District of Maryland
Press releases recorded for this federal judicial district.
Baltimore Man Facing Federal Indictment for Using Female Aliases on Social Media and Messaging Applications to Entice Boys to Send Him Sexually Explicit Images and VideosRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Matthew K. Walsh, age 23, of Baltimore, Maryland, for the federal charges of sexual exploitation of a minor; coercion and enticement of a minor to engage in sexually explicit conduct; and receipt of child pornography. The indictment was returned on May 12, 2021, and unsealed today upon Walsh’s arrest. Walsh had an initial appearance today in U.S. District Court in Baltimore before U.S. Magistrate Judge Boardman. Walsh consented to detention pending a detention hearing which will be held on May 20, 2021 at 11:30 a.m.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to the six-count indictment, beginning no later than November 2019, Walsh used text messaging, an internet-based social media company, and a messaging application for mobile devices to meet and communicate online with minor males. The indictment alleges that Walsh often posed as a female in these communications, using the aliases “Linamarie” or “Mariel” on social media and “lslow6_5” on the messaging application. Walsh allegedly used his online female aliases to cause and attempt to cause minor males to produce sexually explicit images of themselves and send those images to Walsh.
Specifically, the indictment alleges that from November 4, 2019 through December 23, 2020, Walsh, using his online female aliases, enticed and coerced Victim 1, who was a 14 to 15-year-old minor male, to produce a series of sexually explicit visual depictions of Victim 1, including several video files, which Victim 1 sent to Walsh. Further, the indictment alleges that from March 8, 2020 through March 12, 2020, Walsh, using his online female aliases, enticed and coerced Victim 2, a 15-year-old minor male, to produce a series of sexually explicit visual depictions of himself, which he sent to Walsh.
If you believe you or a loved one was a victim of Walsh please contact the FBI Baltimore Field Office at (410) 265-8080.
To report online child sexual exploitation, use the electronic Cyber Tip Line or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies.
If convicted, Walsh faces a mandatory minimum sentence of 15 years in federal prison and a maximum sentence of 30 years for each of two counts of sexual exploitation of a minor; a maximum sentence of life in federal prison for each of two counts of enticement and coercion of a minor to engage in sexually explicit conduct; and a mandatory minimum of five years in federal prison and a maximum sentence of 20 years for each of two counts of receipt of child pornography. 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.
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 Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Two Maryland Men Facing Federal Indictment on Charges Related to the Illegal Importation of Iranian Currency and Fraudulent Wire Transfers to Purchase Foreign CurrencyRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Richard Allan Boyd, age 58, and Lee Ryan Fondiller, age 50, both of Eldersburg, Maryland, for the federal charges of conspiracy to commit bank and wire fraud and wire fraud, in connection with a scheme to import foreign currencies, including the Iranian rial and Iraqi dinar, from suppliers outside the United States. Boyd is also charged with violation of the International Emergency Economic Powers Act, and making false statements under oath in a bankruptcy proceeding. The indictment was returned on April 29, 2021 and unsealed at Boyd’s initial appearance in U.S. District Court in Baltimore on May 10, 2021. Fondiller had his initial appearance on May 12, 2021. Both defendants were released pending trial.
The indictment 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 Special Agent in Charge Jamie Mazzone of the U.S. Department of Transportation-Office of Inspector General.
According to the 32-count indictment, from at least January 30, 2017 until at least October 17, 2018, Boyd, Fondiller, and others conspired to defraud financial institutions to effect transfers of funds in payment for foreign currency banknotes, while misrepresenting and concealing the true purpose of the payments.
Specifically, the indictment alleges that Boyd caused his business, Amoyeshua Enterprises, to market foreign currencies to customers in the United States and elsewhere and accepted orders for foreign currencies from customers through the Internet, telephone, and other means. Boyd allegedly arranged for shipments of foreign currencies into the United States by, in part, making payments to foreign suppliers of the currencies through wire transfers of funds. The indictment alleges that Boyd facilitated customers’ purchases of foreign currency by accepting funds from the purchasers via interstate wire transfers. Boyd and Fondiller allegedly made payments to foreign suppliers of the foreign currencies by submitting requests and orders to banks where they had business accounts for international wire transfers to the foreign sellers. According to the indictment, Boyd, Fondiller, and others concealed the true purpose of the international wire transfers to their banks by falsely representing that the wire transfers were for jewelry, watches, and/or other items. The indictment alleges that Boyd, Fondiller, and others caused fraudulent wire transfers totaling more than $300,000 to be sent to banks in Jordan.
As detailed in the indictment, in requesting and directing payment for foreign currencies, Boyd instructed customers by email, text message, and other means, not to indicate or note to any intermediary financial institution or payment processor that the customer's payment was made in exchange for currency. In addition, Boyd allegedly fabricated invoices reflecting purchases of watches and jewelry in order to disguise the true purpose of the payments to his foreign currency supplier via international wire transfer, and sent the invoices to the foreign supplier by email as false documentation of the payments.
The indictment also alleges that Boyd violated the trade embargo against The Islamic Republic of Iran (“Iran”) by importing Iranian rial banknotes between 2016 and 2018. The rial is the currency of Iran and is issued by the Central Bank of Iran, which is owned by the Government of Iran. The importation of Iranian rial banknotes ("rials") into the United States was prohibited by the International Emergency Economic Powers Act (“IEEPA”) and the Iran Transactions and Sanctions Regulations (“ITSR”). The indictment alleges that between 2015 and 2018, Boyd imported Iranian rials into the United States, marketed rials via the Internet and other means (including under trade names such as Amoyeshua Enterprises and BuyNewDinar.com), and distributed rials to customers in the United States and elsewhere.
In about February 2016, officers of United States Customs and Border Protection (“CBP”) stationed at the John F. Kennedy International Airport in New York examined several packages shipped from Amman, Jordan. Some of the packages were addressed to Boyd at his residence and others were addressed to customers, family members, and associates of Boyd. CBP officers found that the packages contained Iranian rials. After confirming with the Office of Foreign Assets Control (“OFAC”) that the importation of Iranian rials was prohibited by IEEPA and the ITSR, CBP officers seized the rials and packaging materials.
Between March and April 2016, Boyd, his customers, family members, and associates received letters from CBP notifying them of seizures of Iranian rials in February 2016 and stating that the importation of Iranian currency to the United States was prohibited by law. The indictment alleges that after being notified and acknowledging that the importation of Iranian rails weas illegal, Boyd continued to import Iranian rials into the United States, advertise the sale of Iranian rials on the Internet, accept orders and payments from customers for rials, and sell and distribute rials to customers in the United States, all without any license or authorization from OFAC.
Finally, the indictment alleges that on August 1, 2018, Boyd made false statements under oath during his bankruptcy proceeding. Specifically, Boyd allegedly stated that he had closed his currency selling business in July 2018, and had no intention of reopening the business. In addition, Boyd allegedly stated that he did not try to import any more Iranian currency after CBP seized the currency shipment in January 2016. In fact, Boyd caused Iranian rial to be brought into the United States in 2017 and 2018, and continued to direct and conduct transactions of foreign currencies after August 1, 2018.
If convicted, Boyd and Fondiller each face a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud and wire fraud and a maximum of 30 years in federal prison for each count of wire fraud affecting financial institutions. Boyd also faces a maximum of 20 years in federal prison for each of 10 counts of violation of the International Emergency Economic Powers Act; and a maximum of five years in federal prison for each of two counts of false oath in a bankruptcy proceeding. 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 HSI and DOT OIG for their work in the investigation and thanked U.S. Customs and Border Protection for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting this case.
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Former Owner of a Temporary Employment Agency Pleads Guilty to Wire Fraud and Failure to Pay IRS Employment TaxesRead the Press Release
Baltimore, Maryland – Crystal Powell-Jones, age 54, of Laurel, Maryland, pleaded guilty today to failure to pay to the IRS employment taxes withheld from employees’ wages and to wire fraud in connection with a scheme to defraud at least four victim lenders.
The guilty plea 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 Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to her guilty plea, from August 2012 to October 2017, Jones operated and was the managing partner of JAG Professional Resources (“JAG”), a temporary staffing agency that provided hourly labor to municipal governments and agencies. As JAG’s managing partner, Jones exercised control over all of JAG’s business affairs, including JAG’s finances and bank account. Individual 1 was a silent minority partner in JAG.
Between at least October 2012 and August 2017, Jones devised a scheme to defraud Victim Lender 1, a factoring company; Victim Lender 2, an automobile financing service; Victim Lender 3, a mortgage banking company; and Victim Lender 4, a personal finance company.
As detailed in the plea agreement, Jones obtained factoring services from Victim Lender 1 for JAG from February 2013 to October 2016. Factoring is a means by which cash intensive businesses, like JAG, could obtain cash quickly and reliably by leveraging accounts receivable. JAG was a cash intensive business because JAG had to pay its temporary employees weekly or biweekly, but typically did not receive payment from its clients until at least 30 days after services had been rendered. Specifically, JAG sold its account receivables to Victim Lender 1 and, in return, JAG received cash advances from Victim Lender 1 totaling approximately 90% of JAG’s accounts receivables. Upon receiving payments from JAG’s clients on the outstanding invoices, Victim Lender 1 sent JAG the remaining 10% of the invoice that had been purchased, less fees Victim Lender 1 charged for its factoring services.
From March 2016 to about May 2016, Jones caused JAG to sell Victim Lender 1 fraudulent invoices totaling more than $350,000 for services that JAG had purportedly provided to a City in Ohio. The City in Ohio had contracted with JAG for temporary employment services beginning in February 2013, but JAG’s relationship with the City in Ohio ended in about February 2016. In total, Victim Lender 1 paid at least $347,993.13 to JAG as a result of fraudulent invoices Jones caused JAG to sell Victim Lender 1.
In October 2012, Jones and her co-borrower, financed the purchase of a 2012 Ford Fusion. To obtain financing, Jones falsely stated she had been employed as JAG’s accountant for four years on an Applicant’s Credit Statement. Jones also submitted a fraudulent bank statement for financing which listed Jones and another individual when, in fact, the bank statement solely belonged to Individual 1.
Subsequently, Victim Lender 2 provided Jones and Individual 1 with financing of $19,657.50 toward the purchase of Jones’s car. Victim Lender 2 suffered a loss of $5, 422.60 after Jones declared bankruptcy and failed to satisfy the debt.
The plea further details that in November 2015, Jones submitted a Uniform Residential Loan Application to Victim Lender 3 in the effort to finance a Laurel, Maryland residence. Jones provided false and misleading information, including that she had been employed with JAG for two years as an accountant, that she was not self-employed, and listed a bank account with a balance of $44,435.26. In fact, Jones’s bank account had a balance of $4,425.26 at the time. Relying on the false documents provided by Jones, Victim Lender 3 provided $417,302 in financing for the purchase of Jones’s residence.
In addition, Jones admitted that in October 2016, she submitted a loan application in the name of Individual 2 to Victim Lender 4. The contact information was an email address and phone number controlled by Jones. The loan application falsely listed that Individual 2 was a JAG employee who earned an annual salary of $75,000. In furtherance of the scheme, Jones completed an employment verification form in which Jones stated that Individual 2 was employed for two years with the salaries of $75,000 and $68,000, respectively. Jones also provided a fraudulent paystub that stated JAG had paid wages to Individual 2 in September 2016. In fact, Individual 2 received no wages from JAG in 2016. Victim Lender 4 approved the loan application and wired $66,708 into a bank account in Jones’s name. In 2017, Jones conducted a similar scheme to defraud with Individual 3 and received at least $29,000 in loan proceeds.
Lastly, from January 2014 to October 2016, JAG Professional Resources paid wages totaling approximately $3,851,994.00. During this period, Jones willfully failed to pay employment taxes to the IRS and failed timely to pay state unemployment and workers’ compensation duties. These failures resulted in additional tax losses to the state in which JAG operated and prevented JAG’s employees from collecting unemployment and worker’s compensation benefits to which they may have otherwise been entitled.
Jones admitted that she did not maintain reliable or accurate business records, including payroll and tax withholding documentation. JAG employees often received incorrect payment for labor and were not paid for all hours worked, including overtime hours. When JAG issued wages, correct or incorrect, it did so while purportedly withholding employment taxes on the employees’ behalf. Additionally, at Jones’s direction, JAG annually issued IRS Form W-2s to its employees that stated employment taxes, including FICA, Social Security, and Medicare, were withheld from the wages paid to the employee. In fact, Jones failed to file a single Employer’s Quarterly Federal Income Tax Return for the 2014 Tax year, an IRS Form 941. As a result of failing to pay the IRS employment taxes from January 2014 to October 2016, Jones caused a tax loss to the IRS of at least $523,244.38.
As a result of Jones’ criminal activity, the United States and victim lenders sustained a total loss of at least $1,196,085.35 ($225,516.28 to the victim lenders and the remainder to the United States).
Jones faces a maximum sentence of 20 years in prison for wire fraud and a maximum of five years in prison for failure to pay to the IRS employment taxes withheld from employees’ wages. U.S. District Judge George L. Russell, III has scheduled sentencing for July 30, 2021 at 11:30 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-CI and the Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Dana J. Brusca and Harry M. Gruber, who are prosecuting this case.
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German Citizen Sentenced in Maryland to Nearly Two Years in Federal Prison for Charges Related to a Scheme to Defraud the U.S. State DepartmentRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Katrin Verclas, age 52, a native and citizen of Germany residing in Washington, D.C., today to 728 days in federal prison for obstruction of a federal audit and for causing a financial institution to fail to file a suspicious activity report (SAR). Verclas previously pleaded guilty to those charges, which were related to more than $1.2 million in U.S. State Department grant funds awarded to MobileActive, a corporation that Verclas controlled. To settle a related civil complaint filed against MobileActive, the corporation will pay $500,000 to the United States within five days of the Court accepting the consent judgment, or today’s sentencing, whichever is later.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Mike Speckhardt of the U.S. Department of State Office of Inspector General, Office of Investigations.
According to the plea agreement, on December 17, 2009, the U.S. State Department’s Bureau of Democracy, Human Rights, and Labor (“DRL”) publicized a Request for Proposal (“RFP”) that solicited grant proposals under the title “Promoting Freedom of Expression and the Free Flow of Information through Technology and Access.” The submission deadline for grant proposals was January 22, 2010.
As detailed in the plea agreement, Verclas, who was residing in Amherst, Massachusetts at the time, had worked for non-profit organizations in the field of social activism through the use of technology since about 1996. In preparation for a response to the DRL RFP, on January 15, 2010, Verclas converted a project known as MobileActive into a Delaware corporation, and on January 22, 2010, electronically submitted a grant proposal to DRL on behalf of MobileActive. On September 20, 2010, MobileActive was awarded a grant from the U.S. Department of State in the amount of approximately $1,411,000, to develop and promote: a Mobile Security Toolkit of needed and missing software applications for secure mobile communication; and tactical resources that would allow human rights organizations and activists in specific geographic regions to easily assess and mitigate risks associated with their mobile communications. The performance period of the grant was September 20, 2010 through about September 30, 2012.
In order to request the grant funds, MobileActive, through Verclas, established an account with Payment Management System (“PMS”), a federal grants management database located in Bethesda, Maryland. Between October 26, 2010 and July 26, 2012, Verclas submitted 11 payment requests on behalf of MobileActive, causing the U.S. Department of State to release $1.222 million to MobileActive’s business bank account, which Verclas controlled.
MobileActive, through Verclas, failed to comply with a number of requirements under the grant. In November 2012, the State Department began performing an audit and quality assurance inspection with regard to the grant award. From November 2012 to February 2014, the State Department made several requests, including through letters mailed and hand-delivered to Verclas, to provide documents and information, including a final financial report and inventory report, among other things. Verclas admitted that she intentionally ignored the State Department’s repeated requests because she knew that she did not have the requisite reports, documents, and other items.
In addition, Verclas admitted that from November 2010 to October 2012, she failed to disclose to the bank that many of the transactions involving the MobileActive business account were for Verclas’ own personal gain rather than legitimate business purposes. Verclas knew that, had the bank been aware of the true nature of these transactions, it would have been required to file a SAR. Through her deception, Verclas willfully caused the bank to fail to file a SAR.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Department of State, Office of Inspector General, for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney David I. Salem, who prosecuted the case, and thanked Assistant U.S. Attorney Katharine A. Wagner of the Massachusetts U.S. Attorney’s Office, who provided substantial assistance.
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Prince George’s County Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
Greenbelt, Maryland – Marvel David Yarborough, age 30, of Capitol Heights, Maryland, pleaded guilty today to the federal charges of possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
The guilty plea 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 his guilty plea, on February 21, 2020, Prince George’s County Police officers conducted a traffic stop of a vehicle being driven by Yarborough, after observing that the driver was not wearing a seat belt and did not properly use his turn signal. When approaching the vehicle officers observed Yarborough attempting to conceal objects in his groin area and detected the odor of phencyclidine (“PCP”) from his person and vehicle. Yarborough was searched and officers recovered approximately 34 baggies and capsules containing a white, rock-like substance. The substances were tested in the lab and found to contain 10.5 grams of crack cocaine, .352 grams of fentanyl, and 17.6 grams of PCP. In addition, law enforcement recovered $1,012 in cash from Yarborough’s vehicle, numerous empty baggies and several digital scales.
In March 26, 2020, law enforcement executed a search warrant at Yarborough’s residence and recovered an AM-15 rifle, with a loaded drum-style magazine containing eight rounds of ammunition from the hall closet. An additional drum-style magazine was found on the kitchen table, loaded with 14 rounds of ammunition. Law enforcement also seized: 100 capsules found to contain 9.234 grams of crack cocaine and 26.7 grams of powder cocaine; 6.68 grams of PCP; drug paraphernalia; and a notebook containing references to drugs and the names and numbers of drug customers.
Yarborough’s cell phone was also seized and subsequently searched. The phone contained text conversations about drugs and guns, photographs of Yarborough with the AM-15, and photographs of drugs and drug paraphernalia. The text messages reflect that Yarborough possessed the AM-15 in furtherance of his drug trafficking.
Yarborough and the government have agreed that, if the Court accepts the plea agreement, Yarborough will be sentenced to between 78 and 114 months in federal prison. U.S. District Judge George J. Hazel has scheduled sentencing for August 5, 2021 at 2:00 p.m.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Catherine K. Dick, who is prosecuting the case.
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Former Maryland State Government Official Sentenced to Eight Years in Federal Prison for the Distribution of Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge Stephanie A. Gallagher today sentenced Mathew Palmer, age 44, of Severna Park, Maryland, to eight years in federal prison, followed by 20 years of supervised release, for distribution of child pornography. Judge Gallagher also ordered that, upon his release from prison, Palmer must register as a sex offender where he resides, is an employee, and is a student pursuant to the sex offender registration and nonfiction act (SORNA). At the time of the conduct, Palmer held positions with the Maryland state government, including as Deputy Legislative Officer for the Maryland Governor’s Office and Chief Operating Officer with the Maryland Department of Commerce.
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 Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
“Individuals like Palmer who trade and possess this illegal material online are essentially facilitating an underground criminal marketplace that endangers children,” said Acting United States Attorney Jonathan F. Lenzner. “This case should serve as a reminder that law enforcement will bring to justice anyone who endangers children. No one is above the law.”
“HSI tirelessly investigates crimes involving the online sexual exploitation of minors with every resource at our disposal.” said Special Agent in Charge James Mancuso, for the Baltimore Field Office. “We will continue to ensure any individual that participates in any form of child pornography will be held to the same accountability for these deplorable acts.”
According to his plea agreement, investigators at HSI received reports from an instant messenger application advising that multiple accounts using similar usernames, that all included “anonjohnny” as part of the name, had uploaded at least one image of child pornography or child-sensitive material between April 2019 and September 2019. Each time the application detected the child exploitative material, it shut down the offending account.
The investigation revealed that the same Internet Protocol address (IP address) was used to access the five “anonjohnny” accounts and was serviced by the same cellular service provider registered under Palmer’s phone number, e-mail address, and home address in Severna Park, Maryland. The records showed that the messaging application account had also been accessed by IP addresses that resolved to the State of Maryland, demonstrating that the user was accessing the materials from state government Internet services.
On August 11, 2020, investigators executed a search warrant at Palmer’s residence in Severna Park and seized several electronic devices, including Palmer’s laptop and personal cell phone. Palmer’s cell phone was also linked to his office e-mail address. Palmer’s phone was logged into a new “anonjohnny” account on the instant messaging application. Palmer admitted that he used this account to engage in chats with several other users concerning child exploitation.
For example, in a conversation with one user, in his very first message Palmer said, “Hi I have naughty thoughts about my teen daughters.” Palmer then sent the user images of two minor girls whom Palmer represented were his daughters. In fact, these minor children were not Palmer’s children. In a conversation with a second user, Palmer stated that his preference was for children aged eight and up. Palmer again sent pictures of two minor girls, falsely representing to the second user that they were his own daughters.
At least 936 images and 368 videos of child pornography were found on Palmer's cell phone, including prepubescent minors; child pornography involving toddlers; and child pornography involving bondage and other sadistic acts.
In addition to possessing hundreds of images and videos constituting child pornography, Palmer admitted that he both received and distributed child pornography. Palmer had an application on his phone which is used to send covert and encrypted messages. Palmer possessed two additional videos of child pornography on that application, and the evidence showed that Palmer used that application to distribute a video of child pornography to a chat group of 58 people. Palmer's phone also included several links under the “notes” section to active child pornographic websites.
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 HSI and the Maryland State Police for their work in the investigation. Acting U.S. Attorney Lenzner thanked Assistant U.S. Attorney Daniel A. Loveland, Jr., who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Drug Dealer Pleads Guilty to Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
Baltimore, Maryland – Daniel Taylor, age 36, of Baltimore, Maryland, pleaded guilty yesterday to possession of a firearm in furtherance of drug trafficking.
The plea 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 Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, from June 2020 to August 2020, Taylor conspired with others to distribute quantities of cocaine in Baltimore. For example, on June 26, 2020 Taylor spoke with an inmate on a recorded line. During the conversation the inmate asked Taylor where he was located and Taylor stated, “the block,” a term used to refer to an area in which narcotics are sold. Later in the conversation, Taylor stated the “girl” was the only thing that was “moving,” meaning that Taylor was trafficking narcotics and cocaine was making the most money. The term “girl” is used to refer to cocaine.
On August 20, 2020, the ATF executed a search warrant at Taylor’s Baltimore residence where law enforcement recovered a 12-gauge shotgun, five rounds of 12-gauge ammunition, and two rounds of 12-gauge shotgun slugs. Taylor admitted that he possessed the firearm in furtherance of the cocaine distribution conspiracy.
Taylor and the government have agreed that, if the Court accepts the plea, Taylor will be sentenced to eight years in federal prison for possession of a firearm in furtherance of drug trafficking. U.S. District Judge Richard D. Bennett has scheduled sentencing for May 20, 2021 at 2 p.m.
Acting United States Attorney Jonathan F. Lenzner praised the ATF and Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Zachary Stendig and Lindsey McCulley who prosecuted the case.
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West Virginia Heroin Dealer Who Purchased Drugs from the Butler Drug Trafficking Organization Sentenced to More Than Three Years in Federal Prison for Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm today sentenced Michael Bailey, age 32, of Winchester, Maryland, to 40 months in prison, followed by three years of supervised release, for possession of a firearm by a prohibited person. Bailey, a previously convicted felon, sold a firearm to a member of the Gregory Butler Drug Trafficking Organization (DTO) in Baltimore in exchange for heroin cut with fentanyl. (Six members of the Gregory Butler DTO are alleged to be part of the NFL criminal enterprise in southwest Baltimore, engaging in a pattern of criminal racketeering activity including acts involving murder, narcotics trafficking and smuggling, illegal firearms possession, bribery, witness intimidation, and witness retaliation. The term NFL stands for Normandy, Franklin, and Loudon, which are three adjacent streets that run through the Edmondson Village.)
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Chief Marcus Jones of the Montgomery County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
“Many of the illegal firearms used by gangs in Baltimore are brought into the state by people involved in the drug trade like Bailey,” said Acting U.S. Attorney Jonathan F. Lenzner. “In this case, members of the NFL criminal drug enterprise are alleged to have carried out four murders and one attempted murder with illegally possessed firearms like the gun Bailey sold to them. To reduce the violence in Baltimore, we must go after the drug trade and the guns. we also need to change the culture, so that dealers like Bailey stop thinking of Baltimore as their criminal marketplace. We are committed to working with our law enforcement and community partners to get guns out of the hands of drug dealers and off of our streets, in order to reduce violent crime in our neighborhoods.”
According to his guilty plea, from at least December 2018 through February 2019, Bailey, regularly traveled to Baltimore to purchase heroin cut with fentanyl from the Gregory Butler Drug Trafficking Organization (the “DTO”). Bailey then transported the heroin to West Virginia, where he sold it. Bailey admitted that during this time, he purchased more than 80 grams of heroin cut with fentanyl from the DTO.
As detailed in his plea agreement, on about January 16, 2019, Bailey arranged to sell the DTO a handgun equipped with a laser sight, in exchange for a quantity heroin. The firearm was a Walther P22 pistol, which Bailey stole from a relative. Bailey transported the gun from West Virginia to Baltimore to sell it. Investigators later recovered the firearm from a member of the DTO in Baltimore. Bailey knew that due to his previous felony convictions, he was prohibited from possessing a firearm.
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 FBI, the DEA, the Montgomery County and the Baltimore Police Department for their work in the investigation. Mr. Lenzner commended the U.S. Postal Inspection Service; the City of Rockville Police Department; the Baltimore County, Howard County, and Montgomery County Police Departments; the Frederick County Sheriff’s Office; the Maryland State Police; the West Virginia State Police; the Virginia State Police; the Warren County (VA) Sheriff’s Department; the Winchester (VA) and Front Royal (VA) Police Departments; and the Frederick County and Howard County State’s Attorney’s Offices. Mr. Lenzner thanked Assistant U.S. Attorney Matthew DellaBetta, who is prosecuting the case.
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Serial Bank Robber Sentenced in Maryland to More Than 12 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell sentenced Fletcher Dorsett, age 53, of Salisbury, Maryland to 150 months in federal prison, followed by three years of supervised release, for a series of nine bank robberies and attempted robberies. Dorsett continued to commit robberies while on escape status from a halfway house after his release for a previous federal bank robbery conviction.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office. Chief Melissa R. Hyatt of the Baltimore County Police Department; Commissioner Michael Harrison of the Baltimore Police Department; Chief Edward Jackson of the Annapolis Police Department; Interim Chief Hector Velez of the Prince George’s County Police Department; and Chief Robert J. Contee, III of the Metropolitan Police Department.
According to his guilty plea, Dorsett was previously convicted of federal bank robbery charges, sentenced to eight years in prison, and placed at a halfway house in May of 2019. On July 25, 2019, Dorsett did not return to the halfway house and was placed in escape status. Dorsett was subsequently arrested on a warrant relating to that escape on August 9, 2019, and held at Piedmont Regional Jail in Virginia until he was released on September 24, 2019.
Dorsett admitted that he robbed a bank in Baltimore on July 29, 2019, while he was on escape status. After his arrest and release on September 24, 2019, Dorsett continued to rob banks in Baltimore County, Baltimore City, Prince Georges County, and Washington, D.C., and attempted to rob two other banks. In all of these bank robberies, Dorsett used a note that threatened that he had a gun. Specifically, between September 26 and October 28, 2019, Dorsett robbed banks in Washington, D.C., and in Baltimore, Annapolis, and Nottingham, Maryland, and attempted to rob banks in Lanham, Maryland and Washington, D.C.
As Dorsett left the bank in Nottingham on October 28, 2019, an off-duty police officer who happened to be in the bank pursued and detained him until on-duty Baltimore County Police officers arrived and arrested him. Dorsett agreed to be interviewed by law enforcement and admitted to robbing the nine above-referenced banks in Maryland and Washington, DC. Dorsett also identified himself in various bank surveillance images captured during the robberies.
Acting United States Attorney Jonathan F. Lenzner praised the FBI, and the Baltimore County, Baltimore City, Annapolis, Prince George’s County and Metropolitan Police Departments for their work in the investigation and thanked the State’s Attorneys for Baltimore County, Baltimore City, Prince George’s County, and Anne Arundel County, and the U.S. Attorney for Washington, D.C. for their assistance in the investigation and prosecution. Mr. Lenzner thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the federal case.
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Upper Marlboro Woman Pleads Guilty to Stealing Nearly $323,000 in Social Security Benefits to Which She Was Not EntitledRead the Press Release
Greenbelt, Maryland – Sonya Bannister Burford, age 53, of Upper Marlboro, Maryland, pleaded guilty on May 5, 2021, to the federal charge of theft of government property, for stealing $322,938 in Social Security benefits to which she was not entitled.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General (OIG), Philadelphia Field Division; and Special Agent in Charge Rico Medina of the Washington Metropolitan Area Transit Authority (WMATA) – OIG.
According to her guilty plea, Burford’s husband, who was receiving SSA Disability Insurance benefits, died on August 30, 1996. Upon his death, Burford failed to disclose to SSA that he had died and SSA continued to make monthly benefits payments. Between September 1996 and January 2020, Burford received and spent $322,938 in benefits paid to her husband after his death to which she was not entitled.
As detailed in her plea agreement, SSA paid the disability payments for her husband through direct deposit to a joint account held in Burford‘s and her husband’s name. After his death, Burford accessed the funds primarily through cash withdrawals or through the purchase of gift cards in large amounts at grocery stores. Burford also used the funds to make retail purchases and to pay for living expenses, and wrote checks to herself.
As part of her plea agreement, Burford will be required to forfeit and pay restitution in the full amount of the loss, which the parties agree is $322,938.
Burford faces a maximum of 10 years in federal prison for theft of government property. U.S. District Judge Peter J. Messitte has scheduled sentencing for August 5, 2021.
Acting United States Attorney Jonathan F. Lenzner commended the SSA OIG and WMATA OIG for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Michael F. Davio, who is prosecuting the case.
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Three Maryland Residents Facing Federal Indictment for Dating and Business Email Compromise Scams with Alleged Losses of More Than $2.3 MillionRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging three defendants on federal charges of conspiracy to commit wire fraud, conspiracy to commit money laundering, and aggravated identity theft:
Noel Chimezuru Agoha, age 37, of Baltimore, Maryland
Sessieu Ange Oulai, age 34, of Parkville, Maryland, and
Kelechi Arthur Ntibunka, age 32, of Essex, Maryland.The indictment was returned on March 22, 2021, and was unsealed today. Agoha and Ntibunka were arrested yesterday and had their initial appearances today. At today’s hearing, U.S. Magistrate Judge Beth P. Gesner ordered that Agoha and Ntibunka be detained pending a detention hearing scheduled on May 12, 2021. Oulai is currently detained on unrelated state charges and will have an initial appearance on the federal charges at a later date.
The indictment 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; Special Agent in Charge Edwin Guard of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and Commissioner Michael Harrison of the Baltimore Police Department.
According to the three-count indictment, from August 2016 to December 2018, the conspirators conspired with others to execute a business email compromise scam (“BEC” scam) in which the defendants sent deceptive emails to victim businesses posing as clients or representatives of companies with whom the victims had ongoing business to induce money from victims. The parties being impersonated were also victimized by the BEC scam because the object of the fraud was to intercept payments intended for these parties and/or to deprive these parties of money to which they were entitled.
As part of the scheme, “drop accounts” were opened with financial institutions and controlled by the defendants and their co-conspirators, in order to receive money from victims of criminal fraud schemes, including the BEC scam, allegedly perpetrated by the defendants and their conspirators. During the course of the conspiracy, Agoha transmitted the identity of at least one BEC victim to a co-conspirator.
The indictment alleges that the conspirators created fraudulent email accounts that included or abbreviated the names of the BEC scam victims, or accessed the BEC victims’ email accounts without authorization, in order to send fraudulent emails impersonating the victims and to receive information and funds without the victims’ knowledge or authorization. Conspirators sent emails and made phone calls to the BEC victims requesting and instructing the victims to make electronic transfers and payments of money into the drop accounts, without the knowledge or authorization of the victims being impersonated. Agoha, Oulai, Ntibunka, and other conspirators allegedly monitored drop account activity (deposits, transfers, and balances), relayed information, and provided instruction about transactions to co-conspirators via text messages. In total, the defendants and their co-conspirators allegedly received, or attempted to receive, more than $1.1 million in proceeds from BEC scams.
The indictment further alleges that from May 2016 to July 2018, Agoha conspired with others to execute a dating scam. As detailed in the indictment, members of the conspiracy communicated with individual victims on dating websites and created a false pretense of a romantic relationship with the victims to coax the victims to send money. The conspirators allegedly used common dating scam tactics, including claiming fictious financial hardships and crises in order to persuade victims to transfer funds to the drop accounts. As part of the conspiracy, Agoha allegedly provided drop account information to co-conspirators to relay to dating victims including routing numbers, account numbers, and the name of the account holder. The indictment alleges that Agoha and his co-conspirators accrued more than $1.2 million in dating scam proceeds.
Finally, the indictment alleges that Agoha, Oulai, and Ntibunka conspired to launder proceeds from the dating and BEC scams in order to conceal the source of the funds. Specifically, the defendants allegedly negotiated payments for their roles in conducting drop account transactions, transferred and disbursed money received from the scams into other accounts, withdrew cash, and negotiated bank checks made payable to themselves and others.
If convicted, the defendants face a maximum sentence of 30 years in federal prison for conspiracy to commit wire fraud affecting financial institutions and a maximum of 20 years in federal prison for conspiracy to commit money laundering. In addition, Agoha faces 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. Individuals charged by indictment are presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended HSI, the Diplomatic Security Service, and the Baltimore Police Department for their work in the investigation and thanked the Florida Department of Law Enforcement for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting this case.
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Previously Convicted Sex Offender Pleads Guilty to Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Daniel Provencal, age 47, of Denton, Maryland, pleaded guilty today to possession of child pornography. Provencal acknowledged that, at the time he committed the crime, he was on supervised release for a 2006 federal conviction for distribution of child pornography.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Caroline County State’s Attorney Joe Riley.
According to his guilty plea, between January and October 2020, Provencal possessed and repeatedly distributed child pornography on a social media provider, using multiple electronic devices and usernames. Specifically, Provencal used an Internet-based messaging application to distribute depictions, including photos and videos, of minors engaged in sexually explicit conduct. The child pornography included videos and images of prepubescent minors and videos and images that depicted sadomasochistic conduct.
On January 24, 2020 and January 31, 2020, the messaging application sent CyberTips to the National Center for Missing and Exploited Children (NCMEC) reporting two usernames that had uploaded child pornography. Investigators learned that the IP address used to login to each of the accounts was the same and was assigned to Provencal at his residence in Denton.
Law enforcement executed a search warrant at Provencal’s residence on October 15, 2020, recovering two cellphones, numerous micro SD cards, a laptop computer, notebook computer, and three tablets. Law enforcement also seized from Provencal’s bedroom a piece of paper that had 26 account usernames and passwords listed, including the two usernames which the messaging application had reported to NCMEC.
A subsequent forensic review of Provencal’s devices revealed that they each contained child pornography. In total, the devices contained at least 5,000 child pornography videos. In addition, at least one video depicts sadistic or masochistic conduct, namely a prepubescent girl bound and in bondage. The forensic review also revealed that Provencal repeatedly, on multiple devices, distributed child pornography images and videos to other users on the messaging application and engaged in explicit chats in which he discussed his sexual attraction to minors.
As detailed in his plea agreement, upon his release from prison, Provencal 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).
Provencal and the government have agreed that, if the Court accepts the plea agreement, Provencal will be sentenced to 126 months in federal prison. Provencal also faces 12 to 18 months in prison for violating his supervised release, which may be imposed concurrent or consecutive to the sentence in this case. U.S. District Judge Catherine C. Blake has not yet scheduled sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, the Maryland State Police, and the Caroline County State’s Attorney’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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MS-13 Member Pleads Guilty to Racketeering Conspiracy Involving Murder and Attempted MurderRead the Press Release
A Maryland man pleaded guilty today to conspiracy to participate in a racketeering enterprise by murdering a suspected rival gang member and attempting to murder two other victims, in connection with his MS-13 gang activities.
According to his plea agreement and other court documents, from March 2016, Moises Alexis Reyes-Canales, aka Sicopita, 23, of Annapolis, 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.
“Reyes-Canales and his co-defendants committed murder, attempted murders, and other violent crimes on behalf of MS-13, causing lasting harm to victims and the Annapolis community,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Through the diligent efforts of law enforcement and department prosecutors, these defendants will no longer harm and intimidate the Annapolis community. We will continue our relentless pursuit of MS-13 gang members, both in the United States and internationally.”
“The violence perpetrated by Reyes-Canales and his fellow MS-13 members was brutal and tragic and is totally unacceptable,” said Acting U.S. Attorney Jonathan F. Lenzner of the District of Maryland. “The U.S. Attorney’s Office in Maryland and our local and state partners are working together to remove these violent gang members and to keeping our communities safe from the violent threat of MS-13. We continue to work with our counterparts here and abroad to bring to justice these transnational gangs. We need the continued help of members of our communities in order to carry on our work against MS-13.”
“This case illustrates that gang organizations are driven by greed and profit no matter the cost to innocent lives or our communities,” said Special Agent in Charge James Mancuso for the Homeland Security Investigations’ (HSI) Baltimore Field Office. “It is HSI’s priority to investigate crimes related to transnational gang violence, a duty we diligently and systematically discharge with the help of our federal, state, local and international law enforcement partners.”“ATF is committed to focusing our efforts on identifying and investigating those who use violence and firearms to intimidate and brutalize others,” said Special Agent in Charge Tim Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division. “The strong partnerships ATF has with our federal, state, and local law enforcement partners, as well as prosecutors, are crucial in targeting these offenders and dismantling the violent gangs who try to take over communities.”
Co-defendants Marlon Cruz-Flores, 25, and Manuel Martinez-Aguilar, aka “El Lunatic” and “Zomb,” 22, both of Annapolis, previously pleaded guilty to the racketeering conspiracy and gun charge. Cruz-Flores was sentenced to 38 years in prison and Martinez-Aguilar was sentenced to 24 years. Co-defendant Fermin Gomez-Jimenez, 23, of Annapolis, pleaded guilty to conspiracy to participate in a racketeering enterprise and to using, carrying, and discharging a firearm during a crime of violence and is scheduled to be sentenced on May 18. 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 after an 11-day jury trial for the murder of Victim 1. He faces a mandatory sentence of life in prison at his sentencing which will be scheduled at a later date. All of the defendants remain detained.
Reyes-Canales and the government have agreed that, if the court accepts the plea terms, Reyes-Canales will be sentenced to 35 years in federal prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for Reyes-Canales on Sept. 19.
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.
HSI, 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 HSI 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.
Fraudster Who Scammed More Than 100 Elderly Victims of More Than $775,000 Through Lottery Scheme Sentenced to Eight Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Keno Romario Brown, age 26, of Hyattsville, Maryland, to eight years in federal prison, followed by three years of supervised release, for conspiracy to commit mail and wire fraud, wire fraud, and mail fraud, in connection with a scheme to defraud more than 100 elderly victims through an advance fee scheme, specifically, by falsely representing that the victims had won a lottery or sweepstakes and demanding taxes or other fees before the victims could receive the prize. Judge Hazel ordered Brown to pay restitution in the amount of $775,225.48. After trial, a federal jury convicted Brown on March 12, 2020.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Timothy Thibault of the FBI’s Washington Field Office Criminal Division; and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.
Acting U.S. Attorney Jonathan F. Lenzner stated, “Keno Brown perpetrated a heartless scheme targeting more than 100 elderly victims. He will now serve eight years in federal prison. The Department of Justice is committed to bringing fraudsters who prey upon the elderly to justice. I encourage anyone who believes they may be a victim of a fraud or scam to contact the Department of Justice’s Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
“Brown callously preyed on some of the most vulnerable members of our communities,” said Timothy Thibault, Acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “This sentence demonstrates that the FBI and our law enforcement partners will relentlessly pursue and hold accountable those who commit the unconscionable crime of elder fraud.”
“This investigation is another example of how the U.S. Postal Inspection Service, with its law enforcement partners, holds scammers who prey upon our most vulnerable citizens accountable.” Postal Inspector in Charge Peter R. Rendina continued, “We also encourage anyone who believes that they are a potential victim and/or has receive similar suspicious callings to contact the U.S. Postal Inspection Service at 877-876-2455.
According to the evidence presented at his seven-day trial, in April 2013, Brown and two co-conspirators began contacting victims, falsely telling them that they were representatives of Company 1 or Company 2, which sponsored a lottery or sweepstakes. Brown and his co-conspirators misrepresented to victims that they had won a prize sponsored by Company 1 or Company 2, but in order to collect the prize, the victims had to pay advance fees and taxes to Brown or his co-conspirators. The conspirators directed the victims to send the advance fees and taxes electronically, or through an interstate mail carrier to “runners” who received the fraudulent proceeds and provided them to Brown and his co-conspirators. Evidence was presented that Brown used physical abuse to control at least one of the runners.
The trial evidence proved that to launder the fraud proceeds, Brown and a co-conspirator obtained debit cards using the personal information of elderly individuals without their knowledge or consent, and deposited that fraud proceeds onto those debit cards, among other methods.
The evidence proved that during the course of the conspiracy, Brown and other members of the conspiracy successfully defrauded over 100 elderly victims.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the U.S. Postal Inspection Service for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Dana J. Brusca, who prosecuted the case.
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Baltimore Drug Trafficker Who Fled Police and Injured Recently-Discharged Hospital Patient Pleads Guilty in Federal CourtRead the Press Release
Baltimore, Maryland – Terrell Tomlin, age 32, of Baltimore, Maryland, pleaded guilty today to the federal charge of possession with the intent to distribute fentanyl, heroin, and cocaine.
The guilty plea 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 Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, on December 4, 2019, Baltimore Police Department (BPD) officers observed Tomlin driving his vehicle back and forth through three lanes of traffic without signaling as well as accelerating and braking quickly and aggressively. Officers conducted a traffic stop of the vehicle on the road leading towards Sinai Hospital’s emergency room entrance.
As detailed in the plea agreement, before approaching the vehicle, officers observed Tomlin making furtive movements in the vehicle and lowering his head towards the right side of the car. During the traffic stop, a BPD officer asked Tomlin for his driver’s license and registration and noticed Tomlin’s hands shaking excessively and his eyes were opened extremely wide. Based on Tomlin’s furtive movements and excessive nervousness, a BPD officer asked him to step out of the vehicle.
Instead, Tomlin admitted that he attempted to flee, crashing his vehicle into a stationery vehicle, in which Victim 1, who was recently discharged from the hospital after surgery, was the driver, and Victim 1’s child (Victim 2) was a passenger. After the crash, Tomlin got out of the car and fled on foot, carrying a blue duffel bag. Items were falling out of the bag as Tomlin fled. Before he was apprehended by a BPD officer, Tomlin threw the bag in the air, causing items to scatter.
BPD officers recovered drugs and drug paraphernalia along the route that Tomlin ran as he fled from them, including the area in which they apprehended him. Among the items recovered were a blender containing fentanyl and tramadol residue; packaging material, some of which contained cocaine residue; and a clear plastic bag containing approximately 38 grams of heroin mixed with fentanyl. During a search of Tomlin’s vehicle, BPD officers recovered a container of Inositol, a cutting agent for heroin; a bottle of ammonia, typically used to clean heroin mixing equipment; and a measuring cup.
During the crash, the steering wheel struck Victim 1’s surgery wound, and Victim 2’s head hit a window of the vehicle. Both victims received treatment for, and subsequently recovered from, the injuries caused by Tomlin crashing into their vehicle.
Tomlin and the government have agreed that, if the Court accepts the plea agreement, they will jointly recommend a sentence of 46 months in federal prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for July 21, 2021 at 3:00 p.m.
Acting United States Attorney Jonathan F. Lenzner commended the HSI Baltimore and the Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Samika N. Boyd, who is prosecuting the case.
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Annapolis MS-13 Member Pleads Guilty to Federal Racketeering Conspiracy and to Discharging a Firearm Related to a Murder and Two Attempted MurdersRead the Press Release
Baltimore, Maryland – Moises Alexis Reyes-Canales, a/k/a Sicopita, age 23, of Annapolis, Maryland, pleaded guilty today to 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, from 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 guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Assistant Attorney General Nicholas L. McQuaid 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.
“The violence perpetrated by Reyes-Canales and his fellow MS-13 members was brutal and tragic and is totally unacceptable. The U.S. Attorney’s Office in Maryland and our local and state partners are working together to remove these violent gang members and to keeping our communities safe from the violent threat of MS-13,” said Acting U.S. Attorney Jonathan F. Lenzner. “We continue to work with our counterparts here and abroad to bring to justice these transnational gangs. We need the continued help of members of our communities in order to carry on our work against MS-13.”
“Reyes-Canales and his co-defendants committed murder, attempted murders, and other violent crimes on behalf of MS-13, causing lasting harm to victims and the Annapolis community,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Through the diligent efforts of law enforcement and department prosecutors, these defendants will no longer harm and intimidate the Annapolis community. We will continue our relentless pursuit of MS-13 gang members, both in the United States and internationally.”
“This case illustrates that gang organizations are driven by greed and profit no matter the cost to innocent lives or our communities,” said Special Agent in Charge James Mancuso for the HSI Baltimore Field Office. “It is HSI’s priority to investigate crimes related to transnational gang violence, a duty we diligently and systematically discharge with the help of our federal, state, local and international law enforcement partners.”
“ATF is committed to focusing our efforts on identifying and investigating those who use violence and firearms to intimidate and brutalize others,” said ATF Baltimore Field Division Special Agent in Charge Tim Jones. “The strong partnerships ATF has with our federal, state, and local law enforcement partners, as well as prosecutors, are crucial in targeting these offenders and dismantling the violent gangs who try to take over 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.
Reyes-Canales and the government have agreed that, if the Court accepts the plea, Reyes-Canales will be sentenced to 35 years in federal prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for Reyes-Canales on September 17, 2021, at 9:30 a.m.
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. 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. McQuaid 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 are prosecuting the case.
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Rap Artist “Chad Focus” Sentenced to More Than Two Years in Federal Prison for Wire Fraud ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Chad Arrington a/k/a “Chad Focus”, age 33, of Randallstown, Maryland to 30 months in federal prison, followed by 12 months of home confinement as part of three years of supervised release, for a federal wire fraud conspiracy in connection with a scheme to use a company credit card to make more than $4.1 million in unauthorized purchases. Judge Bennett also ordered Arrington to pay restitution in the full amount of the victim’s losses, totaling $4,142,435.31.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office.
“Chad Arrington illegally used a company credit card to spend more than $4 million to promote himself as a hip-hop artist and to promote his company,” said Acting U.S. Attorney Jonathan F. Lenzner. “Now Arrington will spend more than two years in federal prison. The United States Attorney’s Office for the District of Maryland will continue to utilize our resources to prosecute this type of costly fraud.”
According to his plea agreement, Arrington was employed by Company 1 as a Search Engine Optimization (“SEO”) Specialist from approximately 2011 to August 2018. As an SEO Specialist, Arrington was responsible for promoting and marketing Company 1’s products and services online. Company 1 assigned Arrington an American Express company credit card (the “credit card”) to be used for business expenses, exclusively.
From at least January 2015 through August 2018, Arrington, and four co-conspirators used the credit card for fraudulent purchases, including to promote his hip-hop artist alter-ego, Chad Focus, and Focus Music Entertainment, as well as to make unauthorized purchases that benefitted them each personally.
Arrington admitted that he used the credit card to purchase sound equipment, studio kits, instruments, and music technology, which he then used to create an artist alter-ego “Chad Focus,” and produce a number of hip-hop songs through the company he formed, Focus Music Entertainment LLC. Arrington then used the credit card to make additional unauthorized purchases including promotional services to increase online streaming of his songs, purchase “likes,” “followers,” “tags,” and “views” across social media and viewing platforms; to purchase services from a company that promoted mixtape videos and singles, his image, and music; and to make unauthorized payments to multiple billboard companies to display images of Arrington and his website throughout the United States and to promote Chad Focus and Focus Music Entertainment LLC. Arrington also charged the credit card over $300,000 for unauthorized international and national travel expenses, hotels, airfares, night life and other miscellaneous expenses for himself and for Co-Conspirators 1 and 2. Additionally, Arrington made over $375,000 in unauthorized purchases for Chad Focus merchandise, accessories, and purchases related to a bike-sharing business. Between May 2018 and August 2018, Arrington used the credit card to pay multiple billboard companies to create billboards for Chad Focus and Focus Music Entertainment LLC. For example, a billboard displayed the image of Arrington surrounded by stacks of cash and the words “Get to the money.” Another billboard depicted Arrington with the words “Chad Focus. I will teach you how to be rich.”
According to the plea agreement, Arrington used the credit card to make over $1.5 million in unauthorized purchases from entities and accounts controlled by Co-Conspirator 2 and Co-Conspirator 3. In turn, the co-conspirators kicked back hundreds of thousands of dollars to Arrington by funneling cash payments to Arrington and to accounts controlled by Arrington.
In order to conceal the scheme, Arrington asked Co-Conspirator 1 and Co-Conspirator 4 to use computer software to make false entries on the credit card billing statements in order to conceal the recipient of the payments from Arrington’s supervisor and Company 1. Additionally, Arrington forged the signature of his supervisor on his credit card billing statements to make it appear as though he had received approval for certain purchases when, in fact, he had not. Arrington then sent those false payment authorizations to other employees who relied on the authorizations to ultimately pay off the outstanding balance of the credit card.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Mary W. Setzer and Matthew Phelps, who prosecuted the case.
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Owner of Business Providing Physical Therapy Services Pleads Guilty to Failure to Pay over to the IRS More Than $258,000 in Federal Employment TaxesRead the Press Release
Baltimore, Maryland – Harshe Shende, age 57, of Hanover, Maryland, pleaded guilty on May 4, 2021, to eight counts of failing to pay over employment taxes to the Internal Revenue Service in the amount of $258,905.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to Shende’s guilty plea, he was the sole owner and resident agent of Progressive Rehab Services, LLC, formed on September 10, 2004, which employed physical and occupational therapists who went to nursing homes to render services to patients. Shende was the sole signatory on two bank accounts he opened for the corporation at separate banks in 2008 and 2013, respectively. Shende accrued large liabilities for Progressive Rehab by filing forms with the IRS which showed the amount of income tax withholding he collected from Progressive Rehab’s employees and their Medicare and Social Security withholding (collectively employment taxes) but by failing to pay the employment taxes to IRS. Shende also failed to pay the employers’ portion of employment taxes to the IRS. The IRS pursued collection activities against Progressive Rehab.
As detailed in his plea agreement, on March 16, 2006, Shende and his then wife incorporated Progressive Health Group, Inc., (“Progressive Health”) in Maryland, with the stated purpose to provide rehab to nursing homes, hospitals, assistive living and home health. Shende was listed as Executive Director on two bank accounts he opened for the corporation at separate banks in 2008 and 2012, respectively. Shende listed the same address in Columbia, Maryland, for Progressive Health as he did for Progressive Rehab.
Shende admitted that beginning in around April 2009, he caused Progressive Rehab’s employees to perform the same work, but he billed for their work using the name Progressive Health and paid their salaries using Progressive Health’s bank account. Progressive Health withheld payroll taxes from its employees’ paychecks, including federal income taxes, Medicare and social security (“FICA”) taxes. As he did with with Progressive Rehab, Shende filed forms with the IRS for Progressive Health showing the amount of employment taxes withheld. However, as he did with Progressive Rehab, Shende willfully chose not to pay the taxes withheld from Progressive Health’s employees’ wages to the IRS, nor did he pay the employer’s portion of the employment taxes.
As a result, Shende failed to pay to the IRS a total of $155,838.15 in employment taxes withheld in tax years 2014 and 2015 and failed to pay the IRS a total of $103,066.85, which was the employer’s share of employment taxes for tax years 2014 and 2015. .
Shende faces a maximum sentence of five years in federal prison for failure to pay over employment taxes. Chief U.S. District Judge James K. Bredar has scheduled sentencing for July 23, 2021 at 2:00 p.m.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-CI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting the case.
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Outside Facilitator in Prison Corruption Scheme Sentenced to More Than Three Years in Federal Prison for Racketeering Conspiracy Involving Former Correctional Officers and Inmates at Jessup Correctional InstitutionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Chaz Chriscoe, age 40, of Owings Mills, Maryland, yesterday to 39 months in federal prison, followed by three years of supervised release, for a racketeering conspiracy at the Jessup Correctional Institution (JCI). The conspiracy included former correctional officers, inmates, and outside “facilitators,” like Chriscoe, who paid bribes to correctional officers to smuggle contraband, including narcotics, alcohol, tobacco, and cell phones into the prison.
On May 3, 2021, JCI inmate Darnell Smith, a/k/a “Hook,” age 40, pleaded guilty to his role in the racketeering conspiracy.
The sentence and guilty plea were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd, of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert Green, of the Maryland Department of Public Safety and Correctional Services.
“Prison corruption does not just endanger the lives of correctional officers and of the inmates entrusted to their care and supervision, but of the entire community, as it allows inmates to direct criminal activity from their prison cells” said Acting United States Attorney Jonathan F. Lenzner. “The United States Attorney’s Office will continue to work with our law enforcement partners to root out prison corruption and prosecute correctional officers and others who facilitate and engage in criminal behavior.”
“From corrupt officials to outside facilitators, we cannot and will not accept the perpetuation of a cycle of illegal activity inside prison walls,” said Rachel Byrd, Acting Special Agent in Charge of the FBI Baltimore Field Office. “Federal, state, and local officials will continue to work together to root out those who undermine the administration of justice at our prisons.”
“Anyone—inmate, family member, community member, or employee—who tries to bring contraband into a correctional facility puts hundreds of people at risk, and must be prosecuted to the fullest extent of the law,” said Robert Green, Secretary of Maryland's Department of Public Safety and Correctional Services.
JCI was a maximum-security prison that housed approximately 1,800 male inmates, with approximately 423 Correctional Officers (COs).
According to their plea agreements, from at least 2017 until their arrests in 2020, Chriscoe, who also goes by the name “Cheese,” and Smith conspired with JCI COs, inmates, and outside facilitators to smuggle contraband into JCI, including narcotics, alcohol, tobacco, and cell phones, in order to enrich themselves and protect and expand their criminal operation. According to their plea agreements and other court documents, COs accepted or agreed to accept payments from facilitators and/or inmates or engaged in sexual relations with inmates as consideration for smuggling contraband into JCI. Inmates acted as both wholesalers and retailers of contraband and in the process made profits that far exceeded the profits that could be made by selling similar drugs on the street. For example, conspirator inmates could purchase Suboxone strips for approximately $3 each and sell them inside JCI for approximately $50 each, or for a profit of more than 1,000 percent.
As detailed in their plea agreements, Chriscoe maintained relationships with several inmates and COs at JCI, including CO Chanel Pierce and inmate Darnell Smith. Chriscoe acted as the primary conduit through which coconspirators would get contraband, including controlled dangerous drugs, such as Suboxone, to CO Pierce and others to smuggle into JCI and then distribute the contraband to inmates. On a nearly daily basis, Chriscoe met with other outside facilitators to gather and package contraband before meeting with a CO to provide the contraband and bribe payment.
For example, between December 30, 2018 and January 12, 2019, law enforcement intercepted communications indicating that Chriscoe was meeting with a JCI CO at the CO’s home to deliver drugs and bribe money. When the CO was arrested a few days later, Chriscoe became the primary coordinator for the smuggling conspiracy because he and Darnell Smith had a connection with another JCI CO, specifically Chanel Pierce, with whom Smith was engaged in a romantic relationship. Over the next several months, investigators intercepted daily communications between Chriscoe, Smith, Pierce and other JCI inmates and their outside facilitators to coordinate contraband drop-offs and payments. The calls showed that outside facilitators would drop contraband off with Chriscoe, who then met with and provided the contraband to CO Pierce for smuggling into JCI. Sataya Hall was Smith’s financial facilitator and sent payments to both Chriscoe and Pierce on Smith’s behalf. In addition, Hall accepted payments on Smith’s behalf from facilitators for other JCI inmates in payment for contraband Smith had sold inside of JCI.
Smith admitted that during the time of the conspiracy, he possessed a contraband cell phone inside JCI that he used to further the smuggling operation, routinely using the contraband phone to communicate with CO Pierce, Hall, and Chriscoe. In addition, there were numerous conversations in which Smith discussed the types and quantities of drugs that were to be smuggled into JCI, as well as the money that other inmates and outside facilitators would pay for them. Smith also used the phone to conduct his romantic relationship with CO Pierce, coordinate her bribe payments and facilitate her meetings with Chriscoe.
As detailed in their plea agreements, early on the morning of May 25, 2019, Chriscoe met Pierce at her home and provided her with several balloons filled with controlled substances to smuggle into JCI. Pierce then went to work and was stopped by law enforcement as she entered the facility and searched. Law enforcement recovered a concealed purple balloon containing Suboxone from Pierce’s person. A subsequent search of Pierce’s home revealed several more balloons filled with contraband that she intended to smuggle into JCI.
Smith faces a maximum sentence of 20 years in prison for the racketeering conspiracy. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Theodore D. Chuang has scheduled sentencing for August 4, 2021, at 2:00 p.m.
A total of nine defendants, including Chriscoe, Smith, Pierce, and Hall, have pleaded guilty to their roles in the racketeering conspiracy. Six defendants are still facing charges. Former Correctional Dietary Officer Chanel Pierce, age 28, of Pikesville, Maryland, pleaded guilty to the racketeering conspiracy and is awaiting sentencing. Co-defendant inmates Page Boyd, age 37, and Marshall Hill, a/k/a “Boosie,” age 29, pleaded guilty to their roles in the racketeering conspiracy and were each sentenced to four years in federal prison. Co-defendant facilitators Sataya Hall, age 38, of Baltimore, and Trinesse Butts, age 37, of Parkville, Maryland also pleaded guilty to the racketeering conspiracy and were sentenced to six months in federal prison and a year and a day in federal prison, respectively.
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 U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the JCI investigation and have been full partners in this investigation.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Lauren E. Perry and Special Assistant U.S. Attorney Craig G. Fansler, who are prosecuting this case.
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Defendant in Scheme to Steal Digital Currency and Social Media Accounts Pleads Guilty and is Sentenced to Two Years in Federal PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Jordan K. Milleson, age 20, of Timonium, Maryland, to two years in federal prison, followed by one year of supervised release, for aggravated identity theft, in connecting with schemes to use the identity information of victims to steal digital currency and social media accounts. Milleson entered his guilty plea today. Chief Judge Bredar also ordered Milleson to pay restitution of $34,329.01.
The guilty plea and sentence 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; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his plea agreement, since at least September 23, 2017, Milleson was a computer “hacker” who accessed computers, networks, and electrometric accounts without authorization to perpetrate fraud schemes.
As detailed in the plea agreement, between September 23, 2017, and July 29, 2020, Milleson set up Internet domains and fraudulent websites, designed to appear to be legitimate websites belonging to wireless providers, but which were intended to steal account credentials and enabled Milleson and his co-conspirators to access unsuspecting victims’ electronic accounts without authorization. Milleson used techniques such as phishing and vishing to deceive victims into visiting the fraudulent websites and providing their credentials to access their electronic accounts. Victims of phishing attacks were generally contacted by e-mail, phone, or text message by persons purporting to be from reputable companies in order to induce the victims to reveal confidential information. Vishing is “voice phishing” where imposters use Internet phone services to trick victims into turning over critical financial or personal information over the phone.
Milleson admitted that he and his co-conspirators used electronic account credentials stolen from employees and affiliates of wireless providers to access those companies’ computer networks without authorization. After obtaining access to these networks, Milleson took over individual victims’ wireless accounts through “SIM swapping,” whereby customers’ mobile numbers, which are linked to unique subscriber identity modules (“SIM”), were instead linked to a SIM installed in a device controlled by Milleson or his co-conspirators. Once Milleson gained control over the victims’ mobile phone numbers, he was often able to also gain unauthorized access to the victims’ other electronic accounts, including e-mail, social media, and cryptocurrency accounts. Milleson and his co-conspirators changed the passwords to the accounts to prevent the victims from accessing their own accounts.
As detailed in the plea agreement, Milleson used stolen account passwords to take over social media accounts of Victim 1 and Victim 6, both of whom had thousands of followers and had monetized their accounts through sponsored links, product placements, and product reviews. Milleson changed the email address and password of the accounts, preventing Victim 1 and Victim 6 from accessing their accounts, and posted material to the victims’ accounts without their authorization. As a result of the takeover Victim 6 lost all of their followers on one of their social media accounts and was unable to advertise to them, losing their “brand deals,” the proceeds of which had been used to pay for college tuition, transportation, and groceries.
Milleson also admitted that, using a fraudulent website hosted at the domain Milleson registered, Milleson stole the login credentials of Victim 2, an employee of a third-party retailer for a wireless provider, who had access to the wireless provider’s computer networks. Milleson and others used the credentials of Victim 2, to gain access to the provider’s computer network system and execute SIM swapping attacks, taking control of the wireless calls and text messages sent to the accounts of Victim 3, Victim 4, and Victim 5.. This swapping attack resulted in the transfer of approximately $19,029.48 in digital currency from accounts belonging to Victim 3 and Victim 5. In addition, Victim 4 had a social media account with a two-character username, coveted by other social media users for its uniqueness and simplicity. On about June 25, 2019, Milleson took unauthorized control of Victim 4’s social media account. On January 25, 2020, Victim 7’s mobile phone stopped working as a result of a SIM swapping attack. Soon thereafter, Victim 7’s personal email password was reset without authorization. An unauthorized user then accessed Individual Victim 7’s account on a digital currency exchange and stole digital currencies worth approximately $12,300 at the time.
On June 26, 2019, a co-conspirator anonymously called the Baltimore County Police Department and falsely reported that he, purporting to be a resident of the Milleson family residence, had shot his father at the residence. During the call, the co-conspirator, posing as the purported shooter, threatened to shoot himself and to shoot at police officers if they attempted to confront him. This call was a “swatting” attack, a criminal harassment tactic in which a person places a false call to authorities that will trigger a police or special weapons and tactics (SWAT) team response—thereby causing a life-threatening situation.
Following his indictment, Milleson’s home was searched on June 29, 2020. Review of the devices seized from Milleson at that time showed that they were used to complete two-factor authentication password resets for several digital currency account and contained login credentials and passwords belonging to Individual Victims 1 and 6. Investigators also recovered incriminating messages between Milleson and his co-conspirators that detailed the group’s methodology of account infiltration and cryptocurrency theft.
Acting United States Attorney Jonathan F. Lenzner praised the HSI and Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Christopher M. Rigali and Zachary A. Myers, who prosecuted the case.
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Baltimore Man Sentenced to More Than Four Years in Federal Prison for Conspiring to Commit Sex Trafficking of a MinorRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Gerald Marshall, age 31, of Baltimore, Maryland, yesterday to 54 months in federal prison, followed by five years of supervised release, for conspiracy to engage in sex trafficking of a minor. Marshall admitted that he conspired to traffic two minor girls, ages 15 and 17, to engage in commercial sex acts. Judge Hazel ordered Marshall to pay $2,405 in restitution to each of the minor victims. Judge Hazel also ordered that, upon his release from prison, Marshall will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Russell E. Hamill, III of the Laurel Police Department.
According to Marshall’s plea agreement, beginning in or about January 2018, Marshall conspired with co-defendant Sean Dean to recruit, harbor, transport, and/or maintain three females, including two minors, to engage in commercial sex acts. In furtherance of the sex trafficking enterprise, Marshall rented hotel rooms in Timonium and Laurel, Maryland to be used by the victims to engage in commercial sex acts. Marshall and Dean transported the victims to the various hotels where they would stay for multiple days. While in the hotel rooms, at Dean’s direction the victims used a website to advertise themselves for commercial sex acts. The advertisements contained pictures of the victims in provocative poses and provided contact information for clients to use to secure a “date” with the victims. The victims were required to share a portion of the proceeds from any commercial sex acts with Dean.
As detailed in his plea agreement, during the first week of January 2018, Marshall and Dean transported the minor girls and the woman to a hotel in Timonium. The victims were at the hotel for approximately one week and met with multiple customers per day to engage in commercial sex acts. The victims shared a portion of the proceeds earned from their commercial sex acts with Dean.
During the second week of January, Marshall and Dean transported the victims to a hotel in Laurel, where they stayed for one or two days, engaging in commercial sex. On about January 11, 2018, Marshall and Dean transported the three females to a second hotel in Laurel. Marshall went to the front desk and obtained keys to the rooms intended for the two minor girls and the woman to use for commercial sex. Law enforcement subsequently responded to that hotel, after receiving a complaint about the smell of marijuana coming from the two rooms Marshall rented. The two minor females and the woman were located in the two rooms along with condoms and other items use in connection with their commercial sex acts.
Sean Dean, age 28, of Baltimore, previously pleaded guilty to conspiracy to engage in sex trafficking of a minor. Dean and the government have agreed that if the Court accepts the plea agreement Dean will be sentenced to 10 years in federal prison.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
Acting United States Attorney Jonathan F. Lenzner commended HSI Baltimore and the Laurel Police Department for their work in the investigation and thanked the Baltimore County Police Department and the Federal Bureau of Investigation for their assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Joseph R. Baldwin and Elizabeth Wright, who are prosecuting the case.
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Baltimore Man Pleads Guilty to Participating in a Conspiracy to Distribute Crack CocaineRead the Press Release
Baltimore, Maryland – Victor Davis, age 41, of Baltimore, Maryland, pleaded guilty on May 4, 2021, to conspiracy to distribute and posses with the intent to distribute cocaine base (crack cocaine). As part of his plea agreement, Davis admitted that during his participation in the conspiracy the members of the drug conspiracy distributed between 28 grams and 112 grams of crack cocaine.
The guilty plea 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 Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from December 2019 through September 29, 2020, Davis conspired with at least two others to distribute crack cocaine in the area of the 2600 block of Greenmount Avenue and the 400 block of East Lorraine Avenue in Baltimore, Maryland, where Davis’s drug trafficking organization (DTO) operated a “drug shop.” Members of the DTO, including Davis, conducted multiple hand-to-hand sales of drugs to confidential informants.
Davis admitted that he sold crack cocaine to confidential informants on four different occasions. For example, on January 30, 2020, Davis sold two clear bags of crack cocaine to a confidential informant in exchange for $300. In February 2020, a witness observed Davis in a home in the 400 block of East Lorraine Avenue preparing crack cocaine for street-level distribution and discussed future purchases of narcotics. The witness also saw several guns in the home. Davis admitted that the firearms were used to protect the DTO business and, therefore, were possessed in furtherance of the drug conspiracy.
As detailed in the plea agreement, Davis sold a confidential informant two bags of crack cocaine base $600 on February 26, 2020 and again March 4, 2020. On March 18, 2020, the confidential informant purchased four bags of crack cocaine from Davis for $650 and discussed a potential firearm transaction. Davis told the confidential informant that he possessed a “joint,” which is a slang term for a firearm.
As detailed in the plea agreement, Davis agrees that it is reasonably foreseeable to him that the members of the drug conspiracy distributed between 28 grams and 112 grams of crack cocaine.
Davis and the government agreed that, if the Court accepts the plea agreement, Davis will be sentenced to five years in federal prison. U.S. District Judge Catherine C. Blake has not set a date for sentencing.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and the Baltimore City Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Lindsey McCulley and Zachary B. Stendig, and Special Assistant U.S. Attorney Lindsay DeFrancesco who are prosecuting the case.
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Glen Burnie Man Facing Federal Indictment for Impersonating a U.S. Marshal and Possession of a Fraudulently Made Government SealRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Renul Barnet Forbes, a/k/a “Michael Renul,” “Breion Jones,” and “Bree Jones,” age 32, of Glen Burnie, Maryland, on the federal charges of false personation of a federal officer and possession of a fraudulently made government seal. The indictment was returned on March 25, 2021 and was unsealed at his initial appearance on May 3, 2021.
The indictment 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; U.S. Marshal for the District of Maryland Johnny Hughes; and Anne Arundel County Police Chief Amal Awad.
According to the indictment, on September 26, 2020, Forbes pretended to be an agent of the United States Marshals Service and presented a fraudulent United States Marshals Service badge in relation to an investigation begin conducted by an Anne Arundel County Police officer, in an effort to avoid identification and prosecution.
If convicted, Forbes faces a maximum sentence of three years in federal prison for impersonating an officer and a maximum of five years in federal prison for presenting a fraudulent government seal. 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 Forbes be released on electronic home monitoring pending trial.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, the USMS, and the Anne Arundel County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Mary W. Setzer who is prosecuting the case.
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Baltimore Man Sentenced to 14 Years in Federal Prison for Kidnapping During an Armed Carjacking Where the Victim Also Had a Gun Shoved in His Mouth to Obtain His ATM PINRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett today sentenced Michael Wedington, Jr., age 21, of Baltimore, Maryland, to 14 years in federal prison, followed by five years of supervised release, for the federal charge of kidnapping related to his role in the armed carjackings of two victims in June 2019.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, Wedington participated in the armed carjackings of two different victims that occurred on June 8 and June 10, 2019, respectively. In each instance, the victim was intending to purchase tools as part of a purported transaction that Wedington set up through a cellular phone-based application, “OfferUp,” which allows sellers to post advertisements of personal property for sale. Through the OfferUp application, the buyer can then directly contact the seller and arrange to buy the property. When the victims arrived at the designated meeting spot, they were robbed at gunpoint by Wedington and his co-conspirators, who also stole their vehicles. In each instance, investigators were able to link the seller’s OfferUp account in the name of “Brian” to Michael Wedington, through Wedington’s phone number and other information.
In the carjacking on June 8, 2019, the victim arrived in the area of Washington Boulevard and South Monroe Street in Baltimore and was directed to the 2400 block of West Lexington Street. Upon arriving, the victim was waved down and approached by Wedington and two other men. At first the men appeared to load the victim’s van with the tools they were purportedly selling. However, one suspect, armed with a handgun, then forced the victim into the rear of his vehicle. Wedington and his accomplices stole the victim’s wallet and cash, a driver’s license, debit card, and the victim’s cellular phone. As they drove away, one suspect shoved a handgun in the victim’s mouth and demanded the Personal Identification Number (PIN) to the victim’s debit card. The suspects drove to a gas station in Northwest Baltimore with the victim still in the van, and one of the suspects used the PIN the victim had provided to obtain cash from an ATM. The victim escaped from the van in the area of the 7000 block of Park Heights Avenue and fled on foot, later calling the Baltimore Police Department to report the incident. The stolen vehicle was recovered five days later in the area of the 2700 block of Tivoly Avenue in Baltimore.
In the second carjacking on June 10, 2019, the victim was lured to the 2400 block of West Lexington Street through the OfferUp application by a user who was purportedly selling tools and equipment. When the victim arrived, he was directed to the back alley behind West Fayette Street, where Wedington and another individual approached him—both armed with handguns. The two men took the victim’s wallet, containing more than $1,000 in cash, the victim’s two cell phones, and the victim’s Toyota vehicle.
Wedington was identified in a photo array, and Wedington’s fingerprint was recovered from the van stolen in the second carjacking. On November 1, 2019, a federal search warrant was executed at Wedington’s primary residence, which is located near the scenes of the two carjackings, and law enforcement recovered a Toyota car key, a firearm, 1,000 rounds of ammunition, replica firearms, and cellular phones. Agents obtained a search warrant for Wedington’s cell phone, which revealed, among other things, that Wedington used the OfferUp application and the “Brian” account to communicate with the first victim’s friend and orchestrate the June 8, 2019 set up of the carjacking. Agents also found various photos and videos showing Wedington posing with or using firearms.
Acting United States Attorney Jonathan F. Lenzner commended FBI and BPD for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Matthew DellaBetta and Daniel A. Loveland, Jr., who prosecuted the case.
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Maryland U.S. Attorney’s Office Seizes Domain Name Falsely Purporting to Provide COVID-19 VaccinesRead the Press Release
Baltimore, Maryland – The U.S. Attorney’s Office for the District of Maryland has seized “freevaccinecovax.org” which purported to be the website of an actual biotechnology company developing a vaccine for the COVID-19 virus but instead was allegedly used to collect the personal information of individuals visiting the site, in order to use the information for nefarious purposes, including fraud, phishing attacks, and/or deployment of malware. Individuals visiting the site will now see a message that the site has been seized by the federal government and be redirected to another site for additional information.
The seizure of the domain name was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge James R. Mancuso of Homeland Security Investigations - Baltimore.
“This is the ninth fraudulent website seeking to illegally profit from the COVID-19 pandemic that we have seized,” said Acting U.S. Attorney Jonathan F. Lenzner. “Members of the public should not provide personal information or click on links in unsolicited e-mails and should remember that the COVID-19 vaccine is not for sale. The Federal government is providing the vaccine free of charge to people living in the United States. Working with our partners at HSI, we will continue to aggressively prosecute fraudsters who seek to prey on unsuspecting residents and their families.”
“It’s a scary thought but what HSI wants the public to understand is all a bad guy needs to defraud thousands of Americans in search of COVD-19 information is the ability to create a website combined with malicious intent, “said James Mancuso, Special Agent in Charge for the HSI Baltimore Field Office. “We must make an example of these perpetrators in order to deter others from committing these crimes against an unsuspecting and vulnerable Internet user.”
According to the affidavit filed in support of the seizure, the HSI Intellectual Property Rights Center (“IPRC”) and the HSI Cyber Crimes Center (“C3”) discovered an apparent fraudulent website, named “freevaccinecovax.org.” A domain analysis conducted by HSI indicated the domain name was created on April 27, 2021, using an IP address located in Strasbourg. The registrant country was listed as Russia.
The HSI Cyber Operations Officer (COO) conducting domain analysis noted that the trademarked logos for Pfizer, the World Health Organization (WHO) and the United Nations High Commissioner for Refugees (UNHCR) appear on the homepage for the fraudulent site. Specifically, the fraudulent website contained a “Select your city” drop down and “Apply” and “Upload application” buttons. Upon selecting a city and clicking on “Apply” a PDF file is downloaded to your computer. This PDF file is written in Cyrillic. Once the PDF is completed, it then can be uploaded to the website by clicking on the “Upload application” button.
By seizing the site, the government has prevented third parties from acquiring the name and using it to commit additional crimes, as well as prevented third parties from continuing to access the site in its present form.
Federal law enforcement agencies are united in our efforts to fight against COVID-19 fraud. HSI has identified tips to recognize and report COVID-19 fraud. If you believe you are a victim of a fraud or attempted fraud involving COVID-19, you may also call the National Center for Disaster Fraud Hotline at 1-866-720-5721 or for more information visit justice.gov/coronavirus.
Acting United States Attorney Jonathan F. Lenzner commended HSI for its work in this investigation. Mr. Lenzner recognized the U.S. Food and Drug Administration’s Office of Criminal Investigations, the U.S. Postal Inspection Service and the Baltimore County Police Department for their assistance and thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Sean R. Delaney, who are handling the case.
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Prescription Drug Take Back Day on April 24, 2021 Collects More Than 11,000 Pounds of Prescription Drugs in MarylandRead the Press Release
Baltimore, Maryland - 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 announced today that the Drug Enforcement Administration’s 20th National Prescription Drug Take Back Day held on Saturday, April 24, 2021, collected 11,536.59 pounds of potentially dangerous prescription medications at Maryland’s approximately 100 available sites. The nationwide event is held twice a year and aims to provide a safe, convenient, and responsible means of disposing of prescription drugs and educating the general public about the potential for abuse of medications.
“Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper medical supervision and without valid medical need,” said Acting U.S. Attorney Jonathan F. Lenzner. “Over the pandemic we have seen a sharp increase in overdose deaths, and the path to opioid abuse can begin in the home with unused prescription drugs. I am grateful to the Marylanders who participated in DEA’s Prescription Drug Take Back Day to get rid of unused and unneeded prescription drugs, which will help prevent drug abuse and opioid addiction. I encourage anyone who missed the event last week to visit https://takebackday.dea.gov/ to find a collection site near them to take advantage of this free and anonymous service.”
“Thousands of Maryland residents die every year due to overdose, with a significant number of those overdose deaths caused by opioids. Take Back Day provides a vital opportunity for us to fight against the opioid problem here in Maryland,” said DEA Assistant Special Agent in Charge Orville O. Greene. “Those who participated in Take Back Day and disposed of unused prescription medication, may have saved someone from addiction or overdose.”
Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
In addition to DEA’s National Prescription Drug Take Back Day, prescription drugs can be disposed of at any of the 11,000 DEA authorized collectors at any time throughout the year, and at many local law enforcement agency sites. DEA and its partners will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharps, and illegal drugs are not accepted.
Given the ongoing COVID-19 public health emergency, DEA wants to ensure that the public is aware of other ways they can dispose of unwanted prescription drugs without having to leave their homes. Both the U.S. Food and Drug Administration and the Environmental Protection Agency have tips on how to safely dispose of drugs at home.
For more information on DEA’s National Prescription Drug Take Back Day, and to find a collection site in Maryland, visit https://takebackday.dea.gov/ or call 800-882-9539.
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Serial Fraudster Sentenced to Four Years in Federal Prison for Conspiracy to Commit Bank Fraud and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Boaz Salmon Bratton-Bey, age 38, of Owings Mills, Maryland, to four years in federal prison, followed by three years of supervised release, for federal bank fraud conspiracy and aggravated identity theft charges. Judge Russell ordered that the first year of supervised release must be spent in a half-way house or residential reentry program. During the time Bratton-Bey was perpetrating these fraud schemes, he was on supervised release from a previous federal fraud conviction.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.
According to his guilty plea, Bratton-Bey and his co-conspirators committed numerous acts of bank fraud using the stolen personal identifying information (“PII”) of individual victims, without the victims’ knowledge or permission.
Specifically, on June 5, 2019, Bratton-Bey and his co-conspirators executed an “instant credit” scheme in which a co-conspirator, Terrell Meadows, used a fictitious driver’s license bearing the image of Meadows and the personal information of an individual victim to obtain a store credit card at a home improvement store. The credit application contained the name, date of birth, Social Security Number, and other personally identifying information (PII) of a real person who did not consent to the use of his PII. The credit application was approved and a credit card with a $12,000 line of credit was issued in temporary form instantaneously. Transaction records indicate that on June 5 and June 6, 2019, the account was used to make a total of four purchases at four different store locations totaling in $5,988.14. Bratton-Bey and Meadows used a U-Haul truck to load and carry away the fraudulently obtained goods.
After one month of the truck rental, Bratton-Bey failed to provide payment and return the U-Haul truck, which caused the truck to be reported as stolen. During a traffic stop, The Baltimore County Police located the truck, identified the driver as Bratton-Bey, and retrieved fraudulently obtained14 credit cards featuring 14 different names of real individuals.
Following the seizure of those credit cards, investigators obtained bank records from financial institutions which showed that these cards had been used to commit fraudulent transactions, totaling at least $6,822.03 in actual fraud and at least $1,046.85 in attempted fraud. Records obtained from U-Haul revealed that Bratton-Bey paid a total of $4,039.91 for the rental of the U-Haul truck using fraudulent credit cards issued to real persons. The total loss amount from the U-Haul rental and the cards recovered from Bratton-Bey following the traffic stop was $12,652.73.
According to his plea agreement, investigators executed a search warrant at Bratton-Bey’s apartment on July 25, 2019. During the course of the search warrant, Law enforcement located counterfeit identification documents bearing photographs of Bratton-Bey and other individuals, credit/debit cards issued to individuals or entities other than Bratton-Bey, mail and financial correspondence addressed to individuals other than Bratton-Bey, and several cell phones and other electronic devices. Investigators recovered at least 12 credit/debit cards issued to individuals other than Bratton-Bey. Investigators also found Bratton-Bey’s real driver’s license, along with a fictitious driver’s license that included Bratton-Bey’s picture and his alias, “Boa Salmon” and a fictitious social security card for the “Boa Salmon” alias. The items recovered from Bratton-Bey’s apartment also included four other counterfeit identifications in the form of fictitious driver’s licenses bearing the PII of real victims, including counterfeit driver’s licenses for Pennsylvania and New York, in addition to Maryland. The total loss amount from the accounts related to the cards recovered from Bratton-Bey’s apartment was $40,222.30.
Judge Russell previously sentenced conspirator Terrell Meadows, age 32, of Rosedale, Maryland, to six months in prison, followed by three years of supervised release, for his role in the bank fraud conspiracy.
Bratton-Bey was previously convicted in U.S. District Court in Maryland for bank fraud conspiracy, access device fraud, and aggravated identity theft. For that case, he was sentenced to 102 months in federal prison in July 2012.
Acting United States Attorney Jonathan F. Lenzner praised the Baltimore County Police Department and the U.S. Postal Inspection Service for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Daniel A. Loveland, Jr. and Tamera Fine, who prosecuted the case.
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New Jersey Man Sentenced to More Than Five Years in Federal Prison for $3.5 Million Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Mehul Khatiwala, age 37, of Voorhees, New Jersey, to 63 months in federal prison, followed by four years of supervised release, for conspiracy to commit bank fraud and for three counts of bank fraud, in connection with schemes to fraudulently obtain a total of approximately $15 million in loans from Cecil Bank to purchase hotels and a multifamily residential property, resulting in losses of more than $3.5 million. Judge Chasanow also ordered Khatiwala to pay a $50,000 fine and to forfeit and pay restitution of $3,593,801.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Robert Manchak of the Federal Housing Finance Agency (FHFA), Office of Inspector General; Special Agent in Charge Shimon R. Richmond of the Federal Deposit Insurance Corporation-Office of Inspector General(FDIC-OIG); Special Inspector General Christy Goldsmith Romero of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and Inspector General Hannibal “Mike” Ware of the Small Business Administration - Office of Inspector General.
“Mehul Khatiwala will now serve more than five years in federal prison for fraudulently obtaining more than $15 million in loans. Khatiwala’s criminal behavior stole millions of dollars from the victims, which included not only the bank that made the loans, but the American taxpayers whose tax dollars guaranteed the loans,” said Acting U.S. Attorney Jonathan F. Lenzner. “All of us in federal law enforcement are committed to investigating and prosecuting this type of costly fraud.”
According to his plea agreement, from February 2011 through January 2014, Khatiwala and two co-conspirators executed a scheme to defraud Cecil Bank, the Small Business Administration (SBA), and other financial institutions by misrepresenting material facts in order to obtain financing for the purchase of two hotels and a multifamily residential property. Khatiwala defaulted on the loans, causing losses to Cecil Bank and the SBA of more than $3.5 million. According to the indictment and information presented at today’s plea hearing, on December 23, 2008, Cecil Bank’s holding company, Cecil Bankcorp, Inc., received an $11.5 million bailout from the Troubled Asset Relief Program (TARP).
Specifically, beginning in approximately April 2011, Khatiwala and Conspirator A made plans to apply for a $5 million loan at Cecil Bank to purchase the Memphis Airport Hotel in Memphis, Tennessee, as well as a $1.6 million loan to renovate that hotel. In order to obtain a loan, Khatiwala concealed Conspirator A’s 80% ownership of the borrowing entity because Conspirator A had already reached his legal lending limit at Cecil Bank. In May 2011, Cecil Bank’s Board of Directors approved the $5 million loan, with the condition that it be guaranteed by the SBA. The SBA required Khatiwala, as the purported 100% owner of the borrowing entity, to show that he had equity in the borrowing entity, or cash on hand of approximately $1.8 million. Conspirator B, who was an employee at another bank, falsely verified that Khatiwala had over $2 million on deposit at the co-conspirator’s bank. Khatiwala admitted that he signed and submitted this statement, which he knew to be false. The SBA approved its 75% guarantee of the $5 million loan funded by Cecil Bank. The loan went into default in January 2015.
In 2007, Khatiwala and the other owners of the Best Western Hotel in York, Pennsylvania, refinanced a loan for the property in the amount of $6.635 million. In early 2010, Khatiwala and his co-owners became delinquent on the loan and began discussions with the loan servicing company. In August 2011, Khatiwala reached an agreement with the loan servicer to accept a discounted payoff of $3.625 million on the unpaid principal balance of approximately $6.6 million. Khatiwala submitted fraudulent documentation and a fraudulent settlement statement to the loan servicer showing that the funds were being provided by a private lender. In fact, Khatiwala had arranged for the sale of the hotel to related parties for the sum of $4.3 million.
As early as April 2011, prior to the time Khatiwala made the misrepresentations to the loan servicer to negotiate the payoff, he began implementing the second step of his short-sale fraud scheme by arranging the sale of the hotel to Person B and one of Khatiwala’s employees. Khatiwala fraudulently obtained a $3.225 million loan from Cecil Bank, which was guaranteed by the SBA. During the loan application review and underwriting process performed by Cecil Bank and the SBA, Khatiwala submitted false documents as to the ownership of the selling and purchasing entities, as well as false financial statements for the purchasers. Khatiwala knew that the funds paid at closing would come from Khatiwala’s own personal bank account and other businesses, not from the purchasers, as was falsely represented to the bank and the SBA, in order to obtain approval of the loan. As a result of this short-sale fraud, the original holder of the note on the Best Western Hotel lost $675,000, which instead went to Khatiwala.
Finally, Khatiwala admitted that beginning in February 2011, he negotiated the purchase of a multifamily residential property in Perryville, Maryland. In order to obtain the loan, he established a company to serve as the borrowing and purchasing entity, representing to Cecil Bank that Persons A and B, a husband and wife, were the 100% owners of the company, and Khatiwala was the manager. In fact, Conspirator A owned 50% of the company and agreed to serve as guarantor on the loan. The bank approved a $7,122,500 loan for the purchase of the property with Persons A and B as the 100% owners of the purchasing entity. On about March 28, 2011, several days before settlement, Khatiwala e-mailed to Conspirator A an Amended and Restated Operating Agreement reflecting Conspirator A’s 50% interest in the property and his agreement to indemnify Persons A and B for any loss, cost, liability or expense arising in connection with any enforcement of Cecil Bank’s rights under the loan guarantee agreement. Khatiwala, Conspirator A, and Persons A and B signed the Amended Agreement; however, that material fact and document were never disclosed to Cecil Bank before or after the settlement, thus concealing Conspirator A’s ownership interest in the property. As early as February 2012, the loan payments of approximately $29,000 per month became delinquent and the loan went into default. Cecil Bank ultimately sold the note to a private lender for $3.252 million in lieu of foreclosure, incurring a loss of $3,583.170.
Acting United States Attorney Jonathan F. Lenzner commended the FHFA, the FDIC-OIG, SIGTARP, and the SBA-OIG, for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who prosecuted the case.
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Maryland Tax Preparer Sentenced to More Than Two Years in Federal Prison for Preparing False Returns and Aggravated Identity TheftRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Maria Espinal, age 53, of Montgomery Village, Maryland, yesterday to 27 months in federal prison, followed by one year of supervised release, for aiding and assisting in filing false tax returns and for aggravated identity theft. Judge Chuang also ordered Espinal to pay restitution in the amount of $106,066.
The sentence was announced by Acting U.S. Attorney for the District of Maryland Jonathan F. Lenzner; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Maryland Comptroller Peter Franchot.
According to court documents and statements made in court, Maria Espinal owned and operated a tax return preparation business located in Gaithersburg, Maryland. From 2011 through 2017, Maria Espinal prepared and filed fraudulent tax returns on behalf of her clients with the Internal Revenue Service (IRS) and the Comptroller of Maryland that claimed tax refunds to which the clients were not entitled. To generate a fraudulent refund, Espinal altered legitimate Forms W-2 in the names of third parties and replaced the third party’s name with her client’s name. As a result, her client claimed the third-party’s withholdings as his or her own, which generated fraudulent tax refunds.
In addition, Espinal displayed a sign on her office wall that read in Spanish “If you have lost your [identification] number or passport we have these people” and which listed the identifying information for several individuals. Espinal used the personal identifying information for one of those individuals to obtain a fraudulent refund on behalf of another client. Espinal also filed a tax return using another individual’s personal identifying information to generate a fraudulent refund that Espinal deposited into her own personal bank account.
Acting U.S. Attorney Lenzner and Acting Deputy Assistant Attorney General Goldberg thanked IRS - Criminal Investigation and the Office of the Comptroller of Maryland for their work in the investigation, and commended Assistant United States Attorney Erin Pulice and Carl Brooker, formerly a Trial Attorney with the Tax Division and now an Assistant United States Attorney in the Southern District of California, who prosecuted the case.
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Former Owner of a Temporary Employment Agency Facing Federal Charges for Allegedly Defrauding Lenders and for Failing to Pay to the IRS the Employment Taxes Withheld from Employees’ WagesRead the Press Release
Baltimore, Maryland – A federal criminal information has been filed charging Crystal Jones, a/k/a Crystal Powell-Jones, age 53, of Laurel, Maryland, for the federal charges of wire fraud and failure to pay to the IRS employment taxes withheld from employees’ wages. The criminal information was filed on April 26, 2021.
The criminal information was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Acting Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
According to the criminal information, Jones was the owner and managing partner of JAG Professional Resources, a temporary employment agency doing business in Howard County, Maryland and elsewhere from 2012 through August 2107. As JAG’s managing partner, Jones exercised control over all aspects of JAG’s business, including its finances. A relative of Jones was a silent minority partner in JAG.
As detailed in the criminal information, from at least February 2013 through October 2016, Jones obtained factoring services from Victim Lender 1 for JAG. Factoring is a means by which cash intensive businesses, like JAG, could obtain cash quickly and reliably by leveraging accounts receivable. JAG was a cash intensive business because JAG had to pay its temporary employees weekly or biweekly, but typically did not receive payment from JAG’s clients until at least 30 days after services had been rendered, which meant that JAG could be short of the cash flow needed to pay its employees each week, but its business model was theoretically profitable if all outstanding invoices had been paid. Specifically, JAG sold its account receivables to Victim Lender 1 and, in return, JAG received cash advances from Victim Lender 1 totaling approximately 90% of JAG’s accounts receivables. Upon receiving payments from JAG’s clients on the outstanding invoices, Victim Lender 1 sent JAG the remaining 10% of the invoice that had been purchased, less fees Victim Lender 1 charged for its factoring services.
The criminal information alleges that from March 2016 to about May 2016, Jones caused JAG to sell Victim Lender 1 fraudulent invoices totaling more than $350,000 for services that JAG had purportedly provided to a City in Ohio. The City in Ohio had contracted with JAG for temporary employment services beginning in February 2013, but JAG’s relationship with the City in Ohio ended in about February 2016.
To execute the scheme, Jones allegedly created false paystubs purportedly issued by JAG and fraudulent invoices that purported to represent services that JAG had provided, so Jones could obtain loans for her own benefit and the benefits of others. Jones allegedly sent emails to representatives of Victim Lender 1 falsely stating that payments on the false and fraudulent invoices were coming, to lull Victim Lender 1 into a false sense of security about the outstanding collections. Further, Jones allegedly appropriated the names, signatures, and personal identifying information of her silent partner and others for Jones’s own benefit.
In addition, the criminal information alleges that from January 2014 to October 2016 Jones withheld payroll taxes from the wages paid to JAG employees, but neglected to pay the taxes withheld over to the Internal Revenue Service, resulting in a tax loss to the United States of at least $523,244.38.
If convicted, Jones faces a maximum sentence of 20 years in federal prison for wire fraud; and a maximum of five in federal prison for failure to pay over employment taxes. 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. Jones is expected to have an initial appearance and arraignment in U.S. District Court in Baltimore before U.S. District Judge George L. Russell III, although no date has been scheduled.
A criminal information is not a finding of guilt. An individual charged by criminal information is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-CI for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Dana J. Brusca and Harry M. Gruber, who are prosecuting this case.
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Romanian National Pleads Guilty to Federal Conspiracy Charge in Maryland for Stealing Checks from Churches and Depositing Them into Fraudulently Opened Bank Accounts, Then Withdrawing the Stolen FundsRead the Press Release
Greenbelt, Maryland – Marian Unguru, age 36, of Baltimore, Maryland pleaded guilty late yesterday to a federal bank fraud and wire fraud conspiracy, in which the conspirators received approximately at least $1,115,571.68 from 2,654 stolen checks.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Shimon R. Richmond of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG); Chief Marcus Jones of the Montgomery County Police Department; Chief Toni Dezomits of the Cary, North Carolina, Police Department; and Sheriff Dusty Rhoades of the Williamson County, Tennessee, Sheriff’s Office.
According to Unguru’s plea agreement, from June 2018 to January 2021, Unguru and his co-conspirators fraudulently opened bank accounts at victim financial institutions. Unguru and his co-conspirators stole checks from the incoming and outgoing mail of churches and other religious institutions, then deposited the stolen checks into the fraudulently opened bank accounts. Unguru and his co-conspirators then withdrew the funds and spent the fraudulently obtained proceeds.
Specifically, Unguru admitted that he and his co-conspirators used foreign identity documents, often but not universally Romanian, in both their true identities as well as suspected fictitious identities, to fraudulently open bank accounts at victim financial institutions. Unguru and his co-conspirators then fraudulently negotiated the stolen checks by depositing the stolen checks into the victim bank accounts, often by way of automated teller machine (ATM) transactions, then made cash withdrawals from ATMs and purchases using debit cards associated with the bank accounts.
Unguru admitted that during the course of the conspiracy, he personally deposited at least 90 stolen checks, totaling at least $35,662.79, and withdrew at least $22,200 from the accounts that received the checks. In total, the fraudulently opened bank accounts received approximately at least $1,115,571.68 from 2,654 stolen checks. Based on Unguru’s involvement in the scheme and his relationship with the other conspirators, between $550,000 and $1.5 million in actual and intended loss was foreseeable to Unguru.
As part of his plea agreement, Unguru has agreed to pay restitution in the full amount of the victims’ losses, which is at least $1,115,571.68, and to forfeit $14,100 in cash seized during a search of Unguru’s home on October 9, 2020.
Unguru faces a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud and 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. U.S. District Judge Theodore D. Chuang has scheduled sentencing for Unguru on July 28, 2021, at 10:00 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Postal Inspection Service, HSI, the FDIC Office of Inspector General, the Montgomery County Police Department, the Cary (North Carolina) Police Department, and the Williamson County (Tennessee) Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Elizabeth Wright, who is prosecuting the case.
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Prince George’s County Police Lieutenant Facing Federal Charges for Attempting to Evade or Defeat Taxes for Years 2014 Through 2019Read the Press Release
Greenbelt, Maryland – A federal criminal complaint has been filed charging Edward Scott Finn, age 46, of Dunkirk, Maryland, for the federal charges of attempting to evade or defeat taxes for tax years 2014 through 2019. Finn is a Lieutenant with the Prince George’s County Police Department and owned and operated Edward Finn Inc. (EFI). EFI employs off-duty law enforcement officers to provide security services to apartment complexes and other businesses, primarily in Prince George’s and Montgomery Counties. Finn was arrested on April 22, 2021 and will have an initial appearance today at 1:30 p.m. before U.S. Magistrate Judge Gina L. Simms.
The federal charges were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to the affidavit filed in support of the criminal complaint, Finn allegedly omitted a total of $1.3 million of EFI income on his 2014 through 2019 individual income tax returns. During that time frame, the affidavit alleges that Finn deposited approximately $1,397,295 of checks written for services from EFI into his personal bank account or into his children’s bank accounts. These security service deposits were not reported as income on EFI’s corporate tax returns for tax years 2014 through 2019, nor as income on Finn’s personal tax returns. This underreported income resulted in a total tax loss to the government of $484,281.
If convicted, Finn faces a maximum sentence of five years in federal prison for each of five counts of attempting to evade and defeat taxes. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-CI and the FBI and for their work in the investigation and thanked the Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Thomas M. Sullivan and Thomas P. Windom, who are prosecuting this case.
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Manager in Major Baltimore Drug Trafficking Organization Sentenced to 15 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Paul W. Grimm sentenced Desmond Ringgold, a/k/a Worm and Fool, age 32, of Baltimore, Maryland to 15 years in federal prison, followed by five years of supervised release, for his role as a supervisor in a prolific drug trafficking organization (DTO) that operated in and around Baltimore.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Chief Marcus Jones of the Montgomery County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Ringgold’s plea agreement, from October 2018 to April 2019, law enforcement investigated a DTO operating in the Baltimore metropolitan area that sold heroin, cocaine base (crack cocaine), and fentanyl to drug users and drug redistributors from Maryland, Virginia, West Virginia, and Pennsylvania. The DTO sold thousands of dollars in narcotics on a daily basis, with street-level distributors in the DTO working in shifts and sharing the phones they used to communicate with DTO leadership and customers. Customers of the DTO believed they were purchasing heroin, but the DTO adulterated all heroin it sold with fentanyl.
Investigators identified Ringgold as a supervisor and manager in the drug trafficking organization. As such, Ringgold managed daily supplies of narcotics and the collection of drug proceeds from distributors. Investigators regularly overheard Ringgold arranging to resupply co-conspirators with heroin and cocaine base to sell to drug customers. Ringgold also communicated about the DTO business with a leader in the DTO, serving as a conduit between street-level dealers and DTO leadership. Ringgold admitted that over the course of the conspiracy he distributed more than one kilogram of heroin to street-level distributors.
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 praised the FBI, the DEA, the Montgomery County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Matthew DellaBetta, who prosecuted the case.
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Baltimore Man Pleads Guilty to Federal Charge for Production of Child PornographyRead the Press Release
Baltimore, Maryland – Marcus Street, age 26, of Baltimore, Maryland, pleaded guilty today to enticing and persuading a minor victim to engage in sexually explicit conduct to produce child pornography, which Street admitted he also distributed.
The guilty plea 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 City’s State’s Attorney Marilyn J. Mosby; Commissioner Michael Harrison of the Baltimore Police Department (BPD); and Baltimore County Sheriff Jay Fisher.
According to Street’s guilty plea, in December 2019, HSI and BPD investigators conducted a forensic review of the of a 14-year-old victim’s cell phone. The review revealed six 15-second videos of the victim engaged in sexual acts with an adult man. In some of the videos, a distinctive tattoo on the man’s left forearm is visible. Further investigation identified Street as the man depicted in each of the videos.
Law enforcement interviewed Street on December 10, 2019, concerning his interaction with the victim. Street initially claimed that he did not engage in sexual acts with the minor victim. When law enforcement confronted Street with the video of him engaging in sex acts with a minor, Street stated “oh yeah, I did one time, I ain’t gonna lie I did”. Street also told law enforcement that he recorded the video. Following the interview, law enforcement obtained an arrest warrant and Street was arrested on January 6, 2020. After his arrest, Street was again questioned by law enforcement and admitted to engaging in sexually explicit conduct with the victim, stating, “That was it, that was the last time I did anything with this girl.”
Investigators subsequently executed search warrants on Street’s cell phone, social media account, and on the victim’s social media account. Review of Street’s cell phone revealed two minutes-long videos of him engaging in sex acts with the victim. A review of Street’s and the victim’s social media accounts showed that Street had sent shortened versions of those videos, 15 seconds in length, to the victim using social media.
Street faces a mandatory minimum sentence of 15 years in federal prison and a maximum of 30 years in federal prison for production of child pornography. U.S. District Judge George L. Russell has scheduled sentencing for August 19, 2021 at 12:30 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 commended the HSI, the Office of the Baltimore City State’s Attorney, the Baltimore Police Department, and the Baltimore County Sheriff’s Office for their work in the investigation and thanked the Federal Bureau of Investigation for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Daniel A. Loveland, Jr. and Ayn B. Ducao.
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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Army Veteran Pleads Guilty to Federal Charges in Maryland for Supplying Forged Military Discharge Certificates to Individuals Applying for Military Waivers to Obtain Commercial Driver’s LicensesRead the Press Release
Greenbelt, Maryland – Philip Mungin, age 58, of Bryans Road, Maryland, pleaded guilty today to forgery of a military discharge certificate and identity theft, in connection with a scheme in which Mungin provided fraudulent DD-214 discharge certificates to individuals for fraudulent military waiver applications for commercial driver’s licenses in exchange for payment.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jamie Mazzone, U.S. Department of Transportation, Office of Inspector General, Washington Regional Office; and Special Agent in Charge Christopher Dillard of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
According to his guilty plea, between 1997 and 1999, Mungin was enlisted in the Army. Upon Mungin’s discharge in 1999, Victim 1, was the “Senior Transition Specialist” who helped process Mungin’s discharge and signed Mungin’s military discharge certificate, known as the DD-214.
Federal law mandates that drivers of commercial vehicles, such as tractor-trailers and semi-trucks, obtain a commercial driver’s license (CDL). Among other requirements, CDL applicants must pass both a written test and a driving skills test. Third-parties, such as driving schools, are authorized to train prospective CDL holders and administer the necessary tests, however, this training generally takes weeks to complete and may cost students $3,000 to $7,000. The Department of Transportation implemented a program in 2011, aimed at helping U.S. military veterans to get jobs by allowing states to waive the driving skills test for U.S. military veterans who could provide proof that they had been trained to operate the relevant vehicles in the military. To demonstrate their eligibility, veterans had to submit their DD-214 and complete an application, signed by the applicant’s commanding officer to certify that they had the relevant driving experience.
As detailed in the plea agreement, in December 2018, employees at the Maryland Motor Vehicle Administration (MVA) office in Waldorf, Maryland, became suspicious of waiver documents submitted by an applicant and confronted the applicant. The applicant, who had never been in the military, identified Mungin as the person who offered to help him get a CDL by submitting falsified military paperwork. MVA investigators subsequently learned that 44 individuals had submitted fraudulent waiver applications. Many of the drivers who obtained CDLs based on fraudulent military paperwork identified Mungin as the person who helped them. Thirty-four of the fraudulent applications had Victim 1’s name and title at the bottom of the form, many of which included a forged or photocopied version of Victim 1’s signature. The certifying commanding officer on nearly all of the fraudulent waiver forms was the same, a purported colonel. Department of Defense records showed that no person by that name had ever served in the U.S. military.
Specifically, Mungin admits that he falsified DD-214s and military waiver forms for drivers wanting to obtain CDLs, in exchange for the drivers paying Mungin—reportedly between $500 to $2,000 each. Employees at the Waldorf MVA were familiar with Mungin because he often accompanied applicants with fraudulent paperwork to obtain their licenses, typically wearing a military uniform while doing so. At times, Mungin told the employees he was a member of the military police accompanying members who were about to be discharged to obtain their CDLs. At least one fraudulent CDL was issued in Virginia using the same forged DD-214 that Mungin had used with the Maryland drivers. In that application, Mungin listed himself as the commanding officer on the waiver form.
Mungin acknowledged that he received between $15,000 and $40,000 to create false military paperwork, including DD-214s, to assist drivers in fraudulently obtaining CDLs.
As part of his plea agreement, Mungin will be required to forfeit any money, property, or assets derived as a result of, or used to facilitate, the commission of his illegal activities, and will also be required to pay a money judgment of $2,000.
Mungin faces a maximum sentence of one year in federal prison for forgery of a military discharge certificate and a maximum of 15 years in federal prison for identity theft. U.S. District Judge Paula Xinis has scheduled sentencing for August 16, 2021 at 10:00 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the DOT OIG, DCIS, and the Maryland MVA Office of Investigations and Internal Affairs for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Catherine K. Dick, who is prosecuting the case.
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New York Man Facing Federal Indictment in Maryland for Cyberstalking and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment late yesterday charging Desmond Babloo Singh, age 19, of New York, New York, for the federal charges of cyberstalking and aggravated identity theft.
The indictment 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 Melissa R. Hyatt of the Baltimore County Police Department.
“HSI remains committed to protecting the public from cyberstalking and other online harassment,” said Special Agent in Charge James R. Mancuso of Homeland Security Investigations Baltimore field office. “The internet and social media platforms are not safe havens for criminal conduct and we will continue to pursue and hold the individuals accountable for their crimes.”
According to the four-count indictment, Singh, the younger brother of a former middle school classmate of Victim 1’s, began following Victim 1 on multiple social media platforms after Singh’s family moved from Maryland to Texas. Between approximately 2014 to February 14, 2020, Victim 1 and Singh exchanged limited communications online, but there was never a romantic relationship of any sort between Singh and Victim 1; in fact, Victim 1 had never met Singh in person. Despite this, on Valentine’s Day 2020, Singh shared with Victim 1 a private social media post in which he professed his love for Victim 1. He also shared with Victim 1 a separate online posting in which he further expressed his romantic interest in Victim 1. Victim 1 rebuffed his advances and eventually asked him not to contact her any further.
The indictment alleges that over the course of the next 10 months, Singh orchestrated and executed a relentless cyberstalking and harassment campaign against Victim 1. Singh carried out a similar cyberstalking campaign against Victim 2, an associate of Victim 1’s, whom Singh perceived to be a romantic rival. Specifically, the indictment alleges Singh used more than 100 different social media, electronic communication, and phone accounts to send Victim 1 harassing communications, some of which included express or implied threats of death or bodily injury, sexualized violence. The communications also contained racial slurs directed at Victim 1. The indictment further alleges that Singh used images of Victim 1 in the harassing communications, in which he denigrated Victim 1’s appearance and character and encouraged others to harass Victim 1. The indictment further alleges Singh posted identifying information of Victim 1 including her address, phone number, school, social media identities, birth date, and other identifying information. One post containing Victim 1’s identifying information included the text, “UGLY [racial slur] GIRL PLS DO MORE TO HER”.
According to court documents, Victim 1 pleaded with Singh and his immediate family members to cease the online harassment, but to no avail. Victim 1 told Singh that if he did not cease the harassment, she would seek a no-contact order. In response, Singh allegedly sent a text message to Victim 1 stating, “You think I’m kidding I’m genuinely never going to stop, its going to be really funny…”
On July 19, 2020, a harassing account, allegedly created by Singh, posted Victim 1’s parents’ Maryland address and stated there would be a party at that address the following day. On July 20, 2020, Victim 1’s parents’ address was the subject of a false bomb threat, which was reported anonymously to the Baltimore County Police. The following day, Singh allegedly texted Victim 1 from an anonymous phone number, writing “you’re getting swatted.”
As detailed in court documents, Singh’s alleged harassment campaigns also involved gaining unauthorized access to Victim 1’s social media accounts. Specifically, Singh is alleged to have gained unauthorized access to two such accounts. Singh used his unauthorized access to those accounts to obtain private photos of Victim 1, which he then posted online. Singh also posted pictures of himself from one of Victim 1’s accounts, along with the text, “omg he’s so hot!!!”.
Finally, Singh allegedly conducted a similar cyberstalking and harassment campaign targeting Victim 2, which included creating social media accounts to denigrate Victim 2’s character, post Victim 2’s identifying information, and threats to engage Victim 2 in physical violence. For instance, Singh allegedly posted a video to social media platforms, which showed an unidentified person knocking on front door of a residence where Victim 2 previously lived. In this communication and others, Singh allegedly threated to seek out and fight Victim 2.
If convicted, Singh faces a maximum sentence of five years in federal prison for each of two counts of cyberstalking and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for each of two counts of aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Singh is currently detained.
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 HSI and the Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Christopher M. Rigali and Zachary A. Myers, who are prosecuting this case.
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Owner of the Surrogacy Group Sentenced in Maryland to 32 Months in Federal Prison for Defrauding Clients of Fees Paid to Find and Support a Pregnancy SurrogateRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Gregory Ray Blosser, age 39, of Tampa, Florida, to 32 months in federal prison, followed by three years of supervised release, for a wire fraud charge in connection with a scheme to defraud clients of The Surrogacy Group (TSG), which he owned and operated from offices in Annapolis, Maryland and Tampa, Florida. Judge Hollander also ordered that Blosser must forfeit $1,104,706 and pay restitution in the amount of $1,194,519.54. Blosser was arrested on April 29, 2019 in Florida and has been under home confinement since his arrest.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“Gregory Blosser took advantage of and defrauded 44 individuals who were trying to become parents,” said Acting U.S. Attorney Jonathan F. Lenzner. “Blosser misappropriated funds from escrow accounts that belonged to families and were owed to surrogates carrying babies. This sentence should send a message to heartless criminals like Blosser who choose to line their pockets by taking advantage of people who are simply trying to start a family.”
“Dreams, hopes and bank accounts were wiped clean by Mr. Blosser who preyed on couples who were already in a vulnerable place,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “Today’s sentencing is a reminder that the FBI will use our resources appropriately to root out fraudulent surrogacy schemes that violate the trust of the American public.”
According to Blosser’s plea agreement, TSG was incorporated in Maryland on January 5, 2012 and offered and sold surrogacy-related services throughout the United States and internationally to individuals who desired to have children using a pregnancy surrogate. From at least 2015 until his arrest in 2019, Blosser solicited and accepted funds from TSG clients who desired to have children using a surrogate, representing that these funds would be held in escrow. Blosser told the clients that he would act as their agent disbursing the funds to the surrogate pursuant to contracts between the TSG client and TSG, and the TSG client and the surrogate.
Instead, Blosser admitted that beginning in 2017, he converted a significant portion of the funds he promised to hold in escrow to his own use without the authorization of the TSG client and failed to pay the surrogate as he had agreed to do. Blosser did not, as promised, create separate escrow accounts for these funds and as a result, those funds intermingled with TSG’s operating accounts and were used to pay business expenses, service business loans, and for other purposes not permitted under the escrow agreements. TSG clients were forced to pay the surrogate’s expenses themselves, effectively paying twice for the services Blosser had promised to deliver.
As detailed in his plea agreement, at Blosser’s direction, at least seven victims paid fees to establish an escrow account to be controlled by Blosser, with the funds to be used to find a suitable surrogate, and to support the surrogate during a pregnancy. The victims lived in Maryland, Australia, North Carolina, Germany, and Virginia. In each case, after the victims deposited funds into the escrow account, Blosser either did not locate a suitable surrogate, or did not pay the surrogate the agreed-upon fees.
In total, Blosser fraudulently obtained approximately $1,104,706 from approximately 44 victims.
Blosser is also facing related civil suits filed by the States of Maryland and Florida.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Leo J. Wise, who prosecuted the case.
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Howard County Physician Pays More Than $660,000 to Resolve False Claims Act Allegations of Fraudulent BillingRead the Press Release
Baltimore, Maryland – Njideka Udochi, M.D., a family practice physician who owns Millennium Family Practice in Howard County, has agreed to pay the United States $663,094.76 to resolve allegations that she submitted false claims to the Medicare program for fraudulent neurostimulator billings, arising from the use of an auricular stimulation (“P-Stim”) device.
The settlement agreement was announced today by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Maureen Dixon, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services.
“Taping a device with adhesive is clearly not the same as surgical implantation,” said Acting United States Attorney Jonathan Lenzner. “Falsely billing the government for a procedure that reimburses at a high rate for such a simple procedure that is not reimbursed at all diverts valuable government resources and undermines confidence in our healthcare system. This settlement will restore funds that should not have been reimbursed and should serve as a bold reminder that improper billing will not be tolerated. I commend our partners at CMS’s Center for Program Integrity and HHS-OIG for identifying and eliminating this kind of waste and abuse in our federal healthcare programs.”
In her practice, Dr. Udochi used a P-Stim device to treat her pain patients. A P-Stim device provides electrical acupuncture to treat pain symptoms and is applied externally to the patient, generally behind the patient’s ear. Acupuncture, electrical or otherwise, is not reimbursable by Medicare.
According to the settlement agreement, from January 2019 to May 2019, Dr. Udochi falsely billed Medicare for the use of the P-Stim device by using the Healthcare Common Procedure Coding System (HCPCS) code for a neurosurgical procedure of an invasive and extensive nature where the device is implanted into the patient. HCPCS codes are used by Medicare to determine the level of reimbursement to providers. Medicare reimburses providers approximately $6,255.61 for an implantable neurostimulator procedure, reflecting the complexity and in-depth nature of surgical implantation of a neurostimulator. Despite the fact that Medicare does not provide any reimbursement for the use of acupuncture devices, Dr. Udochi’s false billing for P -Stim devices, that were taped behind the ears of her patients and were often removed by her patients at home without assistance from a medical professional, caused Medicare to pay her hundreds of thousands of dollars.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Dr. Udochi, nor a concession by the United States that its claims are not well founded.
Acting United States Attorney Jonathan Lenzner commended the Office of Inspector General for the Department of Health and Human Services for its work in the investigation. Mr. Lenzner also thanked Assistant United States Attorneys Matt Haven and Allen Loucks, along with Investigators Steve Capobianco and Ann Thiel, who handled and investigated the case.
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Former Social Security Employee Sentenced to Three Years in Federal Prison for a Scheme to Obtain over $236,000 in Social Security Benefits by Submitting Fictitious ClaimsRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Cheikh Ahmet Tidiane Cisse, age 45, of Baltimore, Maryland, today to three years and a day in federal prison, followed by three years of supervised release for theft of government property and aggravated identity theft, in connection with a scheme in which Cisse filed fraudulent claims for Social Security benefits using fictitious identities and the identities of actual individuals, and attempted to collected over $236,000. Judge Russell also ordered Cisse to pay restitution of $83,247 and forfeit $30,000 seized from Cisse’s home and pay a money judgment in the amount of $51,107.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Gail S. Ennis, Inspector General for the Social Security Administration.
Cisse was employed by the Social Security Administration (SSA) as a Claims Specialist in SSA’s Office of International Operations. Cisse admitted that between July 2018 and March 2019, he filed fictitious claims for benefits using stolen identities and identity documents he obtained through the course of his employment with SSA in order to steal or attempt to steal over $236,000 from SSA.
According to his plea agreement, as part of his job, Cisse was responsible for reviewing the identity documents of social security claimants living abroad, such as passports, marriage certificates, and identity cards. Cisse then created new, fictitious identities in SSA's database, often using information from the foreign identity documents he reviewed, which were issued social security numbers (SSNs). Cisse used the fictitious identities to file fraudulent claims for social security divorced spouse survivor's benefits against actual deceased individuals, directing the benefits payments to debit cards or bank accounts he opened in the names of the fictitious identities using the identity documents he obtained through his employment. Cisse sometimes provided his home address for that of the fictitious claimants, but also provided an address in Quebec, Canada, that corresponded to a mail forwarding service to which he subscribed, making it appear as if the fictitious claimants lived abroad. Through this mail forwarding service, Cisse received mail associated with the scheme, including genuine social security cards in the names of the fictitious identities and benefits payments.
As detailed in the plea agreement, in one instance, when SSA stopped payment on the $10,734 back payment for one of the fraudulent claims due to suspected fraud, Cisse contacted SSA’s payment center and falsely relayed that the purported beneficiary had called inquiring about the whereabouts of the payment, causing the SSA payment center to issue the back payment by direct deposit. Cisse received a total of approximately $25,916 as a result of this fraudulent claim, which he spent through cash withdrawals and retail purchases.
In total, Cisse submitted at least nine fraudulent claims in stolen and fictitious identities, causing SSA to pay approximately $87,000 in fraudulent claims through direct deposit, issue approximately $46,000 in checks that were never negotiated, and authorize approximately $103,000 in claims that SSA halted before payments were issued. Cisse personally received and spent $82,047 as a result of the scheme.
Acting United States Attorney Jonathan F. Lenzner commended the SSA Office of Inspector General for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Michael F. Davio, who is prosecuting the case.
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Nigerian National Facing Federal Charges for Role in Social Media Elder Scam with Losses of More Than $474,000Read the Press Release
Greenbelt, Maryland – A criminal complaint was filed today in U.S. District Court in Maryland charging Oluwaseyi Akinyemi a/k/a “Paddy Linkin”, a/k/a “Joseph Kadin”, age 34, of Hyattsville, Maryland, for the federal charges of mail fraud, attempted mail fraud, and mail and wire fraud conspiracy, in connections with an advanced fee fraud scheme using social media to target elderly victims and causing losses of $474,145.07.
The criminal complaint 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 Interim Chief Hector Velez of the Prince George’s County Police Department.
According to the affidavit filed in support of the criminal complaint, from July 10, 2018 to April 29, 2019, Akinyemi was a member of the a fraud group (the AFG), a group of Nigerian nationals who engaged in a social media-based advanced fee fraud schemes targeting elderly individuals. Allegedly, AFG members perpetrated a financial scheme in which they created fictitious social media accounts to encourage elderly victims to send cash to cover “taxes” or “fees” in order to receive substantial financial awards. The affidavit alleges that, in some instances, the AFG created fraudulent social media accounts of friends of the victims, making the victims believe they were communicating with individuals they knew and trusted. Once the victims displayed a level of interest, the AFG allegedly opened a new account or persona (“the Closers”) to carry out the fraud scheme. At times, the Closers fraudulently posed as real or fictitious government agencies offering the victims financial awards in exchange for associated taxes and fees. The affidavit further alleges that once victims sent funds to individuals in Maryland and elsewhere, AFG members forwarded the victims’ funds to co-conspirators in Nigeria. The affidavit alleges that Akinyemi is one of the individuals that received victims’ cash or gift card payments through mail services.
As detailed in the affidavit, on April 16, 2019, the Prince George’s County Police Department intercepted a package sent to “Paddy Linkin” at Akinyemi’s address. The package was found to contain $30,000 in cash wrapped in money bands and concealed inside two stuffed animal bears. The money was seized by law enforcement. As detailed in the criminal complaint, Victim 1 was identified as the sender and was subsequently interviewed by law enforcement. According to the affidavit, Victim 1 received an application for a purported federal government program from an individual that the victim believed was a “friend” on a social media platform, because the sender’s profile picture matched that of an individual with whom Victim 1 was friends. The “friend” vouched for the program. Victim 1 was allegedly contacted by a Closer, who advised that Victim 1 was approved for $100,000 in grant funds but needed to pay taxes to receive the grant funds. Once Victim 1 sent funds for the “taxes”, she received a “Certificate of Completion” with the Internal Revenue Service seal and another certificate bearing her full name and the text: “Federal Government Grants for the sum of $5,000,000.” Victim 1 was then notified that the Central Intelligence Agency was going to confiscate the grant funds if he/she did not send more money to cover the taxes on the awarded grant. Following the Closer’s specific instructions, Victim 1 allegedly sent a total of approximately $70,000 to $80,000 in cash to “Paddy Linkin” in six packages addressed to Akinyemi’s residence as well as to an address in Midland, Texas, including the $30,000 seized by the Prince George’s County Police officers. According to the affidavit, Victim 1 withdrew funds from a retirement account and obtained a bank loan in order to pay the “taxes” believing that he/she would receive federal grants.
At least 13 victims have allegedly been defrauded of a total of $474,145.07 through the AFG scheme.
If convicted, Akinyemi faces a maximum sentence of 20 years for each count of mail fraud, attempted mail fraud and mail fraud conspiracy. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Timothy J. Sullivan ordered that Akinyemi be detained.
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 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 is prosecuting this case.
The Department of Justice has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
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Maryland Financial Advisor Facing Federal Charges for Stealing a Client’s Life SavingsRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Eddy Blizzard, age 42, of Perry Hall, Maryland, with a federal wire fraud charge and with aggravated identity theft, in connection with a fraud scheme in which he embezzled more than $1 million from a client’s retirement account. The criminal complaint was filed on April 14, 2021 and unsealed upon Blizzard’s initial appearance today.
The criminal complaint was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Mark P. Higgins of the Federal Housing Finance Agency, Office of Inspector General.
“This defendant is charged with perpetrating a heartless scheme that preyed on a vulnerable elderly victim, allegedly stealing more than a million dollars,” said Acting U.S. Attorney Jonathan F. Lenzner. “As a result of the fraud the victim’s house went into foreclosure and he owed the IRS at least $63,000. We will continue to work with our law enforcement partners to bring to justice those who perpetrate these despicable schemes targeting elderly victims. I encourage anyone who believes they may be a victim of financial fraud to contact the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
According to the affidavit filed in support of the criminal complaint, Blizzard held several licenses that allowed him to operate as a registered broker and a registered investment adviser per the Financial Industry Regulatory Authority (“FINRA”). From 2003 to 2014, Blizzard was employed by a bank securities company (Bank 1) and from 2014 to 2017 he was employed by a bank investment services company (Bank 2), both in Maryland.
As detailed in the affidavit, victim R.M. was a resident of Maryland and was 75 years old in January 2020. On December 12, 2019, R.M. was interviewed as part of this investigation. R.M stated to investigators that beginning in 1963, R.M. went to work for a Baltimore based commercial air-conditioning company, where he enjoyed a successful career installing commercial grade air conditioning units around the country. R.M. told investigators he routinely worked approximately 15 to 30 hours of overtime per week during his career to make extra money. In 2003, after approximately 40 years of service with the air conditioning company, R.M. took a buyout and retired. Six months later, R.M. decided to invest his retirement funds in order to provide an inheritance for his grandchildren. R.M. sought investment advice from Bank 1, where he had his depository accounts.
Blizzard began working at Bank 1 shortly after R.M. began investing there and became R.M.’s financial adviser. R.M. allegedly told investigators that in about 2005, Blizzard “went on his own” meaning that Blizzard began working as an independent financial advisor and asked R.M. if R.M. wanted to leave Bank 1 and use Blizzard as a full-time financial advisor. Blizzard allegedly told R.M. that it would be a while before he had his own office, but he would continue to work out of the Bank 1 branch in Catonsville, Maryland. A review of publicly available FINRA records shows that Blizzard never went to work as an independent financial advisor. As detailed in the affidavit, approximately once a month, R.M. would drive from his new home in Chester, Maryland on the Eastern Shore to meet with Blizzard at Bank 1 in Catonsville, approximately one hour away; however, R.M. and Blizzard would meet in Blizzard’s car, not the office. These meetings lasted 30-45 minutes and R.M. was never told why they were meeting in Blizzard’s car.
In approximately 2010, the affidavit alleges that, at Blizzard’s request, R.M. gave Blizzard 15-20 signed blank checks, which Blizzard used. According to the affidavit, R.M. did not know what the checks were for, but recognized Blizzard’s handwriting when he received the cancelled checks in the mail. During the years of investment with Blizzard, R.M. stated that he believed his retirement funds were protected, meaning they would not lose value – a fact that was allegedly told to R.M. numerous times by Blizzard and Blizzard’s wife. R.M. also believed that his mortgage was being paid by Blizzard.
The affidavit alleges that on approximately 12 different instances, R.M. went to his local bank to withdraw cash and was told there was not enough money in the account. R.M. would then call Blizzard to let him know about the deficiency. Blizzard allegedly would then tell R.M. to wait a day or two and there would be funds in the account to withdraw.
In August 2019, R.M. was preparing to go on a family vacation and attempted to withdraw $1,000 to $1,500 in cash from the local Bank 1 branch and was told there were not sufficient funds in the account. R.M. attempted to contact Blizzard on his cell phone for a week with no response. R.M. then went to Blizzard’s Perry Hall, Maryland residence to talk to Blizzard in person, knocking on the front and back doors of Blizzard’s residence. No one came to the door, but according to the affidavit R.M. received a voicemail from Blizzard, while he was still at Blizzard’s home. In the voicemail, Blizzard allegedly stated that the neighbors had called him and were complaining about the banging on the door. As detailed in the affidavit, Blizzard further explained that all of R.M.’s money was gone.
According to the affidavit, a review of R.M.’s depository and investment accounts showed that between January 2013 and August 2019 there were a total of 242 distributions totaling approximately $1.4 million from R.M.’s retirement accounts. Of those, 129 distributions totaling $1.2 million were specifically requested from R.M.’s retirement accounts instead of being regular systematic annuity payments. After taxes and fees were deducted from those requested payments, approximately $1 million was deposited into R.M.’s Bank 1 account. This review allegedly also revealed that from April 2016 to April 2019 Blizzard deposited approximately 112 checks drawn on R.M.’s account into various bank accounts at Bank 1 and elsewhere that were held by Blizzard jointly with his wife or individually. These checks totaled approximately $848,000 and were written to Blizzard or Blizzard’s wife. A review of these checks showed that almost all had comments written on the memo section indicating various purposes such as payment of property taxes, construction, boat payments, and down payments for a new house.
In addition, the affidavit alleges that R.M. received a letter from the IRS, which he turned over to Blizzard as Blizzard had instructed. R.M.’s relatives later determined that R.M. owed approximately $63,000 in federal income tax due to disbursements from R.M.’s retirement accounts that were allegedly stolen by Blizzard. In the fall of 2019, R.M.’s home was put into the foreclosure process because of lack of payment which R.M. allegedly thought was being handled by Blizzard. R.M. died on March 20, 2020.
If convicted, Blizzard faces a maximum sentence of 20 years in federal prison for wire fraud and a mandatory sentence of two years, consecutive to any other sentence, 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. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Deborah L. Boardman ordered that Blizzard be released pending 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 FBI and the FHFA OIG for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting this case.
The Department of Justice has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
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North Carolina Man Sentenced in Maryland to 18 Months in Federal Prison for Bank Fraud Scheme Involving $529,000 in Stolen Altered Postal Service Money OrdersRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Vantino Johnson, age 23, of Charlotte, North Carolina, in Maryland today to 18 months in federal prison, followed by five years of supervised release on the federal charges of bank fraud conspiracy and bank fraud, in connection with a scheme to negotiate stolen altered postal service money orders at victim financial institutions. Judge Xinis ordered that Johnson pay restitution in the full amount of the victims’ losses, $272,087.19.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.
According to his guilty plea, between May and October 2019, Johnson and others conspired to defraud victim financial institutions by negotiating stolen and fraudulent postal money orders. Specifically, Johnson admitted that he and his co-conspirators stole money orders from post offices in Maryland and North Carolina, then altered the stolen money orders to reflect being issued for $800 or $1,000. Johnson and his co-defendants then deposited the stolen and altered money orders into bank accounts that had been opened at the victim financial institutions in the names of identity theft victims, using those victims’ means of identification without their knowledge or permission.
On October 17, 2019, law enforcement executed search warrants at two residences in North Carolina associated with Johnson and at a residence in Waldorf associated with Beamon. A search of Johnson’s residences as well as his vehicle recovered: receipts showing the deposit of stolen postal money orders; debit cards for bank accounts that were opened in a number of victims; money orders stolen from various post offices; stolen and altered money orders; blank paper printed with amounts, issue dates, and post office zip codes; and a loaded firearm.
A search of the Waldorf residence associated with Beamon recovered: a stolen postal arrow key used to open United States Postal Service collection boxes; checks that were stolen from the mail; blank paper printed displaying amounts, issue dates, and post office zip codes; and approximately 37 postal money orders. Law enforcement also seized nine firearms from Beamon’s residence, including one AR-15 style ghost gun assault rifle, firearms with extended magazines, and approximately 553 rounds of various ammunition.
As detailed in their respective plea agreements, between May and October 2019, in Maryland and North Carolina, Johnson deposited 61 fraudulent postal money orders into at least 12 bank accounts that had been opened using the identification of at least 11 separate individuals. Beamon deposited 34 fraudulent postal money orders into at least 6 bank accounts that had been opened using the identification of at least 5 separate individuals. During the course of the conspiracy, it was foreseeable to Johnson and Beamon that the conspirators negotiated $529,000 in stolen money orders. At least $150,200 was negotiated into accounts controlled by Johnson, and at least $124,800 was negotiated into accounts controlled by Beamon.
Johnson’s co-conspirator, Remy Beamon, age 24, of Waldorf, Maryland, pleaded guilty to federal charges for a bank fraud conspiracy and for bank fraud, as well as for being a felon in possession of a firearm and was sentenced on February 18, 2021, to 51 months in federal prison.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Postal Inspection Service for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Rajeev Raghavan, who prosecuted the case.
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Third Former Maryland Tax Preparer Pleads Guilty to a Federal Tax Fraud ConspiracyRead the Press Release
Greenbelt, Maryland – Veronica Hope Fortune, age 54, of Upper Marlboro, Maryland, pleaded guilty today to conspiracy to defraud the United States and to assisting in the preparation and filing of false tax returns.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Acting Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to Fortune’s plea agreement, in August 2015 Fortune was a tax preparer in Maryland with electronic tax return filing privileges from the Internal Revenue System (IRS). Fortune agreed to allow Co-Conspirator 1 and Co-Conspirator 2, both of whom had been suspended from the IRS’s e-filing program, to use Fortune’s unique electronic filing identifiers, in exchange for the use of Co-Conspirator 1 and Co-Conspirator 2’s shared office space in Temple Hills, Maryland.
Co-Conspirator 1 and Co-Conspirator 2 misrepresented their identities on their clients’ tax returns by using Fortune’s identifiers to prepare and electronically file the tax returns with the IRS. Fortune also joined in her co-conspirators’ practice of falsifying tax returns and fraudulently claiming refunds. Specifically, Fortune and her co-conspirators falsified tax returns by: fabricating, inflating, and improperly claiming items on the Schedules A that were attached to clients’ federal individual income tax returns; and engineering business losses on Schedules C by fabricating, inflating, and improperly claiming purported business expenses. As a result, Fortune, Co-Conspirator 1, and Co-Conspirator 2 artificially lowered their clients’ taxable income, thereby lowering the taxes that the clients owed to the IRS and inflating their refunds.
On December 15, 2017, the IRS also expelled Fortune from the electronic tax return filing program due to a criminal investigation into fraudulent tax returns filed using her unique identifiers. Fortune then made misrepresentations about the criminal nature of her issues with the IRS to a third-party electronic return originator (“ERO”) in order to obtain their assistance. The ERO allowed Fortune to file tax returns using its unique electronic filing identifiers, and Fortune shared those identifiers with Co-Conspirator 1 and Co-Conspirator 2. Using the new identifiers, the co-conspirators, including Fortune, continued to prepare and file false and fraudulent returns through at least the 2019 tax filing season, which ended on or about April 2019.
In total, the tax loss caused to the IRS as a direct result of Fortune and her co-conspirators’ conspiracy for the tax years 2012 through 2018 was $189,748. As part of her plea agreement, Fortune will be required to pay restitution in the full amount of the loss, which the parties stipulate is at least $189,748.
Fortune faces a maximum sentence of five years in federal prison for the conspiracy and a maximum of three years in federal prison for aiding and assisting in the preparation and filing of false tax returns. U.S. District Judge Paul W. Grimm has scheduled sentencing for August 20, 2021.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-Criminal Investigation for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Leah Grossi and Trial Attorney Kathryn Sparks of the Tax Division, who are prosecuting the case.
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Woodsboro Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Jeffrey John White, age 53, of Woodsboro, Maryland, pleaded guilty today to the federal charge of possession of child pornography. At the time of his federal offense, White was on supervised probation for a previous conviction for similar conduct in Montgomery County Circuit Court.
The plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Frederick County State’s Attorney J. Charles Smith III.
According to his guilty plea, White was previously convicted of two counts of possession of child pornography in the Circuit Court of Montgomery County on September 25, 2014. The conviction arose from White’s possession of almost 10,000 files of child sex abuse material. For that conviction, White was sentenced to five years imprisonment, suspended and five years of supervised release. On September 30, 2015, White was found to have violated his probation and was sentenced to five years in prison with all but 18 months suspended, followed by four years of supervised probation.
From April 14, 2020 through July 2020, while on supervised probation for his previous child pornography conviction, White began to use a peer-to-peer file sharing network to access, distribute and possess child pornography. On three separate dates during April 2020, investigators with the Frederick County Sheriff’s Office were able to establish twenty direct connections with a device, later determined to be White’s laptop and SD card, to view and download known files of child pornography, including a one hour and thirty-nine second video depicting a prepubescent 12-year-old victim displaying her genitals.
On July 6, 2020 investigators from the Frederick County Sheriff’s Office and the Federal Bureau of Investigation executed a search warrant at White’s Woodsboro residence and seized White’s laptop and SD card. At that time, White claimed ownership of his laptop, however he claimed he did not know how to access the encrypted laptop. White also claimed to have no knowledge of child pornography activity on the file sharing network. Additionally, a child-sized sex-doll with an anal and vaginal opening was located during the execution of the search warrant.
Federal agents were able to decrypt White’s laptop and forensically examine its hard drive, recovering 7,000 unique images and more than 240 unique videos of child pornography. Child pornography found on White’s laptop was similar to the images investigators initially downloaded from White’s IP address. In addition, thousands of child erotica files were also discovered on White’s laptop and SD card.
As part of his plea agreement, White will be required to 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).
White faces a mandatory minimum sentence of 10 years in federal prison and a maximum of 20 years in federal prison for possession of child pornography. U.S. District Judge Stephanie A. Gallagher has not yet scheduled a sentencing date for White.
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, Frederick State’s Attorney’s Office, the Frederick Sheriff’s Office, and the Frederick County Cyber Crimes Task Force for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Daniel A. Loveland, Jr. and Special Assistant U.S. Attorney Joyce King, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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MS-13 Member Sentenced to More Than 16 Years in Federal Prison for Participating in a Kidnapping and an Attempted MurderRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced MS-13 gang member David Ernesto Nolasco Soriano age 29, to 200 months in federal prison, followed by three years of supervised release, for a federal racketeering conspiracy charge related to his participation in a violent racketeering enterprise, specifically MS-13, including a kidnapping and an attempted murder.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge James Mancuso of Homeland Security Investigations (HSI) Baltimore Office; Chief Jason Lando of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith, III; Chief Amal Awad of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Acting Chief Hector Velez of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. Nolasco Soriano was a member and associate of the Fulton Locotes Salvatrucha (FLS) clique of MS-13.
According to Nolasco Soriano’s plea agreement, from at least January 2015 through August 28, 2015, while Nolasco Soriano was a member and associate of the FLS clique of MS-13, members of the Fulton clique engaged in the distribution of marijuana on behalf of MS-13 in the District of Maryland. Members of the Fulton clique also extorted money from legitimate and illegitimate businesses that operated in the gang’s perceived “territory.”
As detailed in his plea agreement, in or around May 2015, members of the FLS clique began demanding extortion payments from “Victim 2.” When Victim 2 stopped making the required extortion payments to the FLS clique, Nolasco Soriano and other MS-13 members kidnapped Victim 2 on May 10, 2015. Nolasco Soriano and several other members of the FLS clique transported Victim 2 against his will to a remote wooded area in Frederick, Maryland. While Nolasco Soriano was present, a member of the FLS clique brandished a handgun and put the barrel of the gun in Victim 2’s mouth. Nolasco Soriano and the other members of the FLS clique released Victim 2 once Victim 2 agreed to resume making extortion payments to the FLS clique. Nolasco Soriano and the other FLS clique members who participated in the kidnapping of Victim 2 did so for the purpose of maintaining and increasing their position in MS-13.
In August 2015, Nolasco Soriano and other MS-13 members and associates, to maintain and increase their position in the gang, planned and conspired to murder Victim 3, whom they believed to be a rival gang member. On August 28, 2015, after previously conducting surveillance of the residence where Victim 3 lived with his girlfriend, Victim 4, the MS-13 members and associates entered the apartment and waited there for the victims to return. After the victims returned to the apartment, Nolasco Soriano and two other gang members attacked Victim 3 and Victim 4 with machetes and knives. Although both victims survived, the attack on Victim 3 left him with both hands nearly severed, and severe wounds to his face and torso. Victim 3 has no use of one hand and limited use of the other.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.”
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to a promotion to a leadership position. One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
A total of 29 defendants have been charged in this case with participating in a racketeering conspiracy and/or other crimes related to their association with MS-13, including 18 defendants charged in the fifth superseding indictment filed on October 21, 2019. A total of 21 defendants, including Nolasco Soriano, have pleaded guilty to crimes related to their participation in MS-13 gang activities.
Anyone with information about MS-13 is encouraged to call the FBI’s nationwide tipline, 1-866-STP-MS13 (1-866-787-6713). The FBI tipline allows individuals to provide information about MS-13’s criminal activities to a central location and the FBI will then disseminate the information to the appropriate law enforcement authorities for investigation. Your identity will be protected.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended the FBI; HSI; the Frederick Police Department; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and recognized the Baltimore County Police Department for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Kenneth S. Clark, Catherine K. Dick, and Matthew DellaBetta, who are prosecuting this case.
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Honduran Man Sentenced to 21 Months in Federal Prison for Illegal ReentryRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Jose Luiz Suarez, age 30, a Honduran citizen residing in Germantown, Maryland, to 21 months in prison for illegal reentry after being removed from the United States as a result of a previous felony conviction.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner Field Office Director Francisco Madrigal of Enforcement and Removal Operations (ERO) Baltimore; and Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea, Suarez unlawfully entered the United States on July 5, 1999. On September 27, 2012, Suarez was sentenced to five years of imprisonment with all but three years suspended after being convicted of accessory after the fact. On March 14, 2014, the United States Department of Homeland Security (DHS) issued a removal order. Suarez was removed to Honduras from the United States on April 4, 2014. On June 25, 2019, Suarez was found in Montgomery County, Maryland while being treated for an arm injury resulting from an altercation in a restaurant. Suarez provided a false name and false information about the events leading up to his injuries to police. Soon after, he was arrested on several state charges, including providing a false statement to an officer.
Acting United States Attorney Jonathan F. Lenzner commended ERO and the Montgomery Police Department for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Craig Fansler and Assistant U.S. Attorney Michael Morgan, who prosecuted the case.
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Boonesboro Man Pleads Guilty to Coercion and Enticement of a Minor to Produce Child PornographyRead the Press Release
Greenbelt, Maryland - James Maynard, Jr., age 53, of Boonesboro, Maryland, pleaded guilty today to a federal charge for coercion and enticement of a minor in order to produce and distribute child pornography.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone 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, Frederick County 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, such as: “daddy and daughter sex;” “kids having sex;” and “little girl nude.”
Investigators interviewed Maynard. Maynard 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.
As part of his plea agreement, upon his release from prison, Maynard will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Maynard faces a mandatory minimum sentence of 10 years in prison and a maximum of life in prison followed by up to lifetime of supervised release for coercion and enticement of a minor. U.S. District Judge Stephanie A. Gallagher has not scheduled a sentencing date for Maynard.
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 Frederick Police Department for their work in the investigation. 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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Wife and Husband Sentenced to 18 Months in Federal Prison for Conspiracy to Distribute Controlled Substances and a Money Laundering ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Sonyia Cruz, age 52, of San Jose, California, and Frankie Cruz, age 46, of San Jose, California, to 18 months in federal prison, followed by three years of supervised release, for conspiring to distribute controlled substances and conspiring to commit money laundering.
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 Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to their plea agreements, beginning in at least 2014, the married couple of Frankie and Sonyia Cruz conducted marijuana sales by purchasing bulk amounts of marijuana (24 to 25 pounds per order), shipping the marijuana to their rental home in Laurel, Maryland, and repackaging the drug parcels to sell in the District of Columbia for $2,800 or $2,900 per pound. The Cruzes then shipped the proceeds back to California after laundering the money at a Maryland Casino. In the spring of 2016, they also conducted marijuana sales in North Carolina.
From October 2015 through November 2016, Frankie Cruz, Sonyia Cruz, and other conspirators laundered approximately $674,897 derived from marijuana sales at a Maryland casino. The Cruzes attempted to laundered funds by feeding large amounts of currency into slot machines, engaging in minimal gaming activity, and cashing out the remainder of the proceeds. For example, on January 6, 2016, surveillance cameras captured Sonyia Cruz retrieving large stacks of money in small denominations from her purse and handing the funds to Frankie Cruz and a co-conspirator. Sonyia Cruz, Frankie Cruz, and a co-conspirator inserted the large piles of cash into various slot machines and engaged in minimal gaming activity when others walked by, spending less than $10 for every $500 they put into the machine. They then collected their fraudulent winnings in the form of a barcode encoded ticket, which totaled the equal value of the currency the conspirators deposited into the slot machines minus the minimal gaming expenditures. In some instances, Frankie Cruz deposited as much as $2,000 into a slot machine and cashed the same amount in the form of a ticket.
Sonyia Cruz, Frankie Cruz and a co-conspirator conducted this activity for four hours from 9 pm on January 6, 2016 to 1 am on January 7, 2016. Sonyia Cruz divided the fixed winnings amongst herself, Frankie Cruz, and a co-conspirator. All three individuals used various automated cash-out kiosks to retrieve the value of their tickets in $20 denominations.
Acting United States Attorney Jonathan F. Lenzner praised the HSI and Maryland State Police for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Dwight Draughon and David I. Salem, who prosecuted the case.
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Repeat Sex Offender Sentenced to 15 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Anjan Ghosh Tagore, age 48, of Silver Spring, Maryland, to 15 years in federal prison, followed by lifetime supervised release, for receipt of child pornography and 18 months in federal prison for violating his supervised release from a previous federal conviction for possession of child pornography. The sentences were imposed on April 8, 2021 and are to be served consecutively. Judge Messitte also ordered that Tagore forfeit his electronic devices and pay $3,000 in restitution to a child pornography victim. Upon his release from prison, Tagore must also continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Marcus Jones of the Montgomery County Police Department.
According to Tagore’s plea agreement, in February 2019, the United States Probation Office was alerted by monitoring software that Tagore searched for images of “naked/nude/preteen” children on his desktop computer. When confronted about his use of his authorized computer to search for “naked/nude/preteen” children, Tagore denied any knowledge of his computer being used that way, although he later admitted to viewing this material. On April 16, 2019, Montgomery County Police contacted the U.S. Probation regarding a complaint that Tagore had been using a computer at a library in Montgomery County to view nude images of children at a library. Tagore’s U.S. Probation Officer had not authorized Tagore to use a computer or the internet. Furthermore, searching for and viewing images of nude children was a violation of the rules and regulations of Tagore’s sex offender treatment program, nor did Tagore report his questioning by the Montgomery County Police as he was required to do under the terms of his supervised release.
In April 2019, upon questioning by a U.S. Probation officer, Tagore turned over several USB drives and Micro SD cards, which Tagore was not allowed to possess. A search warrant was executed on the digital media and a forensic analysis revealed 105 video files depicting child pornography, including prepubescent children, at least one of which was an infant or toddler.
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, the U.S. Probation and Pretrial Services Office, and the Montgomery County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Joseph R. Baldwin, 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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Montgomery County Man Pleads Guilty to Scheme to Open Credit Card Accounts at Retail and Telecommunications Stores Using the Stolen Personal Information of Hundreds of VictimsRead the Press Release
Greenbelt, Maryland – Abdel Ndiaye, a/k/a “Pac,” age 32, of Boyds, Maryland, pleaded guilty to the federal charges of conspiracy to commit wire fraud and aggravated identity theft, in connection with a scheme in which Ndiaye and his co-conspirators opened credit card accounts at numerous retail and telecommunications stores in order to obtain money and property. The guilty plea was entered on April 7, 2021.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Matthew S. Miller of the United States Secret Service - Washington Field Office; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea, from October 2015 to April 2018, Ndiaye conspired with Jonathan Henry, Dominique Davis, and others to obtain real individuals’ personally identifying information (PII), without the victims’ knowledge or permission. Ndiaye not only knew that the personal information belonged to real people, but he also used a minor’s identity to lease his Maryland apartment.
As detailed in the plea agreement, Ndiaye then provided the victims’ PII to other conspirators and Ndiaye and other conspirators used the stolen PII to create fraudulent driver’s licenses. As part of the conspiracy, co-conspirators used the victims’ personal information and fraudulent driver’s licenses to apply for instant credit at various retailors and telecommunications stores in the names of the victims to purchase merchandise and electronics. To evade detection by law enforcement, co-conspirators traveled to stores located in different states including Maryland, Pennsylvania, North Carolina, Virginia, and Washington, D.C.
On April 19, 2018, law enforcement officers executed a search warrant at Ndiaye’s Maryland apartment. Officers located a 75’’ Samsung television and Bose Soundtouch 300 soundbar. On March 7, 2019, Ndiaye used the same minor’s identifying information to open credit accounts and purchased the soundbar and television for $3,750. Law enforcement also recovered the PII of approximately 659 victims located within a folder in Ndiaye’s bedroom dresser drawer, a total of $17,231 in cash which were proceeds or derived from proceeds of the scheme. Also found in the apartment were shredded driver’s licenses, a shredding machine, and blank card stock used to create fraudulent identification cards and credit cards, as well as a credit card encoder which Ndiaye used to create fraudulent credit cards. Officers located 10 telecommunication statements with the same account number but difference customer names and addresses.
Officers also recovered several items Ndiaye had thrown out of the apartment window prior to law enforcement’s entry including Ndiaye’s laptop, driver’s license holograms from nine different states, as well as 14 fraudulent Maryland driver’s licenses.
During the investigation, law enforcement selected 145 potential victims out of the total 659 victim PII recovered from Ndiaye’s apartment and sent the victim information to the card issuers and telecommunications stores. From three credit card issuers or telecommunications stores, Ndiaye and his co-conspirators opened over 60 fraudulent accounts and caused a loss of over $142,000 to the three retail institutions.
Ndiaye admitted that he and his co-conspirators used the stolen personal information of at least 62 victims to open fraudulent accounts, causing a total loss to the card issuers and telecommunication stores at least $150,597.06. As part of his plea agreement, Ndiaye has agreed to the entry of a restitution order for the full amount of the victims’ losses.Ndiaye faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and a mandatory minimum sentence of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge Paul W. Grimm has not yet scheduled Ndiaye’s sentencing date.
Jonathan Henry, age 29, of Bethesda, Maryland, and Dominique Davis, age 30, of Germantown, Maryland, previously pleaded guilty to their roles in the scheme and were sentenced to 41 months and 30 months in federal prison, respectively.
Acting United States Attorney Jonathan F. Lenzner commended the United States Secret Service, U.S. Postal Inspection Service, and the Montgomery County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Kelly O. Hayes and Dana J. Brusca, who are prosecuting the case.
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