District of Maryland
Press releases recorded for this federal judicial district.
U.S. Attorney Robert K. Hur Announces Award of Nearly $1 Million in Federal Funds to Provide Housing to Victims of Human Trafficking in MarylandRead the Press Release
Baltimore, Maryland – U.S. Attorney Robert K. Hur of the District of Maryland today announced that Maryland has received $999,990 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
“Human traffickers prey on our most vulnerable—including children—in order to profit from their victims’ misery. Traffickers often use violence and exploit drug addictions in order to coerce their victims into such crimes as commercial sex rings,” said U.S. Attorney Robert K. Hur. “These grants will help to provide resources to the vulnerable victims of this reprehensible crime. The Maryland U.S. Attorney’s Office and our partners will never stop working to end human trafficking.”
The grant, awarded to the Salvation Army and the University of Maryland SAFE Center for Human Trafficking Survivors, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. The Salvation Army and the University of Maryland SAFE Center are among 73 organizations nationwide receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
“The Salvation Army of Central Maryland is committed to assisting survivors of human trafficking in reclaiming their lives and determining their futures,” said Beth Luthye, Anti-Human Trafficking Program Director for The Salvation Army of Central Maryland. “Over the past few years, our core focus has been short-term housing and intensive care management. This OVC grant will enable us to expand our services to also provide supportive transitional housing and independent housing assistance, as well as partnering with business and community leaders to build out initiatives focused on employment and financial independence.” Ms. Luthye added, “The Salvation Army program, based in Baltimore City, targets adult survivors of both sex trafficking and labor trafficking throughout the state of Maryland. It is inclusive of women who often find closed doors at other residential programs, including pregnant women, mothers of young children, transgender individuals, and foreign nationals.”
"Stable housing is foundational to human trafficking survivors' ability to rebuild their lives,” said SAFE Center Founder and Director, Susan Esserman. “We feel fortunate to be partnering with the Montgomery County Department of Health and Human Services in a rapid rehousing model to address this urgent housing need. We are grateful for this OVC funding as lack of safe housing is a driver of trafficking."
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients, including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf
*******
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
###
Sixteen Alleged Baltimore Felons Charged with Federal Gun CrimesRead the Press Release
Baltimore, Maryland – During the month of July, the U.S. Attorney’s Office charged 16 alleged felons in federal court with illegal possession of firearms in Baltimore City under the Maryland Exile Program, which specifically targets gun crime by combining local, state, and federal law enforcement efforts; community action and revitalization; and public awareness. The use of federal resources and statutes, which carry significant terms of imprisonment, is especially helpful in prosecuting repeat violent offenders, who pose the greatest threat to public safety.
The federal charges were announced by United States Attorney Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; State’s Attorney Marilyn Mosby of the State’s Attorney’s Office for Baltimore City; and Maryland Attorney General Brian Frosh.
“Reducing violent crime in Baltimore is job one. We have remained focused on reducing the gun crime that plagues our City, in spite of the challenges posed by the pandemic,” said U.S. Attorney Robert K. Hur. “We and our partners will continue to do everything we can to focus on prosecuting the repeat violent offenders who wreak havoc in and terrorize Baltimore’s neighborhoods.”
“Violent offenders brazenly use firearms in Baltimore with no regard for human life and the innocent people who live here. ATF and our partners continue to do everything in our power to bring these criminals to justice,” said ATF Baltimore Special Agent in Charge Timothy Jones. “When both law enforcement and attorneys at the local, state, and federal level work as a team, it allows investigators to utilize every available resource, expand investigations, and ensure successful prosecutions. The community is a member of this team too. We urge Baltimore citizens to come forward with any information that will help law enforcement get trigger-pullers out of these neighborhoods.”
The 16 defendants listed below, all from Baltimore, were charged in federal court in July for illegal possession of a firearm by a prohibited person:
- Quanta Butler, age 43;
- Tavon Conyers, age 40;
- Rashaun Curtis, age 22;
- Michael Eaddy, age 33;
- Antonio Johnson, age 20;
- Desmond Johnson, age 25;
- Demetrius Mayes, age 32;
- Richard McCardell, age 38;
- Dwayne Purdie, age 27;
- Nathaniel Ratchford, age 35;
- Reginald Raysor, age 28;
- Michael Sanders, age 36;
- James Stansbury, age 48;
- Sedrick Sutton, age 30;
- Larry Warfield, age 28; and
- Bryant Williams, age 34.
Four of the defendants—Butler, Desmond Johnson, Mayes, and Raysor—were previously convicted and/or investigated as part of federal investigations of gangs operating in the Cherry Hill area of Baltimore.
The United States Attorney’s Office and our law enforcement partners are continuing our efforts to address the gun violence plaguing the Baltimore area by using federal statutes prohibiting felons from possessing firearms. These types of reactive gun cases are part of the Exile program. Maryland EXILE is part of Project Safe Neighborhoods (“PSN”), our violent-crime reduction strategy. The United States Attorney’s Office, through the use of Project Safe Neighborhoods and Project Guardian, will continue to pursue felons with guns who constitute a clear and present danger to the safety and welfare of the citizens of Baltimore.
If convicted, the defendants each face a maximum sentence of 10 years in federal prison for being a felon in possession of a firearm and/or ammunition. Several of the defendants are facing additional charges related to drug distribution. 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. All of the defendants will have an initial appearance in U.S. District Court in the near future, if they have not already.
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.
These cases are all part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The cases are also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the ATF, the Baltimore Police Department, the Office of the State’s Attorney for Baltimore City, and the Maryland Attorney General’s Office for their work in these investigations. Mr. Hur thanked Assistant U.S. Attorneys Patricia C. McLane, Brandon Moore, Christine Goo, Lindsey McCulley, Michael C. Hanlon, and Special Assistant U.S. Attorneys James Tuomey, Richard Gallena, and Lindsay DeFrancesco, who are prosecuting the cases.
# # #
Prince George’s County Man Indicted on Federal Charges for Enticement of a Minor to Engage in Sexual Activity and for Production of Child PornographyRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Aaron Crawford, age 36, of Capitol Heights, Maryland, for the federal charges of coercion and enticement of a minor and for production of child pornography. The indictment was returned on July 20, 2020, and unsealed on July 31, 2020, at his initial appearance in U.S. District Court in Greenbelt. Today, U.S. Magistrate Judge Timothy Sullivan ordered that Crawford be detained pending trial.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Interim Chief Hector Velez of the Prince George’s County Police Department.
According to the indictment and evidence proffered by the government at today’s detention hearing, in November 2019, Crawford recruited a minor female to perform commercial sex acts in Prince George’s County. Crawford allegedly directed the victim to send him sexually explicit photographs so that he could use the pictures in Internet advertisements.
If convicted, Crawford faces a mandatory minimum sentence of 10 years and up to life in prison for enticement of a minor; and a mandatory minimum of 15 years and up to 30 years in federal prison for production 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.
United States Attorney Robert K. Hur commended the FBI and the Prince George’s County Police Department Vice and Sex Trafficking Investigations Unit for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Joseph R. Baldwin and Gregory Bernstein, who are prosecuting the federal case.
# # #
Former President of Cecil Bank Pleads Guilty to Federal Charges in Maryland of Bank Fraud Conspiracy, Receiving a Bribe, and Making False Statements in Bank RecordsRead the Press Release
Baltimore, Maryland – The former President and Chief Executive Officer of Cecil Bank, Mary Beyer Halsey, age 59, of Rising Sun, Maryland, pleaded guilty today to the federal charges of conspiracy to commit bank fraud, receipt of a bribe by a bank official, and false statement in bank records, in connection with the straw purchase of a home in Rising Sun, Maryland, upon which Cecil Bank had foreclosed.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Mark P. Higgins of Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), Mid-Atlantic Region; Special Agent in Charge Patricia Tarasca of Federal Deposit Insurance Corporation, Office of Inspector General (FDIC/OIG), New York Region; Special Inspector General Christy Goldsmith Romero for the Troubled Asset Relief Program (SIGTARP); and Inspector General Hannibal “Mike” Ware of the Small Business Administration, Office of Inspector General (SBA/OIG).
“Mary Beyer Halsey used her position as President and CEO of Cecil Bank for her personal benefit, causing a loss to the bank, which had already received federal taxpayer funds as part of the Troubled Asset Relief Program,” said U.S. Attorney Robert K. Hur. “Corrupt bank officials undermine the public’s trust in our financial system.”
“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) is committed to investigating allegations of fraud committed by officers of financial institutions which are members of the 11 Federal Home Loan Banks (FHLBanks) because their crimes strike at the heart of the FHLBank System,” said Mark Higgins, Special Agent in Charge of the FHFA-OIG’s Mid-Atlantic Region. “We are proud to have partnered with the U.S. Attorney’s Office for the District of Maryland on this case.”
“This plea illustrates the tremendous harm bank insiders can cause when they use their positions for personal gain, breaking the trust placed in them by their employees, shareholders, and customers,” said Patricia Tarasca, Special Agent in Charge, New York Region, Office of Inspector General for the Federal Deposit Insurance Corporation. “We thank our law enforcement partners and appreciate the cooperation between investigating agencies.”
“Today, another bank CEO pleads guilty to committing fraud against the bank while the bank was in TARP,” said Special Inspector General Christy Goldsmith Romero. “Cecil Bank CEO Halsey pled guilty to conspiracy to commit bank fraud, making false statements in bank records, and receiving a bribe in a fraud that caused losses to Cecil Bank. Taxpayers lost nearly $11 million in TARP when Cecil Bank failed. SIGTARP commends U.S. Attorney Robert Hur and his team for fighting financial fraud related to TARP.”
“OIG and its law enforcement partners are poised to root out fraud and bring wrongdoers to justice,” said SBA Inspector General Hannibal “Mike” Ware. “I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
Cecil Bank, located in Elkton, Maryland, had received $11,560,000 in federal taxpayer funds in 2008, under the Capital Purchase Program, as part of the Troubled Asset Relief Program. On April 20, 2011, Cecil Bank initiated the foreclosure of a single-family house located at 127 Ebenezer Church Road in Rising Sun.
According to her plea agreement, from 2012 to 2013, Halsey conspired with Daniel Whitehurst, an employee of a real estate development company that did business in Maryland, to defraud Cecil Bank and another bank to purchase a home through false pretenses, representations and promises. Specifically, on March 28, 2012, Halsey and Whitehurst met at a restaurant in Cecil County. Whitehurst asked Halsey if she could help him and a business partner get a $500,000 line of credit from Cecil Bank. Halsey agreed to help Whitehurst to obtain a line of credit from Cecil Bank, in exchange for Whitehurst agreeing to serve as the straw purchaser of 127 Ebenezer on behalf of Halsey. Halsey suggested that she increase the line of credit for Whitehurst to $650,000 to include the funds needed to buy the house. Whitehurst agreed to Halsey’s request to secretly buy 127 Ebenezer on Halsey’s behalf. On May 9, 2012, Halsey participated in a loan committee meeting at Cecil Bank that considered and approved a $650,000 line for credit for Whitehurst and a $500,000 line of credit for his business partner.
Halsey admitted that at her request, on May 14, 2012, Whitehurst visited 127 Ebenezer and provided Halsey with an estimate of the costs to update the house. Whitehurst determined that beyond replacing the kitchen subflooring at a cost of about $1,000, there were no significant repairs needed. Whitehurst provided a letter of intent to purchase the home from the bank for $150,000 for Halsey to review. Halsey suggested lowering the price to $145,000 to allow room to increase the offer later. Halsey knew that an exterior-only appraisal of the property ordered by Cecil Bank on November 9, 2011, showed a market value of $263,000. A full appraisal on September 10, 2012, reflected a market value of $295,000. To support the below-market price that Halsey wanted to pay, Whitehurst included in the letter of intent a list of lower-priced home sales in the same area that were not comparable to 127 Ebenezer and therefore was not reflective of the property’s actual market value.
As detailed in the plea agreement, on May 23, 2012, Whitehurst e-mailed Cecil Bank his offer to purchase 127 Ebenezer for $145,000. On the same day, during a meeting of the Cecil Bank Board of Directors, Halsey advised the Board that Whitehurst had made a purchase offer of $140,000 for 127 Ebenezer, $5,000 less the actual offer. To support the below-market price of $140,000, Halsey falsely characterized the property as having “structural deficiencies [that] will require significant repairs.” Halsey did not disclose her personal interest in the property, nor Whitehurst’s role as her nominee to acquire the property on her behalf. The Board authorized Halsey to “negotiate the best price.” Thereafter, Whitehurst submitted a contract for him to purchase 127 Ebenezer from Cecil Bank for $150,000, which Halsey signed on August 17, 2012 on behalf of Cecil Bank.
According to the plea agreement, subsequent to authorizing the sale of 127 Ebenezer, Halsey told Whitehurst that he should not use his line of credit from Cecil Bank to purchase the house, but should instead get the funds from a different source. Whitehurst applied for and obtained a $100,000 loan from another bank to purchase 127 Ebenezer, fraudulently claiming that he was purchasing the property for himself and that the down payment was from an investment account. On October 31, 2012, prior to 127 Ebenezer going to settlement, Halsey wired $75,000 to Whitehurst’s bank account to cover the cost of the down payment as well as closing costs and upgrades to the property that Halsey directed Whitehurst to arrange. To conceal the true purpose of the wired funds, Whitehurst sent Halsey a fictitious real estate contract purporting to show that the $75,000 was the down payment for a different property that Whitehurst owned in Havre de Grace, Maryland.
On November 21, 2012, the settlement of 127 Ebenezer was held with Halsey representing Cecil Bank as the seller, and Whitehurst as the purported purchaser, selling the property to Whitehurst for $150,000. Both signed the HUD-1 form which falsely represented that Whitehurst had paid approximately $52,566 at settlement, when in fact, the down payment and all related closing costs were paid from the $75,000 Halsey had wired to Whitehurst’s bank account beforehand. From October 31, 2012 through March 29, 2013, Halsey transferred an additional $60,000 to Whitehurst to cover the cost the upgrades to the house that they had previously discussed, as well as to reimburse Whitehurst for mortgage payments he made on the property. Halsey and Whitehurst also made plans to transfer title of the property to Halsey by selling the house to her at a price that would minimize the tax consequences of the sale for Whitehurst.
In December 2012, in response to a question from a bank examiner for the Federal Reserve Bank of Richmond inquiring about the sale of the property to Whitehurst, Halsey falsely stated that she was “not totally familiar with [that] property” and that the bank had difficulty marketing the property and had not listed it with a realtor because of “issues with the county over the bonds outstanding.”
In April 2013, federal agents began interviewing employees and other borrowers about banking irregularities at Cecil Bank. Title to 127 Ebenezer was never transferred to Halsey. Halsey never told the bank that she was the true purchaser of 127 Ebenezer, nor did the bank know that Halsey and Whitehurst had orchestrated the sale of the foreclosed property at the fraudulent price of $150,000, instead of the appraised pre-renovation price of $295,000.
As a result of Halsey’s misrepresentations and omissions, the bank lost approximately $145,000.
Halsey faces a maximum sentence of 30 years in federal prison for each offense: conspiracy to commit bank fraud; false statement in bank records; and receipt of a bribe by a bank official. 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 Deborah K. Chasanow has scheduled sentencing for November 6, 2020 at 11:00 a.m.
Daniel Whitehurst, age 36, of Bel Air, Maryland, pleaded guilty under seal to the federal charge of mail fraud on April 6, 2018. Whitehurst faces a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud. Judge Chasanow has not scheduled a date for Whitehurst’s sentencing.
United States Attorney Robert K. Hur commended the FHFA-OIG, Mid-Atlantic Region; FDIC/OIG; SIGTARP; and SBA/OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the case.
# # #
Bowie Man Sentenced to 18 Months in Federal Prison for False Use of a PassportRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel, III, today sentenced Arinze Michael Ozor, age 37, of Bowie, Maryland, a dual citizen of the United States and Nigeria, to 18 months in federal prison, followed by three years of supervised release, for forgery or false use of a passport, in connection with his use of false passports to open “drop accounts” for a money laundering conspiracy. Judge Hazel also ordered Ozor to pay restitution of $43,000.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Edwin Guard of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service (DSS).
According to his plea agreement, Ozor used at least two fraudulent passports as part of a money laundering conspiracy to open eight “drop accounts” to receive the proceeds from fraud schemes, including business e-mail compromise schemes and romance fraud schemes. The funds deposited to the accounts were largely disseminated to other entities as part of the conspiracy by Ozor and others.
Specifically, Ozor admitted that he used a Ghanaian passport in the name of Kelvin Green to open accounts at five banks between December 2017 and January 2018. Although the passport contained purported identifiers for Green, it contained Ozor’s photograph. When one of the banks froze the account due to suspicion of fraudulent activity, Ozor met with a banker to discuss regaining access to the account and presented the same Ghanaian passport in support of his request.
Ozor further admitted that from March 23, 2018 through May 1, 2018, he used a purported Beninese passport in the name of Jacob Hessou to open accounts at three additional banks. As with the Ghanaian passport, the Beninese passport contained purported identifiers for Hessou, but contained Ozor’s photograph.
The investigation found that Ozor does not have a validly issued passport from Ghana or Benin. In addition, the Kelvin Green Ghanaian passport number and the Jacob Hessou Beninese passport number were actually issued to other individuals by the respective governments and not to Green or Hessou.
More than $976,000 was involved in the money laundering conspiracy from the eight accounts opened by Ozor using the fraudulent passports.
United States Attorney Robert K. Hur commended the FBI and the DSS for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Elizabeth Wright, who prosecuted the case.
# # #
Odenton Felon Sentenced to 30 Years in Federal Prison for Charges Related to the Attempted Armed Robbery of His Former Employer—A Food Service Company—Including Shooting an EmployeeRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Cornell Slater, a/k/a Chopper, age 34, of Odenton, Maryland, to 30 years in federal prison, followed by five years of supervised release, for using, carrying, and discharging a firearm during and in relation to a crime of violence; for committing a commercial robbery; and for being a felon in possession of a firearm. Slater’s convictions arose from the attempted armed robbery of a food service business in Baltimore on December 5, 2018, during which Slater shot an employee of the business, and from another shooting on November 14, 2018, during which Slater shot the driver of a nearby vehicle.
Co-defendant Alex Smith, a/k/a Skeet, age 34, of Halethorpe, Maryland, was convicted at trial on January 10, 2020, on federal charges of conspiracy to commit a commercial robbery, attempted robbery, and using, carrying, and discharging a firearm during and in relation to a crime of violence, for his role in the crime.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Acting Chief William Lowry of the Anne Arundel County Police Department.
According to Slater’s guilty plea, which was entered on the eve of trial, as well as evidence presented at Smith’s trial, on December 5, 2018, Slater and Smith committed an attempted armed robbery of a food service business, which was Slater’s former employer. At approximately 3:22 a.m., Slater picked Smith up at his residence and the two traveled to the business. At 4:30 a.m., four employees arrived for the morning shift to open the store. Surveillance cameras showed Slater and Smith, who were wearing masks, walking across a parking lot in the direction of the employee entrance. As employees entered the store, Slater and Smith trailed them through the open door, posing as employees.
As detailed in the plea agreement and described during trial testimony, upon entering the building Slater confronted two victims outside of the manager’s office, pulled out a gun and shot one of the victims in the face. Slater then forced the other employee toward the direction of the cash room, where the safe was stored. In the meantime, Smith entered the employee breakroom and confronted two other victims, brandishing a firearm while he ordered the victims to hand over their cell phones and get on the floor. Once Slater and the victim reached the cash room, the victim quickly entered the room and shut the door behind him, knowing that the door would lock automatically.
Knowing that they had been locked out of the cash room, Smith and Slater fled to Slater’s vehicle and drove off.
In addition to the attempted robbery, Slater admitted that on November 14, 2018, he fired two shots at a woman, striking her in the side. The woman’s temporary license plate had been stolen from her vehicle on October 26, 2018. While driving in her neighborhood in the 2500 block of Springhill Avenue in Baltimore on November 14, 2018, the victim saw her stolen license plate on Slater’s car and pulled beside the vehicle to see who had stolen the plate. Slater confronted the victim for following him and shot her. The victim was able to describe Slater and his girlfriend, who had also been in the car at the time of the shooting.
Both of the shootings were forensically linked through the National Integrated Ballistic Information Network (NIBIN) by the shell casings recovered at each shooting scene. Using information gleaned from both investigations, law enforcement officers were able to locate Slater and subsequently arrest him on December 18, 2018, outside of his residence in Odenton. At the time of his arrest, Slater’s vehicle was displaying another temporary license plate that Slater stole approximately two weeks earlier. During a search of Slater’s residence, law enforcement recovered the 9mm pistol used in the two shootings from under Slater’s bed, as well as 10 rounds of 9mm ammunition. Slater had previous felony convictions, including a prior federal conviction, and was prohibited from possessing a firearm or ammunition.
Smith faces a maximum of 20 years in federal prison for a commercial robbery; and a mandatory minimum of 10 years and a maximum of life in federal prison for aiding and abetting the discharge of a firearm during and in relation to a crime of violence. Actual sentences for federal crimes are typically less than the maximum penalties. Judge Bennett has scheduled sentencing for Smith on October 21,, 2020, at 3:00 p.m.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) NIBIN. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the ATF, the Baltimore Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Michael Goldsticker and James G. Warwick, who are prosecuting the case.
# # #
Four MS-13 Gang Members Indicted in Maryland on Federal Charge of Conspiracy to Destroy and Conceal Evidence in Connection with a MurderRead the Press Release
Baltimore, Maryland – A federal grand jury in Maryland has indicted four MS-13 gang members today on federal charges in connection with their MS-13 gang activities, specifically for conspiracy to destroy and conceal evidence in connection with a murder. Charged in the three-count indictment are Jose Domingo Ordonez-Zometa, a/k/a “Felon,” age 31, of Landover Hills, Maryland; Jose Rafael Ortega-Ayala, age 28, of Washington, D.C.; Jose Henry Hernandez-Garcia, age 26, of no fixed address; and Kevin Alexis Rodriguez-Flores, age 20, of Stafford, Virginia.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge James A. Dawson of the Federal Bureau of Investigation, Washington Field Office Criminal Division; Special Agent in Charge John Eisert of U.S. Homeland Security Investigations (HSI) Baltimore Office; Interim Chief of Police Hector Velez of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha N. Braveboy; Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department; and Sheriff David P. Decatur of the Stafford County, Virginia Sheriff’s Office.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Maryland, Virginia, and throughout the United States. Members of MS-13 are 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 are expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. Another principal rule of MS-13 is that its members must never cooperate with law enforcement. Violation of this rule results in an order of death for the offender.
According to indictment, the defendants were members and associates of the Los Ghettos Criminales Salvatruchas (“LGCS” or “Ghettos”) clique of MS-13, with Ordonez being the leader of the LGCS clique. MS-13 members and associates met on a regular basis to, among other things, discuss gang affairs and report on acts of violence committed by their members, with the goal of inciting and encouraging further violence. Each clique held clique meetings where business specific to that clique was discussed. Any perceived indiscretions by members and associates for violations of MS-13 rules were discussed at clique meetings, and punishments known as “courts” or “violations” were issued. Courts or violations often took the form of beatings by fellow MS-13 members. More serious violations resulted in the issuance of a “greenlight.” A greenlight was an order and/or approval to kill.
The indictment alleges that on March 8, 2019, Ordonez held a meeting for LGCS clique members at his residence to discuss clique matters, including recent contacts that an LGCS member (Victim 1) had with police. During the meeting, Ordonez questioned Victim 1 about his/her recent interaction with police and other matters. As a result of suspicions that Victim 1 was cooperating with police, the defendants and at least one other MS-13 member allegedly assaulted Victim 1 and another LGCS member who attempted to defend Victim 1 from the assault. The assault on Victim 1 continued, with Victim 1 being beaten, cut, and stabbed, and culminated with Ordonez, as LGCS clique leader, allegedly ordering Victim 1 be killed. The indictment alleges that Ortega, Hernandez, Rodriguez, and other LGCS clique members stabbed and murdered Victim 1 on Ordonez’ orders, for reasons including suspicions that Victim 1 had cooperated with law enforcement.
According to the indictment, Ordonez, as LGCS leader, directed Ortega, Hernandez, Rodriguez, and other LGCS clique members and co-conspirators to conceal and destroy evidence of the murder. Specifically, the indictment alleges that Ordonez directed Ortega and other LGCS clique members and co-conspirators to transport the body of Victim 1 from Maryland to a secluded location in Stafford, Virginia; set the body of Victim 1 on fire; and destroy and conceal other evidence of the murder of Victim 1. Further, the indictment alleges that while the body of Victim 1 was being transported from the crime scene, Ordonez, Hernandez, and Rodriguez stayed at the crime scene and attempted to destroy, remove, and conceal evidence of the murder of Victim 1, including Victim 1’s blood. When Ortega returned from disposing of Victim 1’s body, the defendants and others attempted to remove any evidence of the murder, including Victim 1’s blood, from the vehicle used to transport the body.
All of the defendants are currently detained on related state criminal charges.
The defendants face a maximum sentence of 20 years in federal prison. Initial appearances have not yet been scheduled in U.S. District Court.
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.
U.S. Attorney Robert K. Hur commended the FBI, HSI Baltimore, the Prince George’s County Police Department, the Prince George’s County State’s Attorney’s Office, the Fairfax County, Virginia Police Department, and the Stafford County, Virginia, Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys William Moomau and Erin B. Pulice, who are prosecuting the case.
# # #
Former Baltimore Delegate Cheryl Glenn Sentenced to Two Years in Federal Prison for Soliciting and Accepting Bribes in Exchange for Official Actions Taken on Legislation Related to Medical Marijuana, Opioid Therapy Clinics, and Liquor LicensesRead the Press Release
Baltimore Maryland – U.S. District Judge Catherine C. Blake today sentenced former Maryland State Delegate Cheryl Diane Glenn, age 68, of Baltimore, Maryland, to two years in federal prison, followed by three years of supervised release, for federal honest services wire fraud and bribery. Judge Blake also ordered Glenn to forfeit and to pay restitution in the amount of $18,750 each.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“Cheryl Glenn solicited and accepted more than $33,000 in bribes in exchange for official actions instead of doing her duty and putting the interests of the public above her own,” said U.S. Attorney Robert K. Hur. “We expect our elected officials to serve the public, not to use their positions of authority to line their own pockets. As this case demonstrates, we will work with our law enforcement partners to hold accountable those who betray the public trust. Cheryl Glenn will now pay the price for her greed by serving time in federal prison.”
“Elected officials owe the taxpayers of Baltimore their honest services and as today's sentence shows, there are serious consequences for violating that trust,” said Special Agent in Charge Jennifer Boone. “The FBI is dedicated to rooting out corruption so that the citizens we serve can feel secure that their elected leaders are putting the public good over their own personal profits.”
According to her plea agreement, until her resignation on December 18, 2019, Glenn was a Maryland State Delegate representing District 45, which covered portions of Baltimore. During her tenure, Glenn served as the Chair of the Banking, Consumer Protection, and Commercial Law Subcommittee of the Economic Matters Committee; the Vice Chair of the Rules and Executive Nominations Committee; and the Chair of the Baltimore City Delegation, among other roles.
As detailed in her plea agreement, from at least March 4, 2018 through February 11, 2019, Glenn defrauded the citizens of Maryland of the right to her honest services by soliciting and accepting bribes in exchange for her official actions. Specifically, Glenn accepted five bribes totaling $33,750 from an associate in exchange for voting in favor of a bill to increase the number of medical marijuana grower and processing licenses that were available to an out-of-state company; promising to lead the effort to change the law in order to provide a preference for Maryland residency to in-state medical marijuana license applicants; introducing legislation that decreased the number of years of experience required to be a medical director of an opioid maintenance therapy clinic; and introducing legislation that created a class B alcohol and liquor license in District 45.
Glenn admitted that after a meeting on March 5, 2018 with an associate and two businesspersons, she agreed to use her position as a state legislator to vote for a bill which could favor Company 1 in its pursuit of a medical marijuana license, in exchange for $3,000 in cash, which would be used to pay an outstanding tax bill on her residence. Glenn subsequently voted for the bill after its Third Reading on March 8, 2018, and again on April 7, 2018, after amendments from the Senate. The bill passed and on April 20, 2018, the associate provided Glenn with $3,000 in cash during a meeting at a restaurant in Baltimore County.
According to the plea agreement, on June 7, 2018, Glenn and her associate met with another businessperson at a restaurant in Baltimore to discuss medical marijuana licenses. During the conversation, Glenn told the businessperson that people had asked her how a medical marijuana company had been awarded a medical marijuana growing license without having any high-priced lobbyists. Glenn responded, “… they know God and Cheryl Glenn.” A few weeks later, Glenn followed up with the associate to see if the businessperson was “lookin’ for [Glenn] to help him or something?” The associate confirmed that the businessperson did want Glenn’s help and Glenn asked “… is he going to be makin’ a donation or something?” On August 10, 2018, the associate told Glenn that the businessperson had offered the associate $10,000 to get Maryland law changed so that local businesses would be given priority for medical marijuana licenses. The associate offered to split the $10,000 with Glenn, who agreed to introduce legislation to get the law changed in exchange for a payment of $5,000. In order to get the businessperson to make the $10,000 payment, Glenn subsequently sent the associate an e-mail pledging to take the lead in the effort to get the law changed so that Maryland residents received a preference for medical marijuana licenses. On August 23, 2018, the associate gave Glenn $5,000 in cash during a meeting at a Baltimore restaurant.
Further, Glenn admitted that on October 18, 2018, she pre-filed legislation to reduce the required experience for medical directors at opioid maintenance therapy clinics in order to receive another $5,000 payment from the businessperson. The payment was provided on October 22, 2018, and Glenn subsequently introduced the bill on January 9, 2019. Glenn also agreed to introduce legislation to obtain a liquor license for a restaurant that the businessperson wanted to open in Glenn’s district, in exchange for $20,000, with the initial payment of $5,000 to be made up front and the remaining $15,000 payment when the legislation was introduced. As stated in the plea agreement, Glenn received the $5,000 payment on December 10, 2018. On January 28, 2019, Glenn introduced the bill to obtain the liquor license and on February 11, 2019, received a bribe payment of $15,000.
Glenn took steps to conceal her illegal activities, including: agreeing not to deposit bribe payments in her bank account; agreeing to meet in person to discuss the details of bribes rather than discussing them over the phone; and creating a false loan note for the $15,000 bribe payment, falsely stating that the money was a gift and was in no way connected to her position as a State Delegate. On at least two occasions, Glenn texted an associate who was providing the bribe payments on behalf of the businesses and falsely advised the associate that the bribe payments were short a total of $750, which the associate subsequently provided to Glenn.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Leo J. Wise, who prosecuted the case, along with former Maryland Assistant U.S. Attorney Derek Hines.
# # #
South Carolina Man Pleads Guilty to Federal Charges Relating to a String of Armed Carjacking OffensesRead the Press Release
Baltimore, Maryland – Quention Price, age 27, of Columbia, South Carolina, pleaded guilty today to two federal carjacking charges; to discharging a weapon during a crime of violence; and to using, carrying, and brandishing a firearm during a crime of violence, in connection with a carjacking and attempted carjacking committed on June 15, 2019, in the Inner Harbor area of downtown Baltimore.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
United States Attorney Robert K. Hur stated, “We are committed to working with our law enforcement partners to get guns out of the hands of violent criminals and off of our streets. If you use a gun, you could face federal time, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to his guilty plea, on the evening of June 15, 2019, Price stood in the middle of the street in Baltimore’s Inner Harbor region in front of a Honda Civic, forcing the vehicle to stop. Price approached the driver’s side door, telling the driver to “open the door” while pulling on the door handle. When the driver refused, Price became frustrated, walked to the front of the car, pulled out a handgun, and discharged two bullets in an attempt to take the vehicle. One of the bullets went through the front windshield of the car and lodged in the empty front passenger seat. The driver and his backseat passenger were able to get away in the car, successfully avoiding Price, who fled the scene.
As detailed in his plea agreement, while fleeing from the first carjacking, Price fired his weapon at a passing Subaru Outback station wagon. The bullet went through the hood of the vehicle, just below the front windshield. Price was then captured on surveillance video walking into the middle of Light Street where he approached multiple cars and brandished his gun while pulling on the car door handles. At approximately 11:00 p.m. Price approached a BMW 325i, climbed onto the hood of the vehicle and began striking the windshield with his gun, cracking the glass and punching a hole, all while screaming at the driver to “get out of the car.” Price then walked to the driver’s side, struck the driver in the face with the butt of his pistol through an open window, and pulled the victim out of the vehicle by her hair. After the driver and passenger had exited the car, Price drove the BMW northbound on Light Street towards the Inner Harbor, crashing the car a few blocks away. As a Baltimore Police officer responded, Price fell out of the car and moved toward the trunk, where he was immediately arrested. Officers recovered the gun, a .357 revolver, from behind the BMW, where Price was found when police arrived on the scene. The gun matched the description provided by the driver of the BMW and contained three spent shell casings in the cylinder, indicating that it had been fired three times. The driver and passenger of the BMW were brought to the scene and identified Price as the carjacker. Price was also subsequently heard on recorded jail calls admitting to carjacking vehicles and to firing his gun at the vehicles and their passengers.
Price and the government have agreed that, if the Court accepts the plea agreement, Price will be sentenced to 20 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for September 24, 2020 at 9:30 a.m.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael Goldsticker, who is prosecuting the case.
# # #
Maryland Man Sentenced to Four Years in Federal Prison for Ruthless Cyberstalking Campaign Against Former GirlfriendRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced Ahmad Kazzelbach, age 26, of Pasadena, Maryland, to four years in federal prison, followed by three years of supervised release, on the federal charges of cyberstalking and intentional damage to a protected computer.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Chief Melissa R. Hyatt of the Baltimore County Police Department, and Anne Arundel County State’s Attorney Anne Colt Leitess.
According to Kazzelbach’s plea agreement, beginning in June 2015, Kazzelbach and the victim both worked at Company A, an insurance broker located in Glen Burnie, Maryland, and in December 2015 began a romantic relationship, moving into a shared apartment. In late May 2016, the victim ended her relationship with Kazzelbach. Although Kazzelbach moved out of their shared apartment, he subsequently began a year-long scheme to harass the victim by compromising her personal online accounts, forging policy cancellation letters on behalf of her clients, and filing false reports with law enforcement that ultimately resulted in the victim being wrongfully arrested and incarcerated on multiple occasions.
Specifically, on July 25, 2016, Kazzelbach created an e-mail account that mimicked the victim’s real e-mail address and within 10 minutes, changed the name on the victim’s Apple account to the fake e-mail address he had created. Two days later, Kazzelbach initiated a password reset, locking the victim out of the account which controlled certain settings on her iPhone, as well as access to the photos, music, and videos associated with her account. Kazzelbach also accessed the victim’s Instagram account and changed a portion of her user name to “whore,” and accessed the victim’s online student loan account and changed the account e-mail address to the fake address he had created.
Kazzelbach also admitted that in late August 2016, he used a fax machine at Company A to send two letters purporting to cancel supplemental health insurance policies belonging to two of the victim’s clients, whose information Kazzelbach had accessed through his position at Company A. On August 28, 2016, Kazzelbach accessed the victim’s own online health insurance account, to which she had previously given Kazzelbach limited access for initiation purposes, and made unauthorized changes to the victim’s race, pregnancy status, and income. The change in income resulted in the victim being disqualified from the plan in which she had enrolled, potentially modifying or impairing her medical care.
On September 1 and October 1, 2016, Kazzelbach attempted to access the victim’s bank account and tax-filing account, respectively, using a proxy server, which can be used to hide an electronic device’s true location or identity. However, investigators were able to identify the true Internet Protocol (IP) address from which the attempts were made and determined that the account was subscribed to by Kazzelbach’s father at a residence where Kazzelbach was then residing.
On September 30, 2016, Kazzelbach sent a text message to the victim in which he disguised his real identity by using a “spoofing” program, which used computer software to make it appear as though the message originated from a Florida-based cell phone number that did not belong to Kazzelbach. In the message, Kazzelbach wrote, “Prepare yourself for what’s coming…the last 3 months were just the beginning. I have bigger plans for you…I love how easily manipulated you can be.”
As detailed in his plea agreement, Kazzelbach filed a petition for a protective order against the victim on December 10, 2016, in the District Court of Maryland for Anne Arundel County, falsely alleging that the victim had physically abused him and made violent threats in text messages and on social media. A temporary protective order was granted on December 13 and a hearing on a final protective order was scheduled for December 29, 2016. Between December 13 and December 29, Kazzelbach contacted Anne Arundel County on four occasions to falsely report that the victim was continuing to harass and threaten him in violation of the temporary protective order. Based on Kazzelbach’s sworn statement, and on text messages, and phone calls on Kazzelbach’s phone that he had spoofed to make it appear that the victim had contacted him, when in fact, she had not, the court issued four arrest warrants for the victim. On December 29, 2016, the final protective order against the victim was granted, effective for a period of one year. Then, between December 29, 2016 and June 2017, Kazzelbach made 14 additional false reports to law enforcement, causing seven more criminal actions to be filed against the victim in Anne Arundel and Baltimore Counties, and resulting in her false imprisonment for four nights.
In March 2017, the Anne Arundel County prosecutor handling Kazzelbach’s case asked for Kazzelbach’s consent to download the contents of his iPhone, but Kazzelbach refused. The prosecutor told Kazzelbach that if he did not permit a full search of his phone, the Anne Arundel charges against the victim would be dismissed. In response, Kazzelbach began making false reports to Baltimore County instead. In May 2017, the Anne Arundel charges against the victim were dismissed. Baltimore County Police officers subsequently began their own investigation and determined that no attempted or completed text messages were sent from any of the victim’s accounts on the dates and times alleged by Kazzelbach.
United States Attorney Robert K. Hur commended the FBI Baltimore Cyber Task Force (CTF), the Baltimore County Police Department, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and P. Michael Cunningham, who prosecuted the case and thanked Assistant U.S. Attorney Zachary Myers for his assistance.
# # #
Frederick County Felon Facing Federal Charges for Large-Scale Cocaine and Heroin Distribution OperationRead the Press Release
Baltimore, Maryland – A federal criminal information has been filed charging Lamonte Montae Young, Sr., a/k/a “Fats,” age 41, of Frederick, Maryland, on the federal charges of possession with intent to distribute controlled substances, possession of a firearm and ammunition by prohibited person, and possession of a firearm in furtherance of a drug trafficking crime. The criminal information was filed on June 12, 2020. Young had his initial appearance and arraignment in U.S. District Court late on July 24, 2020, and was ordered to be detained pending a detention hearing on Friday, July 31, 2020, at 10:00 a.m.
The federal charges were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Frederick Police Acting Chief Patrick Grossman; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Frederick County State’s Attorney J. Charles Smith.
According to the criminal information and other court documents, members of the Frederick Police Department and agents with Homeland Security Investigation (HSI) began investigating Young in December 2019 in connection with the large-scale distribution of cocaine in Frederick, Maryland. On February 25, 2020, law enforcement officers were conducting surveillance of Young and followed him into Virginia, where they observed Young engage in what they believed to be a drug transaction. As Young was driving back into Maryland from Virginia, law enforcement officers conducted a traffic stop on Young’s vehicle for windows that were illegally tinted. Officers called a canine unit to the scene. The canine alerted to the exterior of the vehicle for the odor of drugs. Law enforcement recovered two large boxes from the trunk of the vehicle and the boxes were found to contain more than 21 kilograms of cocaine and 1.5 kilograms of heroin.
Members of the Frederick High Intensity Drug Trafficking Area (HIDTA) Task Force then executed search warrants at four addresses in Frederick and Hagerstown, Maryland associated with Young. During a search of these locations, detectives seized an additional 344 grams of heroin, 3 handguns (1 reported stolen), and $270,000 in United States currency.
If convicted, Young faces a mandatory minimum sentence of 10 years and a maximum sentence of life in federal prison for possession with intent to distribute cocaine and heroin; a mandatory minimum sentence of 15 years and a maximum sentence of life in federal prison for possession of a firearm and ammunition by a prohibited person; and a mandatory consecutive minimum sentence of 5 years and a maximum sentence of life in federal prison for possession of a firearm in furtherance of a drug trafficking crime. 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 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.
United States Attorney Robert K. Hur commended HSI, the Frederick Police Department, Frederick County Sheriff’s Office, Maryland State Police, and the Frederick County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jeffrey J. Izant, who is prosecuting the case.
# # #
Two Associates of Monument Street Drug Trafficking Organizations in East Baltimore Plead Guilty to Federal Drug Distribution ChargesRead the Press Release
Baltimore, Maryland – Delshawn Harvey, age 41, and Keizye Collins, age 23, both of Baltimore Maryland, pleaded guilty on July 21, 2020, to federal drug distribution charges related to their participation in a conspiracy to distribute cocaine and/or fentanyl in the Monument Street area of East Baltimore. U.S. District Judge Ellen L. Hollander sentenced co-defendant, Christopher Redd, age 35, of Baltimore, yesterday to three years in federal prison for his role in the conspiracy.
The guilty pleas and sentence were announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“The Baltimore OCDETF Strike Force is a critical part of our strategy to make Baltimore safer by identifying and focusing on those groups responsible for the most violent crime in our city,” said U.S. Attorney Robert K. Hur. “The Monument Street area is one of the first areas the Strike Force has targeted and we anticipate that Strike Force cases will make these neighborhoods safer for the law-abiding citizens that live there.”
According to their guilty pleas, in July of 2018, Drug Enforcement Administration (“DEA”) Strike Force Group 1 began an investigation of the Monument Street corridor in East Baltimore, which is known to support a high volume of street-level drug distribution and acts of violence associated with the drug trafficking. During the investigation, law enforcement identified multiple street-level drug trafficking “shops,” with the two most prominent located in the 400 block of North Montford Avenue at Jefferson Street (“the Montford DTO”) and in the 2400 block of East Monument Street at Port Street (the “Out the Mud,” or “OTM DTO”).
As detailed in their plea agreements, Harvey supplied drugs to the Montford and OTM drug trafficking organizations, among others; Collins was a drug distributor for the OTM drug trafficking organization; and Redd was a wholesale drug customer of members of the conspiracy. Law enforcement overheard the defendants discussing the distribution of drugs, including powder and crack cocaine, heroin, and fentanyl, among others.
Law enforcement executed search warrants at residences associated with Harvey and his co-conspirators in January and May 2019, recovering more than two kilos of cocaine; drug paraphernalia, including digital scales, packaging materials, and money counters; more than $34,000 in cash, believed to be drug proceeds; and two semi-automatic pistols and ammunition, which Harvey admitted he possessed in connection to his drug trafficking activities. Harvey is prohibited from possessing firearms or ammunition as a result of a previous felony conviction.
Collins admitted that he distributed cocaine, fentanyl, and heroin to an undercover detective on at least four occasions, and provided the undercover detective his contact information for future drug transactions. In addition, in July 2018, Collins handed out free samples of heroin, referred to as “testers,” including to an undercover detective.
Throughout the course of their involvement, it was reasonably foreseeable to Harvey and Redd, and within the scope of the conspiracy that they or other members of the conspiracy would distribute more than five kilograms of cocaine, as well as quantities of cocaine base, heroin, and fentanyl during the course of and in furtherance of the conspiracy. It was reasonably foreseeable to Collins that he or other members of the conspiracy would distribute at least 400 grams of fentanyl, as well as quantities of cocaine, cocaine base, and heroin.
Collins faces a maximum of 20 years in prison for the drug conspiracy and for possession with intent to distribute cocaine. 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.
Harvey and the government have agreed that, if the Court accepts the plea agreement, Harvey will be sentenced to 10 years in federal prison. Judge Hollander has scheduled sentencing for Harvey and Collins on September 24, 2020.
Of the 25 defendants indicted in this case, six—including Redd, Harvey, and Collins—have pleaded guilty. The remaining defendants have trial dates in October 2020, or in January or May 2021.
This case was investigated as part of the Baltimore Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force, an initiative designed to combat violent crime in Baltimore. The mission of the Baltimore OCDETF Strike Force is to disrupt and dismantle the most violent gangs and drug trafficking organizations, and their financial infrastructure, in the Baltimore metropolitan area. In addition to the Maryland U.S. Attorney’s Office, members of the Strike Force include the Baltimore City State’s Attorney’s Office, DEA, FBI, Homeland Security Investigations, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Postal Inspection Service, the U.S. Marshals Service, the Washington/Baltimore HIDTA, the Maryland State Police, the Maryland Department of Public Safety and Correctional Services, the Maryland Transportation Authority Police, the Maryland National Guard, Baltimore County, Baltimore City, and Anne Arundel County Police Departments, and the Baltimore City Sheriff’s Office.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys LaRai Everett and James T. Wallner, who are prosecuting the case.
# # #
Washington, D.C. Dentist and Two Others Facing Federal Indictment in Maryland on Charges Related to a Scheme to Defraud MedicaidRead the Press Release
Greenbelt, Maryland – A federal grand jury in Maryland has indicted licensed dentist Edward T. Buford III, age 68, of Silver Spring, Maryland; his business partner Kasandra Vilchez-Duarte, age 44, of Fort Washington, Maryland; and Donnie Amis, age 63, of Washington, D.C. on the federal charges of conspiracy to violate the federal Anti-Kickback Statute and conspiracy to commit health care fraud and mail fraud. The indictment was returned on July 13, 2020, and unsealed today at the defendants’ initial appearance.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge James A. Dawson of the Federal Bureau of Investigation (FBI), Washington Field Office; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS OIG); Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General (SSA-OIG), Philadelphia Field Division; and Inspector General Daniel W. Lucas, District of Columbia, Office of the Inspector General (OIG).
According to the indictment, Buford was a licensed dentist in Washington, D.C., where he was the owner and chief executive officer of International Dental Associates, Inc. (IDA). Vilchez-Duarte was Buford’s business partner and manager of IDA. IDA was a provider with Medicaid from about July 2011 to the present and billed Medicaid for dental services purportedly provided to Medicaid beneficiaries. Buford was also enrolled as an individual Medicaid provider prior to April 10, 2015, when Medicaid suspended payments to Buford under his individual provider number. After that date, Buford and Vilchez-Duarte continued to submit claims to Medicaid through IDA’s Medicaid provider number. The indictment alleges that from January 2013 through May 2018, Buford and Vilchez-Duarte paid kickbacks to Amis to recruit Medicaid beneficiaries for which IDA billed, and received payment from, Medicaid.
Specifically, the indictment alleges that Buford and Vilchez-Duarte offered and paid kickbacks to Amis and others in exchange for referring Medicaid beneficiaries to IDA for dental services and even employed an individual to drive a van to transport recruited beneficiaries to IDA. Buford allegedly also sent text messages encouraging Amis and others to recruit Medicaid beneficiaries to refer to IDA for dental services, including dentures and extractions. Buford and Vilchez-Duarte paid Amis larger cash kickbacks, typically approximately $50 per beneficiary, for beneficiaries Amis recruited who agreed to be fitted for dentures than for beneficiaries who agreed to receive dental cleanings at IDA. Amis recruited Medicaid beneficiaries by offering cash bribes to induce them to visit and accept dental services, including dentures, from IDA. According to the indictment, Buford, Vilchez-Duarte, and Amis typically paid and caused to be paid approximately $20 to each recruited beneficiary who agreed to be fitted for dentures and approximately $10 to each recruited beneficiary who agreed to receive a cleaning from IDA. The beneficiaries typically only received the payment for the initial visit to be fitted for dentures, even though denture fittings require multiple visits and many beneficiaries never returned to IDA after receiving the cash payment. As a result, many beneficiaries never returned after the initial visit. On IDA’s premises, Buford, Vilchez-Duarte, and their co-conspirators stored hundreds of undelivered dentures, many of which had been billed to and paid for by Medicaid.
As detailed in the indictment, Buford, Vilchez-Duarte, and Amis submitted and caused to be submitted through IDA claims to Medicaid for dental services purportedly provided to the recruited beneficiaries. Medicaid then sent checks to a post office box in Silver Spring, Maryland, which Buford identified as IDA’s billing address, as payment for the dental services purportedly provided to the recruited beneficiaries. Further, the indictment alleges that in approximately April 2016, Buford and Vilchez-Duarte re-enrolled IDA in Medicaid. In the application, in response to the question, “Have you ever been suspended from the Medicare or Medicaid program, or has your participation status ever been modified (terminated, suspended, restricted, revoked, limited, cancelled),” Buford and Vilchez-Duarte failed to disclose Buford’s suspension from Medicaid.
According to the indictment, from January 2013 to February 2015, Buford and Vilchez-Duarte caused to be submitted to Medicaid under Buford’s individual provider number claims totaling $5.2 million and Medicaid paid approximately $2.7 million of those claims, including approximately $2 million in claims for dentures. From February 2014 to May 2018, Buford, Vilchez-Duarte, and Amis caused to be submitted to Medicaid through IDA claims totaling $12 million and Medicaid paid approximately $6.4 million of those claims, including approximately $4.5 million in claims for dentures.
If convicted, the defendants each face a maximum sentence of five years in federal prison for conspiracy to violate the federal Anti-Kickback Statute and a maximum of 20 years in federal prison for conspiracy to commit health care fraud and mail 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. The defendants had an initial appearance before U.S. Magistrate Judge Timothy J. Sullivan in U.S. District Court in Greenbelt today. The defendants were released 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.
United States Attorney Robert K. Hur commended the FBI, HHS OIG, SSA OIG, and the District of Columbia OIG’s Medicaid Fraud Control Unit for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Jessica Collins, who are prosecuting the case.
# # #
Previously Convicted Sex Offender Pleads Guilty to Federal Charge of Enticement of a Minor to Engage in Sexual ActivityRead the Press Release
Baltimore, Maryland – Jeffrey R. Cummings, Jr., age 35, of Baltimore, Maryland, pleaded guilty today to a federal charge for enticement of a minor to engage in illegal sexual activity during a period of time when Cummings was required to register as a sex offender. Cummings has been detained since his arrest on July 19, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, in 2008 Cummings was convicted of a sex offense in Anne Arundel County, Maryland, based on his sexual contact with a 10-year-old boy, and was required to register as a sex offender in Maryland. From March 2017 through July 2019, Cummings operated multiple social media accounts using a variety of aliases, including elaborate, false female personas, to communicate with minor boys under the false pretense that he was a minor girl. Using his accounts, Cummings coerced and enticed at least six minor male victims, ranging in age from 13 to 16 years old, to send Cummings pictures and videos of themselves engaged in sexually explicit conduct. Cummings also admitted that he further distributed some of the sexually explicit photos received from the victims.
As detailed in the plea agreement, during his conversations with the victims, Cummings, posing as a teenage girl, requested the victims to send “her” a sexually explicit photograph or video. Thinking that they were communicating with a teenage girl, and often after Cummings sent the victims pictures of a teenage girl purported to be pictures of “herself,” including nude images of a pubescent female’s genital area, at least five of the minor victims sent Cummings sexually explicit images of themselves. In a group chat that included a minor boy and at least two of Cummings’ alias social media accounts, Cummings threatened to publicly post a sexually explicit video of a minor victim if the victim did not meet his demands. Despite the minor boy’s objections, Cummings subsequently posted the video to a group chat on a social media platform. Using his alias accounts Cummings continued to taunt the minor boy and threatened to post the victim’s video and address online, and send the video to the victim’s teachers.
Throughout his conversations with several of the victims, Cummings requested that the victims send him their previously worn socks by mail. Cummings claimed that they were for a “science project,” and even offered one victim “$20 a pair.”
Law enforcement executed a search warrant at Cummings’ residence on July 19, 2019, and seized his cell phone, which contained images of child pornography, including sexually explicit images of the victims. The phone also had accessed several of Cummings’ alias social media accounts. After his arrest that same day, Cummings agreed to speak with investigators. Cummings made numerous statements attributing exchanges of nude photos on social media and the solicitation of dirty socks for a sexual fetish to his teenage son, stating that he had two sons, ages 15 and nine, who lived with his mother in Pennsylvania. Further, Cummings stated that he asked his brother to pick up socks from his post office box and deliver them to his son in Pennsylvania. In fact, Cummings is an only child, has not fathered or raised any children, and his mother has never raised or kept any children for Cummings.
Cummings faces a mandatory minimum of 10 years and up to life in prison for enticement of a minor to engage in unlawful sexual activity. 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 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.
United States Attorney Robert K. Hur commended the U.S. Postal Inspection Service and FBI for their work in the investigation, and thanked the Baltimore Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Mary W. Setzer and Christine L. Duey, who are prosecuting the federal case, and recognized Assistant U.S. Attorney Zachary A. Myers for his assistance.
# # #
President of Two Labor Unions Pleads Guilty in U.S. District Court in Maryland to Embezzling from UnionsRead the Press Release
Baltimore, Maryland – Sandra King, age 62, of Owings Mills, Maryland, pleaded guilty today to embezzlement from a labor organization. King was the president of two separate labor unions, both based in Owings Mills, that represented workers in Montgomery County, Maryland and Washington, D.C. King pleaded guilty to stealing more than $57,000 from those unions.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and U.S. Department of Labor, Washington District Office District Director Mark Wheeler.
According to her guilty plea, from October 2014 through September 2019, King served as president of The Federation of Police and Security (“FOPS”), formerly known as the National Union of Protective Services Association, which represents private security guards in Washington, D.C. and Bethesda, Maryland. King became president after the union’s previous president, J.C. Stamps, pleaded guilty to defrauding FOPS’s employee benefit plan. On October 3, 2014, investigators with the Department of Labor’s Office of Labor-Management Standards (OLMS) met with King to advise her of her fiduciary obligations as the president of FOPS and further instructed King that the union funds were to be used only for the benefit of union members and that the personal use of union funds was a violation of federal law.
From late 2014 to the present, King was also the president of the Alliance of Independent Workers (“AIW”), which represented the communication staff, mortuary staff, medical records staff, and the child fatality staff at the District of Columbia, Office of the Chief Medical Examiner. Like FOPS, King succeeded Stamps as president of AIW.
As detailed in her plea agreement, as president of FOPS and AIW, King was a fiduciary and had decision-making authority. King was the sole signatory on all FOPS and AIW bank accounts. King deposited dues from members of these unions and restitution payments from Stamps into the union bank accounts. Union dues were intended to fund union purposes, including bargaining with employers, litigating grievances, and providing any administrative support required by FOPS and AIW.
According to her guilty plea, from October 2014 through September 2019, while president of FOPS and AIW, King embezzled $50,939.41 from these unions--$20,368.76 from FOPS and $30,570.75 from AIW. King admitted that she used union funds for her personal benefit by writing checks to cash, making cash withdrawals at automated teller machines, and making personal purchases using the union debit card. King used union funds to purchase liquor, pay rent on her apartment, and purchase items at Target, Wal-Mart, Amazon, Apple iTunes, and at grocery stores. She also used union funds to pay for her personal life insurance and automobile insurance. Additionally, King’s personal expenditures often caused overdrafts on FOPS’s bank account, which caused FOPS to incur an additional loss of $6,388.50 in overdraft fees and penalties.
As part of her plea agreement, King will be required to pay restitution in the full amount of the unions’ losses, which is estimated to be at least $57,328.01.
King faces a maximum sentence of five years in federal prison for embezzling from the labor unions. 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 Stephanie A. Gallagher has scheduled sentencing for October 19, 2020 at 10:00 a.m.
United States Attorney Robert K. Hur commended the Department of Labor for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew Phelps, who is prosecuting the case.
# # #
Baltimore Police Officer Pleads Guilty to Federal Charge of Possession of Child PornographyRead the Press Release
Baltimore, Maryland - James Robert Wissmann, IV, age 35, of Baltimore, Maryland, a police officer with the Baltimore City Police Department, pleaded guilty today to possession of child pornography. Baltimore Police Department officials suspended Wissmann on July 31, 2019, after a search at his residence.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, starting no later than July 2017, using fake names and fake e-mail addresses, Wissmann created accounts on a mobile application that allows users to join a “room” where they can message, video chat, watch videos and images, and share files, and used those accounts to distribute and receive files of child pornography and to discuss the sexual exploitation of children. The application monitored the activity on its platform and identified Wissmann’s accounts as sharing contraband files, shut down Wissmann’s accounts, and subsequently submitted reports to the National Center for Missing and Exploited Children (“NCMEC”). Each time Wissmann’s accounts were shut down, Wissmann created a new account, using fake names and e-mail addresses, and continued to share child pornography and discuss child exploitation.
In 2018 and 2019, Wissmann created at least seven separate accounts on the application after being banned based on trafficking in child pornography. On October 11, 2018, the application sent five reports to NCMEC relating to child exploitation activity in Wissmann’s account. All five reports contained images that depict naked prepubescent females.
As detailed in his plea agreement, Wissmann took a variety of steps to avoid detection by the online platforms and law enforcement. Those steps included the use of fake names and e-mail addresses when creating accounts; the purchase of a Virtual Private Network account (a service that lets a user access the web privately by routing the connection through a server and hiding the user’s online actions); the use of the Tor anonymity network (used to conceal a user’s location, usage, and identity); regularly deleting, reinstalling, and then deleting various applications; and by using a file-wiping utility to permanently delete files.
On July 31, 2019, investigators executed a search warrant at Wissmann’s residence and seized Wissmann’s laptop computer, removable digital media, and mobile phones, which he used to commit the offense. During a forensic examination of the seized items, investigators found images and videos of child pornography on Wissmann’s laptop, including images depicting prepubescent minors engaging in sexually explicit conduct.
As a result of his guilty plea, Wissmann 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).
Wissmann and the government have agreed that, if the Court accepts the plea agreement, Wissmann will be sentenced to at least four years in federal prison, followed by at least 10 years of supervised release. U.S. District Judge George L. Russell, III has scheduled sentencing for October 15, 2020 at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Baltimore City Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
# # #
Virginia Fraudster Pleads Guilty in U.S. District Court in Maryland to Federal Charges of Wire Fraud and Investment Adviser Fraud in Connection with a Scheme to Steal More Than $6 MillionRead the Press Release
Greenbelt, Maryland – Michael Barry Carter, age 47, of Potomac Falls, Virginia, pleaded guilty today to federal charges of wire fraud and investment adviser fraud, in connection with a scheme to steal more than $6 million.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“For over 12 years, Michael Carter perpetrated a brazen scheme that defrauded victim account holders whose investments he was supposed to protect,” said U.S. Attorney Robert K. Hur. “When his fraud was discovered, Carter repaid some victims by taking money from other victim accounts. The U.S. Attorney’s Office will do everything we can to ensure that justice is served by holding accountable financial advisers who defraud investors of their life savings.”
According to his guilty plea, from August 7, 2006 to April 29, 2011, and again from November 16, 2011 to July 29, 2019, Carter was employed by a financial institution and worked primarily out of the financial institution’s Tysons Corner, Virginia location. In 2012, Carter was promoted to financial adviser in the wealth management section of the financial institution and was registered to sell securities and act as an investment adviser in Maryland and Virginia, among other locations. Carter managed and had authority over multiple investment accounts maintained by Victims 1 through 5 with the financial institution, which contained a mix of assets including securities and cash deposits. As a financial adviser, Carter was required to manage the victim accounts in the best interests of his clients, consistent with their investment objectives, and not for his personal benefit.
As detailed in the statement of facts, from at least October 2007 to at least July 2019, Carter made numerous unauthorized transactions from the victim accounts for his personal benefit, defrauding Victims 1 through 5 of at least $5 million. To effect the unauthorized wire transfers, Carter caused the submission of an internal bank authorization form that falsely stated that Carter had received verbal client instructions from each victim authorizing the transfer at a specific date and time. Carter caused the wire transfers to be sent to his personal accounts and used the money to pay for his lifestyle expenses, including Carter’s mortgage, credit card bills, and country club membership fees.
Carter’s fraud was first discovered when Victim 1 and her adult daughter attempted to obtain a bridge loan from the financial institution to cover relocation expenses to an assisted living facility in Florida until the sale of Victim 1’s home in Columbia, Maryland, was completed. When they applied for the loan, Victim 1 and her daughter discovered that an $800,000 loan had already been obtained in Victim 1’s name, without Victim 1’s knowledge or permission. The financial institution determined that the disbursement of the loan proceeds went to Carter’s personal bank account and that Carter used his personal e-mail address in furtherance of the fraud. The financial institution then learned that Carter had transferred approximately $5 million in unauthorized funds associated with clients of the financial institution.
On July 29, 2019, Carter was fired from the financial institution. On August 2, 2019, during a call with employees from the financial institution, Carter admitted that he had defrauded the five victims over a period of years, that he had forged clients’ signatures on bank authorization forms, that he had created false financial statements to disguise his theft, and in some cases had mailed those financial statements. With respect to Victim 1, Carter further admitted that he met with the victim at her home and answered Victim 1’s phone in order to authorize the transactions, unbeknownst to Victim 1. Carter did this in order to overcome the financial institution’s multi-factor verification system required to execute the transactions.
According to the plea agreement, during the course of the scheme Carter made at least 53 unauthorized transfers from his clients’ accounts to his own accounts. In addition, Carter admitted that he embezzled over $50,000 from a non-profit sports organization located in Loudoun County, Virginia. In all, Carter stole at least $6,149,162.77. Prior to his offenses being detected, Carter caused $1,794,052.38 to be returned to the victims. After learning that his fraud had been discovered, in October 2019, Carter also repaid the non-profit organization for its loss. Of the total amount repaid, $1,118,318.52 was repaid through transfers Carter made from other victim accounts.
The net proceeds obtained by Carter was at least $4,355,110.39. As part of his plea agreement, Carter will be required to pay a money judgment in that amount.
Carter faces a maximum sentence of 20 years in federal prison for wire fraud and a maximum sentence of five years in federal prison for investment adviser 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 Paul W. Grimm has scheduled sentencing for November 9, 2020 at 1:00 p.m.
United States Attorney Robert K. Hur commended the FBI for their work in the investigation and recognized the Securities and Exchange Commission, which has filed a related civil proceeding. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Jennifer L. Wine, who are prosecuting the criminal case.
# # #
Defense Contractor to Pay Nearly $1 Million to the United States to Resolve Allegation of Overbilling on NSA ContractRead the Press Release
Baltimore, Maryland – iNovex Information Systems, Incorporated (“iNovex”), located in Annapolis, Maryland, has agreed to pay the United States $962,747.42 to resolve federal False Claims Act allegations that iNovex knowingly billed the National Security Agency (“NSA”), a component of the Department of Defense, for work performed by certain iNovex employees who did not meet all of the specialized qualifications required under their contract with NSA.
The civil settlement was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Inspector for Investigations G. Shawn Tate of the NSA Office of Inspector General; and Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
“Defense contractors are required to bill for costs actually incurred, and to be truthful in the claims they submit to federal agencies,” said U.S. Attorney Robert K. Hur. “The U.S. Attorney’s Office and our partners are committed to protecting taxpayer dollars and ensuring integrity and compliance with federal agency standards. This agreement settles the allegations that iNovex billed the federal government for work performed by employees who did not meet the qualifications required under their contract.”
iNovex provides advanced information technology (“IT”) consulting, engineering, development, and integration services to both the public and private sectors. In March 2012, iNovex was awarded an NSA contract (“the contract”). Given the complexity of the work that was to be performed under the contract, the NSA specifically included as a term of the contract the requirement that iNovex provide personnel possessing the training, qualifications, and clearances to accomplish all tasks identified in the contract. To assure that iNovex understood the skills its employees were required to have to perform the services under the contract, NSA included an appendix to the contract that expressly referenced and attached a set of labor categories prescribing the experience, educational qualifications, and specialized certifications needed for the classes of personnel billed under the corresponding labor category, including the hourly rate that would be paid by the NSA.
According to the civil settlement agreement, the settlement resolves the allegation that between November 9, 2012 and April 14, 2016, iNovex knowingly billed the NSA, and the NSA paid, for work performed by iNovex employees who were identified by iNovex, on the invoices it presented to the NSA, as System Administrator-IV (“SA-IV”) and System Administrator-III (“SA-III”) positions, despite the fact that those employees did not timely obtain a specific certification required for payment of the rates corresponding to those two labor categories.
The claim resolved by this settlement is an allegation. The settlement is not an admission of liability by iNovex, nor a concession by the United States that its claim is not well founded.
United States Attorney Robert K. Hur commended the NSA’s Office of the Inspector General and the Defense Contract Audit Agency for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Tarra DeShields who handled this case.
# # #
Department of Justice Seeks Recovery of Approximately $3.5 Million in Corruption Proceeds Linked to Ex-President of the GambiaRead the Press Release
The Department of Justice filed a civil forfeiture complaint seeking the forfeiture of a Maryland property acquired with approximately $3,500,000 in corruption proceeds by the ex-president of The Gambia, Yahya Jammeh, through a trust set up by his wife, Zineb Jammeh.
According to the complaint, Yahya Jammeh corruptly obtained millions of dollars through the embezzlement of public funds and the solicitation of bribes from businesses seeking to obtain monopoly rights over various sectors of the Gambian economy. The complaint further alleges that Yahya Jammeh conspired with his family members and close associates to utilize a host of shell companies and overseas trusts to launder his corrupt proceeds throughout the world, including through the purchase of a multimillion-dollar mansion in Potomac, Maryland, which the United States seeks to forfeit through the filing of the civil forfeiture complaint.
“Yahya Jammeh is a former president of The Gambia who allegedly plundered hundreds of millions of dollars from his country and laundered part of those funds to corruptly acquire real estate in the United States,” said Acting Assistant Attorney General Brian C. Rabbitt. “Our action today highlights the tireless work of the Criminal Division’s Kleptocracy Initiative and their global law enforcement partners to protect the integrity of the U.S. financial system and recover the ill-gotten gains of corrupt officials.”
“Ex-Gambian President Yahya Jammeh and his wife thought that they could hide funds stolen from the Gambian people by buying a mansion in Potomac, Maryland,” said U.S. Attorney Robert K. Hur for the District of Maryland. “This action demonstrates that the United States will not allow criminals to profit from their crimes and will seek justice for crime victims both here and abroad.”
“The seizure of this property is just another example of our continued efforts to protect the U.S. financial infrastructure by denying a safe haven for foreign kleptocrats,” said Acting Executive Associate Director Alysa Erichs of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “HSI will not tolerate our country being used by foreign officials to hide their corrupt activities and launder their illicit proceeds.”
The investigation was conducted by HSI’s Illicit Proceeds and Foreign Corruption Group in Miami, with the assistance of the HSI Office of the Special Agent in Charge for Baltimore and the HSI Attaché Office in Dakar. HSI established this group in 2003 to conduct investigations into the laundering of proceeds emanating from foreign public corruption, bribery and embezzlement. HSI’s goal is to prevent foreign-derived, ill-gotten gains from entering the U.S. financial infrastructure.
The case is being handled by Trial Attorneys Steven Parker and Kaycee Sullivan of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Jennifer Wine for the District of Maryland. Substantial assistance was provided by the government of The Gambia and Michael Quinley of the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance, and Training.
HSI Miami Illicit Proceeds and Foreign Corruption Investigations Group was established in 2003 to target corrupt foreign officials around the world that attempt to utilize U.S. financial institutions to launder illicit funds. Since inception, the group has seized over $500 million in ill-gotten gains traced to foreign corruption. To report suspicious activity, reach out to your local HSI office or call 1-866-347-2423.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Maryland Defense Contractor Facing Federal Indictment for Procurement FraudRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Cory Collin Fitzgerald Sanders, age 39, of Hagerstown, Maryland, on federal charges of wire fraud, false claims, and aggravated identity theft in connection with his companies’ performance on federal contracts. The indictment was returned on July 8, 2020, and was unsealed at his initial appearance yesterday.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Derek Pickle, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and Special Agent in Charge John Salazar of the Naval Criminal Investigative Service, Washington Field Office.
According to the indictment, in June 2014 Sanders formed Sandtech LLC, a Maryland limited liability company whose business was the sale of video teleconference equipment to the Department of Defense and other agencies of the federal government. Sanders was the sole owner, agent, and president of Sandtech. As detailed in the indictment, Sanders obtained contracts with federal agencies for Sandtech to provide telecommunications equipment and services. Sanders caused Sandtech to fail to perform on contracts with the U.S. Department of Labor and the Department of the Army, which terminated the Sandtech conracts for cause. Sanders then formed Cycorp Technologies in 2016 to provide the same type of telecommunication services as Sandtech.
The indictment alleges that from February 10, 2015 through June 6, 2018, Sanders engaged in a scheme to defraud the government by allegedly entering into contracts with federal agencies which required Sandtech and Cycorp Technologies to provide new telecommunications equipment which was still under warranty. The indictment alleges that in his communications with federal agency contracting officers Sanders provided false information about the delivery, source, warranty, and/or condition of the electronic equipment provided by his companies, including misrepresentations that the equipment was new and protected by the manufacturer’s warranty, when Sanders knew that the equipment was not new, or was new but not under warranty, or was procured through unauthorized channels.
Further, the indictment alleges that Sanders provided contracting officials with false information and false documents about the credentials, certifications, and qualifications of Cycorp Technologies. Sanders allegedly provided fabricated and forged documents falsely certifying Cycorp Technologies’ status as an “authorized partner” of two large national telecommunications equipment manufacturers, which would have authorized Cycorp Technologies to buy directly from those companies and/or distribute their new and warrantied products. One of the documents included the forged name and signature of an official at one of the manufacturers. In addition, Sanders allegedly submitted invoices on behalf of Sandtech and Cycorp Technologies so that contracting government agencies would pay for deficient or non-existent performance by electronic deposit into business bank accounts.
If convicted, Sanders faces a maximum sentence of 20 years in federal prison for each of nine counts of wire fraud; a maximum of five years in federal prison for each of two counts of false claims; and a mandatory two years in federal prison, 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 Sanders’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge J. Mark Coulson ordered that Sanders be released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the Department of Labor – OIG, the NCIS, and the other federal law enforcement agencies involved for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew J. Maddox and Joyce K. McDonald, who are prosecuting the case.
# # #
Baltimore Felon Sentenced to Eight Years in Federal Prison for His Role in a Southwest Baltimore Drug Shop that Distributed Heroin, Fentanyl, and CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Raheem Benjamin, age 27, of Baltimore Maryland, to eight years in federal prison, followed by three years of supervised release, for conspiracy to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from February 2018 through May 7, 2019, Benjamin and other co-conspirators agreed to distribute and possess with intent to distribute 400 grams or more of fentanyl for a drug trafficking organization (DTO) known as “Lex Luthor.” The Lex Luthor DTO operated 24 hours a day, 7 days a week as an open-air drug shop in southwest Baltimore, typically selling gel capsules containing a mixture of heroin, cocaine, and fentanyl. Benjamin’s responsibilities as a member of the DTO included distributing packs of these gel capsules to street-level distributors—who would then sell the gel capsules to paying customers—and collecting drug proceeds from those distributors in exchange for the packs.
On October 17, 2018, while monitoring surveillance from a pole camera, law enforcement saw Benjamin pull out a firearm. Officers with the Baltimore Police Department responded to arrest Benjamin, who fled, discarding the loaded firearm. Police immediately recovered the gun, a revolver loaded with six .22-caliber cartridges. Officers apprehended Benjamin shortly thereafter. Benjamin had a previous felony conviction and was prohibited from possessing a firearm or ammunition.
As a result of the Benjamin’s day-to-day activities obtaining and supplying street-level distributors with narcotics, as well as from his conversations with other co-conspirators and general familiarity with the drug shop’s operation, Benjamin knew that members of the DTO would take possession of and distribute more than 400 grams of fentanyl.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael Goldsticker, who prosecuted the case.
# # #
Baltimore County Man Sentenced to 10 Years in Federal Prison for Possession with Intent to Distribute FentanylRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III has sentenced Devon Denzel Thompson, age 26, of Woodlawn, Maryland, to 10 years in prison, followed by five years of supervised release, for possession with intent to distribute three kilograms of fentanyl. Judge Russell also ordered Thompson to forfeit drug proceeds of $14,144 in cash and a .380-caliber firearm and ammunition recovered during a search of his home. The sentence was imposed on July 9, 2020.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“Law enforcement partners are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution. Devon Thompson added a gun to that equation and will now serve 10 years in federal prison, where there is no parole—ever. Please, put down the gun and save a life—maybe even your own.”
According to his plea agreement, on March 16, 2018, Thompson fled from a traffic stop, followed by Baltimore County Police Department officers, who observed Thompson throwing items out of the window. Ultimately, Thompson was stopped and arrested. Law enforcement recovered drug paraphernalia, including a digital scale and a baggie containing over 40 grams of fentanyl.
Based on those recoveries, law enforcement officers obtained a warrant to search Thompson’s residence. During the search, law enforcement recovered three kilograms of fentanyl and over $10,000 from Thompson’s bedroom. Officers also recovered a .380-caliber handgun and rounds of live ammunition from other areas of the house. Thompson admitted that the drugs and gun were his and that he possessed the gun in connection with his drug distribution.
United States Attorney Robert K. Hur commended the ATF and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher M. Rigali and Lauren E. Perry, who prosecuted the case.
# # #
Virginia Defense Contractor Facing Federal Indictment in Maryland for Selling Chinese-Made Body Armor and Related Goods to Federal AgenciesRead the Press Release
Greenbelt, Maryland – A federal grand jury in Maryland has returned an indictment charging Arthur Morgan, age 67, of Lorton, Virginia, with federal wire fraud charges, in connection with federal contracts to provide helmets, body armor, and other items to military and other federal entities. The indictment was returned on July 6, 2020.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Eric D. Radwick of the General Services Administration (GSA) Office of Inspector General; Special Agent in Charge Ashan Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; Special Agent in Charge John A. Salazar, Naval Criminal Investigative Service; and Special Agent in Charge Marc A. Meyer of the U.S. Department of State Office of Inspector General.
According to the indictment, Morgan is the Chief Executive Officer of Surveillance Equipment Group Inc. (SEG) and its relevant division, SEG Armor, both of which Morgan managed from Lorton, Virginia . The GSA enters into government-wide contracts with commercial firms to provide supplies and services that are available for use by federal agencies worldwide. All GSA contracts are subject to the Trade Agreements Act (TAA), which requires that all products listed on GSA contracts must be manufactured or “substantially transformed” in a “designated country.” China is not a designated country under the TAA. Contractors were not allowed, under these contracts, to supply products that did not comply with the TAA. Any such products would have been disqualified from eligibility under the contract. Further, a contractor’s failure to certify that its products complied with the TAA would have disqualified the contractor from eligibility for the contract. A contractor who falsely certified that a product was TAA compliant could not lawfully seek payment from the United States for that product.
The indictment alleges that Morgan falsely certified that the ballistic vests, helmets, riot gear, and other items he offered for sale were from designated countries, specifically, Hong Kong and the United States. The indictment alleges that while representing that none of SEG’s products offered to federal agencies under the relevant contract were manufactured in China, Morgan knowingly provided products that Morgan knew had been manufactured in China, in violation of the TAA and the contract. SEG received multiple federal government orders under the contract between 2003 and 2019. According to the indictment, between September 15, 2014 and August 29, 2019, approximately six federal government agencies placed at least 11 orders for ballistic and other law enforcement/security equipment from SEG—which SEG sourced from China in violation of the TAA, as part of the scheme to defraud— totaling approximately $658,866.92.
For example, the U.S. Navy placed an order with SEG for helmets, and Morgan had a series of e-mail communications with Navy contracting personnel in Indian Head, Maryland, including concerning SEG’s inability to meet the agreed-upon delivery schedule. The indictment alleges that in his e-mails, Morgan falsely advised the Navy contracting personnel that SEG had a factory in southern Virginia, that the helmets for the order “were in production” there, and that the delays were due to a backorder of materials needed for the helmets. The helmets that Morgan provided under the U.S. Navy order allegedly originated from China before Morgan sent them to the Navy, in violation of the TAA and the contract. Specifically, the indictment alleges that these products were manufactured by Chinese Company 1, from which Morgan knowingly ordered them.
On February 16, 2016, and March 10, 2016, the Defense Finance and Accounting Service paid SEG $127,069.60 and $191,990.28, respectively, for the U.S. Navy order. For all of the orders, federal government agencies paid SEG at least approximately $488,976.92.
If convicted, Morgan faces a maximum sentence of 20 years in federal prison for each of two counts of wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the GSA OIG, the State Department OIG, the ATF, and the NCIS for their work in the investigation, and recognized the Army Major Procurement Fraud Unit, the Defense Criminal Investigative Service, Homeland Security Investigations, the FBI, the Air Force Office of Special Investigations, and the Coast Guard Investigative Service for their assistance. Mr. Hur thanked Assistant U.S. Attorney Elizabeth Wright, who is prosecuting the case.
# # #
Former Air Force Employee Facing Federal Indictment for Stealing More Than $774,000 in Government FundsRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Eddie Ray Johnson, Jr., age 59, of Brandywine, Maryland, on federal charges of theft of government property and money laundering. The indictment was returned on July 6, 2020.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Brigadier General Terry Bullard of the Air Force Office of Special Investigations (OSI); Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
According to the indictment, from January 2003 to February 2018, Johnson was a civilian Air Force employee, most recently as a travel coordinator in the Secretary of the Air Force, Office of Legislative Liaison, where he planned congressional travel and reviewed and approved accounting packages submitted by trip escorts, among other duties. The indictment alleges that from March 2014 through September 2017, Johnson used his government-issued travel credit card to obtain more than $1.1 million in cash advances, at least $774,000 of which he diverted to his own personal use.
According to the indictment, Johnson frequently deposited the stolen funds into a non-interest bearing account opened in his name at a bank branch in the Pentagon. Employees in the Office of Legislative Liaison were instructed to open such accounts so that they could more easily deposit and withdraw government funds for official use without accruing interest. After depositing the stolen funds, Johnson allegedly wrote checks to himself, which he deposited into his personal bank accounts, as well as expended the money for his personal use.
If convicted, Johnson faces a maximum sentence of 10 years in federal prison for theft of government property and a maximum of 20 years in federal prison for money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. An initial appearance in U.S. District Court in Greenbelt has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the Air Force OSI, the DCIS, and the IRS-CI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Dana J. Brusca and Elizabeth G. Wright, who are prosecuting the case.
# # #
Maryland Federal Prosecutors Charge Two New Jersey Men with Federal Crimes Related to Multi-State Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – Federal prosecutors in Maryland have filed a federal criminal complaint charging Dogar Singh, age 67, of Carteret, New Jersey, and Rehan Afridi, age 36, of West Deptford, New Jersey, on the federal bank fraud charges related to an alleged $10 million multi-state bank fraud scheme involving 76 businesses, including BBQ Tonite and Al Madina Kabob, which are associated with the defendants. The complaints were signed on July 2, 2020, and were unsealed at their initial appearances today.
The federal charges were announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Bo Keane of the United States Secret Service - Baltimore Field Office.
According to the affidavit filed in support of the criminal complaint, in October 2019, BBQ Tonite and Al Madina Kabob were identified as being part of a ring of 76 suspect merchants in Maryland, Michigan, New York, New Jersey, and Virginia, that engaged in a refund fraud/invalid authorization scheme where fraudulently authorized refunds were sent to debit cards linked to bank accounts associated with the suspect merchants. As part of the scheme, multiple suspect businesses refunded the same debit cards. Over the course of fraud scheme, 2,426 credit or debit card transactions were executed totaling $10,782,047. The loss associated with Al Madina Kabob alone is alleged to be at least $470,000.
The affidavit further alleges that in April 2019, Singh and Afridi opened multiple business and personal accounts at TD Bank. Just a few days later, those accounts received large deposits from Al Madina Kabob, totaling $776,900. Although those deposits were ultimately rejected by TD Bank as fraudulent, Singh and Afridi allegedly withdrew or transferred approximately $232,152.40 before the funds were returned. Prior to the bank’s rejection of the deposits as fraudulent, Singh and Afridi were seen withdrawing cash at cash windows at casinos in Maryland, Delaware, and Pennsylvania as well as issuing checks and conducting cash withdrawals from Automated Teller Machines.
If convicted, Singh and Afridi each face a maximum sentence of 30 years in federal prison for conspiracy to commit bank 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. At today’s initial appearance in U.S. District Court in New Jersey, U.S. Magistrate Judge Lois Goodman ordered that Singh and Afridi be released pending trial and that they appear in U.S. District Court in Maryland on the charges on July 15, 2020.
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.
United States Attorney Robert K. Hur commended the U.S. Secret Service for their work in the Maryland investigation, and recognized U.S. Attorney for the Eastern District of Virginia Zachary Terwilliger, the U.S. Attorney for the District of New Jersey Craig Carpenito, the U.S. Postal Inspection Service in New Jersey, and the FBI in Virginia, whose offices also participated in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Judson T. Mihok and Molissa H. Farber, who are prosecuting the Maryland case.
# # #
Laurel Woman Facing Federal Charges for Three Separate Fraud Schemes Involving Bank and Wire Fraud, Aggravated Identity Theft, and Illegal Possession of Stolen MailRead the Press Release
Greenbelt, Maryland – A federal criminal complaint has been filed charging Justina Elena Olivero, a/k/a Justina Guzman, age 33, of Laurel, Maryland for bank fraud, wire fraud, aggravated identity theft, and unlawful possession of stolen mail. The criminal complaint was filed on July 1, 2020 and was unsealed at her initial appearance today.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; Chief Marcus Jones of the Montgomery County Police Department; and Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore.
According to the affidavit filed in support of the criminal complaint, beginning in at least August 2017 and continuing through May 2020, Olivero allegedly orchestrated three separate fraud schemes involving multiple victims and losses of more than $142,000. The affidavit alleges that the fraud schemes included: 1) an identity theft scheme in which stolen checks were deposited into various bank accounts and then the money was withdrawn by Olivero; (2) a credit card fraud scheme in which Olivero impersonated American Express customers, ordered emergency replacement cards in those customers’ names, and had those cards mailed to her addresses; and (3) while working at a criminal defense law firm, Olivero fraudulently posed as an attorney and convinced the law firm’s clients to send her money for services she could not and did not provide.
For example, as detailed in the affidavit, in June 2018, the Montgomery County Police Department (MCPD) received a complaint of check forgery and mail theft from Victim 1, a resident of Bethesda, Maryland. On December 29, 2017, Victim 1 mailed a check for $27,000 made payable to the Montgomery County Government for property taxes. Approximately six months later, Victim 1 learned the Montgomery County Government never received this check. In fact, Victim 1’s check was altered and deposited into a TD Bank account opened in the names of Victim 2 and Victim 3 with an address in Laurel, Maryland, where Olivero was a resident. Two additional stolen checks were also found to have been deposited into that account. Investigators interviewed Victim 2 and Victim 3, a married couple, at their residence in Potomac, Maryland and the victims reported that they did not open or authorize the opening of the account.
According to TD Bank records, there were two cash withdrawals from the account, on May 30 and June 6, 2018, each for $5,000, and both withdrawal slips were signed “Justina Guzman.” Two checks were also issued from the account on May 28 and May 29, 2018, each for $1,750. Investigators learned that Olivero provided both checks as payment for a rental property located in Laurel.
On September 14, 2018, law enforcement officers executed a state search warrant at Olivero’s Laurel residence and recovered stolen mail consisting of blank convenience checks; bank, credit card, and investment account statements belonging to victims residing in Potomac, Maryland; two Apple iPhones (including an iPhone X), one Apple iPad, and one HP laptop; credit/debit cards and numerous bank statements in the name of “Justina Guzman” and “Justina Olivero”; and a spiral notebook containing handwritten notes of victims’ names, addresses, social security numbers, and dates of birth, including the personal identifying information (“PII”) of Victim 2 and Victim 3. Law enforcement officers also obtained and reviewed statements from six bank accounts allegedly associated with Olivero. Twenty-three personal checks totaling $102,276.49 and involving seventeen victims were deposited into these six accounts and another account maintained by Olivero. Once the stolen checks were deposited, approximately $102,276.49 was subsequently depleted from the accounts through ATM cash withdraws, online transfers, and debit card purchases.
In addition to stealing and altering checks, Olivero used stolen identities to order replacement American Express (“AMEX”) credit cards in the names of individuals without the account holders’ knowledge or consent. Olivero then directed those credit cards to addresses associated with Olivero.
According to the affidavit, in August 2017, an unknown individual purporting to be Victim 16 contacted AMEX to request an emergency card replacement (“ECR”). AMEX issued an ECR in Olivero’s name, using a shipping address in Laurel which was a residence of Olivero’s. In January 2018, an unknown individual contacted AMEX to add Olivero’s name to Victim 16’s account and subsequently requested another ECR. AMEX issued the ECR and delivered it, via FedEx, to another residence of Olivero’s. Also in January 2018, seven emergency replacement cards for Victim 17 were shipped to this residence. Five of the ECRs that were sent had an unlimited credit limit, and two of the ECRs that were sent had credit limits of $14,500 each. The calls requesting the ECRs came from a number associated with Olivero’s Apple iPhone seized during the search on September 14, 2018.
Finally, during the Fall of 2018, Olivero agreed to work at a law firm in exchange for legal services from the firm and Individual 3. Unbeknownst to the law firm or Individual 3, Olivero used her employment with the law firm to hold herself out as an attorney in order to fraudulently obtain money from victims by providing services and obtaining their PII. In total, as part of this scheme, victims provided approximately $13,000 in payments directly to Olivero.
If convicted, Olivero faces a maximum sentence of 30 years in federal prison for bank fraud; a maximum of 20 in federal prison for wire fraud; a maximum of five years in federal prison for possession of stolen mail; and a mandatory two years in federal prison, 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 Greenbelt, U.S. Magistrate Judge Gina L. Simms ordered that Olivero be detained 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.
United States Attorney Robert K. Hur commended the U.S. Postal Inspection Service, the Montgomery County Police Department, and HSI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Rajeev Raghavan, who are prosecuting the case.
# # #
Two Baltimore County Men Facing Federal Extortion ChargesRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Clement Robert Mercaldo, Jr., age 61, of Timonium, Maryland and Stepfen Gerard Gaither, age 29, of Randallstown, Maryland, for collection of credit by extortionate means and for interstate communications with intent to extort. The criminal complaint was returned on June 16, 2020, and was unsealed at their initial appearance yesterday.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to the affidavit filed in support of the criminal complaint, Mercaldo loaned money to a Baltimore County restaurant owner. The affidavit alleges that an arson and destruction of property at the restaurant owner’s residence, as well as numerous text message threats received by the restaurant owner and his business partner, are related to recent non-payments of this loan. Furthermore, evidence collected during the investigation indicates that Mercaldo hired Stepfen Gaither to collect money for these loans and assist with the arson and destruction of property. Mercaldo and Gaither allegedly also discussed and planned the murder of one or both of the victims.
Specifically, in June 2008, the restaurant owner obtained an “interest only” loan from Mercaldo to open a restaurant. The loan was repaid through monthly checks given to Mercaldo, and was fully repaid by 2011. Between 2010 and 2017, the restaurant owner took additional loans from Mercaldo, and Mercaldo insisted that the restaurant owner pay him in cash, weekly.
As detailed in the affidavit, the restaurant owner reduced his monthly payments to Mercaldo in March 2017, due to other outstanding debt. In February 2019, the restaurant owner again cut his monthly payment to Mercaldo. Shortly thereafter, the restaurant owner began receiving threatening phone calls and text messages regarding the debt.
On March 29, 2019, the Baltimore County Police Department received a report from the restaurant owner that his vehicle was vandalized while parked in front of his residence overnight. Initial investigation revealed that between 9:45 p.m. and 6:00 a.m., an unknown subject destroyed the vehicle’s front windshield, and used a cement garden statue to shatter the rear window.
On August 4, 2019 at 2:52 a.m., the restaurant owner called the Baltimore County Fire Department after he and his wife were awoken by smoke detectors and discovered a fire in the basement near the rear door. The fire had extended to the exterior first floor of the home. Based on the physical evidence at the residence, investigators believe that an unknown subject(s) started a fire by breaking the basement window, pouring an ignitable liquid inside and igniting the liquid. An estimated $50,000 of damage was caused to the dwelling, and the restaurant owner and his wife had to move out of the residence. There were no injuries to the residents or emergency responders.
The affidavit alleges that from March through September 2019, phone numbers associated with Mercaldo and Gaither used messaging and calling applications to call and text threatening messages to the restaurant owner and his business partner. These messages including several that took credit for the fire and threatened additional harm to the restaurant owner, his business partner, and their family members if the restaurant owner did not pay his debt. Text messages sent by Mercaldo and Gaither to each other between October 2019 and January 2020 indicated that Mercaldo solicited Gaither to kill the restaurant owner and his business partner and that Gaither conducted surveillance in furtherance of that plan.
If convicted, Mercaldo and Gaither face a maximum sentence of 20 years for both credit by extortionate means and for interstate communications with intent to extort. 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 yesterday’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Charles B. Day ordered that Mercaldo and Gaither be detained pending a detention hearing scheduled for Friday, June 26, 2020 at 10 am, and 1:30 pm, respectively.
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.
United States Attorney Robert K. Hur commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
# # #
Washington, D.C. Man Sentenced to 9 Years in Federal Prison for the Armed Robbery of A Capitol Heights BarbershopRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Ambrose Augustus Doye, age 25, of Washington, D.C., yesterday to 9 years in federal prison, followed by five years of supervised release, for an armed commercial robbery and for brandishing a firearm during and in relation to a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Chief Hector Velez of the Prince George’s County Police Department.
According to Doye’s guilty plea, on November 26, 2018, Doye and his co-defendant drove to a barbershop in Capitol Heights, Maryland, and spoke with two employees outside of the shop, pretending to be potential customers. The two left and went to a convenience store across the street, then returned to the barbershop. Doye sat in the barbershop chair while an employee prepared to cut his hair. He then drew a handgun and pointed it at the employee, while Bolton struck a second employee in the back of the head with a handgun.
As detailed in the plea agreement, Doye and Bolton then forced the employees to the back of the store and pulled the blinds down over the windows of the barbershop. They forced the employees to strip naked and lie face down on the floor with their hands behind their heads, and ordered them to count to 1,000. They robbed the employees of their cellphones, money, and jewelry. The robbers threatened to kill the employees if they moved while they counted to 1,000. They demanded to know where additional money was located in the store and threatened to kill the employees when they were unable to locate additional money. They again threatened to kill the employees if the robbery was reported, then left the barbershop with the personal belongings of the employees. A search of Doye’s residence recovered a distinctive silver necklace stolen from one of the barbershop employees and a loaded, silver and black .40-caliber semi-automatic pistol.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Catherine K. Dick and Special Assistant U.S. Attorney Jared Hernandez, who are prosecuting the case.
# # #
Virginia Drug Dealer Pleads Guilty to Possessing with Intent to Distribute Heroin and FentanylRead the Press Release
Baltimore, Maryland – Shawn Growden, age 30, of Winchester, Virginia, pleaded guilty today in federal court in Baltimore, Maryland to federal charges of possessing and distributing heroin and fentanyl.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Sheriff Mark A. Butler of the Northwest Virginia Regional Drug Task Force; Chief Marcus Jones of the Montgomery County Police Department; Sheriff Lenny Milholland of the Frederick County, Virginia Sheriff’s Office; and Chief John Piper of the Winchester, Virginia Police Department.
“State and federal law enforcement are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “More and more people are dying from fentanyl overdoses, including the fatal overdose victim who bought drugs from this defendant. We must do everything we can to reduce overdose deaths from this drug and from all opioids.”
According to Growden’s plea agreement, he regularly obtained narcotics from a Baltimore-based drug trafficking organization (“DTO”) which he then resold to paying customers in Winchester, Virginia and the surrounding areas.
From March 1, 2019, through Growden’s arrest on March 26, 2019, he regularly traveled to Baltimore to purchase approximately 62 grams of heroin laced with fentanyl, which he possessed with the intent to distribute.
On one occasion, Growden’s drug dealing resulted in a fatal overdose. On March 22, 2019, Growden purchased approximately 11 grams of heroin laced with fentanyl from the DTO in Baltimore. Later that day, Growden traveled to Winchester, Virginia and sold a portion of the heroin/fentanyl he had just bought to a victim.
On March 24, 2019, Virginia State Police responded to the victim’s house for a welfare check and found him deceased inside his bedroom. Inside the residence, police found a powdery substance consistent with heroin, along with the victim’s phone which revealed that the final outgoing text communications were with Growden on March 22, 2019, the contents of which were consistent with arranging a drug transaction. The medical examiner later concluded that the cause of death was acute combined fentanyl, acetyl fentanyl, heroin, and tramadol poisoning.
On March 26, 2019, Growden again communicated with a member of the Baltimore DTO and arranged to purchase approximately 10 grams of heroin. While returning to Winchester, Virginia, Growden’s vehicle was stopped by members of the Frederick County Sheriff’s Office, who recovered the heroin that Growden had just purchased.
After Growden was arrested, he agreed to speak with investigators and admitted that he had sold heroin to the fatal overdose victim on March 22, 2019. Growden also provided consent to search his cellular phone, which revealed additional text communications indicating that Growden had been redistributing the heroin purchased from the Baltimore DTO over the prior three weeks.
Growden faces a maximum sentence of 40 years in prison possessing and distributing heroin and fentanyl. Actual sentences for federal crimes are typically less than the maximum penalties. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for October 29, 2020 at 2:00 pm.
United States Attorney Robert K. Hur praised the FBI; the Northwest Virginia Regional Drug Task Force; the Frederick County, Virginia Sheriff’s Office; and the Winchester, Virginia Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Michael Goldsticker and Matthew DellaBetta, who are prosecuting the case.
###
Department of Justice Announces $42 Million in Funding to Combat Illegal Manufacture and Distribution of Methamphetamine and OpioidsRead the Press Release
BALTIMORE, Maryland – The Department of Justice‘s Office of Community Oriented Policing Services (COPS Office) today announced nearly $42 million in funding to support state-level law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine, heroin, fentanyl, carfentanil, and prescription opioids.
In the District of Maryland, the Maryland State Police will receive $1,175,715 in federal funding to support investigations into trafficking in heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.
“State and federal law enforcement are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “We must do everything we can to reduce overdose deaths from this drug and from all opioids.”
“The scourge of opioid and methamphetamine use continues to take a devastating toll on our nation’s communities,” said COPS Office Director Phil Keith. “By providing these resources to law enforcement to help combat the further spread, the COPS Office is demonstrating our commitment to this Administration’s priority of reducing drug use and protecting our citizens from this public health and safety crisis.”
Drug overdose deaths and opioid-involved deaths continue to increase in the United States. Deaths from drug overdose are up among both men and women, all races, and adults of nearly all ages, with more than three out of five drug overdose deaths involving an opioid. More than 130 people die every day in the United States after overdosing on opioids, while methamphetamine continues to be one of the most commonly misused stimulant drugs in the world and is the drug that most contributes to violent crime.
The COPS Office is awarding more than $29.7 million in grant funding to 14 state law enforcement agency task forces through the Anti-Heroin Task Force Program (AHTF). AHTF provides three years of funding directly to state-level law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions for heroin, fentanyl, carfentanil, and other opioids. This funding will support the location or investigation of illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.
Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office is also awarding $12 million to 12 state law enforcement agencies. These state agencies have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures. State agencies are being awarded three years of funding through CAMP to support the location or investigation of illicit activities related to the manufacture and distribution of methamphetamine, including precursor diversion, laboratories, or methamphetamine trafficking.
The AHTF and CAMP funding has a tremendous impact on state investigative and seizure work. During the five month period between October 2019 and February 2020, current AHTF grantees reported the seizure of over $4 million in cash and 1,213 firearms. Similarly, for CAMP, grantees reported seizures of more than $7 million in cash and 1,577 firearms.
The complete list of Anti-Heroin Task Force Program award recipients, and COPS Anti-Methamphetamine Program award recipients including funding amounts can be found attached below.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 135,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
# # #
Baltimore Fentanyl Dealer Sentenced to 7½ Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Ronald Wilson, age 39, of Baltimore, Maryland yesterday to 90 months in federal prison, followed by four years of supervised release, for possession with intent to distribute 40 grams or more of fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; 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.
“Fentanyl is 50 to 100 times stronger than morphine and just 2 milligrams of fentanyl can kill you. The quantity of fentanyl seized in this case could kill over 230,000 people. Law enforcement partners are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “We are determined to reduce the number of opioid overdose deaths in Maryland.”
According to Wilson’s plea agreement, during the execution of a search warrant at Wilson’s residence, law enforcement recovered a duffle bag, the contents of which included clear plastic bags containing approximately 461 grams of fentanyl, packaging materials, and two digital scales. Law enforcement officers also recovered $1,760 in cash from Wilson’s vehicle and his person. Wilson admitted that he possessed the fentanyl with the intent to sell it.
United States Attorney Robert K. Hur praised the ATF and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Zachary Stendig and Lindsey McCulley, who prosecuted the case.
# # #
Baltimore Fentanyl Dealer Sentenced to 11 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Murray Ray, age 22, of Baltimore, Maryland yesterday to 11 years in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Ray’s plea agreement, he was involved in a drug trafficking organization operating a “drug shop” in the 1400 block of Kuper Street and in the area of West Pratt and South Calhoun Streets in Baltimore, Maryland. Members of the organization, including Ray, conducted hand-to-hand sales of drugs to customers in those areas. Ray admitted that it was reasonably foreseeable to him that members of the conspiracy would distribute more than 1.2 kilograms of fentanyl.
During the investigation, law enforcement officers conducted video surveillance of the drug shop where Ray distributed fentanyl.
On March 15, 2018, members of the Baltimore City Police Department (“BPD”) recovered a firearm and fentanyl from the backyard of a vacant house in the vicinity of Pratt and Calhoun Streets. Video surveillance recorded Ray expressing frustration when he returned to look for the recovered items and could not find them. Also, on May 2, 2018, law enforcement officers stopped Ray while he was driving a stolen vehicle. During a search of that vehicle, BPD recovered another firearm.
Eighteen other defendants were also convicted as members of the drug trafficking organization. Eight, including Ray, have been sentenced to between 70 months and 11 years in federal prison and eleven others are awaiting sentencing.
United States Attorney Robert K. Hur praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Zachary Stendig, Charles Austin, and Michael Hanlon, who prosecuted the case.
# # #
Baltimore Man Pleads Guilty to Federal Charges for Conspiring to Sell Stolen Goods and for Tax FraudRead the Press Release
Baltimore, Maryland – James Edward Bender, age 35, of Baltimore, Maryland, pleaded guilty today to federal conspiracy and tax fraud charges.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore.
According to his guilty plea, from 2014 through August 2019, Bender controlled three eBay accounts, in the names of HiddenGemFurniture (HGF), EddiesAffordableGear (EAG), and AffordableGoodies4You (AG). EAG and AG offered sports-related merchandise for sale, including jerseys and shirts. Bender also used, operated, and controlled related PayPal accounts.
Bender admitted that beginning in 2014 he agreed to allow a good friend, SC1, who lived in Texas and Colorado, as well as SC2, a relative of SC1 who lived in Berlin, Maryland, to use Bender’s eBay accounts to sell goods and merchandise after eBay had suspended SC1’s account due to security concerns. From May 2014 through August 2019, Bender and SC1 conspired to engage in transactions to sell goods and merchandise which they knew had been previously stolen, using Bender’s eBay and PayPal accounts.
As detailed in the plea agreement, in furtherance of the fraud scheme, Bender and SC1 repeatedly deceived online platforms such as Amazon, eBay, as well as the manufacturers and distributors, as to the source of the goods and merchandise being sold by Bender and SC1. More than $3 million of these goods and merchandise had been stolen, including more than $125,000 of iPods that had been stolen from a New Mexico school district and intended for underprivileged children. In 2018, SC1 and Bender sold more than $550,000 of goods and merchandise that had been stolen from a Delaware FedEx facility. As part of his participation in the fraud scheme, Bender received more than $10,000 per year from the eBay sales of stolen goods and merchandise.
Bender further admitted that he filed false tax returns for the tax years 2014 through 2018, falsely inflating the gross receipts and cost of goods sold of Bender's businesses. In each of these years, Bender reported as his gross receipts amounts that had actually been generated by SC1's sales through his eBay stores, and reported as his cost of goods sold the difference between gross receipts and the amount SC1 paid him for the use of his eBay stores. As a result, Bender engaged in significant misstatements on his tax returns for each year. Bender also subscribed to additional false information on his tax returns, including overstating his postage expenses. In total, Bender stipulates that he failed to pay the United States an additional $36,518 in taxes due and owing for the tax years 2014 to 2018.
Bender faces a maximum sentence of five years in federal prison for the conspiracy and a maximum of three years in federal prison for tax 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.
United States Attorney Robert K. Hur commended the IRS-Criminal Investigation and HSI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Harry M. Gruber and Paul A. Riley, who are prosecuting the case.
# # #
St. Mary's County Man Pleads Guilty to Stealing over $409,000 in Government BenefitsRead the Press Release
Greenbelt, Maryland – Victor Demattia, age 64, of Mechanicsville, Maryland, pleaded guilty yesterday to theft of government property, for stealing more than $400,000 in Civil Service Retirement benefits and Social Security benefits.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General; and Deputy Assistant Inspector General for Investigations Thomas W. South of the Office of Personnel Management – Office of Inspector General.
According to Demattia’s plea agreement, from February 2009 through June 2018, Demattia stole monthly Civil Service Retirement System (CSRS) pension payments and Social Security Retirement Insurance Benefit (RIB) payments intended for his mother after her death, resulting in a loss to the United States Government of $409,421.
Specifically, at the time of his mother’s death, she was receiving CSRS pension payments from OPM and RIB payments from SSA by direct deposit to a joint account held by Demattia and his mother. When his mother died, Demattia did not notify SSA or OPM of her death, and as a result, SSA and OPM continued to make monthly deposits into the joint bank account. Demattia admitted that he withdrew the CSRS and RIB funds each month, typically by checks he endorsed, payable to himself or to his now-defunct medical transport business, Patriot Medical Transport.
On March 5, 2019, during an interview conducted by agents of the SSA Office of Inspector General and OPM Office of Inspector General, Demattia admitted that he spent his mother’s RIB and CSRS payments after her death. He stated that he knew he was not entitled to the money, but spent the fund to cover expenses for his failing business such as payroll, fuel, receivables, and other operating expenses, as well as on personal expenses through debit card purchases after the closure of his business.
In total, Demattia stole $369,018 from OPM and $40,403 from SSA after his mother’s death. As part of his plea agreement, Demattia will be required to forfeit and to pay a money judgment in the amount of $409,421.
Demattia faces a maximum sentence of 10 years in prison for theft of government property. Actual sentences for federal crimes are typically less than the maximum penalties. As part of his plea agreement, the government has agreed to recommend a sentence of no more than 18 months in federal prison. U.S. District Judge Peter J. Messitte has scheduled sentencing for September 24, 2020 at 9:30 a.m.
United States Attorney Robert K. Hur praised the SSA Office of Inspector General and OPM Office of Inspector General for their work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Michael Davio, who is prosecuting the case.
# # #
Baltimore Heroin Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Branden Jones, age 21, of Baltimore, yesterday to 10 years in federal prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Jones’ plea agreement, between January 2017 and December 13, 2018, Jones conspired with others to distribute heroin and fentanyl in Baltimore and elsewhere. Specifically, Jones admitted that he participated in a drug trafficking organization that operated a “drug shop” in the 1400 block of Kuper Street and in the area of West Pratt and South Calhoun Streets, all in South Baltimore. Jones and other members of the organization conducted hand-to-hand sales of drugs to customers in those areas. Jones was captured on video surveillance of the drug shop participating in the drug distribution activities. Jones also discussed his participation in the drug shop’s activities on recorded telephone calls.
During one of the recorded telephone calls, Jones discussed “doing 52 today,” which was a reference to selling 52 packs of heroin or fentanyl, and stated that he “made like $1200 today,” a reference to his drug trafficking proceeds. A pack typically contains 50 doses of heroin or fentanyl. Jones continued during the phone call by saying that he had possessed a Hi-Point firearm in furtherance of drug trafficking. Finally, Jones also collected drug proceeds from lower-level members of the organization and posted pictures of himself with large amounts of cash on his social media accounts.
Jones admitted that as a result of his participation in the organization, it was reasonably foreseeable to him that members of the conspiracy would distribute between one and three kilograms of heroin. Eighteen other defendants were also convicted as members of the organization. Seven, including Jones, have been sentenced to between 70 months and 11 years in federal prison and twelve others are awaiting sentencing.
United States Attorney Robert K. Hur praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Zachary Stendig, Charles Austin, and Michael Hanlon, who prosecuted the case.
# # #
Serial Bank Robber Pleads Guilty to Federal Bank Robbery ChargeRead the Press Release
Baltimore, Maryland – Victor Fossett, age 55, of Baltimore, Maryland, pleaded guilty on June 11, 2020, to bank robbery and to violating the conditions of his federal supervised release, in connection with three bank robberies he committed in March 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation in Baltimore; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department, and Chief Lisa Myers of the Howard County Police Department.
According to his guilty plea, between March 13 and March 18, 2019, Fossett robbed three banks—in Baltimore City, Baltimore County, and Howard County—stealing a total of more than $8,000. Fossett was on federal supervised release at the time of the robberies, having previously sustained three federal convictions for bank robbery—the last of which resulted in a sentence of 151 months in federal prison. In each robbery, Fossett entered the bank and wrote a note on a deposit slip announcing the robbery and demanding cash. Fossett then approached a teller and gave them the note. After stealing cash from the teller, Fossett fled the bank in his blue Mini Cooper car.
Specifically, on March 13, 2019, Fossett robbed the M&T Bank in the 300 block of Baltimore Street in Baltimore. On March 14, 2019, Fossett robbed the PNC Bank located in the 6200 block of Washington Boulevard in Elkridge, and on March 18, 2019, Fossett robbed the PNC Bank located in the 700 block of Frederick Road in Catonsville.
On March 19, 2019, officers with the Maryland Transportation Authority Police located Fossett traveling southbound on I-895 towards Howard County in his blue Mini Cooper car. Law enforcement had already obtained an arrest warrant for Fossett, so they conducted a traffic stop and ultimately arrested him. Law enforcement subsequently executed a search warrant on Fossett’s vehicle and recovered clothing and other items worn during the bank robberies as well as $3,923 in cash in the car’s glovebox—which was bank robbery proceeds.
Fossett faces a maximum sentence of 20 years in prison for the bank robbery charge and a maximum of two years in prison for violating his supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 3, 2020 at 10:00 a.m.
United States Attorney Robert K. Hur commended the FBI and the Baltimore City, Baltimore County, and Howard County Police Departments for their work in the investigation and thanked the Maryland Transportation Authority Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the case.
# # #
Baltimore Businessman Facing Federal Charges for Using a Phone and the Internet to Promote a Prostitution BusinessRead the Press Release
Baltimore, Maryland – Charles “Chuck” Nabit, age 64, of Baltimore, Maryland, has been charged by federal criminal complaint for using a phone and the Internet to promote a prostitution business. Specifically, the criminal complaint alleges that Nabit arranged for commercial sex workers to be brought to his office in Baltimore to engage in commercial sex acts in exchange for payments made to the man who allegedly trafficked the women. Nabit, who owns the Westport Group, LLC, located on Commerce Street in Baltimore, was arrested on June 10, 2020, and had his initial appearance in U.S. District Court in Baltimore. U.S. Magistrate Judge Beth P. Gesner ordered that Nabit be released under the supervision of U.S. Pretrial Services, after posting a property bond.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI), Baltimore Field Office; and Chief Lisa Myers of the Howard County Police Department.
“We will investigate and prosecute those who participate in the crime of sex trafficking, whether through trafficking commercial sex workers or by paying traffickers for commercial sex from vulnerable victims,” said U.S. Attorney Robert K. Hur.
According to the affidavit filed in support of the criminal complaint, as part of a federal sex trafficking investigation which led to the indictment of alleged sex trafficker, Deangelo Johnson, commercial sex workers whom Johnson trafficked described their interactions with Nabit. One victim stated that Nabit would use a GoPro camera to record the sex acts and described Nabit as having a “fetish for young females.” The affidavit alleges that Nabit used a cash app to pay Johnson directly for commercial sex acts performed by the women who worked for Johnson. The affidavit documents 52 transactions between Nabit’s cash app and Johnson beginning in March 2019. Further, the affidavit alleges that Nabit engaged in commercial sex acts with at least four commercial sex workers, using his office in downtown Baltimore and his vehicle to facilitate the activity. The affidavit alleges that there are numerous transactions on Nabit’s cash app beginning August 28, 2018 and continuing through May 12, 2020 involving various females, including four alleged sex trafficking victims. The payments made by Nabit for commercial sex during that time frame total more than $90,000.
If convicted, Nabit faces a maximum sentence of five years in federal prison for use of an interstate facility to promote a prostitution business. 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.
United States Attorney Robert K. Hur commended HSI and Howard County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Mary W. Setzer and Ayn B. Ducao, who are prosecuting the case.
# # #
CEO of Prince George’s County Non-Profit Facing Federal Wire and Bank Fraud ChargesRead the Press Release
Greenbelt, Maryland – A federal criminal complaint was filed today charging Glenda Hodges, age 69, of Clinton, Maryland, with federal bank fraud and wire fraud charges in connection with the misuse of federal funds and other fraud related to non-profit and for-profit entities that Hodges operated in Clinton, Maryland.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Kenneth R. Dieffenbach of the U.S. Department of Justice Office of Inspector General, Fraud Detection Office; Maryland State Prosecutor Charlton T. Howard III; 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, Hodges owned and was the Chief Executive Officer of Still I Rise Incorporated, a non-profit entity which purported to provide services and resources to minority survivors of domestic violence, sexual assault and stalking; Still I Rise Comprehensive Support & Training Services LLC (“CSST”), a for-profit entity; and the Women’s Wellness Center (WWC), a for-profit medical weight loss clinic operated under the umbrella of CSST. Between 2010 and 2017, Hodges was awarded more than $2 million in grants from the United States Department of Justice’s (“DOJ”) Office of Violence Against Women (“OVW”) and Prince George’s County to implement a violence against women program through Still I Rise. However, as WWC—a financially unviable enterprise—continued to lose money, the affidavit alleges that Hodges resorted to committing fraud to fund WWC.
According to the affidavit, between 2010 and 2017, DOJ OVW awarded Still I Rise approximately $896,999 in DOJ OVW grants. Between 2012 and 2017, Prince George’s County awarded Hodges an additional $1,179,000 in county grants. The three grants that DOJ OVW awarded Hodges and Still I Rise were authorized only for the stated purpose of implementing Still I Rise’s non-profit program to address violence against women, and the funds were only authorized to cover the costs detailed in the respective budgets that Hodges submitted with the grant applications.
In early 2016, Hodges contacted DOJ OVW to express interest in applying for DOJ OVW’s 2016 three-year grant and informed DOJ OVW that Still I Rise exhausted the 2014 grant (which also had a three-year duration) in only 16 months. DOJ OVW then conducted an initial review of Still I Rise’s bank records and invoices, and discovered that Hodges was using much of the grant money for personal expenditures and to unlawfully support WWC, her for-profit entity. These expenditures allegedly included paying WWC staff salaries and rent, paying the mortgage at Hodges’ personal property in North Carolina, and paying a personal cable account in North Carolina.
The affidavit alleges that on October 9, 2015, Hodges caused $134,800 to be stolen from Victim 1—a mutual fund in Pennsylvania—and wired into a bank account associated with Still I Rise, and then used the stolen funds for expenditures at WWC and for her personal benefit. In addition, on April 8, 2016, Hodges deposited a $72,938 altered business check related to a federal cancer research grant that had allegedly been stolen from Victim 2, a prominent university in Texas, into a different bank account opened in the name of Still I Rise and over which Hodges was the sole authorized signer.
Further, the affidavit alleges that between March 10 and August 26, 2016, Hodges fraudulently opened credit accounts at two financial institutions using the identifying information of Victim 3, an elderly volunteer at Still I Rise, accumulating at least $45,000 in debt. According to the affidavit, to secure one of the lines of credit, Hodges had Victim 3 medically transported to a nearby bank. When Victim 3 was brought to the bank, Victim 3 was in pain and in a wheelchair, and had an antibiotic catheter line running to her heart.
Finally, the affidavit alleges that WWC had severe cash flow problems, was not satisfying its payroll obligations, was withholding employment taxes that Hodges did not remit to the Internal Revenue Service, and without the knowledge of her weight-loss patients at WWC, was directing medical staff to replace fat-dissolution injectable compounds with saline solution.
If convicted, Hodges faces a maximum sentence of 20 years in federal prison for each count of 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. Hodges is expected to have an initial appearance in U.S. District Court in Greenbelt, but no date has been scheduled.
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.
United States Attorney Robert K. Hur commended the Department of Justice Office of Inspector General, the Office of the Maryland State Prosecutor, and the FBI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Kelly O’Connell Hayes, who are prosecuting the case.
# # #
Justice Department Awards Additional $4.143 Million in Grants to Help Ten Maryland Entities Address Public Safety During Covid-19 PandemicRead the Press Release
BALTIMORE, Maryland – The Department of Justice has awarded more than $4.143 million to help public safety agencies in Maryland respond to the challenges posed by the outbreak of COVID-19, as part of the Coronavirus Emergency Supplemental Funding program.
“These resources will help support law enforcement agencies’ efforts to promote public safety as they face extraordinary challenges as a result of the coronavirus pandemic,” said U.S. Attorney Robert K. Hur.
The Bureau of Justice Assistance in the Justice Department’s Office of Justice Programs (OJP) has funded grants on a rolling basis as applications are received. Funds may be used to hire personnel, pay overtime costs, cover protective equipment and supplies, address correctional inmates’ medical needs, and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to January 20, 2020, subject to federal supplanting rules.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for this emergency funding. Since June 2, 2020, ten cities, counties, and municipalities received a total of $4,143,689 in grant funds, including $2,770,154 awarded to the City of Baltimore. The other entities receiving funds are: the cities of Laurel, Salisbury, and Hagerstown; Anne Arundel, Montgomery, Charles, Frederick, and St. Mary’s Counties; and the town of Elkton. Four candidates previously received grants—Baltimore and Allegany Counties, and the Cities of Cumberland and Cambridge. In addition, the Governor’s Office of Crime Prevention, Youth, and Victim Services received a grant of more than $11 million to assist Maryland State agencies and other law enforcement entities that did not directly receive FY 2019 Byrne Grants. A complete list of eligible jurisdictions and their allocations can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.
For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://www.ojp.gov/.
# # #
Baltimore Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – William Garland, age 30, of Baltimore, Maryland, pleaded guilty today to being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, on January 4, 2019, Baltimore County’s Criminal Apprehension Support Team (CAST) executed an arrest warrant for Garland in connection with a theft that occurred on December 21, 2018. At the time of his arrest, officers recovered a loaded 9mm handgun from Garland’s right front jacket pocket. Garland had a previous felony conviction and was prohibited from possessing a firearm or ammunition. The gun was determined to have been stolen from a Virginia federal firearms licensee in February 2015.
Garland and the government have agreed that, if the Court accepts the plea agreement, Garland will be sentenced to six years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for July 30, 2020.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Lindsey N. McCulley, who is prosecuting the case.
# # #
Owings Mills Man Sentenced to Eight Years in Federal Prison for Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Timothy Herndon, age 29, of Owings Mills, Maryland, to eight years in federal prison, followed by four years of supervised release, for possession of a firearm in furtherance of a drug trafficking crime.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
United States Attorney Robert K. Hur stated, “Timothy Herndon brought danger to our community through the deadly combination of guns and drugs. Now he will serve eight years in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to Herndon’s plea agreement, on the morning of May 16, 2019, members of the ATF executed a search warrant at Herndon’s residence. After being read his Miranda warnings, Herndon told investigators that he had placed a firearm in a shoebox in the second-floor bedroom. Investigators recovered that firearm, then searched the rest of the residence.
In the living room, investigators recovered one clear bag containing multiple black plastic zip lock baggies of crack cocaine and approximately $2,000 in cash. In the kitchen trashcan under the trash bag, they found drug paraphernalia and one round of 9-millimeter ammunition. From underneath the dishwasher, investigators recovered three loaded firearms; two clear plastic sandwich bags containing cocaine; additional drug paraphernalia; and a paper bag containing a large amount of cash.
United States Attorney Robert K. Hur commended the Bureau of ATF for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Zachary Stendig and Lindsey McCulley, who prosecuted the case.
# # #
Leader of South Baltimore Drug Shop Sentenced to More Than Five Years in Federal Prison for Crack Cocaine Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III, today sentenced Ceasar Vaughan, age 27, of Baltimore, to 63 months in federal prison, followed by three years of supervised release, for conspiracy to distribute and for possession with intent to distribute crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; 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.
United States Attorney Robert K. Hur stated, “We are committed to working with our law enforcement 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. If you use a gun, you could face federal time, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to Vaughan’s plea agreement, from February to August 2019, Vaughan was one of the leaders of a conspiracy to distribute cocaine base through a drug shop that operated in the 400 block of Furrow Street in South Baltimore. The members of the conspiracy affiliated themselves with the name, “Never Stop Grinding” or “NSG.”
Vaughan and his co-conspirators either sold narcotics directly to customers or assisted each other in the transactions. Vaughan was a leader of the drug shop. During the investigation, between April 24, 2019 and June 20, 2019, Vaughan participated in at least eight sales of crack cocaine during which Vaughan sold crack cocaine himself, corralled other drug shop members to complete sales, entered the stash house to get drugs to facilitate sales, or ordered others to complete sales.
Members of the drug shop also possessed firearms. In music videos posted online, co-conspirators are seen possessing what appear to be firearms, displaying them in their waistbands or pointing them directly at the camera. Several people in the videos are seen wearing “Never Stop Grinding” or “NSG” clothing or jewelry. In addition, on April 1, 2019, members of the Baltimore Police Department arrested a juvenile member of the drug shop with a loaded firearm on the 400 block of Furrow Street, where the drug shop operated. A co-conspirator was with the juvenile at the time of the arrest. During a search warrant executed at the residence of a co-conspirator on August 7, 2019, investigators found a loaded firearm and more than 70 rounds of ammunition.
Vaughan agrees that he conspired to distribute and possess with the intent to distribute 28 grams or more of crack cocaine with his co-conspirators. He further agrees that he was a leader of the conspiracy and that it was reasonably foreseeable that he and the other members of the conspiracy would distribute over 28 grams or more of cocaine base between February 2019 and August 2019.
United States Attorney Robert K. Hur praised the ATF and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Brandon Moore and Clinton Fuchs, who prosecuted the case.
# # #
Department of Justice Awards More Than $6.3 Million to Maryland Law Enforcement for Hiring to Advance Community PolicingRead the Press Release
Baltimore, Maryland - The Department of Justice today announced $6,322,750 in grant funding through the Department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP) to eight Maryland law enforcement agencies. The Attorney General announced funding awards totaling nearly $400 million to 596 law enforcement agencies across the nation, which allows those agencies to hire 2,732 additional full-time law enforcement professionals. The awards announced today are inclusive of the $51 million announced in May as part of Operation Relentless Pursuit.
“The Department of Justice is committed to providing the police chiefs and sheriffs of our great nation with needed resources, tools, and support. The funding announced today will bolster their ranks and contribute to expanding community policing efforts nationwide,” said Attorney General William P. Barr. “A law enforcement agency’s most valuable assets are the men and women who put their lives on the line every day in the name of protecting and serving their communities.”
“These federal funds being provided to local law enforcement agencies will go a long way to enhancing their response to violent crime and other public safety issues being experienced by their communities,” said United States Attorney Robert K. Hur.
The COPS Hiring Program is a competitive award program intended to reduce crime and advance public safety through community policing by providing direct funding for the hiring of career law enforcement officers. In addition to providing financial support for hiring, CHP provides funding to state, local, and tribal law enforcement to enhance local community policing strategies and tactics. In a changing economic climate, CHP funding helps law enforcement agencies maintain sufficient sworn personnel levels to promote safe communities. Funding through this program had been on hold since the spring of 2018 due to a nationwide injunction that was lifted earlier this year.
The following Maryland agencies received awards: Baltimore County received $1,250,000; the Baltimore Police Department received $2,830,272; the City of Brentwood received $125,000; the Cecil County Sheriff’s Department received $375,000; Charles County received $250,000; the Mt. Rainier Police Department received $125,000; the Seat Pleasant Police Department received $1,455,228; and the St. Mary’s County Sheriff’s Office received $500,000.
CHP applicants were required to identify a specific crime and disorder problem focus area and explain how the funding will be used to implement community policing approaches to that problem focus area. 43 percent of the awards announced today will focus on violent crime, while the remainder of the awards will focus on a variety of issues including school-based policing to fund school resource officer positions, building trust and respect, and opioid education, prevention, and intervention. The COPS Office received nearly 1,100 applications requesting more than 4,000 law enforcement positions.
The complete list of awards can be found here.
To learn more about CHP, please visit https://cops.usdoj.gov/chp. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
###
Landover Man Sentenced to More Than 12 Years in Federal Prison for an Armed CarjackingRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm today sentenced Dante Tyler-El, age 54, of Landover, Maryland, to 150 months in federal prison, followed by five years of supervised release, for carjacking and for using, carrying and brandishing a firearm during and in relation to a crime of violence. Tyler-El entered his guilty plea on February 25, 2020.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Chief Marcus Jones of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Calvert County Sheriff Mike Evans; and Chief Peter Newsham of the Metropolitan Police Department.
“Armed criminals, like Dante Tyler-El, jeopardize lives and they must be held accountable,” said United States Attorney Robert K. Hur. “Police and prosecutors are working to identify armed criminals who deserve to be charged in federal court. As a result of his conviction, Dante Tyler-El will now serve more than 12 years in federal prison, where there is no parole—ever. Please put down the gun and save a life, maybe even your own.”
According to his guilty plea, on June 5, 2019, Tyler-El perpetrated three armed robberies, as well as the carjacking. As detailed in his plea agreement, at 5:30 a.m. Tyler-El assaulted a victim who was pumping gas at a gas station in Prince Frederick, Maryland, putting a gun in the victim’s face, stealing the victim’s wallets and credit cards, and then placing the victim in handcuffs.
Tyler-El admitted that at 5:00 p.m., he approached a victim who was sitting in her vehicle in a parking lot in Gaithersburg, Maryland, waiting for her daughter to finish a dance class. Tyler-El, dressed in a neon construction vest and hard hat, approached the victim holding a Walther PK380 pistol, which he put to the victim’s head and demanded money. Tyler-El then handcuffed the victim and forced her into the back seat of the vehicle, where he restrained her while he rummaged through the vehicle. When the victim screamed, Tyler-El struck her with the pistol, causing severe bruising on the victim’s face. After finding the victim’s credit cards, Tyler-El got into the driver’s seat and drove away with the victim still in the back seat. After driving for some distance, Tyler-El got out of the vehicle and fled.
According to his plea agreement, at 7:00 p.m. Tyler-El, brandishing the pistol and wearing the same neon construction vest and hard hat, robbed a victim outside his apartment building in Hyattsville, Maryland, stealing $150 in cash. Approximately one hour later, Tyler-El robbed three pedestrians at gunpoint as they walked along Eastern Avenue in Washington, D.C., just across the Maryland border. Tyler-El admitted that during the robbery he fired the pistol into the air as a show of force to compel the victims’ compliance. Tyler-El stole credit cards and $6 in cash from the victims.
Tyler-El was stopped by law enforcement early the next morning after crossing the Bay Bridge into Queen Anne’s County, Maryland. A search of the vehicle recovered some of the victims’ credit cards, as well as the loaded Walther PK 380 used during the robberies and carjacking.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the FBI, the Montgomery County Police Department, the Prince George’s County Police Department, the Calvert County Sheriff’s Office, and the Metropolitan Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Burden H. Walker, who prosecuted the case.
# # #
Prince George’s County Drug Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Kenneth Donnell Hoffman, age 43, of District Heights, Maryland, to 10 years in federal prison, followed by five years of supervised release, for possession with intent to distribute controlled substances, including crack cocaine, for possession of a firearm in furtherance of a drug trafficking crime, and for two counts of violating his federal supervised release related to convictions in 2004 and 2008. As stated in his plea agreement, Hoffman is also required to forfeit a loaded 9mm handgun and over $1,600 cash seized during a search of his home. The sentence was imposed on May 11, 2020.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Field Division; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to Hoffman’s plea agreement, on January 22, 2018, officers encountered Hoffman in his vehicle and saw what they believed to be crack cocaine in plain view. The officers ordered Hoffman out of the vehicle, but instead Hoffman drove away, crashing the car a short time later and continuing to flee on foot. While he ran away, Hoffman dropped a 9mm handgun, loaded with eight rounds of 9mm ammunition, which was subsequently recovered by police. A search of the vehicle recovered approximately 4.8 grams of crack cocaine packaged in small baggies for distribution.
On January 31, 2018, law enforcement executed a search warrant at Hoffman’s residence and recovered powder and crack cocaine, phencyclidine (PCP), drug paraphernalia, $1,617 cash, which were drug proceeds, 20 rounds of 9mm ammunition, and a .22-caliber semi-automatic handgun loaded with 12 rounds of .22-caliber ammunition. Due to his previous convictions, Hoffman was prohibited from possessing firearms or ammunition.
United States Attorney Robert K. Hur praised the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Michael Cunningham and Leah Grossi, who prosecuted the case.
# # #
Department of Justice Grants More Than $12 Million to Help Maryland Public Safety Agencies Address COVID-19 PandemicRead the Press Release
BALTIMORE, Maryland – The Department of Justice has awarded more than $12.3 million to help public safety agencies in Maryland respond to the challenges posed by the outbreak of COVID-19, as part of the Coronavirus Emergency Supplemental Funding program.
“Law enforcement and public safety officials are facing extraordinary challenges as a result of the coronavirus pandemic,” said U.S. Attorney Robert K. Hur. “These resources will help support their efforts to promote public safety during this difficult time.”
The Bureau of Justice Assistance in the Justice Department’s Office of Justice Programs (OJP) has funded grants on a rolling basis as applications are received. Funds may be used to hire personnel, pay overtime costs, cover protective equipment and supplies, address correctional inmates’ medical needs, and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to January 20, 2020, subject to federal supplanting rules.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for this emergency funding. Of the 14 counties and nine municipalities in Maryland that were candidates for funding, four have already received grants—Baltimore County, Cumberland, Allegany County, and the City of Cambridge. In addition, the Governor’s Office of Crime Prevention, Youth, and Victim Services has received a grant of more than $11 million to assist Maryland State agencies and other law enforcement entities that did not directly receive FY 2019 Byrne Grants. The Department is moving quickly to award the remaining $5.4 million in available grant funding in Maryland, with the goal of having funds available for drawdown within days of the award. A complete list of eligible jurisdictions and their allocations can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.
For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://www.ojp.gov/.
# # #
National Police Week and Peace Officers Memorial Day Honor the Service and Sacrifice of Law EnforcementRead the Press Release
Baltimore, Maryland — National Police Week recognizes the service and sacrifice of federal, state, local, and tribal law enforcement. This year, the week will be observed Sunday, May 10 through Saturday, May 16, 2020. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
“There is no more noble profession than serving as a police officer,” said Attorney General William P. Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”
“I am honored to work with the exceptional men and women of Maryland law enforcement. The courage and faithfulness with which you serve is inspirational, and as U.S. Attorney, I am proud to be part of such a dedicated profession that risks all in service to others,” said U.S. Attorney Robert K. Hur. “During this week of national recognition, I want to reaffirm my strong support for law enforcement and to ensuring that they have the equipment, training, and resources necessary to protect the health and safety of officers while they are protecting the public. Today, and every day, it is appropriate that we thank and honor the members of law enforcement for their dedication and professionalism. We will never forget their service.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. This year the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they swore to serve.
Based on data collected and analyzed by the FBI’s Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 89 law enforcement officers died nationwide in the line of duty in 2019, including Kyle David Olinger of the Montgomery County Police Department here in Maryland.
Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.
The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil will be livestreamed to the public at 8:00 pm (EDT). The online event can be viewed at https://www.youtube.com/user/TheNLEOMF.
# # #
U.S. Attorney: Report Sexual Harassment in Housing During Covid-19 PandemicRead the Press Release
Baltimore, Maryland – Maryland U.S. Attorney Robert K. Hur is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice. The COVID-19 Pandemic has impacted the ability of many people to pay rent on time and has increased housing insecurity. The Department of Justice has heard reports of housing providers trying to exploit the crisis to sexually harass tenants. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.
“It is reprehensible that some try to take advantage of this global pandemic at the expense of the most vulnerable,” said U.S. Attorney Robert K. Hur. “The U.S. Attorney’s Office and our law enforcement partners are committed to working together to identify incidents of sexual harassment in housing and bring these criminals to justice. I urge everyone to remain vigilant and if you see something that doesn’t seem right, please report it.”
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Launched in 2017, the Initiative has filed lawsuits across the county alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.
Anyone who has experienced sexual harassment in housing, or knows someone who has, is encouraged to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected]; the U.S. Attorney’s Office for the District of Maryland, at 410-209-4800; or by filing a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.
U.S. Attorney Robert Hur, Special Agent in Charge John Eisert of Homeland Security Investigations – Baltimore, Special Agent in Charge Kelly R. Jackson of the IRS – Criminal Investigation, and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, also want to remind the public that in addition to sexual harassment in housing, COVID-19 scams are also operating from websites that advertise fake vaccines and cures, operate fraudulent charity drives, deliver malware, or host various other types of scams. To attract traffic, these websites often utilize domain names that contain words such as “covid19” or “coronavirus.” In some cases, the fraudulent sites purport to be run by, or affiliated with, public health organizations or agencies.
Federal agencies such as Homeland Security Investigations (HSI), the FBI, and the IRS will NOT call you, text you, e-mail you, or contact you on social media asking for personal or bank account information—even related to the economic impact payments. Recently, there has been an increase in phishing schemes utilizing e-mails, letters, texts and links. These contacts will often come in the form of unsolicited e-mail and/or websites that pose as legitimate sites in an effort to lure unsuspecting victims to provide personal and financial information. When visiting a website or when you receive an e-mail containing a link, pay special attention to any web address you are directed to in order ensure it is from a legitimate source. Watch out for e-mails with attachments or links claiming to have special information about economic impact payments or refunds.
Federal law enforcement is united in its efforts to fight against COVID-19 fraud. HSI has identified tips to recognize COVID-19 fraud. If you think you are a victim of a fraud or attempted fraud involving COVID-19, you may call the National Center for Disaster Fraud Hotline at 1-866-720-5721 or e-mail at [email protected] or [email protected]. If it is a cyber scam, you may submit your complaint through the FBI’s website, https://www.ic3.gov. Or you can report suspicious e-mails to the IRS at [email protected].
# # #
Federal, State, and Local Officials Announce New Violence Reduction ProgramRead the Press Release
Baltimore, Maryland – A coalition of federal, state, and local government officials today announced a new violence reduction program, I Care Baltimore. I Care Baltimore is a multi-faceted program designed to reduce violent crime by empowering community members, by highlighting programs that are making a difference in the City of Baltimore by offering alternatives to violence, and by increasing awareness of the consequences of federal prosecution for violent repeat offenders. The new initiative, funded by a $250,000 grant to the Mayor’s Office of Criminal Justice (MOCJ) from the Governor’s Office of Crime Prevention, Youth, and Victim Services, builds on the U.S. Attorney’s Office Project Exile which seeks to remove guns from the hands of criminals. In response to the COVID-19 pandemic, the I Care program now also offers resources available to assist Baltimoreans to stay safe and healthy.
The initiative was announced by United States Attorney for the District of Maryland Robert K. Hur; Executive Director Glenn Fueston of the Governor’s Office of Crime Prevention, Youth, and Victim Services; Director Tamika Gauvin of the Mayor’s Office of Criminal Justice; Commissioner Michael Harrison of the Baltimore Police Department; and State’s Attorney for Baltimore City Marilyn J. Mosby.
“Gun violence remains a pervasive problem in too many Baltimore communities,” said United States Attorney Robert K. Hur. “Law enforcement is an important part of the solution, but we must also foster community involvement and help make citizens aware of choices they can make for the good of their own lives and their neighborhoods. The I Care Baltimore website highlights resources available to prevent young people from becoming involved in violence. If you use a gun, you could face federal time, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
“We appreciate the comprehensive approach that the U.S. Attorney's Office is taking for Project Exile for the District of Maryland,” said Glenn Fueston, Executive Director of the Maryland Governor's Office of Crime Prevention, Youth, and Victim Services. “The Hogan Administration has supported the U.S. Attorney's efforts targeting violent offenders, and we also realize community engagement - especially with our youth - is vital for crime reduction and making our neighborhoods safer.”
To help deter gun crime, the I Care Baltimore initiative has placed 18 billboards at locations around Baltimore highlighting the importance of positive decision-making and awareness of the consequences of poor decisions. Images and locations of the billboards can be found
here .The coalition has partnered with Urban One, Inc., which operates five stations in the Baltimore area, including WERQ 92-Q, to implement the program. The I Care Baltimore website is live and will be updated regularly. The website includes: monthly highlights of different community organizations helping make Baltimore a safer and healthier place to live; a highlighted organization each month; community resources, listed by area; a link to report crime tips anonymously; and a section where individuals can pledge their support to I Care Baltimore, either through specific actions or through monetary donations. The program will also be advertised at events attended by Urban One disc jockeys and government officials, once the current stay-at-home order has been lifted.
Baltimore faces many challenges but there are many good things happening in Baltimore, too. I Care is about uplifting the best of Baltimore City, understanding that the future is in our hands. It’s about helping citizens to get involved with the organizations that make Baltimore the greatest city in America. I Care is about providing communities with the tools and resources to make a positive change. Show Baltimore that you care by becoming part of the solution.
# # #
Federal Law Enforcement Encourages the Public to Remain Vigilant to Covid-19 ScamsRead the Press Release
Baltimore, Maryland – Maryland U.S. Attorney Robert K. Hur and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service-Criminal Investigation (IRS-CI), Washington Field Office are again warning taxpayers to be alert to phishing scams relating to COVID-19 economic impact payments that are already being seen. The community must remain on guard against scammers who are striving to steal personal information and money.
“It is reprehensible that fraudsters try to take advantage of this global pandemic to line their pockets at the expense of the most vulnerable,” said U.S. Attorney Robert K. Hur. “The U.S. Attorney’s Office and our law enforcement partners are committed to bringing these criminals to justice. I urge citizens to remain vigilant. Don’t provide personal information or click on websites or links contained in unsolicited e-mails. Don’t become a victim.”
“The community is experiencing enough hardship right now without needing to worry about scammers trying to steal the money that they desperately need,” said Special Agent in Charge Kelly R. Jackson. “IRS-CI, along with our law enforcement counterparts are working hard to protect the public from these thieves. These types of investigations are being prioritized to help protect taxpayers and the tax system”
According to federal law enforcement, many of the scams operated from websites that advertised fake vaccines and cures, operated fraudulent charity drives, delivered malware, or hosted various other types of scams. To attract traffic, these websites often utilized domain names that contained words such as “covid19” or “coronavirus.” In some cases, the fraudulent sites purported to be run by, or affiliated with, public health organizations or agencies.
Neither the IRS nor any other federal agency will call you, text you, e-mail you, or contact you on social media asking for personal or bank account information—even related to the economic impact payments. Recently, there has been an increase in phishing schemes utilizing e-mails, letters, texts and links. These contacts will often come in the form of unsolicited e-mail and/or websites that pose as legitimate sites in an effort to lure unsuspecting victims to provide personal and financial information. Scammers will often use website names similar to valid ones—for example IRSGOV, IRS GOV, or using extra letters and/or spaces in lieu of IRS.GOV. For example, one fraud involves phishing e-mails coming from “[email protected]” which directs you to a link that contains “economic impact payment” and uses a company name similar to the Free File Alliance partner you are transferred to while using the IRS tool for Non-Filers. DO NOT click on the link—this is a scam. Other phishing schemes are using keywords such as “Corona Virus,” “COVID-19,” and “Stimulus” in varying ways.
When visiting a website or when you receive an e-mail containing a link, pay special attention to any web address you are directed to in order ensure it is from a legitimate source. Watch out for e-mails with attachments or links claiming to have special information about economic impact payments or refunds.
Federal law enforcement is united in its efforts to fight against COVID-19 fraud. If you think you are a victim of a fraud or attempted fraud involving COVID-19, call the National Center for Disaster Fraud Hotline at 1-866-720-5721 or e-mail at [email protected]. If it is a cyber scam, you may submit your complaint through the FBI’s website, https://www.ic3.gov. Or you can report suspicious e-mails to the IRS at [email protected].
# # #