, 2019 Simon robbed the same bank. A video surveillance camera captured Simon entering the Medical Center lobby, where he again obtained a white wristband from the receptionist. Simon was wearing different clothing—a black and grey striped shirt; red shorts; black, white, and red shoes; and a lanyard depicting flames. Simon again wore large glasses and a baseball cap – a blue LA Dodgers baseball cap, to partially obscure his face. This time, Simon went through a back corridor before approaching the bank and did not immediately enter the bank. Instead, Simon is observed on video surveillance peering toward the bank, then sitting down on a bench outside of the bank. Simon waited on the bench until the bank security guard left on his lunch break. Simon then donned his glasses and entered the bank. Bank Teller #1 immediately recognized Simon from the previous robbery the week before. She told Simon to go wait in line, and then went to press the panic button. Simon approached Bank Teller #2, and stated words to the effect of “Give me all of your money, I want the big stuff!” Fearing for her safety, Bank Teller #2 gave him money, and Simon stated, “Hurry up, I’m not joking!” Simon continued to demand more money, so Bank Teller #2 gave Simon more money, and she slipped a hidden GPS tracking device into the money. As Simon left the bank, he is observed on camera fanning through the money that he took from Bank Teller #2. Simon found the hidden GPS tracking device, removed it from the wad of cash and dropped the tracker on the floor of the bank as he left. Simon quicky left the Medical Center, and outdoor video cameras captured Simon’s image after he took off his hat and glasses.
On August 28, 2019, investigators obtained and executed a search warrant at Simon’s apartment. Law enforcement recovered the two lanyards, shorts, shoes, and a shirt that matched the clothing worn by Simon during the robberies, as well as a black backpack consistent with the backpack Simon took from the donation bin. In addition, investigators recovered a single round of .357 Magnum ammunition in Simon’s kitchen cabinet.
On January 29, 2013, Simon was sentenced to 78 months in federal prison, after being convicted of bank robbery. As a result of this conviction, Simon knew he was prohibited from possessing ammunition.
Simon faces a maximum sentence of 20 years in federal prison for bank robbery. U.S. District Judge Catherine C. Blake has not yet scheduled a sentencing date.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Christine Duey and Mary Setzer, 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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