District of Maryland
Press releases recorded for this federal judicial district.
Carroll County Man Facing Federal Indictment for Allegedly Overcharging the U.S. Postal Service Under His Company’s Contract to Perform Maintenance and Repair Services at Postal Service FacilitiesRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Joseph Liberto, age 45, of New Windsor, Maryland, on federal wire fraud and conspiracy charges in connection with his company’s contract to perform repairs at U.S. Postal Service (USPS) facilities. The indictment was returned on December 18, 2019.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Scott Pierce of the U.S. Postal Service Office of Inspector General.
According to the 31-count indictment, between 2014 and 2018, Joseph Liberto, President of Sierra Construction LLC, in Frederick, Maryland, contracted with EMCOR-CSC to provide repair services to USPS facilities. EMCOR acted as the clearing house responsible for receiving service calls for needed maintenance and repair work on its customers’ facilities, including the USPS, and assigning such work to service providers, such as Liberto and Sierra. The indictment alleges that Liberto engaged in a scheme to defraud EMCOR and the USPS by fraudulently concealing Sierra’s use of subcontractors to carry out maintenance work it was assigned to perform, making false statements, and providing false documents to EMCOR, in order to overcharge the USPS. The indictment alleges that Sierra obtained approximately $2 million through these fraudulent overbillings.
If convicted, Liberto faces a maximum sentence of 20 years in federal prison for the conspiracy, and for each of the 30 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 initial appearance in U.S. District Court in Baltimore 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 Contract Fraud Investigation Division of the U.S. Postal Service Office of Inspector General for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
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Baltimore Department of Public Works Supervisor Facing Federal Indictment for Using DPW Resources to Install Water, Sewer, and Fire Line Services Without Paying City Fees or Obtaining PermitsRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Ronald Maurice Smith, age 46, of Baltimore, Maryland, on the federal charges of extortion and being a felon in possession of a gun. A related criminal information was also filed charging Philip Michael Loverde, age 38, of Glen Burnie, Maryland, with extortion. The indictment and criminal information were both filed on December 18, 2019.
The federal charges were 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 Smith’s 10-count indictment, from January 2014 to February 2016, Smith, who was a supervisor in the Baltimore City Department of Public Works’ Water and Waste Management Division (DPW), personally enriched himself and others by using Baltimore City employees, equipment, and materials to install new and upgraded water, sewer, and fire line services for private developers and property owners without obtaining the required permits, approvals, and inspections, without paying the Baltimore City fees for water, sewer, and/or fire line service installation permits and traffic control, and without installing water meters while charging lower prices to the private developers and property owners than City-approved, bonded, and licensed utilities contractors would charge.
Specifically, the indictment alleges that Smith used his authority as a DPW supervisor to cause DPW workers, using DPW equipment, to make a street cut to access the public water main, and install a pipe to connect the water main to a location for a water meter vault, and from that location to a private property, all without obtaining the necessary permits. Smith was paid in cash by the private property owner or developer either because Smith asked for a cash payment or because Smith caused his co-conspirator, licensed plumber Philip Loverde, one of the owners of All Service Plumbing and Drain Cleaning and All Service Plumbing and Heating, to create a false All Services invoice to submit to the private property owner or developer, when in fact, the indictment alleges that Smith and DPW crews performed the work. According to the indictment, when All Services was paid, Loverde cashed the check and provided the cash to Smith.
The indictment alleges that to conceal the scheme, Smith caused other DPW employees to create and submit false DPW service requests and work orders. According to the indictment, Smith caused DPW personnel to place metal plates over the street cuts DPW personnel made to install the new water service and eventually used DPW equipment, personnel, and materials to re-pave where the street cuts and excavation had occurred. The indictment alleges that Smith received at least $64,000 as a result of the scheme.
Finally, on February 5, 2016, Smith, who has a previous felony conviction, allegedly illegally possessed a .380-caliber handgun.
If convicted, Smith and Loverde each face a maximum sentence of 20 years in federal prison for extortion under color of official right. Smith also faces a maximum of 10 years in federal prison for being a felon in possession of a gun. 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 Baltimore, has not yet been scheduled for Smith or Loverde.
An indictment or criminal information is not a finding of guilt. An individual charged by indictment or criminal information is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting these cases.
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Attorney General William P. Barr Announces Launch of Operation Relentless PursuitRead the Press Release
Baltimore, Maryland - Today, Attorney General William P. Barr announced the launch of Operation Relentless Pursuit, an initiative aimed at combating violent crime in seven of America’s most violent cities—including Baltimore—through a surge in federal resources.
Joined at a press conference in Detroit, Michigan, by ATF Acting Director Regina Lombardo, DEA Acting Administrator Uttam Dhillon, FBI Director Christopher Wray, and United States Marshals Service Director Donald W. Washington, Attorney General Barr pledged to intensify federal law enforcement resources into Albuquerque, Baltimore, Cleveland, Detroit, Kansas City, Memphis, and Milwaukee – seven American cities with violent crime levels several times the national average.
United States Attorney Robert K. Hur and Baltimore-based federal, state, and local law enforcement leaders announced their participation in the initiative in a press conference immediately following the Attorney General’s.
“Americans deserve to live in safety,” said Attorney General William P. Barr. “And while nationwide violent crime rates are down, many cities continue to see levels of extraordinary violence. Operation Relentless Pursuit seeks to ensure that no American city is excluded from the peace and security felt by the majority of Americans, while also supporting those who serve and protect in these communities with the resources, training, and equipment they need to stay safe.”
“In spite of our efforts and achievements this year, violent-crime rates in our city remain stubbornly high,” said U.S. Attorney Robert K. Hur. “Law enforcement here in Baltimore is committed to working together every day to get guns out of the hands of criminals and off of our streets, to reduce violent crime in our neighborhoods. The additional law enforcement personnel and funding provided by Attorney General Barr and the Department of Justice will help us work our way toward a safer Baltimore.”
“ATF is wholly focused on violent crime, removing the most dangerous and prolific offenders from the streets of Baltimore City. Our collaborative efforts with local, state, and federal law enforcement and prosecutors is critical to ensuring we are successful,” said ATF Baltimore Special Agent in Charge Rob Cekada. “Under Operation Relentless Pursuit, we will focus additional personnel and resources on our mission of identifying, investigating, and incarcerating Baltimore’s violent criminals.”
DEA Special Agent in Charge Jesse R. Fong stated, “The DEA is committed, along with our federal partners here today, to this great effort to stem the tide of violence and drug trafficking activities we have seen across Baltimore. This new synchronization of investigative efforts inherent to Operation Relentless Pursuit will better target, disrupt, and dismantle violent criminal organizations across the area to help keep our neighborhoods safer.”
“The FBI is committed to pursuing those who commit violent crimes and threaten the safety of our communities. Together with our federal, state, and local partners, we have and will continue to pursue operations to bring violent criminals to justice,” said FBI Special Agent in Charge Jennifer C. Boone. “Under the auspices of Operation Relentless Pursuit, we will collectively devote additional resources and efforts to attack the most violent offenders plaguing the city of Baltimore.”
Maryland U.S. Marshal Johnny Hughes stated, “We are looking forward to doing what we do best striking fear in the hearts of evil locating and arresting these violent felons who prey on the innocent and helpless.”
The Operation will involve increasing the number of federal law enforcement officers to the selected cities, as well as bulking up federal task forces through collaborative efforts with state and local law enforcement partners. The surge in federal agents will be complemented by a financial commitment of up to $71 million in federal grant funding that can be used by the seven selected cities to hire new officers, pay overtime and benefits, finance federally deputized task force officers, and provide mission-critical equipment and technology.
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Washington, D.C. Man Sentenced to More Than Four Years in Federal Prison for Involuntary Manslaughter in Connection with a Fatal Crash on the Baltimore-Washington ParkwayRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Darnell E. Bassett, age 24, of Washington, D.C., today to 51 months in federal prison, followed by three years of supervised release, for involuntary manslaughter in connection with a fatal accident on the Baltimore-Washington Parkway. Judge Hazel also ordered Bassett to pay restitution of $10,337, which represents the full amount of the victim’s losses, including the costs of the victim’s funeral and burial costs. Bassett pleaded guilty to the federal charge on September 25, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Chief Gregory T. Monahan of the U.S. Park Police; and Chief Peter Newsham of the Metropolitan Police Department.
According to Bassett’s plea agreement, on June 24, 2019, a vehicle driven by Bassett was involved in a collision with a District of Columbia Metropolitan Police cruiser in northeast Washington, D.C. The police vehicle was disabled, but Bassett continued driving at a high rate of speed, going the wrong way on a one-way street. Another marked Metropolitan Police vehicle pursued Bassett with its lights and siren activated. Bassett did not stop, making his way into Maryland on the Baltimore-Washington Parkway.
Bassett continued driving northbound on the Baltimore-Washington Parkway at a high rate of speed and passed other vehicles by driving on the right shoulder of the highway. Sometime during the incident, one of his tires blew out, but Bassett nevertheless continued driving on the shoulder of the highway and passing other traffic. While driving at least 70 miles per hour, Bassett began to take the right-side exit ramp to the inner loop of Interstate 495, then veered left across the on-ramp and into the triangular painted safety zone between the ramp and the travel lanes, striking a Honda CR-V that was stopped in the safety zone. The Honda spun around and then turned onto its side. The driver of the Honda died as a result of the crash.
United States Attorney Robert K. Hur commended the U.S. Park Police and the Metropolitan Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Michael Morgan and Hollis Raphael Weisman, who are prosecuting the case.
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Two Florida Men Facing Federal Indictment in Maryland for Allegedly Scamming Elderly Victims of More Than $1.5 MillionRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted David James Green, age 24, of Miami Gardens, Florida, and McArnold Charlemagne, age 32, of Miramar, Florida, on federal charges of mail fraud and conspiracy to commit mail fraud, in connection with a scheme in which they allegedly defrauded more than 65 elderly victims of more than $1.5 million. The indictment was returned on December 3, 2019, and was unsealed on December 12, 2019.
The indictment 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.
According to the seven-count indictment, from January 2018 through August 2019, the defendants were part of a conspiracy to defraud elderly victims by persuading them to send thousands of dollars in cash to members of the conspiracy by falsely stating that the money would be used to help the victims’ relatives pay legal or other expenses in connection with crimes and other incidents that had not occurred. Charlemagne and Green’s co-conspirators allegedly telephoned elderly victims throughout the United States, posing as a police officer, lawyer, or other individual, falsely telling the victim that a relative, typically the victim’s grandchild, had been incarcerated in connection with a car accident or traffic stop involving a crime, and needed money—often tens of thousands of dollars—for bail, legal fees, and other expenses.
As stated in the indictment, during the telephone calls, the co-conspirators directed victims to send cash to a particular address via an overnight delivery service. The co-conspirators allegedly even posed as the victims’ relatives to further induce them to send the cash. Once the victims did send money, the co-conspirators called the victims asking for more cash, regularly obtaining tens of thousands of dollars from the retirement savings of victims. To prevent the victims from sharing the information with anyone, the co-conspirators allegedly told the victims that a “gag order” had been placed on the case requiring secrecy, or that the situation was embarrassing for the grandchild and they didn’t want anyone else to know about it.
The indictment further alleges that in order to conceal the crime, Charlemagne, Green, and other co-conspirators identified residential locations across the country where the cash should be sent, including in Maryland, Pennsylvania, Delaware, and Florida. Charlemagne and Green allegedly identified locations that were either vacant or for sale, so that no one would be at those locations at the time of the deliveries, then retrieved the packages of cash when they were delivered. Charlemagne, Green and other co-conspirators recruited and instructed additional people to assist in retrieving packages of cash from specified locations.
If convicted, Charlemagne and Green each face a maximum sentence of 20 years in federal prison for mail fraud conspiracy and for each of three counts of 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. Charlemagne had his initial appearance today in U.S. District Court in Baltimore. Chief U.S. Magistrate Judge Beth P. Gesner ordered Charlemagne to be released to a third party custodian, with the condition that he post a $100,000 bond. An arrest warrant has been issued for Green.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Department of Justice has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Sean R. Delaney and Matthew J. Maddox, who are prosecuting the case.
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Former NSA Contractors Sentenced on Federal Charges for Submitting False Claims for Hours Worked on Government ContractRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Todd Andrew Leasure, age 45, of Orange Beach, Alabama, to six months of home detention as part of five years’ probation, for the federal charge of making false statements in connection with the number of hours he worked on a contract at the National Security Agency (NSA). Judge Hollander also ordered Leasure to pay restitution of $150,001.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Robert P. Storch, Inspector General of the National Security Agency; and Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
The National Security Agency (NSA) is a component of the United States Department of Defense. Beginning in 2008, the NSA contracted with an outside company (Contractor A) to supply information technology (IT) services to the NSA, including onsite database administrators employed by Contractor A.
According to his plea agreement, from February 2014 through February 2017, Leasure was employed on a full-time basis by Contractor A to work as a database administrator pursuant to the contract between NSA and Contractor A. Leasure’s duty station was at a NSA facility located in Linthicum Heights, Maryland, and Leasure regularly traveled from Florida to Maryland to perform his responsibilities under the contract.
Contractor A required Leasure to submit timesheets in electronic format providing date- and task-specific entries stating the number of hours he had worked on the contract. Based on those entries, Contractor A periodically invoiced the NSA for the hours that Leasure worked, and NSA paid Contractor A for Leasure’s claimed hours at a rate of $247 to $280 per hour.
Leasure admitted that between February 3, 2014 and February 17, 2017, he submitted, and caused to be submitted, false timesheets to Contractor A in which he claimed to have worked at least 607 hours more than he actually worked on the NSA contract. As a result, NSA overpaid Contractor A by an amount exceeding $150,000.
In a separate case, on December 6, 2019, U.S. District Judge Richard D. Bennett sentenced Kyle Duran Smego, age 41, of Raleigh, North Carolina, to serve eight months of home detention as a special condition of three years’ probation, and ordered Smego to pay restitution of $252,527.15. Smego, who was a subcontractor at two companies where he was assigned to work on contracts at the NSA, previously pleaded guilty to submitting false claims to the government, inflating the number of hours he claimed to have worked on the two contacts by at least 40%.
Anyone with information about fraud at NSA may contact the NSA Office of the Inspector General at https://www.nsa.gov/about/contact-us/OIG-Hotline/.
United States Attorney Robert K. Hur commended the NSA OIG for their work in both investigations and the DOD OIG for its work in the Leasure investigation. Mr. Hur thanked Assistant U.S. Attorneys Peter J. Martinez and Jefferson M. Gray, who prosecuted the Leasure and Smego cases, respectively.
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Baltimore Men Plead Guilty to Federal Robbery Charge for A String of 2018 Video Game Store RobberiesRead the Press Release
Baltimore, Maryland – Two Baltimore men, Stewart Williams, age 35, and Kelvin McFadden, age 26, have pleaded guilty to a federal robbery charge in connection with a series of four robberies of video game stores committed over a 12-day period. Williams and McFadden admitted that they brandished what appeared to be a firearm during each robbery. Williams entered his plea on December 11, 2019, and McFadden entered his plea on October 1, 2019.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Chief Tim Altomare of the Anne Arundel County Police Department.
According to their plea agreements, between August 21, 2018 and September 1, 2018, Williams and McFadden robbed four video game stores, stealing electronic retail goods, such as video game systems, and cash. In each robbery Williams and McFadden entered the store, brandished what appeared to be a gun while accosting the victim employees, stole money from cash registers and/or safes, and forced the victim employees in the store’s “backroom” which contained the more expensive electronic goods, including video game systems, which they also stole. Each of the four robberies was captured on store security cameras.
Specifically, Williams and McFadden robbed: a store located in the 3600 block of Washington Boulevard in Halethorpe, Maryland, on August 21, 2018, stealing $874 in cash and three video game systems; a store located in the 6900 block of Security Boulevard in Baltimore City on August 25, 2018, stealing $2,839.58 in cash and three video game systems; a store locate in the 1000 block of Taylor Avenue in Towson, Maryland, on August 28, 2018, stealing $414 in cash and six video game systems; and a store located in the 6700 block of York Road in Baltimore, on September 1, 2018, stealing $968 in cash and 12 video game systems.
After the last robbery, responding police officers located McFadden’s car as he and Williams fled the scene of the robbery. Police dispatched a helicopter that was able to locate McFadden’s car and follow it. The officer in the helicopter saw Williams and McFadden stop the car near North Stricker Street in Baltimore, flee from the car, bang on the back door of an apartment, and enter the apartment. Police secured the location and knocked on the apartment door. The resident allowed the police to come inside, where police located Williams and McFadden. Search warrants were obtained for the vehicle and for the apartment. Law enforcement recovered numerous video game systems matching those that were stolen in the last robbery, hats that matched those worn by McFadden and Williams in several of the robberies as captured on the store security cameras, cash recovered inside a black trash bag, a black air pistol that matched the apparent handgun used during the four robberies, and wallets and cell phones belonging to Williams and McFadden.
Williams and McFadden each face a maximum sentence of 20 years in federal prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for McFadden on January 6, 202 at 11:00 a.m., and for Williams on April 7, 2020 at 10:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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, the Baltimore City, the Baltimore County, and the Anne Arundel County Police Departments for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Daniel A. Loveland, Jr. and Clinton J. Fuchs, who are prosecuting the case.
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Baltimore Career Offender Pleads Guilty to Federal Charges for Distributing FentanylRead the Press Release
In a Separate Case, Calvert County Defendant is Facing a Minimum Mandatory Sentence of 20 Years and Up to Life in Federal Prison as a Result of his Indictment for Allegedly Distributing Fentanyl Resulting in Death
Baltimore and Greenbelt, Maryland – Davon Nelson, age 34, of Baltimore, pleaded guilty today to federal charges of distribution of fentanyl and conspiracy to distribute fentanyl. As part of his plea agreement, Nelson also admitted that he attempted to obstruct justice during the investigation of his case. This case is part of a federal-state initiative announced last year to combat the fentanyl crisis in Maryland.
Under this initiative, titled the “Synthetic Opioid Surge,” or “SOS” for short, every arrest involving distribution of fentanyl made by law enforcement in Baltimore is reviewed jointly by the State’s Attorney’s Office for Baltimore City, the Drug Enforcement Administration, and the U.S. Attorney’s Office to determine whether the case will be handled in the state or federal system. The U.S. Attorney’s Office is prosecuting more cases involving fentanyl as a result of this new program. The use of federal resources and statutes, which carry significant terms of imprisonment, is necessary to prosecute those individuals who pose the greatest threat to public safety in distributing lethal doses of fentanyl.
In a separate case, a federal grand jury has indicted Robert Steven Wagner, age 28, of Lusby, Maryland, on the federal charge of distributing fentanyl, resulting in the user’s death. The indictment was returned on December 4, 2019, and was unsealed late on December 12, 2019, at Wagner’s detention hearing.
The guilty plea of Nelson was announced by United States Attorney for the District of Maryland Robert K. Hur; State’s Attorney for Baltimore City Marilyn Mosby; Acting Assistant Special Agent in Charge Jennifer Sharpe of the Drug Enforcement Administration, Baltimore District Office; Commissioner Michael Harrison of the Baltimore Police Department,.
The indictment of Wagner 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; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police, for the Wagner case.
“Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution under the fentanyl SOS program,” said United States Attorney Robert K. Hur. “The cooperation of the U.S. Attorney’s Office, the Office of the State’s Attorney for Baltimore City, the DEA, and the Baltimore Police Department in reviewing every fentanyl case to determine those cases appropriate for federal prosecution is just one example of the efforts we are making to reduce the number of opioid overdose deaths in Maryland.”
According to Nelson’s plea agreement, on September 5, 2018, a Baltimore Police Department officer observed Nelson distribute a baggie containing 200 fentanyl gel capsules to his co-conspirator, Terrell Perry. The BPD officer called in the arrest team and Perry was arrested. A search of Perry recovered the baggie of 200 fentanyl gel caps. At the time Perry was arrested, Nelson had left the block on foot. Law enforcement obtained a search warrant for Nelson’s van and recovered an additional 200 gel caps of fentanyl powder. The total amount of fentanyl recovered was at least 32 grams, but no more than 40 grams, which is enough fentanyl to kill at least 16,000 people.
Following his arrest, Nelson called his girlfriend from pre-trial detention facilities and directed her to move “the white stuff” from underneath his tub and to give it to an associate so that person could sell it. Further, Nelson directed his girlfriend to lie to the police if they came to interview her about Nelson and directed his girlfriend to also have her mother lie to police, if she were interviewed.
Nelson faces a maximum sentence of 20 years in federal prison for the conspiracy and for distribution of fentanyl. U.S. District Judge Catherine C. Blake has scheduled sentencing for May 8, 2020, at 11:00 a.m. Terrell Perry, age 35, of Baltimore, previously pleaded guilty and was sentenced to 30 months in prison.
According to Wagner’s indictment, on October 7, 2018, Wagner distributed fentanyl to a victim, who subsequently died as a result of using the fentanyl obtained from Wagner. If convicted, Wagner faces a minimum mandatory sentenced of 20 years in federal prison and a maximum sentence of life in federal prison for distribution of fentanyl resulting in death. At yesterday’s detention hearing in U.S. District Court in Greenbelt, U.S. Magistrate Judge Thomas M. DiGirolamo ordered that Wagner be released under special conditions.
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 Office of the State’s Attorney for Baltimore City, the DEA, the Baltimore Police Department; HSI; and the Maryland State Police for their work in these investigations. Mr. Hur thanked Assistant U.S. Attorneys Christopher M. Rigali, Leah Grossi, and Thomas M. Sullivan, who are prosecuting the Nelson and Wagner cases, respectively.
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Cecil County Pimp Indicted on Federal Charges Including Sex Trafficking of a Child, Production of Child Pornography, and Using a Website to Promote His Prostitution BusinessRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging Xavier Lee, a/k/a “X,” age 40, of Elkton, Maryland, on federal charges of using a website to promote and conduct his prostitution business, sex trafficking of a minor, production of child pornography, and interstate transportation for prostitution. The superseding indictment was returned on December 11, 2019, and added the charges for sex trafficking of a minor, production of child pornography, and interstate transportation for prosecution.
The superseding 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; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Matthew J. Donnelly of the Elkton Police Department; and Interim Cecil County State’s Attorney James Dellmyer.
According to the five-count superseding indictment, from 2013 through March 14, 2019, Lee operated an illicit prostitution business for financial gain, including operating a website to advertise and promote the business. The indictment alleges that the website restricted its full content to viewers who logged-in as members and that Lee maintained control over the website’s membership. Lee allegedly required prospective members to send Lee a picture of themselves that included in the picture their identification, such as a driver’s license. Members were provided by Lee or at his direction a log in and password. According to the indictment, website members could then view the “profiles” of the females whom Lee was prostituting, which included photographs, descriptions, and fictitious names. The website also listed the cost of prostitution appointments, described services that were available, and allowed members to post comments. The indictment alleges that Lee’s prostitution business was primarily operated at hotels in Elkton, Maryland, during weekdays, from Monday through Friday, with Lee typically driving a number of females whom he was prostituting to a local hotel in Elkton for prostitution appointments with paying customers. Customers would contact Lee to schedule a prostitution appointment, often calling Lee on his cell phone. To facilitate these prostitution appointments, Lee allegedly rented rooms at a local Elkton hotel.
Further, the superseding indictment alleges that in April 2013 Lee trafficked a minor female for commercial sex acts, from which he financially benefitted. According to the superseding indictment, in September 2013 and May 2014, Lee produced and appeared in two videos documenting the sexual abuse of another minor female victim, who was 15 and 16 years old at the time of the abuse.
If convicted, Lee faces a maximum sentence of five years in federal prison for using a website to promote and conduct his prostitution business; a mandatory minimum of 10 years and up to life in federal prison for sex trafficking of a minor; a mandatory minimum of 15 years and up to 30 years in federal prison for each of two counts of production of child pornography; and a maximum of 10 years in federal prison for interstate transportation for prostitution. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. No court appearance is currently scheduled for Lee.
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, the Maryland State Police, the Elkton Police Department, and the Cecil County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Ayn B. Ducao and Daniel A. Loveland, Jr., who are prosecuting the case.
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Baltimore Man Facing Federal Charges Related to Two CarjackingsRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Michael Wedington, Jr., age 19, of Baltimore, Maryland, with conspiracy, taking a motor vehicle by threats or violence, and with possession of a firearm in furtherance of a crime of violence, in connection with two carjackings. The criminal complaint was returned on November 6, 2019, and was unsealed at Wedington’s initial appearance in U.S. District Court in Baltimore today. At today’s initial appearance, Chief U.S. Magistrate Judge Beth P. Gesner ordered that Wedington be detained pending a detention hearing scheduled for December 18, 2019 at 2:00 p.m.
The federal charges were 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.
“Armed criminals 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 where, if convicted, you could be sentenced to more years in federal prison than you’ve been alive. And there is no parole—ever. Please put down the gun and save a life, maybe even your own.”
According to the affidavit filed in support of the criminal complaint, Wedington allegedly participated in two carjackings that occurred on June 8 and June 10, 2019. In each instance, the victim was picking up tools as part of a transaction set up through a cellular phone-based application, “OfferUp,” which connects local buyers and sellers of various products. When the victims arrived at the designated meeting spot, they were then directed to a second location, where the victims were robbed and their vehicles taken.
As detailed in the affidavit, in the carjacking on June 8, 2019, the victim arrived in the area of Washington Boulevard and South Monroe Street in Baltimore and was then directed to the 2400 block of West Lexington Street. Upon arriving, the victim was waived down and approached by three men. At first the men appeared to load the victim’s Ford van with the purported tools they were purportedly selling. However, one suspect was armed with a handgun and allegedly forced the victim into the rear of his vehicle, then all three suspects also entered the vehicle. The suspects allegedly stole the victim’s wallet and cash, a driver’s license, debit card and his cellular phone. As they drove away, the affidavit alleges that one suspect placed a handgun in the victim’s mouth and demanded the PIN number to the victim’s debit card. The suspects drove to a gas station in Northwest Baltimore with the victim still in the van, and one of the suspects used the PIN number the victim had provided to obtain cash from an ATM. The victim escaped from the van in the area of the 7000 block of Park Heights Avenue and called the Baltimore Police Department to report the incident. The stolen vehicle was recovered five days later in that area of the 2700 block of Tivoly Avenue in Baltimore.
According to the affidavit, in the second carjacking on June 10, 2019, the victim was lured to the 2400 block of West Lexington Street through the OfferUp application by a user who was purportedly selling tools and equipment at this location. When the victim arrived, he was directed to the back alley behind West Fayette Street, where two suspects approached him—both armed with handguns. The two men allegedly took the victim’s wallet, containing over $1,000 in cash, the victim’s two cell phones, and the victim’s Toyota Sienna.
The affidavit alleges that both victims identified Wedington in a photo array, and Wedington’s fingerprint was recovered from the van stolen in the second carjacking, when it was located in Southwest Baltimore. On November 1, 2019, federal search warrant was executed at Wedington’s primary residence, which is located between the scenes of the two carjackings, and law enforcement recovered a Toyota car key, firearms, replica pellet guns, clothing, and cellular phones.
If convicted, Wedington faces a maximum sentence of five years in federal prison for conspiracy to take a motor vehicle by threats or violence; a maximum of 15 years in federal prison for taking a motor vehicle by threats or violence; and a mandatory minimum of seven years in federal prison, consecutive to any other sentence, and up to life in federal prison for each of two counts of possession of a firearm in furtherance of a crime of violence. 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 the FBI and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta, who is prosecuting the case.
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North Carolina Man Pleads Guilty to Federal Firearms Charge for the 2002 Murder of an Employee of an Upper Marlboro BusinessRead the Press Release
Greenbelt, Maryland – Levy Steven Moore, age 49, of Pollocksville, North Carolina, pleaded guilty today in U.S. District Court in Maryland to the federal charge of murder resulting from using, carrying, brandishing, and discharging a firearm during and in relation to a crime of violence.
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; Chief Henry P. Stawinski III of the Prince George’s County Police Department; and Prince George’s County Sheriff Melvin C. High.
According to his plea agreement, on October 25, 2002, Moore and at least one accomplice planned to rob the victim-employee of the cash belonging to a business where the victim worked. As part of his duties, the victim-employee deposited the business’ cash proceeds and obtained money to be used in the operation of the business at a bank in Capitol Heights, Maryland.
As detailed in his plea agreement, Moore and his accomplice drove to the business and waited outside for the victim-employee to leave with the cash deposit. Moore was armed with a firearm and his accomplice was driving their vehicle as they followed the victim-employee from the business in Upper Marlboro, Maryland to the bank in Capitol Heights. The victim-employee made the deposit and was returning to his car with a money bag containing $2,200, which represented the business’ daily operating funds, when he was confronted by Moore. Moore attempted to take the money bag from the victim and shot the victim, who collapsed to the ground. The victim sustained a gunshot wound to the left side of the base of the neck, which caused his death. Moore admitted that he took the money bag, then got into the getaway vehicle driven by his accomplice. According to the plea agreement, while fleeing the scene the robbers struck the victim’s vehicle, ran over the victim, and left the dying victim lying in the bank parking lot.
Moore faces a maximum sentence of life in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for June 29, 2020, at 9:30 a.m. Moore remains detained.
United States Attorney Robert K. Hur commended the FBI, the Prince George’s County Police Department, and the Prince George’s County Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys William D. Moomau and Gregory D. Bernstein, who are prosecuting the case.
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Marketing Executive for Two Global Companies Sentenced to 41 Months in Federal Prison for Defrauding Her Employers, Resulting in Losses of More Than $855,000Read the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte today sentenced Rebecca Jelfo, age 47, of Silver Spring, Maryland, to 41 months in federal prison, followed by three years of supervised release, for a federal wire fraud charge in related to a scheme Jelfo executed to defraud two employers of a total of at least $855,000 by submitting fraudulent and inflated invoices. Judge Messitte also ordered Jelfo to forfeit any proceeds or property obtained as a result of the scheme, and to pay restitution in the full amount of the loss, which is $855,587.25.
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.
According to her plea agreement, from approximately 2008 until December 2015, Jelfo was Head of Marketing and Communications for the Americas for Company A, a global airline. Between January 4, 2016 and January 31, 2018, Jelfo was a Senior Director of Luxury Brand Marketing – Partnerships and Promotions for Company B, a global hospitality company. As part of Jelfo’s duties at both companies, she contracted with marketing vendors and was responsible for approving certain marketing invoices.
Jelfo admitted that beginning while she was employed at Company A and continuing throughout her employment with Company B, Jelfo participated in an over-invoicing scheme designed to defraud her employers. Specifically, Jelfo submitted or caused to be submitted, false and inflated invoices purported to be for various marketing services or products provided to her employer. Jelfo knew that the invoices did not accurately reflect the products or services provided by the vendors, but nevertheless took steps to make sure that Company A and Company B paid the false invoices. After the companies paid the invoices, Jelfo instructed the vendors to remit payments to cover her personal debts.
As detailed in her plea agreement, Jelfo instructed three separate vendors to remit payments to cover her personal expenses. Specifically, from as early as May 21, 2015 through August 24, 2016, Vendor A remitted payments for Jelfo’s personal expenses totaling $263,697, including a $13,000 payment to Jelfo’s Neiman Marcus credit card account and a $28,000 payment to Jelfo’s Saks Fifth Avenue credit card account. Vendor A also purchased $15,000 in American Express gift cards, some of which Jelfo used to make purchases at a high-end furniture store in Washington, D.C.
Similarly, while employed by Company B, Jelfo submitted false invoices purporting to come from Vendor B. After Company B paid the invoices to Vendor B, Vendor B remitted payments to Jelfo’s personal credit card accounts. For example, on November 14, 2017, Vendor B sent $106,302 to Jelfo’s American Express account, which was received from Company B as part of two fraudulently inflated invoices. On at least one occasion, Jelfo instructed Vendor C to submit an inflated invoice to Company B and provided Vendor C with fraudulent documentation that appeared to justify the inflated invoice. Based on Jelfo’s request, Vendor C sent an invoice to Company B requesting a payment of $74,880. After receiving the payment from Company B, Vendor C made a $64,851.24 payment to Jelfo’s personal credit card account, as instructed by Jelfo.
Jelfo admitted that between May 21, 2016 and January 31, 2018, she stole at least $855,587.25 from Company A and Company B as a result of this scheme.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation and thanked investigators from the victim companies for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Gregory D. Bernstein, who prosecuted the case.
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Baltimore Man Pleads Guilty to Federal Charges for Five Bank Robberies, Five Armed Robberies of Liquor Stores, and Related Firearms ChargesRead the Press Release
Baltimore, Maryland –Anthony Eugene Wiggins, age 40, of Baltimore, Maryland, pleaded guilty yesterday in federal court to a string of robberies, including five bank robberies and five armed robberies at liquor stores, committed between September 24, 2018 and November 15, 2018, as well as an attempted robbery on November 15, 2018. Wiggins was on federal supervised release at the time of the robberies, having previously been convicted for being a felon in possession of firearm. During each of the liquor and convenience store robberies, Wiggins brandished a firearm and, in two instances, discharged the firearm during the robberies. In nearly all of the robberies, Wiggins threatened victim employees with physical violence and, during one robbery, fought with and assaulted a store customer and a victim employee.
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; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Chief Charles Moore of the Bel Air Police Department.
According to his plea agreement, between September 24 and October 18, 2018, Wiggins committed robberies at five separate Maryland banks, including two banks in Baltimore, and one each in White Marsh, Bel Air, and Arbutus.
As detailed in his plea agreement, between November 2 and November 15, 2018, Wiggins committed five armed robberies at four liquor stores in Dundalk, Middle River, and Baltimore, Maryland. Wiggins admitted that he discharged a firearm in two of those robberies, specifically, a robbery in Dundalk on November 2, 2018 and a robbery in Baltimore on November 13, 2018, and brandished a firearm in the other three robberies. Wiggins also attempted to rob a fifth liquor store, located in Dundalk, on November 15, 2018.
Wiggins and the government have agreed that, if the Court accepts the plea agreement, Wiggins will be sentenced to between 10 years and 19 years in federal prison for the robberies and gun charge, and up to two years in federal prison for violating his federal supervised release. U.S. District Judge George L. Russell has scheduled sentencing for March 27, 2020 at 2:00 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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, the Baltimore Police Department, the Baltimore County Police Department, and the Bel Air Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Paul A. Riley and Mary W. Setzer, who are prosecuting the case.
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Former DOD Subcontractor Facing Federal Indictment for Allegedly Submitting False Claims for Hours WorkedRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Melissa Heyer, age 44, of Gaithersburg, Maryland, with submitting false claims to the United States, specifically for claiming to have worked hours on a government contract when she allegedly was not at work.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Teresa A. Moses, Assistant Inspector General for Investigations, Defense Intelligence Agency (DIA)- Office of Inspector General (OIG); and Special Agent in Charge Robert E. Craig, Jr., of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
Company A was a subcontractor for Company B, providing employees that performed national security duties for the Department of Defense (DOD). From January 2017 until March 2019, Heyer worked for Company A, but was assigned on a day-to-day basis to work for the DOD on national security matters at the National Security Agency (NSA), in Fort Meade, Maryland.
According to the five-count indictment, from January 2017 through March 2019, Heyer held a Top Secret-Sensitive Compartmented Information (TS/SCI) security clearance and performed her duties for Company A and the DOD at a sensitive compartmented information facility (SCIF) at the NSA facility where she worked. She used a badge reader to gain access to the SCIF. The indictment alleges that on at least five occasions between January 2017 and March 2019, Heyer falsely represented to her employer that she had been working at the NSA SCIF when she was actually elsewhere. Heyer allegedly caused false claims to be submitted to the DOD that resulted in the government paying more than $100,000 to Company A, Company B, and Heyer, to which they and Heyer were not entitled.
If convicted, Heyer faces a maximum sentence of five years in prison for each of the five counts of making a false claim. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. At today’s initial appearance in U.S. District Court in Baltimore, Chief U.S. Magistrate Judge Beth P. Gesner ordered that Heyer be detained pending a detention hearing scheduled for Wednesday, December 11, 2019.
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 DIA OIG and DCIS for their work on the investigation and thanked the U.S. CYBERCOM Office of Inspector General for its assistance. Mr. Hur thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the case.
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Annapolis MS-13 Member Sentenced to 38 Years in Federal Prison for a Racketeering Conspiracy and for Discharging a Firearm Related to His MS-13 Gang ActivitiesRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Marlon Cruz-Flores, age 24, of Annapolis, Maryland, today to 38 years in federal prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise and for using, carrying, and discharging a firearm during a crime of violence, in connection with his MS-13 gang activities.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore Office; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Timothy J. Altomare of the Anne Arundel Police Department; Chief Edward Jackson of the Annapolis Police Department; and State’s Attorney Anne Colt Leitess of the Anne Arundel County State’s Attorney Office.
“MS-13 is terrorizing and preying upon entire communities,” said U.S. Attorney Robert K. Hur. “We need the community’s help to end the fear and violence. Please, if you have information about MS-13, call the FBI’s nationwide tipline at 1-866-STP-MS13 (1-866-787-6713). Your identity will be protected.”
MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Anne Arundel County, Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively as “Programs,” with the purpose of increasing the gang’s levels of organization, violence, extortion, and other criminal activity, and to assist one another in avoiding detection by law enforcement. In Maryland and the surrounding area, these cliques include Hempstead Locos Salvatruchas (“HLS”), Parkview Locos Salvatrucha (“PVLS”), Normandie Locos Salvatrucha (“NLS” or “Normandie”), Sailors Locos Salvatrucha Westside (“SLSW” or “Sailors”), Langley Park Salvatrucha (“LPS”), Weedoms Locos Salvatrucha (“Weedoms”), and Cabanas Locos Salvatruchas (“Cabanas”). A person within the participating cliques is selected as the Program leader.
To protect the gang and to enhance its reputation, MS-13 members and associates are expected to use any means necessary to force respect from those who show disrespect, including acts of intimidation and violence. MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controla,” which translates to, “kill, steal, rape, control.” One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to Cruz-Flores plea agreement, from about 2015 through 2017, he was a member and associate of the Hempstead clique of MS-13, and participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery, and drug trafficking. Specifically, Cruz-Flores admitted that he participated in the murder of a suspected rival gang member, and conspired and attempted to murder two victims in Annapolis. In addition, between January 2016 and February 2017, Cruz-Flores and other MS-13 members/associates sold marijuana to raise funds for the gang. The drug proceeds were used for, among other purposes, the purchase of more narcotics, weapons, and to send to MS-13 members and associates in other states and in El Salvador.
As part of the racketeering conspiracy, Cruz-Flores admitted that on March 11, 2016, he and other MS-13 members and associates planned and agreed to murder Victim-1, whom the gang suspected of being a rival gang member. Two MS-13 members/associates lured Victim-1 to Quiet Waters Park in Annapolis, Maryland, and once Victim-1 arrived at the park, members of the gang struck Victim-1 in the head with a branch or stick. Cruz-Flores and the members and associates of MS-13, then stabbed Victim-1 repeatedly, killing Victim-1. While Cruz-Flores and other members of the gang stabbed Victim-1, Co-conspirator 1 and other MS-13 members/associates stood watch outside of the park to ensure no one entered or left the park, and to watch for police presence, so that the gang could complete the murder of Victim-1. During this time, Co-conspirator 1 communicated by phone and through text messages with Cruz-Flores and at least one other MS-13 member/associate inside the park, to let them know no one entered the park and they could complete the murder. After Victim-1 was killed, Cruz-Flores and other MS-13 members and associates involved in the murder buried Victim-1 in a shallow grave inside the park.
As detailed in his plea agreement, on October 23, 2016, Cruz-Flores and other MS-13 members met at Quiet Waters Park to discuss the plan to murder Victim 2, an unlicensed cab driver who was believed to be a member of a rival gang. At the meeting, each member of the conspiracy was assigned a task to complete the murder and dispose of the evidence. The group planned to use machetes, knives, and guns to kill the victim. Cruz-Flores and another co-conspirator each had a firearm and all the members of the conspiracy were aware that guns would be used in the murder.
Cruz-Flores admitted that he called Victim 2 using another member’s cell phone to arrange for an unlicensed taxi ride. Victim 2 arrived with another passenger, Victim 3. Cruz-Flores asked Victim 2 to drive to the area of the 700 block of Annapolis Neck Road in Annapolis. When they arrived, another MS-13 member approached the vehicle and pointed a gun at the victims and Cruz-Flores also produced a gun and pointed it at the victims. Victim 3 attempted to run away and Cruz-Flores shot Victim 3 in the leg, while another MS-13 member repeatedly attacked Victim 3 with a machete. Victim 2 also tried to run. Co-defendant Manuel Martinez-Aguilar and another MS-13 member took Victim 2’s vehicle and attempted unsuccessfully to run him over with the car. Two MS-13 members chased Victim 2 and repeatedly struck Victim 2 with a sharp instrument, causing stab wounds. The conspirators fled when they heard police sirens. Both victims were transported to the University of Maryland Shock Trauma Center with life threatening injuries. Both victims survived but have permanent injuries as a result of the attack.
Co-defendants Manuel Martinez-Aguilar, a/k/a “El Lunatic” and “Zomb,” age 20, and Fermin Gomez-Jimenez, age 22, both of Annapolis, Maryland, previously pleaded guilty to the racketeering conspiracy and gun charge. Martinez-Aguilar was subsequently sentenced to 24 years in federal prison. Co-defendant David Diaz-Alvarado, age 20, also of Annapolis, pleaded guilty to murder in aid of racketeering in connection with their MS-13 gang activities. A fourth co-defendant, Juan Carlos Sandoval-Rodriguez, age 21, of Annapolis was convicted on October 31, 2019, of murder in aid of racketeering and conspiracy to commit murder in aid of racketeering after an 11-day jury trial. The final defendant is scheduled to go to trial next year. All of the defendants remain detained.
United States Attorney Robert K. Hur commended HSI, ATF, Anne Arundel Police Department, the Annapolis Police Department, and Anne Arundel State’s Attorney Office. Mr. Hur thanked Assistant U.S. Attorney Zachary Stendig, Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section, as well as Special Assistant U.S. Attorney Samantha Mildenberg, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Justice Department Announces More Than $376 Million in Awards to Promote Public SafetyRead the Press Release
Baltimore, Maryland – United States Attorney for the District of Maryland Robert K. Hur announced today that the U.S. Department of Justice, Office of Justice Programs has awarded more than $376 million in grant funding to enhance state, local and tribal law enforcement operations and reinforce public safety efforts in jurisdictions across the United States. More than $5 million will support public safety activities in Maryland.
“DOJ is able to partner with state and local law enforcement and communities that are working to improve public safety by providing grant funding and resources,” said United States Attorney Robert K. Hur. “These much needed grant funds will assist in our fight to reduce violent crime in Maryland, and will help fund programs to enhance crime prevention efforts in our local communities”
“Crime and violence hold families, friends and neighborhoods hostage, and they rip communities apart,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These programs help restore the health and safety of crime-ravaged communities by supporting prevention activities, aiding in the apprehension and prosecution of perpetrators, facilitating appropriate sentencing and adjudication, and providing communities and their residents the means for recovery and healing.”
The awards support an array of crime-fighting initiatives, including the quarter-billion dollar Edward Byrne Justice Assistance Grants Program, which funds public safety efforts in 929 state, local and tribal jurisdictions. Funding also supports sex offender registration and notification, law enforcement-based victim services, the testing of sexual assault kits, and programs designed to address youth with sexual behavioral problems. Other awards will focus on wrongful convictions, intellectual property enforcement, innovative prosecution strategies and the safety and effectiveness of corrections systems.
The following awards were made to organizations in the District of Maryland.
FY2019 Byrne JAG Program
Anne Arundel County, Maryland
2019-DJ-BX-0838
$154,218
Hagerstown Police Department Anti-Chronic & Violent Crime Initiative
City of Hagerstown
2019-DJ-BX-0449
$18,769
FY 2019 Edward Byrne Memorial Justice Assistance Grant Program
Board of Commissioners of Washington County, Maryland
2019-DJ-BX-0297
$17,075
Law Enforcement Emergency Teleconference system and E-ticketing equipment
Cecil County Sheriffs Office
2019-DJ-BX-0512
$14,233
Enhancing Law Enforcement Services
City of Cambridge
2019-DJ-BX-0346
$11,835
Salisbury Police – Night Vision Monocular Units
Salisbury Police Department
2019-DJ-BX-0590
$24,347
FY2019 JAG - Baltimore County, Maryland
Baltimore, County of
2019-DJ-BX-0837
$321,731
Community Mobile Outreach Trailer
City of Annapolis
2019-DJ-BX-0920
$17,205
FY 2019 JAG Program
Howard County Maryland
2019-DJ-BX-0841
$57,349
FY 2019 JAG Program
Prince Georges County Government
2019-DJ-BX-0839
$199,889
JAG FY19 Less Lethal Project
City of Cumberland
2019-DJ-BX-0159
$12,278
2019 Frederick Technology and Equipment Grant
City of Frederick
2019-DJ-BX-0836
$43,220
Harford County Sheriff’s Office Emergency Equipment
Harford County Maryland
2019-DJ-BX-0843
$30,239
Baltimore City, Maryland JAG Round 15
City of Baltimore
2019-DJ-BX-0842
$859,773
FY 19 Local JAG
St. Marys County Government
2019-DJ-BX-0241
$16,762
Charles County's Officer Safety and Drug Court Support Program
Charles County Government
2019-DJ-BX-0840
$40,796
Edward Byrne Justice Memorial Assistance Grant
State of Maryland
2019-MU-BX-0019
$3,432,027
Information about the programs and awards announced today is available here. For more information about OJP awards, visit the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and 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.
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Former Casino Dealer Sentenced to Federal Prison for Participating in a Cheating SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Ming Zhang, age 32, of Alexandria, Virginia, yesterday to 18 months in federal prison, followed by three years of supervised release, for conspiracy to transport stolen funds, in connection with a scheme to defraud Maryland casinos by cheating at the game of baccarat. The total loss caused by Zhang and his co-conspirators was $1,046,560. Judge Grimm also entered an order requiring Zhang to pay restitution in the total amount of the loss.
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.
According to Zhang’s plea agreement, Zhang worked as a dealer at Casino 1 in Maryland. Zhang’s role in the conspiracy was to alert co-conspirator A as to when Zhang was scheduled to deal baccarat at the casino. Baccarat is a card game in which players compare the value of two hands of cards—a “player” and a “dealer” hand. Each card has a point value, and before any cards are dealt, bettors place bets on which hand will be closest to nine. The dealer then distributes the cards between the player and dealer hands according to fixed rules. If a bettor knows the order in which cards appear in the deck, they can predict the outcome of any given baccarat hand with near-perfect accuracy and place their bets accordingly.
Specifically, Zhang admitted that he notified co-conspirator A that he would be dealing baccarat at Casino 1 on September 27, 2017. Once co-conspirator A arrived at the baccarat table at which Zhang was dealing, Zhang exposed a portion of the baccarat deck to co-conspirator A and allowed the co-conspirator to take a picture of the deck, then placed that portion unshuffled into the “shoe,” which is a plastic box that keeps the cards in order until they are dealt. Co-Conspirator A and other players placed large bets when the unshuffled portion of the deck came into play.
On September 28, 2017, Zhang lied to investigators at Casino 1 about his knowledge of and participation in the cheating scheme.
Zhang admitted that between July and September 2017, he was present with co-conspirator A and other co-conspirators when they executed the scheme at Casino 2, which was also in Maryland. In August 2017, Zhang met with co-conspirator A at a hotel near Casino 2 and learned how to execute the scheme. Co-conspirator A agreed that Zhang would receive a percentage of the winnings for participating in the scheme and Zhang did benefit financially from executing the scheme.
United States Attorney Robert K. Hur praised the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Molissa H. Farber and Erin B. Pulice, who prosecuted the case.
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Cambridge Internist Pays More Than $176,000 to the United States to Resolve False Claims Act Allegations that He Administered Medically Unnecessary ProceduresRead the Press Release
Baltimore, Maryland – Noman Thanwy, M.D., an internist in Cambridge, Maryland, associated with the medical practice known as M.S. Shariff, M.D., P.A., has paid the United States $176,686.00 to settle allegations that he submitted false claims to the United States for medically unnecessary autonomic nervous function tests and vestibular function tests.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur and Maureen Dixon, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services.
In his practice, Dr. Thanwy administered peripheral autonomic nervous function tests and vestibular function tests. Autonomic nervous function disorders are relatively uncommon disorders and tests conducted to determine such disorders should be done only after a clinician suspects an autonomic nervous function disorder. Furthermore, such tests should be conducted only one time per beneficiary, with the necessary equipment, and only by clinicians with specialized training to administer and interpret these tests. Vestibular function tests are tests of function intended to determine whether there is something wrong with the vestibular portion of the inner ear.
According to the settlement agreement, from October 1, 2015 to May 30, 2019, Dr. Thanwy submitted claims to Medicare for medically unnecessary autonomic nervous function tests. The United States alleged that autonomic nervous function tests were not medically necessary because Dr. Thanwy lacked the necessary equipment or specific training to conduct the tests, the patients did not have an autonomic nervous function disorder before the test was conducted, and Dr. Thanwy only used the tests to monitor patient symptoms, not make any clinical decisions about future patient care. Further, the United States alleged that the vestibular function tests were not medically necessary, because an evaluation of a patient’s symptoms was not done prior to ordering the tests, nor were the test results used for clinical decision making.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Dr. Thanwy, nor a concession by the United States that its claims are not well founded.
The civil settlement reached by the U.S. Attorney’s Office for the District of Maryland arose from an initiative inside the U.S. Attorney’s Office, which involves the use dedicated resources and personnel to review Medicare billing data. The review of that data has enabled the United States Attorney’s Office to identify areas of concern where it appears that billing irregularities may have taken place. Partnering with the effected agencies, the United States Attorney’s Office has developed the ability to investigate these billing irregularities to determine whether the matter is appropriate for treatment under the False Claims Act.
United States Attorney Robert K. Hur commended the Office of Inspector General for the Department of Health and Human Services for its work in the investigation. Mr. Hur also thanked Assistant United States Attorneys Thomas Corcoran and Neil White, who handled the case.
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Previously Convicted Sex Offender Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore and Greenbelt, Maryland - U.S. District Judge Ellen L. Hollander sentenced Mark Steven Bartles, age 55, of Hagerstown, Maryland, to 10 years in federal prison, followed by lifetime supervised release, for possession of child pornography. Judge Hollander also sentenced Bartles to 10 months in prison for violating his supervised release for a previous federal conviction for receipt and possession of child pornography, concurrent to his 10 year sentence. In addition, Judge Hollander ordered Bartles to pay $5,000 restitution to one of the children depicted in the images.
In a separate case, U.S. District Judge George J. Hazel ordered Kevin Patrick Wilson, age 58, of Bowie, Maryland, to serve 20 months in federal prison, followed by lifetime supervised release, for failure to register as a sex offender.
Both sentences were imposed on December 2, 2019.
Judges Hollander and Hazel also ordered that, upon their release from prison, defendants Bartles and Wilson must continue to register as sex offenders in the places where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (SORNA).
The sentences were 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 U.S. Marshal Johnny Hughes; and Washington County Sheriff Douglas W. Mullendore.
According to Bartles’s guilty plea, in 2007 he was convicted federally for receipt and possession of child pornography, and in 2015 Bartles was convicted in Washington County, Maryland for possession of child pornography. As a condition of his state probation, Bartles was prohibited from accessing the internet or possessing internet-capable devices. In September 2018, state probation agents received information from a family member that Bartles possessed an internet capable smart phone in a green case, which he used on a regular basis to access free wireless internet to view and download child pornography. The probation agents then went to the motel room where Bartles resided and asked for his phone. Bartles provided a ZTE phone that was lying on the bed. The agents then asked Bartles for the phone in the green case, which Bartles retrieved from the nightstand. The phone was forensically examined by the FBI and determined to contain over 40 images of child pornography, including images documenting the sexual abuse of prepubescent minors by adult men. FBI special agents also located evidence that the phone had accessed WiFi networks at the motel and a local convenience store.
According to Wilson’s guilty plea, he was convicted in March 2000, and again in August 2008, in Magnolia County West Virginia of two counts of first degree sexual abuse. On October 13, 2004, when Wilson was released from prison after his first conviction, and again on August 17, 2017, after his release from prison on his second conviction, Wilson completed the sex offender registration and verification form with the West Virginia State Police, as required under West Virginia state law. On August 17, 2017, Wilson advised that he was moving out of state to an address in Annapolis, Maryland.
In late 2017 or early 2018, the U.S. Marshals Service (USMS) received information that Wilson was living unregistered in West Virginia. A USMS inspector went to the address of the homeless shelter in Annapolis where Wilson had represented he would be living following his release from prison, but officials there had no record of contact with him and Wilson had never registered as a sex offender in Maryland. On February 5, 2018, Wilson was arrested in West Virginia for failing to register as a sex offender. Wilson subsequently provided law enforcement with addresses in Bowie and in Crofton, Maryland, but investigators found that Wilson had never lived at either address. In February 2019, USMS investigators discovered that Wilson had not registered as a sex offender in any jurisdiction. U.S. Marshals subsequently located and arrested Wilson at an address in Bowie on April 25, 2019. The investigation revealed that Wilson had lived in Maryland since October 16, 2018, but had failed to register as a sex offender.
These cases were 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 Washington County Sheriff’s Office for their work in the Bartles investigation, and the U.S. Marshals Service for its work in the Wilson investigation. Mr. Hur thanked Special Assistant U.S. Attorney Michael Davio, who prosecuted the Bartles case, and Assistant U.S. Attorney Dana J. Brusca, who prosecuted the Wilson case.
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Maryland Announces New Nationwide FBI Tipline to Gather Information About Crimes Committed by the MS-13 GangRead the Press Release
Greenbelt, Maryland – Maryland is the first District to announce the new nationwide FBI tipline, 1-866-STP-MS13 (1-866-787-6713), to gather information about the criminal activities of the MS-13 gang. To help publicize the tipline and encourage people who may have information about the gang to call, a Spanish-language public service announcement was also debuted today.
The tipline 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; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore Office; Chief Edward G. Hargis of the Frederick Police Department; Chief Edward Jackson of the Annapolis Police Department; Chief Timothy J. Altomare of the Anne Arundel County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief Marcus Jones of the Montgomery County Police Department; and Chief Amal Awad of the City of Hyattsville Police Department.
“This new tipline adds to our tool box in the fight against MS-13,” said U.S. Attorney Robert K. Hur. “MS-13 is terrorizing and preying upon entire communities. We want to help end the fear and violence, but we need the community’s help to fight back. Please, if you have information, call 1-866-STP-MS13 (1-866-787-6713). Federal, state, and local law enforcement are working together to find and bring to justice MS-13 members who commit heinous crimes—and your information will help us to do that. Your identity will be protected.”
“MS-13 uses violence to strike fear in our communities and they count on that fear resulting in silence,” said FBI Baltimore Special Agent in Charge Jennifer Boone. “We must not allow fear and silence to be weapons MS-13 is allowed to use. Please call the FBI at 1-866-STP-MS13 (1-866-787-6713). Use your voice to tell them, no more.”
The FBI tipline allows individuals to provide information about MS-13 activities to a central location and the FBI will then disseminate the information to the appropriate law enforcement authorities for investigation. The Spanish-language public service announcement (PSA) features a mother who was extorted by MS-13 and whose child was murdered by the gang. In the PSA the victim encourages others to call the FBI so the FBI can help them. The PSA is available for download at: https://www.youtube.com/watch?v=YtCqeAA_LlY and has captions enabled for both English and Spanish. In addition, the video will be live in the videos section on the FBI’s website.
MS-13 is a national and international 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 Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. To protect the gang and to enhance its reputation, MS-13 members and associates are expected to use any means necessary to force respect from those who show disrespect, including acts of intimidation and violence. MS-13 has mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.”
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MS-13 Member Pleads Guilty to Participating in a Violent Racketeering Conspiracy, Including Two MurdersRead the Press Release
Baltimore, Maryland – MS-13 gang member Carlos Alas Brizuela, a/k/a “Truco” and “Stewie,” age 29, pleaded guilty today to a federal racketeering charge related to his participation in a violent racketeering conspiracy, specifically MS-13, including two murders, two attempted murders, and a kidnapping.
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; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore Office; Chief Edward G. Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith, III; Chief Timothy J. Altomare of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“MS-13 is ravaging communities throughout Maryland with senseless acts of violence,” said U.S. Attorney Robert K. Hur. “This defendant participated in a horrifying series of violent crimes and now faces about 30 years in federal prison. Working with our state and local partners, and using the tools of our Organized Crime Drug Enforcement Task Forces, we will prosecute gang members who prey on our neighbors. We will not rest until we dismantle this organization to make Maryland safer.”
“Taking violent offenders off the street should send a message to MS-13 members and their associates that violence and senseless murder will not be tolerated in Maryland,” said FBI Baltimore Special Agent in Charge Jennifer Boone. “The FBI and our local, state and federal partners will continue to aggressively pursue MS-13 gang members wherever they surface and we are steadfast in making our communities a safe place for our citizens.”
“The violence and fear MS-13 inflicts upon the community is unacceptable,” said John Eisert, special agent in charge for HSI Baltimore. “HSI will continue to work towards safer streets through collaboration with our law enforcement partners to combat and dismantle criminal gangs like MS-13.”
MS-13 is a national and international 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 Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. Brizuela was a member and associate of the Fulton Locotes Salvatrucha clique of MS-13.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.”
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to a promotion to a leadership position. One of the principal rules of MS-13 is that its members must attack and kill rivals often referred to as “chavalas,” whenever possible.
According to Brizuela’s plea agreement, beginning in 2015 Brizuela conspired with other MS-13 members and associates to engage in racketeering activity including murders, conspiracies to commit murder, attempted murders, extortion, robbery, and drug trafficking, in order to further the interests of the gang.
Specifically, on April 7, 2015, MS-13 members and associates murdered Victim 1, whom they believed to be a rival gang member, with Brizuela’s knowledge and permission. MS-13 members identified Victim 1 at a restaurant in Frederick, Maryland, then called Brizuela to inform him that they had a potential victim. Brizuela contacted other gang leaders to get approval to kill Victim 1 and arranged for another gang member to participate in the murder of Victim 1. MS-13 members lured Victim 1 to a wooded area in Frederick, where they disabled Victim 1 by hitting him in the head with a rock, then struck him repeatedly with a machete and a knife until he was dead. During the course of the attack, they contacted Brizuela on the phone to confirm that they should complete the murder of Victim 1 and Brizuela confirmed that they should kill Victim 1. The next day, MS-13 members buried Victim 1 in the woods near the site of the murder, where his body was ultimately recovered.
Brizuela admitted that on May 10, 2015, he and other MS-13 members kidnapped Victim 2, who had stopped making his required extortion payments to the gang. Brizuela and the other MS-13 members forced Victim 2 into a car at gunpoint and took him to a wooded area. Although the plan was to kill Victim 2, Brizuela and other gang members got approval from gang leadership to let Victim 2 live, after he agreed to pay the gang immediately.
In August 2015, MS-13 members and associates sought—and received—the approval of Brizuela to murder Victim 3, whom they believed to be a rival gang member. On August 28, 2015, after previously conducting surveillance of the residence where Victim 3 lived with his girlfriend, Victim 4, the MS-13 members and associates entered the apartment and waited there for the victims to return. After the victims returned to the apartment, three gang members attacked Victim 3 and Victim 4 with machetes and knives. Although both victims survived, the attack on Victim 3 left him with both hands nearly severed, and severe wounds to his face and torso. He still has no use of one hand and limited use of the other. Following the attempted murder, gang members contacted Brizuela and others to report that Victim 3 had been killed.
Finally, Brizuela admitted that on August 31, 2015, he and other MS-13 members and associates murdered Victim 5, whom they believed to be a rival gang member. On that day, Brizuela and other MS-13 gang members were drinking in Wheaton and went to Dunkin Donuts where they saw Victim 5, who was wearing Nike Cortez sneakers. According to MS-13 rules, Nike Cortez sneakers were only to be worn by gang members. Brizuela said that he had previously warned Victim 5 about wearing those sneakers. Victim 5 spit on one of the MS-13 gang members as they walked by, who then punched him in the mouth. Victim 5 threw a beer on Brizuela and ran. Brizuela and another gang member chased Victim 5 and stabbed him to death. Following the homicide, Brizuela and others reported to gang leadership that they had killed a rival gang member.
Brizuela and the government have agreed that, if the Court accepts the plea agreement, Brizuela will be sentenced to between 29 and 36 years in federal prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for February 10, 2020 at 10:00 a.m.
A total of 29 defendants have been charged in this case with participating in a racketeering conspiracy and/or other crimes related to their association with MS-13, including 18 defendants charged in the fifth superseding indictment filed on October 21, 2019. A total of 13 defendants, including Brizuela, have pleaded guilty to crimes related to their participation in MS-13 gang activities.
United States Attorney Robert K. Hur commended the FBI; HSI; the Frederick Police Department; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and recognized the Baltimore County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Kenneth S. Clark, Catherine K. Dick, and Matthew DellaBetta, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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D.C. Felon Sentenced to 33 Years in Federal Prison for Committing Two Armed Robberies in Prince George’s CountyRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Ronnell Francis Lewis, a/k/a Punkin, age 46, of Washington, D.C., to 33 years in federal prison, followed by five years of supervised release on federal charged related to Lewis’s participation in two armed robberies. On July 3, 2019, after a seven-day trial, a federal jury convicted Lewis and co-defendant William David Hill, a/k/a Old Man and Tank, age 62, for conspiring to commit a commercial robbery; for using, carrying, brandishing, and discharging a weapon during and in relation to a crime of violence; for being felons in possession of firearms; and for interstate transportation of stolen vehicles, in connection with two armed robberies committed by the defendants in November 2016. Lewis was also convicted of witness tampering.
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.
“Ronnell Lewis used a gun to threaten employees at businesses he robbed—and shot an employee who resisted being bound and gagged,” said U.S. Attorney Robert K. Hur. “As a result of his choice to commit a crime with a gun, Lewis will now serve a lengthy sentence in federal prison, where there is no parole—ever. Please put down the gun. You’ll save a life, maybe even your own.”
According to the evidence presented at the seven-day trial, Lewis, Hill and a co-conspirator robbed an auto repair business in Clinton, Maryland, on November 22, 2016. Specifically, the evidence proved that the robbers entered the business brandishing firearms and ordered two employees to get on the ground. The defendants took money from the victims’ pockets and then ordered them into the front office. One victim was then bound with zip ties and gagged with duct tape. The second victim fought, was shot by the robbers, and ultimately paralyzed. The robbers then fled in a vehicle they had stolen earlier that day.
As detailed at trial, on November 26, 2016, the defendants robbed a barbershop in Seat Pleasant, Maryland. According to the trial testimony, the two defendants entered the business, ordered everyone to the ground and then robbed them. During the robbery, the defendants threatened the victims with violence. According to the evidence, the robbers put the cash in a dark single strap duffle bag and fled in a stolen minivan. Police saw the minivan at a traffic light and attempted to stop the vehicle but the driver refused to stop, fleeing into Washington, DC. Three individuals exited the vehicle and attempted to run away. The driver and Lewis were captured. The third person, later identified as Hill, escaped but was apprehended later.
Police searched Lewis after his arrest and recovered his cell phone. From the floor of the minivan, Metropolitan Police officers recovered two loaded 9 millimeter handguns, one with an obliterated serial number.
Further, the evidence proved that after the robberies, and while he was detained, Lewis called several people from jail and asked them to visit the victims of the barbershop robbery to persuade them not to cooperate in the investigation, including not testifying before the federal grand jury.
Judge Hazel has scheduled sentencing for Hill on March 11, 2020, at 2:00 p.m. Lewis and Hill have been detained since their arrests on the federal charges.
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 for its work in the investigation and thanked the Prince Georges County Police Department, the Seat Pleasant Police Department, and the Metropolitan Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Dwight J. Draughon, who are prosecuting the case.
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Baltimore Fentanyl Dealer Pleads Guilty to Federal Charge for Distributing Fentanyl in Tablets Made to Resemble OxycodoneRead the Press Release
Baltimore, Maryland – Last week, three defendants facing fentanyl distribution charges appeared in federal court—a Baltimore man pleaded guilty to distributing fentanyl and two defendants had their initial appearances on federal indictments charging them for allegedly distributing fentanyl. One of the defendants is charged federally for distributing fentanyl which resulted in death. These cases are part of the Maryland U.S. Attorney’s Office’s focus on combatting the growing fentanyl crisis. According to statistics for the first-half of 2019, there are projected to be almost 2,000 fentanyl deaths statewide, and in Baltimore alone there are projected to be more than twice as many fatal fentanyl overdoses as homicides.
The guilty plea and indictments were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; Chief Melissa R. Hyatt of the Baltimore County Police Department; Harford County Sheriff Jeffrey R. Gahler; Anne Arundel County Police Chief Tim Altomare; Carroll County Sheriff James DeWees; and Baltimore City State’s Attorney Marilyn Mosby.
“Fentanyl is 50 to 100 times stronger than morphine and just 2 milligrams of fentanyl can kill you. 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. We are determined to reduce the number of opioid overdose deaths in Maryland.”
On November 19, 2019, Earl Joseph Morris, III, age 42, of Baltimore, Maryland, pleaded guilty to the federal charge of possession with intent to distribute 40 grams or more of fentanyl. According to Morris’ plea agreement, on November 29, 2018, an undercover Baltimore County Police detective purchased $400 worth of fentanyl tablets from Morris—31 tablets of fentanyl, which resembled 15 mg Oxycodone pills, weighing 3.32 grams. Law enforcement subsequently obtained search and seizure warrants. On December 6, 2018, search warrants were executed on Morris’ vehicle, his home, and his person, after Morris met an undercover detective who had arranged to purchase additional fentanyl tablets from Morris. Law enforcement seized of 1,859 tablets of suspected fentanyl from Morris’ vehicle, as well as additional pills. Subsequent lab analysis indicated that the 1,859 tablets tested positive for fentanyl or a mix of heroin/fentanyl. The total weight of these tablets was 192.81 grams.
Morris faces a maximum sentence of 40 years in federal prison for possession with intent to distribute 40 grams or more of fentanyl. U.S. District Judge Ellen L. Hollander has scheduled sentencing for February 20, 2020, at 2:00 p.m.
On November 6, 2019, a federal grand jury returned a four-count indictment charging Khalil Shaheed, a/k/a “T,” age 26, of Baltimore, for crimes that allegedly occurred in October and November 2017, specifically, distribution of fentanyl resulting in death, possession with intent to distribute fentanyl, possession of a firearm in relation to drug trafficking crime, and possession of a firearm by a prohibited person. Shaheed is charged in a separate federal indictment for possession with intent to distribute controlled substances in August 2019. Both indictments were unsealed on November 20, 2019, when Shaheed had his initial appearance on the federal charges. U.S. Magistrate Judge Deborah L. Boardman ordered Shaheed to be detained pending trial.
A federal grand jury indicted Jacob Leister, age 28, of Glenville, Pennsylvania, on November 19, 2019, and he was arrested the following day by DEA, the Anne Arundel County Police, and the Carroll County Sheriff’s Office. Leister had his initial appearance on November 22, 2019, on a four-count federal indictment charging Leister for distribution of and possession with intent to distribute fentanyl and alprazolam. Leister remains in custody.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
If convicted, Shaheed faces a mandatory minimum sentence of 20 years and a maximum of life in federal prison for distribution of fentanyl resulting in death; a mandatory minimum of five years in federal prison, consecutive to any other sentence imposed, and a maximum of life in federal prison for possession of a firearm in relation to drug trafficking crime; and a maximum of 10 years in federal prison for possession of a firearm by a prohibited person. Shaheed and Leister each face a maximum of 20 years in federal prison for each count of possession with intent to distribute fentanyl. 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 DEA for their work in all three cases; the Baltimore County Police Department for its investigation in the Morris case; the Harford County Sheriff’s Office, the Carroll County Sheriff’s Office, and the Office of the State’s Attorney for Baltimore City for their work in the Shaheed cases; and the Anne Arundel County Police Department for its investigation in the Leister case. Mr. Hur thanked Assistant U.S. Attorneys Anatoly Smolkin and Kenneth S. Clark, who are prosecuting the Morris and Leister cases, respectively, and Assistant U.S. Attorney Kim Oldham and Special Assistant U.S. Attorney Jeffrey M. Hann, a cross-designated Baltimore City Assistant State’s Attorney, who are prosecuting the Shaheed case.
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Eastern Shore Felon Sentenced to Five Years in Federal Prison for Illegal Possession of Stolen FirearmsRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasnaow today sentenced Ricky Sanabria, Jr., age 27, of Salisbury, Maryland, to five years in federal prison, followed by three years of supervised release, for possession of stolen firearms.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Wicomico County Sheriff Michael A. Lewis; Dorchester County Sheriff James W. Phillips, Jr.; and Salisbury Police Chief Barbara Duncan.
According to his guilty plea, on June 10, 2017, Sanabria burglarized a firearms store in Federalsburg, Maryland. Surveillance video shows that Sanabria entered the store by cutting a hole into an exterior wall. He wore a hoodie and gloves, with a mask that partially covered his face. Sanabria stole 27 weapons from the Federalsburg firearms store, and left the scene. Sanabria stole at least 30 weapons total.
Sanabria was not apprehended until July 16, 2017, when Nebraska state troopers arrested Sanabria for speeding on a highway in Lincoln County, Nebraska. Sanabria initially evaded the troopers and abandoned his car, but the troopers found Sanabria in a park nearby and arrested him. They found one of the firearms stolen from the store in Federalsburg—a .40-caliber Glock handgun—directly in front of the driver seat under the floorboard of Sanabria’s car. Sanabria subsequently waived his rights, and admitted that he was driving the car. On recorded jail calls, Sanabria acknowledged that the firearm was his, and that he put the firearm in the car.
Two days later, Maryland investigators executed search warrants at two houses associated with Sanabria. At his home in Salisbury, Maryland, investigators found a 20-gauge shotgun, which was stolen during a separate burglary in August 2016. At his parents’ home in Hebron, Maryland, investigators found an antique weapon—a Colt black powder gun—that Sanabria stole from the Federalsburg gun store during the June 2017 burglary. Sanabria possessed both the shotgun and the antique weapon.
In addition, Sanabria’s DNA sample matched the DNA profile of blood left at the scene of another burglary of a firearms dealer in November 2016. During that burglary, Sanabria stole two firearms—a 9 mm Glock pistol and a .22-caliber Ruger pistol. Although investigators have only found one of those firearms, Sanabria possessed both firearms on the day they were stolen.
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, the Wicomico and Dorchester County Sheriffs’ Offices, and the Salisbury Police Department for their work in the investigation, and thanked the Nebraska State Police for its assistance. Mr. Hur thanked Assistant U.S. Attorney Brandon Moore, who prosecuted the case.
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Pennsylvania Man Sentenced to 26 Years in Federal Prison for Coercion and Enticement of a Minor to Engage in Illegal Sexual ActivityRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell, III today sentenced Howard Keith Goodson, age 50, of Hatfield, Pennsylvania, to 26 years in federal prison, followed by lifetime supervised release, for coercion and enticement of a minor to engage in illegal sexual activity. Judge Russell also ordered that, upon his release from prison, Goodson must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Caroline County Sheriff Randy Bounds; Greensboro Police Chief Eric Lee; and Caroline County State’s Attorney Joe Riley.
According to his guilty plea, in late 2016 or early 2017 Goodson met the victim, who was a 15-year-old girl in ninth grade, on a social media website where the victim hosted a blog. Goodson and the victim began communicating through the social media website, but eventually corresponded through phone calls, text messages, and a smartphone-based messaging application. Goodson knew the victim was a minor. The nature of Goodson’s communication with Jane Doe was consistent with a Bondage, Discipline, Sadism, Masochism (BDSM) relationship in which the dominant partner employs psychological control over the submissive partner.
Between October 2017 and January 2018, Goodson sent a series of sexually explicit messages to the victim, including messages stating his dominance over the victim. Between January and April 2018, Goodson drove from Pennsylvania to Maryland to meet the victim on at least four occasions—at least three of which were to engage in illicit sexual conduct with the victim. Goodson continued to send sexually explicit messages to the victim, including messages discussing punishing the victim and stating that the victim was Goodson’s “property.” During a February 2018 visit to the victim’s residence in Maryland, Goodson produced four images documenting his sexual abuse of the victim.
The victim’s mother saw Goodson leaving the house on April 16, 2018, contacted 911 and followed Goodson while contacting the victim’s father, who blocked the road ahead of where Goodson was driving, forcing Goodson to pull over. Goodson was arrested on federal charges on May 4, 2018, and has been in custody since that time.
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 HSI, the Caroline County Sheriff’s Office, Greensboro Police Department, and the Caroline County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Judson T. Mihok, who prosecuted the federal case.
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Former President of Transportation Company Found Guilty of Violating the Foreign Corrupt Practices Act and Other CrimesRead the Press Release
The former president of Transportation Logistics Inc. (TLI), a Maryland-based transportation company that provides services for the transportation of nuclear materials to customers in the United States and abroad, was found guilty today for his role in a scheme to bribe an official at a subsidiary of Russia’s State Atomic Energy Corporation and on related fraud and conspiracy charges.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur of the District of Maryland and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office and Inspector General Teri L. Donaldson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG) made the announcement.
After a three-week trial, Mark Lambert, 56, of Mount Airy, Maryland, was found guilty of four counts of violating the Foreign Corrupt Practices Act (FCPA), two counts of wire fraud, and one count of conspiracy to violate the FCPA and commit wire fraud. Sentencing has been scheduled for March 9, 2020, before U.S. District Judge Theodore D. Chuang of the District of Maryland, who presided over the trial.
According to the evidence presented at trial, Lambert participated in a scheme to bribe Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide, in order to secure contracts with TENEX. The trial evidence demonstrated that, over the course of years, Lambert conspired with others at TLI to make the corrupt and fraudulent bribery and kickback payments to Mikerin through offshore bank accounts associated with shell companies, at Mikerin’s direction. In order to conceal the bribe payments, Lambert and his co-conspirators caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided, and then Lambert and others caused TLI to wire the corrupt payments for those purported services to shell companies in Latvia, Cyprus and Switzerland.
The trial evidence further showed that Lambert and other members of the conspiracy used code words like “lucky figures,” “LF,” “lucky numbers” and “cake” to describe the payments in emails to the Russian official at an alias, personal email account under the name “Marvin Jodel.” The evidence at trial also demonstrated that Lambert and his co-conspirators caused TLI to overbill TENEX by building the cost of the bribe payments into their invoices, and TENEX thus overpaid for TLI’s services in order to fund the bribes paid to Mikerin.
This case is being investigated by the FBI’s Washington Field Office and DOE-OIG. Assistant Chief Vanessa A. Sisti and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David I. Salem of the District of Maryland are prosecuting the case.
The Department appreciates the significant cooperation provided by its law enforcement colleagues in Switzerland’s Office of the Attorney General as well as authorities in Latvia and Cyprus.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Former President of Maryland-Based Transportation Company Found Guilty of Federal Charges, Including Violating the Foreign Corrupt Practices ActRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Mark Lambert, 56, of Mount Airy, Maryland, of four counts of violating the Foreign Corrupt Practices Act (FCPA), two counts of wire fraud, and one count of conspiracy to violate the FCPA and commit wire fraud, for his role in a scheme to bribe an official at a subsidiary of Russia’s State Atomic Energy. Lambert is the former president of Transport Logistics International, Inc. (TLI), a Maryland-based transportation company that provides services for the transportation of nuclear materials to customers in the United States and abroad, including to the Russian Federation.
The guilty verdict was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Inspector General Teri L. Donaldson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG); and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington, D.C. Field Office.
According to the evidence presented at his three-week trial, Lambert engaged in a scheme to bribe Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide, in order to secure contracts with TENEX.
The trial evidence demonstrated that, over the course of years, Lambert conspired with others at TLI to make the corrupt and fraudulent bribery and kickback payments to Mikerin through offshore bank accounts associated with shell companies, at Mikerin’s direction. In order to conceal the bribe payments, Lambert and his co-conspirators caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided, and then Lambert and others caused TLI to wire the corrupt payments for those purported services to shell companies in Latvia, Cyprus and Switzerland.
Lambert faces a maximum of five years in federal prison for the conspiracy to violate the FCPA and commit wire fraud. He also faces a maximum of 20 years in federal prison for each of two counts of wire fraud; a maximum of five years in federal prison for each of four counts of violating the FCPA. The jury acquitted Lambert of three counts of violating the FCPA and of 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. U.S. District Judge Theodore D. Chuang has scheduled sentencing for Lambert on March 9, 2020 at 2 p.m.
Vadim Mikerin, 60, a Russian official formerly residing in Chevy Chase, Maryland, previously pleaded guilty to conspiracy to commit money laundering involving violations of the FCPA and was sentenced to four years in federal prison.
United States Attorney Robert K. Hur and Assistant Attorney General Brian Benczkowski commended the DOE-OIG and the FBI for their work in the investigation, and thanked the Criminal Division’s Office of International Affairs and law enforcement in Switzerland, Latvia and Cyprus for providing valuable assistance with the investigation and prosecution of the case. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorney David I. Salem and Assistant Chief Vanessa A. Sisti and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section, who are prosecuting the case.
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Former Baltimore Mayor Catherine Pugh Pleads Guilty to Federal Conspiracy and Tax ChargesRead the Press Release
Baltimore, Maryland – Catherine Elizabeth Pugh, age 69, of Baltimore, Maryland, pleaded guilty today to the federal charges of conspiracy to commit wire fraud, conspiracy to defraud the United States, and two counts of tax evasion. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for February 27, 2020, at 10:00 a.m.
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 Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Catherine Pugh betrayed the public trust for her personal gain,” said United States Attorney Robert K. Hur. “Baltimore City faces many pressing issues, and we need dedication and integrity from our leaders—not corruption—in order to solve them. Law enforcement will continue to be vigilant for evidence of fraud and corruption, to ensure that our citizens receive the honesty and professionalism they deserve from government officials.”
“The people of Maryland expect elected officials to make decisions based on the public's best interests, not to abuse their office for personal gain,” said Special Agent in Charge Jennifer Boone of the FBI's Baltimore Division. “Catherine Pugh betrayed the public's trust. The FBI will continue to diligently work to detect fraud and corruption and hold those who violate this trust accountable.”
“For over 100 years, IRS Criminal Investigation has been committed to enforcing our nation’s tax laws. This case should serve as an example to the public that everyone will be held to the same standard when it comes to paying their fair share of taxes.” Said Kelly Jackson, IRS Special Agent in Charge, Washington D.C. Field Office. “IRS Criminal Investigation will continue to work diligently with our law enforcement partners to identify and bring to justice those who endeavor to evade taxes, especially those elected to serve the public.”
According to her plea agreement, from approximately 2007 through 2016 Pugh served in the Maryland State Senate, where she served on various legislative committees, including the Senate Health Committee. In 2011, Pugh ran an unsuccessful campaign to be mayor of Baltimore. In September 2015, Pugh again ran for mayor of Baltimore, and won, becoming Mayor on December 6, 2016. Pugh owned Healthy Holly, LLC, a company formed in Maryland on January 14, 2011, and used to publish and sell children’s books she had written. Pugh also owned Catherine E. Pugh and Company, Inc., a marketing and public relations consulting company organized in Maryland in 1997. The principal address for both companies was Pugh’s residence in Baltimore. Pugh was also the sole signatory on the Healthy Holly and Pugh Company bank accounts. Pugh did not maintain a personal bank account, using her business bank accounts for personal and business finances.
Between June 2011 and August 2017, four Healthy Holly books were published, with each book listing “Catherine Pugh” as author. The vast majority of books published by Healthy Holly were marketed and sold directly to non-profit organizations and foundations, many of whom did business or attempted to do business with the Maryland and Baltimore City governments.
From approximately 2011 until December 2016, Gary Brown, Jr. worked as a legislative aide to Pugh. Brown actively campaigned for Pugh’s reelection to the State Senate in 2014 and served as her campaign aide during her 2016 mayoral election campaign. Following Pugh’s election and inauguration as mayor of Baltimore City in December 2016, Brown was hired as the Deputy Director of Special Events in the mayor’s office. In December 2016, Brown was nominated by the Maryland Democratic Central Committee to fill the vacancy in the Maryland House of Delegates created by Pugh’s mayoral victory. However, the Governor withdrew Brown’s nomination after he was indicted for election law violations in January 2017.
Brown was the sole owner and operator of Stricker Abstracting, LLC, and GB Abstracting, LLC, both Maryland companies that purported to be title-abstracting businesses, and GBJ Consulting, LLC, a Maryland consulting business. Brown ran all three companies from his residences in Baltimore. Brown also freelanced as a tax return preparer. Between March 2011 until March 2019, Brown helped Pugh promote and sell the Healthy Holly books. Brown oversaw the transportation and storage of the books, drafted invoices, and corresponded with purchasers. Much of Brown’s work on Healthy Holly occurred during work hours while serving as Pugh’s legislative aide and mayoral staff member. Brown was not an employee of Healthy Holly and received no salary or compensation until approximately mid-2016 when he started to get sales commissions. None of his companies received compensation for services purportedly provided to Healthy Holly.
Wire Fraud
Pugh admitted that from November 2011 until March 2019, she conspired with Gary Brown to defraud purchasers of Healthy Holly books in order to enrich themselves, promote Pugh’s political career, and fund her campaign for mayor. Pugh and Brown admitted that they employed several methods to defraud, including: not delivering books after accepting payments for the books; accepting payments for books to be delivered to a third party on behalf of a purchaser, then converting some or all of the purchased books to their own use without the purchaser’s or third party’s knowledge; and by double-selling books without either purchaser’s knowledge or consent. Pugh stored quantities of fraudulently obtained Healthy Holly books at various locations, including Pugh’s residence, her state legislative offices, her mayoral office, the War Memorial building in Baltimore City, and a public storage locker used by Pugh’s mayoral campaign.
Specifically, Pugh admitted that she sold approximately 20,000 each of Healthy Holly books one, two, and three to the University of Maryland Medical System (UMMS) for $100,000 each. UMMS agreed to the purchase on the condition that it be on behalf of, and for distribution to, school children in the Baltimore City Public School system (BCPS), in part, to further the mission of UMMS’s community outreach program. As part of the agreement Pugh was to deliver the donated books to BCPS.
As detailed in her plea agreement, Pugh did not deliver the full 20,000 Healthy Holly books one, two, and three that UMMS purchased to BCPS, instead keeping some of the books for herself. In addition, Pugh sold to unwitting purchasers copies of Healthy Holly books one, two, and three that had already been sold to UMMS and donated to BCPS. Pugh used Associated Black Charities, a Baltimore-based public charity, to facilitate the resale and distribution of the books to new purchasers. Neither the charity nor the new purchasers knew that Pugh was double-selling the books. Pugh also accepted payment for books that were never delivered to the purchaser.
Conspiracy to Defraud the United States/Tax Evasion
Pugh further admitted that she used the proceeds of the sale of fraudulently obtained Healthy Holly books for her own purposes, including: to fund straw donations to Pugh’s mayoral election campaign; and to fund the purchase and renovation of a house in Baltimore City.
Specifically, Pugh issued Healthy Holly checks payable to Brown, for the purpose of funding straw donations to the Committee to Elect Catherine Pugh. Brown cashed the checks and used the untraceable cash to fund money orders, debit cards, and personal checks in the names of straw donors totaling approximately $35,800. The straw donations purchased with the cash were then deposited into the bank account of the Committee to Elect Catherine Pugh. Pugh wrote additional Healthy Holly checks to Brown totaling $26,300, which he cashed and gave the cash to Pugh. In total, Brown and Pugh cashed out approximately $62,100 of Healthy Holly checks during 2016, all of which went to straw donors or Pugh. To conceal the scheme, Brown and Pugh created the pretense of a legitimate business relationship between Brown and Healthy Holly. In furtherance of the pretense, Pugh and Brown signed an independent contractor agreement between Healthy Holly and GBJ Consulting, and Brown created a business ledger that misrepresented the Healthy Holly checks as payments for promotion services rendered by Brown’s company on behalf of Healthy Holly. At Pugh’s urging, Brown also created bogus GB Consulting invoices and backdated them.
On January 11, 2017, Brown was charged with, and ultimately convicted of, violating Maryland’s election laws for funneling $18,000 of the straw donations to Pugh’s campaign. The Committee to Elect Catherine Pugh issued five checks in the names of three of the straw donors, with a notation in the memo line on each check stating “returned contribution.” In fact, Pugh acknowledges that none of the straw donors received any of the returned money, and instead, at Pugh’s direction, Brown used the money to pay for his legal defense in the state election-law prosecution, a case that had legal implications for Pugh.
Pugh also admitted that she conspired to evade taxes on the income received from the sales of Healthy Holly books. To accomplish this, Pugh concealed from the IRS the fact that she created false business expenses to offset the income she received from the sale of books by issuing Healthy Holly checks to Brown for services and/or products purportedly supplied by his company. Pugh filed false income tax returns for 2015 and 2016, in which she underreported her income. For example, for tax year 2016 Pugh claimed her taxable income was $31,020 and the tax due was $4,168, when in fact, Pugh’s taxable income was $322,365, with an income tax due of approximately $102,444.
Pugh faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy; five years in federal prison for conspiracy to defraud the United States; and five years in federal prison for each of the two counts of tax evasion. 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. Pugh remains released on conditions under the supervision of U.S. Pretrial Services.
Former Baltimore City employees Gary Brown, Jr., age 38, of Baltimore, previously pleaded guilty to conspiracy to commit wire fraud, to two counts of conspiracy to defraud the United States, and to filing a false tax return. No sentencing date has been set.
United States Attorney Robert K. Hur commended the FBI and the IRS Criminal Investigation for their work in the investigation and thanked the U.S. Department of Labor - Office of Inspector General, Office of Investigations - Labor Racketeering and Fraud, the Maryland State Prosecutor’s Office, and the Baltimore City Office of Inspector General for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the case.
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Patuxent River Man Pleads Guilty to Federal Charges for Abusive Sexual Contact with Two ChildrenRead the Press Release
Greenbelt, Maryland - Justin Paul Keener, age 31, of Patuxent River, Maryland, has pleaded guilty to a superseding information charging him with two counts of abusive sexual contact with a child. The guilty plea was entered on November 19, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Salazar of the Naval Criminal Investigative Service, Washington Field Office; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, in November 2017, while residing at Naval Air Station Patuxent River, Keener sexually abused a victim who was under the age of 12. In and before November 2017, Keener sexually abused another victim, also under the age of 12, on multiple occasions.
As a result of his conviction, Keener 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).
Keener and the government have agreed that, if the Court accepts the plea agreement, Keener will be sentenced to between 19 and 25 years in federal prison. U.S. District Judge George J. Hazel has scheduled sentencing for January 17, 2020 at 2:00 p.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 NCIS and the FBI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Joseph R. Baldwin, who is prosecuting the federal case.
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Former Baltimore Mayor Catherine Pugh Facing 11-Count Federal Indictment for Wire Fraud and Tax-Related ChargesRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Catherine Elizabeth Pugh, age 69, of Baltimore, Maryland, on the federal charges of conspiracy to commit wire fraud, seven counts of wire fraud, conspiracy to defraud the United States, and two counts of tax evasion. The indictment was returned on November 14, 2019, and was unsealed today. Catherine Pugh is scheduled for an initial appearance and arraignment in U.S. District Court in Baltimore before U.S. District Judge Deborah K. Chasanow on November 21, 2019 at 1:00 p.m. Pugh is expected to self-surrender to the U.S. Marshals prior to the hearing on November 21st.
The guilty pleas of former Baltimore City employees Gary Brown, Jr., age 38, of Baltimore, and Roslyn Wedington, age 50, of Rosedale, Maryland, were also unsealed today. On November 13, 2019, Brown pleaded guilty to conspiracy to commit wire fraud, to two counts of conspiracy to defraud the United States, and to filing a false tax return. That same day, Wedington pleaded guilty to conspiracy to defraud the United States and to five counts of filing a false tax return.
The indictment and guilty pleas were 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 Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Our elected officials must place the interests of the citizens above their own,” said United States Attorney Robert K. Hur. “Corrupt public employees rip off the taxpayers and undermine everyone’s faith in government. The U.S. Attorney’s Office and our law enforcement partners will zealously pursue those who abuse the taxpayers’ trust and bring them to justice.”
“The people of Maryland expect elected officials to make decisions based on the public's best interests, not to abuse their office for personal gain,” said Special Agent in Charge Jennifer Boone of the FBI's Baltimore Division. “The indictment alleges that Catherine Pugh betrayed the public's trust. The FBI will continue to diligently work to detect fraud and corruption and hold those who violate this trust accountable.”
“Public officials should be a role model for the citizens they serve - adhering to the highest of standards,” said IRS-CI SAC Kelly Jackson. “These individuals chose to evade payment of their fair share of taxes instead, actions for which they must be held accountable in order to preserve public trust and confidence.”
According to Pugh’s 11-count indictment, from approximately 2007 through 2016 Pugh served in the Maryland State Senate, where she served on various legislative committees, including the Senate Health Committee. In 2011, Pugh ran an unsuccessful campaign to be mayor of Baltimore. In September 2015, Pugh again ran for mayor of Baltimore, and won, becoming Mayor on December 6, 2016. Pugh owned Healthy Holly, LLC, a company formed in Maryland on January 14, 2011, and used to publish and sell children’s books she had written. Pugh also owned Catherine E. Pugh and Company, Inc., a marketing and public relations consulting company organized in Maryland in 1997. The principal address for both companies was Pugh’s residence in Baltimore. Pugh was also the sole signatory on the Healthy Holly and Pugh Company bank accounts. Pugh did not maintain a personal bank account, using her business bank accounts for personal and business finances.
As stated in the indictment, between June 2011 and August 2017, four Healthy Holly books were published, with each book listing “Catherine Pugh” as author. The vast majority of books published by Healthy Holly were marketed and sold directly to non-profit organizations and foundations, many of whom did business or attempted to do business with the Maryland and Baltimore City governments.
Wire Fraud Allegations
The indictment alleges that from November 2011 until March 2019, Pugh conspired with Gary Brown to defraud purchasers of Healthy Holly books in order to enrich themselves, promote Pugh’s political career, and fund her campaign for mayor. The indictment alleges that the conspirators employed several methods to defraud, including: not delivering books after accepting payments for the books; accepting payments for books to be delivered to a third party on behalf of a purchaser, then converting some or all of the purchased books to their own use without the purchaser’s or third party’s knowledge; and by double-selling books without either purchaser’s knowledge or consent. Pugh allegedly stored quantities of fraudulently obtained Healthy Holly books at various locations, including Pugh’s residence, her state legislative offices, her mayoral office, and a public storage locker used by Pugh’s mayoral campaign. The indictment alleges that Pugh used the proceeds of the sale of fraudulently obtained Healthy Holly books for her own purposes, including: to fund straw donations to Pugh’s mayoral election campaign; and to fund the purchase and renovation of a house in Baltimore City.
Conspiracy to Defraud the United States/Tax Evasion
Further, the indictment alleges that Pugh issued Healthy Holly checks payable to Brown, for the purpose of funding straw donations to the Committee to Elect Catherine Pugh. The indictment alleges that Brown cashed the checks and used the untraceable cash to fund money orders, debit cards, and personal checks in the names of straw donors totaling approximately $35,800. The straw donations purchased with the cash were allegedly then deposited into the bank account of the Committee to Elect Catherine Pugh. The indictment alleges that Pugh wrote additional Healthy Holly checks to Brown totaling $26,300, which he cashed and gave the cash to Pugh. On January 11, 2017, Brown was charged with, and ultimately convicted of, violating Maryland’s election laws for funneling $18,000 of the straw donations to Pugh’s campaign. The Committee to Elect Catherine Pugh issued five checks in the names of three of the straw donors, with a notation in the memo line on each check stating “returned contribution.” The indictment alleges that none of the straw donors received any of the returned money, and instead, at Pugh’s direction, Brown used the money to pay for his legal defense.
In addition, the indictment alleges that Pugh conspired to evade taxes on the income received from the sales of Healthy Holly books. The indictment alleges that to accomplish this, Pugh concealed from the IRS the fact that she created false business expenses to offset the income she received from the sale of books by issuing Healthy Holly checks to Brown for services and/or products purportedly supplied by his company. Pugh allegedly filed false income tax returns for 2016 and 2015, in which she underreported her income. For example, the indictment alleges that for tax year 2016 Pugh claimed her taxable income was $31,020 and the tax due was $4,168, when in fact, Pugh’s taxable income was $322,365, with an income tax due of approximately $102,444.
If convicted, Pugh faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and for each of the seven counts of wire fraud; five years in federal prison for conspiracy to defraud the United States; and five years in federal prison for each of the two counts of tax evasion. 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.
Brown Wire Fraud Conspiracy
According to Gary Brown’s plea agreement, from November 2011 until March 2019, he conspired with Catherine Pugh to fraudulently sell and distribute tens of thousands of Healthy Holly books. Brown admitted that over that period they executed the scheme in three ways: by selling the books, keeping the money and not delivering the books; provided books to purchasers, but later converted them to their own use at campaign events and government functions; and resold books that had previously been purchased and donated to the Baltimore City Public Schools.
Brown Conspiracy with Pugh to Defraud the United States
Further, as detailed in his plea agreement, Brown cashed checks Pugh wrote to him from the Healthy Holly account, then used the cash to fund money orders, debit cards, and personal checks in the names of straw donors, which were then submitted to the Committee to Elect Catherine Pugh. Brown also admitted that he cashed some of the Healthy Holly checks and gave the cash to Pugh. To conceal the straw-donation scheme and avoid paying taxes that might result from the scheme, Pugh and Brown provided false information to the IRS regarding the purpose of the Healthy Holly checks.
Brown and Wedington Conspiracy to Defraud the United States/Filing False Tax Returns
Brown and Wedington both admitted that they conspired to avoid tax withholdings from Wedington’s payroll checks while Wedington was the Executive Director of the Maryland Center for Adult Training (MCAT) and Brown was the Chairman of the Board of Directors. Specifically, in 2013, Wedington’s salary was garnished due to outstanding student loan debt and medical bills. In order to avoid further garnishments, Wedington asked Brown to take her “off payroll,” which meant that MCAT would no longer submit her name to the payroll service provider for the purpose of calculating taxes to be withheld from her salary. Brown agreed to the arrangement and had MCAT make electronic deposits into his personal bank account in an amount that exceeded the annual salary owed to Wedington, creating the pretense that he was doing work for MCAT as an independent contractor. Brown then wrote checks to Wedington and/or gave her cash equal to or greater than her salary, which was more than $80,000 per year. No taxes were withheld from the funds Brown paid to Wedington, nor did her salary go through Wedington’s bank account, where it could be garnished. In addition, Brown prepared fraudulent tax returns for Wedington for tax years 2013 through 2017, which did not report Wedington’s MCAT income and made a variety of false entries, resulting in refunds to which Wedington was not entitled and avoiding over $121,000 in total taxes due and owing. Brown also filed a false individual income tax return for tax year 2016 for himself, which falsely listed the $64,325 of Healthy Holly payments as business income. In addition, from 2016 through 2018, Brown worked part-time as a freelance tax preparer and charged a fee to prepare dozens of tax returns that he filed on behalf of his family, friends, and associates. Brown included false information in all of those tax returns in order to obtain larger refunds for his customers. The fraudulently obtained refunds totaled more than $100,000.
Brown faces a maximum of 20 years in federal prison for the wire fraud conspiracy. Brown and Wedington each face a maximum sentence of five years in federal prison for each count of conspiracy to defraud the United States, and three years in prison for each count of filing a false tax return. Judge Chasanow has not yet scheduled sentencing for Brown or Wedington.
United States Attorney Robert K. Hur commended the FBI and the IRS Criminal Investigation for their work in the investigation and thanked the U.S. Department of Labor - Office of Inspector General, Office of Investigations - Labor Racketeering and Fraud, the Maryland State Prosecutor’s Office, and the Baltimore City Office of Inspector General for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the case.
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Laurel Man Sentenced to More Than 22 Years in Federal Prison for Committing Five Armed Robberies of Pharmacies in Howard, Anne Arundel, and Prince George’s CountiesRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Jawanza Kevin Carter, age 22, of Laurel, Maryland, to 272 months in federal prison, followed by five years of supervised release, for robbery involving controlled substances, and for carrying and brandishing of a firearm during and in relation to a crime of violence, in connection with the armed robbery or attempted armed robbery of five pharmacies and the theft of tens of thousands of dollars’ worth of opioids. The sentence was imposed late on November 15, 2019.
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 Henry P. Stawinski III of the Prince George’s County Police Department; Chief Edward Jackson of the Annapolis Police Department; Anne Arundel County Police Chief Tim Altomare; Chief Marcus Jones of the Montgomery County Police Department; Chief Lisa D. Myers of the Howard County Police Department; and Anne Arundel County State’s Attorney Anne Colt Leitess.
“Criminals who are not deterred from carrying guns by the threat of prison time can be deterred by the reality of years spent in a federal prison far from home,” said U.S. Attorney Robert K. Hur. “Police and prosecutors are working to remove armed criminals from our communities. Jawanza Carter, who is 22 years old, used a gun to rob pharmacies. Carter will now serve the next 22 years in federal prison, where there is no parole—ever. Please, put down the guns. You may save a life, including your own.”
According to Carter’s plea agreement, between May 5 and November 29, 2017, Carter and his co-conspirator Arthur Prince participated in five armed robberies of pharmacies. In each robbery, Carter pointed a gun at the clerk, and Carter and Prince demanded opioid narcotics such as Oxycodone, OxyContin, Percocet, and Codeine. In most of the robberies, Carter and Prince also stole money from the cash register and/or robbed the clerk.
Specifically, Carter admitted that he robbed: the Howard Pharmacy in Columbia, Maryland on May 5, 2017; the Lorven Pharmacy in Laurel on June 19, 2017; the Pasadena Pharmacy in Pasadena, Maryland on August 25, 2017; and the Annapolis Professional Pharmacy in Annapolis, Maryland on November 29, 2017. Carter and Prince also attempted to rob the Pace Wellness Pharmacy in Pasadena on August 25, 2017, but were not able to steal narcotics when the clerk didn’t know where the drugs were located. Instead, Carter and Prince stole $180 from the cash register and robbed the clerk of her purse, which contained $50 in cash and credit cards, among other things.
In each robbery, cell-site records showed that Carter’s phone was in the immediate area of the pharmacy at the time of the robbery, and his DNA was found on a reusable shopping bag left by the robbers at the Howard Pharmacy and on a mask Carter wore during the Annapolis Professional Pharmacy robbery that law enforcement later recovered. In addition, law enforcement recovered Carter’s fingerprints on one of the getaway vehicles used by the robbers, and text messages between Carter and Prince concerning one of the robberies. Photos from Carter’s Snapchat account also appear to reflect large purchases in the days and weeks after some of the robberies, including luxury items from Gucci, a gold watch, and designer tennis shoes.
Prince was arrested after the robbery on November 29, 2017, in Odenton, Maryland, not far from where law enforcement located the stolen narcotics. Carter was arrested at the home of his girlfriend in Laurel. Searches executed at locations associated with Carter recovered three boxes of .40-caliber ammunition, a gun cleaning kit and related items, and an empty handgun carrying case with a clip in it.
After his arrest and while he was detained, Carter attempted to obstruct justice. In recorded jail calls, Carter instructed his girlfriend to get rid of a bag used in connection with one of the robberies, which she did. On December 4, 2017, Carter coached his girlfriend on what to say to law enforcement about two vehicles used in the robberies that were titled and registered to her. Carter told his girlfriend to tell law enforcement that one of the cars is a “family and friends car,” and that she drove the other vehicle.
Co-conspirator Arthur Raymond Prince, age 20, of Laurel Maryland, was previously sentenced to more than 15 years in federal prison for aiding and abetting robbery involving controlled substances, and aiding and abetting the brandishing of a firearm during and in relation to a crime of violence, in connection with the armed robberies of five pharmacies.
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, the Prince George’s County Police Department, the Annapolis Police Department, the Anne Arundel County Police Department, the Montgomery County Police Department, the Howard 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 Paul A. Riley and Brandon K. Moore, who prosecuted the case.
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Government Contractor Eagle Alliance Pays the United States $110,000 to Resolve Allegations of Improper Billing and Overbilling the Federal Government for Computer HardwareRead the Press Release
Baltimore, Maryland – Eagle Alliance, a Northrop Grumman partnership, has paid the United States $110,000 to resolve False Claims Act allegations that it improperly billed the government for computer hardware.
The settlement was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office (DCIS); and Inspector General Robert P. Storch of the National Security Agency (NSA).
“We rely on government contractors to bill the government fairly,” said U.S. Attorney Robert K. Hur. “When the government is overbilled or billed improperly under its contracts, taxpayers suffer. We will pursue government contractors to recover the fraudulently obtained funds.”
According to the settlement agreement, Eagle Alliance contracted with a government agency to provide new computer hardware. However, during several periods of time between 2012 and 2013, Eagle Alliance billed the government twice for the same equipment. Moreover, the government contends that Eagle Alliance also improperly billed certain used computer equipment to the government as if it were new.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Eagle Alliance or Northrop Grumman, nor a concession by the United States that its claims are not well founded.
Jeffrey Brenner, a former Eagle Alliance employee, originally filed this lawsuit under the qui tam, or whistleblower, provisions of the False Claims Act. These provisions permit private individuals with knowledge of fraud to sue on behalf of the government for false claims and to share in any recovery, even where the government intervenes to take over the action, as it did here. Brenner will receive $18,700 of the settlement.
The settlement reminds contractors of their obligations to carefully account for their billings under government contracts, as improper billings and overages will subject them to liability under the False Claims Act.
United States Attorney Robert K. Hur commended the DCIS and the NSA Office of the Inspector General for their work in the investigation. Mr. Hur also thanked Assistant United States Attorney Molissa H. Farber, who handled the case.
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Law Enforcement Leaders Announce Project Guardian-DMVRead the Press Release
Baltimore, Maryland – A new illegal firearms initiative announced today, Project Guardian-DMV, is designed to reduce violent crime and further enforce federal firearms laws across the District of Columbia, Maryland, and Virginia (DMV). The new initiative builds on the Justice Department’s national effort, Project Guardian, announced by Attorney General William P. Barr on Wednesday.
The initiative was announced by United States Attorney for the District of Maryland Robert K. Hur; United States Attorney for the Eastern District of Virginia G. Zachary Terwilliger; United States Attorney for the District of Columbia Jessie K. Liu; United States Attorney for the Western District of Virginia Thomas Cullen; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Ashan M. Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; Chief Peter Newsham of the Metropolitan Police Department; and Colonel Gary T. Settle, Superintendent of the Virginia State Police.
“Gun crime remains a pervasive problem in too many communities across America,” said Attorney General Barr. “The Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian. Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
Project Guardian-DMV will localize the effort to the DMV region, and expands upon the current partnership between the U.S. Attorney’s Offices in the District of Columbia and the Eastern District of Virginia, the ATF, and Metro Police Department, and now also includes the U.S. Attorney’s Offices in Maryland and the Western District of Virginia, and the Virginia State Police.
“We are committed to working with our federal, state, and local law enforcement partners to get guns off of our streets, in order to reduce violent crime in our neighborhoods,” said Robert K. Hur, U.S. Attorney for the District of Maryland. “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.”
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Working together with our federal and local partners is key to reducing gun violence and violent crime in the region,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “Project Guardian will allow us to identify specific incidents and trends, thereby enabling us to move quickly in investigating and prosecuting violent crime in the most appropriate venue. The correlation between the availability and use of illegal guns and violent crime is undeniable, and we will continue to work closely with our partners in the law enforcement community in the promotion of public safety and the pursuit of justice. “
“The public is on notice that we are deadly serious about illegal firearms offenses,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Now with leadership of Attorney General Barr, all the tentacles of the Department of Justice, including the ATF and its Crime Gun Intelligence capabilities, and the amazing men and women in blue on the beat, we are doubling down on illegal firearms with Project Guardian.”
“Through this partnership, we hope to stanch the flow of illegal guns from the Commonwealth of Virginia to Washington, Baltimore, and other cities in the Northeast, where, too often, they are used to commit violent crimes,” said Thomas T. Cullen, U.S Attorney for the Western District of Virginia. “We will work closely with our U.S. attorney partners, the ATF, the MPD, and the Virginia State Police to identify individuals and groups in Western Virginia engaged in this deadly enterprise and put them in federal prison.”
“Criminals do not concern themselves with state line or jurisdictions, so we have ensured that our efforts to stop the illegal flow of guns into Maryland involves working closely with our neighboring ATF Field Division in Washington, as well as neighboring U.S. Attorney’s Offices in Virginia and D.C.,” said Rob Cekada, Special Agent in Charge of ATF Baltimore Field Division. “Our focus is on identifying, investigating, and incarcerating anyone who uses firearms to commit violent crime, and those who traffic or straw purchase firearms are supplying these offenders. Project Guardian serves to further strengthen our multi-state and District partnerships with law enforcements and prosecutors so we can brings these criminals to justice.”
“Straw purchasers and firearms traffickers do more than commit paperwork violations or illegally sell a firearm – they knowingly put firearms in the hands of people who should not have them, including violent offenders. These traffickers have no regard for the safety of D.C., Maryland, and Virginia communities,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “As part of Project Guardian, ATF will continue to work alongside our local, state, and federal law enforcement partners and U.S. Attorney’s Officers to ensure anyone committing these crimes is held accountable. We are putting all gun traffickers on notice that we will find you; you will be held accountable; and you will be punished under the law.”
Project Guardian’s national and DMV implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Our sincere thanks to the National Law Enforcement Officers Memorial Fund for their tremendous support of this announcement.
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
Former Mortgage Broker Sentenced to More Than Eight Years in Federal Prison for Fraudulent Auto Loan Scheme with Losses of More Than $1 MillionRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced John O’Day, age 48, of Chester and Stevensville, Maryland, and Sarasota, Florida, to 104 months in federal prison, followed by five years of supervised release, for federal charges of bank fraud and aggravated identity theft, in connection with a scheme to defraud at least 20 individuals and five financial institutions of more than $1 million by submitting fraudulent auto loan applications. Judge Hollander also ordered O’Day to pay restitution of $1,072,091, with interest.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rodney A. Davis of the Treasury Inspector General for Tax Administration; Chief Marcus Jones of the Montgomery County Police Department; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, between April 2016 and January 2018, O’Day and his co-conspirators, Denise White and Nigel Broomes, submitted at least 30 fraudulent applications for auto loans to victim financial institutions falsely listing O’Day as the seller of various motor vehicles, which were listed as collateral, but in which neither O’Day or the listed purchaser had any ownership interest. At least 27 of the fraudulent applications were successful and resulted in the disbursement of loan checks totaling approximately $1,167,192. O’Day deposited those funds into his personal bank accounts in Maryland. O’Day provided a portion of the fraud proceeds to his co-conspirators. The funds were not used to purchase vehicles. O’Day attempted to obtain additional loan checks totaling at least $246,000 through several unsuccessful auto loan applications.
Most of the applicants listed in the auto loan applications were recruited by O’Day under false promises and pretenses. Specifically, O’Day falsely promised that he would pay off the auto loans within up to 90 days and that the borrowers would not be responsible for loan payments. O’Day made payments in smaller amounts to most of the borrowers to assist them temporarily in making periodic payments on the loans and to compensate them for their involvement in the scheme. However, O’Day eventually stopped assisting borrowers with their payments and failed to pay off the loans as he promised. Most of the borrowers remained liable for the loans and suffered financial hardship as a result. At least some of the fraudulent auto loans were eventually converted to unsecured personal loans with higher interest rates as a result of the applicants’ failure to produce proof that they had purchased the vehicles. Several of the applicants had no knowledge that O’Day and his co-conspirators had submitted applications in their names and never authorized them to do so.
O’Day, White, and Broomes used the personal identification information of at least five individuals, without their knowledge or approval, to submit fraudulent loan applications. At least two of the applications were approved and resulted in the disbursement of loan checks totaling $98,000.
O’Day admitted that he also laundered the proceeds of the fraudulent auto loan scheme through the purchase of a home. O’Day worked as a loan officer with a mortgage brokerage company located in Maryland between January 2014 and August 2017. Between January and March 2017, O’Day requested that his employer issue him a company check for his closing costs in return for him transferring funds to the company. O’Day deposited $90,000 in fraud proceeds into a bank account he controlled, then wired $33,750 from that account to his employer’s account. The following day, the employer wired $33,750 to another of O’Day’s accounts and O’Day purchased a cashier’s check in the amount of $30,000 drawn on that account, which he used to pay the closing costs associated with the purchase of his home.
According to their plea agreements, White and Broomes personally submitted some of the fraudulent auto loan applications. White also contacted the financial institutions under false pretenses in order to get the applications approved. White used multiple e-mail accounts in which she received correspondence from the various financial institutions to which she submitted fraudulent loan applications. Upon O’Day’s request, White also contacted borrowers whom O’Day had recruited in order to assuage their concerns about their involvement with the auto loans, requests made by the financial institutions for proof of ownership of the vehicles, and O’Day’s failure to pay off the loans taken out in their names, falsely identifying herself as “Lisa.” White and Broomes also fabricated documents in support of the fraudulent loan applications and O’Day’s efforts to negotiate the loan checks.
Denise White, age 32, of East Point, Georgia, and Nigel Broomes, age 39, of Atlanta, Georgia previously pleaded guilty to their roles in the scheme. White and Broomes each face a maximum of 30 years in federal prison for bank fraud, and White also faces a mandatory minimum sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. Judge Hollander has scheduled sentencing for White and Broomes on November 15, 2019, at 10:00 a.m. and 11:00 a.m., respectively.
United States Attorney Robert K. Hur commended TIGTA, the Montgomery County Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the case.
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Campaign Committee Treasurer Pleads Guilty to Federal Wire Fraud ChargeRead the Press Release
Greenbelt, Maryland – Anitra Edmond, age 43, of New Carrollton, Maryland, the treasurer for the “Friends of Tawanna P. Gaines” campaign committee, pleaded guilty today to a federal wire fraud charge, admitting that she converted more than $35,000 in campaign funds to her personal use.
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.
“Individuals who donate to a political campaign trust that their money will be used to support their candidate. Edmond abused that trust to enrich herself,” said United States Attorney Robert K. Hur. “Such a betrayal undermines everyone’s faith in government. We will continue to work with our law enforcement partners to find those who break the law, and bring them to justice.”
According to her plea agreement, from 2005 to the present, Edmond was the treasurer of the “Friends of Tawanna P. Gaines” (FTPG) candidate committee, which was the finance entity for the campaign of former Maryland State Delegate Tawanna P. Gaines. FTPG was a regulated state election campaign committee with a designated bank account, for which Edmond was the sole signatory and had possession of a debit/ATM card for the account.
Edmond admitted that from at least November 2012 through June 2018, she defrauded the campaign and its contributors of more than $35,000, converting the campaign funds for her personal use. Specifically, Edmond deposited checks from some campaign contributors directly into her personal bank account, instead of the FTPG account. Edmond also received and deposited campaign contributions into the FTPG account, then converted them to her own use without causing the contributions to be identified on campaign finance reports made to the Maryland State Board of Elections.
As detailed in her plea agreement, Edmond used the campaign funds from the FTPG account to pay her personal expenses, such as fast food, hair styling, personal phone bills, and rent for a separate business. In addition, during the course of the scheme, and in violation of Maryland campaign finance law, Edmond withdrew from the FTPG account a total of approximately $7,080 in cash from ATM machines, including an $800 withdrawal on June 25, 2018. The total loss as a result of Edmond’s involvement was at least $35,188.63. As part of her plea agreement, Edmond is required to forfeit and pay restitution in that amount.
Edmond faces a maximum sentence of 20 years in federal prison for wire fraud. U.S. District Judge Theodore D. Chuang has scheduled sentencing for February 24, 2020. She is released on her own recognizance under the supervision of U.S. Pretrial Services.
Former Maryland State Delegate Tawanna P. Gaines, age 67, of Berwyn Heights, Maryland, previously pleaded guilty to a federal wire fraud charge, admitting that she converted more than $22,000 in campaign funds to her personal use. U.S. District Judge Theodore D. Chuang has scheduled sentencing for Gaines on January 3, 2020, at 10:00 a.m.
United States Attorney Robert K. Hur commended the FBI for its work in this investigation. Mr. Hur thanked Assistant U.S. Attorney Thomas P. Windom, who is prosecuting these cases.
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Navy Employee Sentenced to 40 Years in Prison for Child Pornography Offenses with Multiple VictimsRead the Press Release
A Navy employee, who resided in Silver Spring, Maryland, before moving to Japan, was sentenced today to 40 years in prison for the production, transportation and possession of child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur of the District of Maryland and Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office made the announcement.
Spencer E. Steckman, 36, was sentenced by U.S. District Court Judge Paul W. Grimm of the U.S. District Court for the District of Maryland. Steckman pleaded guilty on June 11, 2019, to one count of production of child pornography, one count of transportation of child pornography and one count of possession of child pornography. In addition to his prison sentence, Steckman received a lifetime of supervised release and was ordered to pay $120,000 in restitution to the victims.
According to court documents, Steckman enticed at least 10 preteen and teenage boys to engage in sexually explicit conduct, record it and send it to him. He employed a variety of tactics, including misrepresenting his identity, offering money and videogame redemption codes and encouraging the children to compete with others to produce and send the “best” photos. After years of this conduct, he moved to Japan in mid-November 2017, where he worked with Commander Navy Region Japan and transported and possessed child pornography.
The Naval Criminal Investigative Service (NCIS) in Japan detained Steckman on March 27, 2018. The U.S. Marshals service transported him back to Maryland to appear before the U.S. District Court for the District of Maryland. He has remained in custody since that time.
Further investigation revealed that Steckman had previously molested two prepubescent children on numerous occasions, that he had given one of the teenage boys cash and marijuana to engage in sexual activity with him, that he had shared his child pornography with like-minded offenders and that he stored most of his child pornography collection on an encrypted device.
The FBI’s Baltimore Field Office and the Maricopa County, Arizona, Sheriff’s Office investigated the case, with substantial assistance from NCIS. Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Joseph Baldwin of the District of Maryland are prosecuting the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Navy Employee Sentenced to 40 Years in Federal Prison for Child Pornography Offenses Involving Multiple VictimsRead the Press Release
Greenbelt, Maryland – U.S. District Court Judge Paul W. Grimm sentenced Spencer E. Steckman, 36, a Navy employee formerly of Silver Spring, Maryland, today to 40 years in federal prison, followed by lifetime supervised release, for the production, transportation, and possession of child pornography. Judge Grimm also ordered that Steckman pay restitution of $120,000 to the victims, and that Steckman must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office.
Steckman pleaded guilty on June 11, 2019, to one count of production of child pornography, one count of transportation of child pornography, and one count of possession of child pornography.
According to his plea agreement and other court documents, Steckman enticed at least 10 preteen and teenage boys to engage in sexually explicit conduct, record it and send it to him. He employed a variety of tactics, including misrepresenting his identity, offering money and video game redemption codes, and encouraging the children to compete with others to produce and send the “best” photos. Steckman also admitted that he gave one of the victims cash and marijuana to engage in sexual activity with him. After years of this conduct, Steckman moved to Japan in mid-November 2017, where he worked with Commander Navy Region Japan, and transported and possessed the child pornography.
Further investigation revealed that Steckman had shared his child pornography, including images sent to him by the victims, with like-minded offenders, and that he stored most of his child pornography collection on an encrypted device.
Steckman was detained by the Naval Criminal Investigative Service (NCIS) in Japan on March 27, 2018, and transported back to Maryland by the United States Marshals Service to appear before the U.S. District Court for the District of Maryland. He has remained in custody since that time.
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 and Assistant Attorney General Brian A. Benczkowski commended the FBI’s Baltimore Field Division and the Maricopa County, Arizona, Sheriff’s Office who investigated the case, with substantial assistance from NCIS. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorney Joseph Baldwin and Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), who prosecuted the case.
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Baltimore Pimp Sentenced to 20 Years in Federal Prison After Being Convicted at Trial on Charges of Sex Trafficking of A Child and Using the Internet to Promote A Prostitution BusinessRead the Press Release
Baltimore, Maryland – U.S. District Judge Thomas E. Johnston today sentenced Ryan Russell Parks, a/k/a Dinero, age 26, of Baltimore, Maryland, to 240 months in federal prison, followed by five years of supervised release, for two counts of sex trafficking of a minor and one count of using the Internet to promote a business enterprise involving prostitution. A federal jury convicted Parks late on July 18, 2019, after a four-day trial. As a result of his conviction, upon his release from prison, Parks will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
“Ryan Parks cruelly preyed on vulnerable girls in order to sell them for sex. Children cannot consent to have sex for money and the sex trafficking of children will not be tolerated in Maryland. Through the Maryland Human Trafficking Task Force, law enforcement is working with victim services providers and victim advocates to rescue human trafficking victims and prosecute traffickers,” said Maryland U.S. Attorney Robert K. Hur.
According to the evidence presented at his trial, Parks trafficked two vulnerable minor victims—a 16-year-old girl (Girl 1) and a 15-year-old girl (Girl 2)—for commercial sex. According to trial testimony, Parks met Girl 1 online. During their communications Parks learned that she was hungry and had no real place to live, and he offered Girl 1 a place to stay. Parks sent a car to pick up Girl 1 and to bring her to a motel in Woodlawn, Maryland, and within a day, he caused advertisements to be posted on a website that marketed commercial sex workers. These advertisements contained photographs and descriptions of Girl 1 and offered Girl 1 for commercial sex acts. Parks stayed with Girl 1 at a motel in Baltimore, along with another woman he was advertising on the Internet for commercial sex. He also had sex with Girl 1 in the motel room. Parks would leave the room for short periods of time, when men would come to the room to have sex with Girl 1, and he would return to the room shortly after the men left the room. Parks paid for additional advertisements on the website offering Girl 1 for commercial sex on August 1 and August 2, 2017. One of Girl 1’s customers returned to the room the next day to rescue her, and he took her to live in a different city with his sister.
The evidence also proved that in November 2017, Parks met Girl 2 online, and he learned that she had run away from her foster home. On November 16, 2017, Parks paid a driver through an application on his cell phone to pick up Girl 2 and bring her to his home. Girl 2, who was 15 years old, told Parks that she was 17 years old, in foster care, and in an unhappy situation. Parks provided Girl 2 with marijuana and had sex with her. He talked to her about making money through prostitution, and he took her to the same motel in Baltimore where Parks had harbored Girl 1. Girl 2 had run away from her foster home without a coat, a purse, or change of clothing. Parks purchased a bra, panties, and condoms for Girl 2. Parks took photographs of Girl 2 and paid for an online advertisement offering Girl 2 for commercial sex using his cell phone. Several of the photos that Parks uploaded to the website were rejected, because they contained nudity and were too explicit. Less revealing photos of Girl 2, wearing the bra and panties purchased by Parks, were accepted and uploaded to the online advertisement.
As he had with Girl 1, Parks then set the prices and time limits for the sex acts to be performed on Girl 2, and he instructed her on the process of checking a man for a wire when he came into the motel room. Parks stayed in the motel room with Girl 2 when other men were not present, but he left the room and stood outside in a stairwell when men arrived to have sex with Girl 2. Parks offered Girl 2 for commercial sex from November 16 through November 20, 2017. During this time, over 300 individuals contacted the phone number placed by Parks on the advertisement, to inquire about commercial sex with Girl 2. On November 21, 2017, Girl 2 contacted her foster care social worker, who dispatched police to the motel. According to trial testimony, Parks reviewed Girl 2’s phone while she was in the shower and saw that she had contacted her social worker. Parks became angry, told her to delete information from her phone and to remove the chip from her phone, and then he left the motel. Girl 2 went to the lobby and turned herself in to police.
While law enforcement was investigating the trafficking of the two minor victims, they discovered evidence regarding the extent of Parks’ prostitution business. Evidence at trial proved that from February 25, 2017, through the date that he was arrested on January 10, 2018, Parks paid over $1,000 for approximately 295 commercial sex advertisements placed on the Internet. Parks advertised approximately 27 different women and girls for commercial sex. Parks also paid over $6,000 for hotel rooms in Baltimore County and Baltimore City during the course of his prostitution enterprise.
Parks remains detained.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Robert K. Hur commended the FBI and Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christine Duey and Matthew Maddox, who prosecuted the case.
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Member of Armed Robbery Crew Sentenced to More Than Six Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Tiffany Edmundson, age 31, of Greenbelt, Maryland, today to 78 months in prison, followed by three years of supervised release, for conspiring to commit two armed robberies. Judge Grimm also ordered Edmundson to pay restitution of $1,740.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Director in Charge Timothy R. Slater of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Chief Peter Newsham of the Metropolitan Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief Marcus Jones of the Montgomery County Police Department; and Chief Anthony Morgan of the Mount Rainier Police Department.
According to her plea agreement and other court documents, Edmundson committed two robberies on May 31, 2012. Edmundson’s role in the robberies included conducting surveillance of the target businesses before the robberies, planning the robberies with her co-conspirators—including knowing that at least one co-conspirator would be armed with a gun, participating in the robberies, and dividing and receiving a portion of robbery proceeds. During the robberies, Edmundson and her co-conspirators partially hid their faces with cloths or a mask.
Specifically, Edmundson and two co-conspirators, Anthony Akrah Morris and Chavez Tyrone Smith, robbed a 7-Eleven store at 1:05 a.m. on May 31, 2012, located in the 12000 block of Laurel Bowie Road in Laurel, Maryland. Smith stood at the entrance of the store to watch for other customers or law enforcement. Smith was armed with a gun, which he brandished at people inside the store. The robbers ordered customers to the floor. Morris took approximately $340 from the store cash register. Edmundson and Morris also took $475 worth of cigarettes from the store. Edmundson also took money and items from customers, including an Apple iPhone from a female customer. The co-conspirators fled from the store in a vehicle driven by co-conspirator Cornelius Jennings.
Shortly thereafter, at 2:59 a.m., Edmundson, Morris, and Jennings entered a McDonald’s restaurant located in the 15000 block of Old Columbia Pike in Burtonsville. Jennings brandished a firearm at persons inside the restaurant. Edmundson and her co-conspirators forced employees to open the restaurant’s safe from which they stole $1,400 in cash. They fled in a getaway vehicle driven by Smith.
Edmundson pleaded guilty on February 13, 2013, but her sentencing was delayed as a result of intervening litigation related to a Supreme Court decision which vacated her conviction on the gun charge to which she had pleaded guilty.
After several reported violations of her pre-sentence release conditions, on January 10, 2019, a detention hearing was held before Judge Grimm, in which Edmundson sought to avoid detention pending sentencing. In anticipation of the hearing, Edmundson created a letter from her supervisor at her place of employment extolling her work performance. She provided the letter to her counsel with the hope that it would be shared with the Court. The letter was subsequently relied on by counsel and provided to the Court. The letter, however, was discovered to be false and was created by Edmundson without her supervisor’s knowledge or consent.
Anthony Akrah Morris, age 30, of Burtonsville, Maryland, was convicted after trial and sentenced to 505 months in prison for conspiring to commit robbery, two counts of robbery and two counts of brandishing a firearm during a robbery. Chavez Tyrone Smith, age 40, and Cornelius Jennings, age 32, both of Washington, D.C., pleaded guilty to their roles in the robberies and were sentenced to 16 years and 111 months in federal prison, respectively.
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, the Prince George’s County Police Department, the Metropolitan Police Department, the Montgomery County Police Department, and the Mount Rainier Police Department for their work in the investigation. Mr. Hur praised the Prince George’s County State’s Attorney’s Office and the Montgomery County State’s Attorney’s Office for their assistance and coordination. Mr. Hur thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case, and Assistant United States Attorney Jason Medinger for his work on the appeals.
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Former D.C. Apartment Manager Facing Federal Indictment for Allegedly Defrauding Her Employer by Submitting Fraudulent InvoicesRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Lachann Alexis Green, age 36, of Laurel, Maryland, on federal wire fraud charges in connection with a scheme to embezzle money from her employer. The indictment was returned on November 4, 2019, and was unsealed at her initial appearance today.
The indictment 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.
According to the indictment, from October 2017 through December 2018, Green defrauded her employer, a business that managed residential apartment buildings in several states, including Maryland. Green was the general manager of Rhode Island Row, an apartment complex in Washington, D.C. that was managed by her employer. Her employer opened and maintained a business bank account to pay expenses for Rhode Island Row.
The indictment alleges that on October 4, 2017, Green registered a fraudulent shell business, “Executive Property Staffing” (“EPS”) with the Maryland State Department of Assessments and Taxation (“SDAT”). EPS was a business purportedly located in Beltsville, Maryland. Although her employer required that employees report any financial interest they had in any firm that did business with the employer, as well as any conflict or potential conflict of interest, Green did not disclose her association with EPS to her employer. Green allegedly created and submitted or caused to be created and submitted fraudulent invoices in the name of EPS to her employer for staffing, cleaning, and maintenance work at Rhode Island Row that had not been done by EPS. After Green’s employer transferred money as payment for the fictitious invoices to a bank account Green had opened in EPS’s name, Green allegedly transferred the funds to bank accounts opened in her own name or used the funds for her own personal gain.
The EPS scheme was one of several that Green allegedly operated as general manager of Rhode Island Row. Green also allegedly submitted fraudulent invoices to her employer for expenses that she falsely claimed she had incurred in the course of her duties. In addition, she submitted fraudulent invoices in the name of another business owned and operated by a personal associate (“Individual 1”) in return for a kickback from Individual 1 of a portion of the proceeds. Finally, the indictment alleges that Green submitted or caused to be submitted fraudulent resident application information to her employer on behalf of two relatives so that the relatives could live at Rhode Island Row under fake names and under favorable lease terms.
If convicted, Green faces a maximum sentence of 20 years in federal prison for each of five counts of wire fraud. At today’s initial appearance in U.S. District Court in Greenbelt, U.S. Magistrate Judge Timothy J. Sullivan ordered that Green be detained pending a detention hearing scheduled for November 7, 2019, at 3:30 p.m.
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 for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Burden H. Walker, who is prosecuting the case.
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Leader of the Violent “Murdaland Mafia Piru” Bloods Gang Sentenced to Life in Federal Prison for Murder in Aid of Racketeering and Related ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Dante Bailey, a/k/a “Gutta,” “Almighty,” and “Wolf,” age 40, of Windsor Mill, Maryland, to life in federal prison. Bailey, the leader of Murdaland Mafia Piru (MMP), a subset of the Bloods gang, was convicted on April 30, 2019 after a six-week trial of murder in aid of racketeering, conspiracy to participate in a racketeering enterprise, conspiracy to distribute a kilogram or more of heroin and 280 grams or more of crack cocaine, possession of firearms by a previously convicted felon, and possession with intent to distribute heroin. The jury found that Bailey participated in the gang’s affairs through a pattern of racketeering activities that included murder, extortion, witness tampering, witness retaliation, conspiracy to distribute drugs, and drug distribution.
Yesterday, Judge Blake sentenced MMP member Jamal Lockley, a/k/a “T-Roy” and “Droid,” age 40, of Baltimore to 30 years in prison, followed by five years of supervised release. Lockley was also convicted after trial of the racketeering and drug conspiracies. The jury found that Lockley participated in MMP’s affairs through a pattern of racketeering activities that included distribution of drugs, conspiracy to distribute drugs, and witness tampering and retaliation.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
“Dante Bailey led the violent and destructive MMP gang that brought terror and death to Baltimore and Baltimore County neighborhoods with guns and drugs. Now, Dante Bailey will spend the rest of his life in federal prison, where there are no suspended sentences and no parole—ever. And Jamal Lockley will be over 65 years old before he is released from prison. Due to their choices, most of the 25 defendants convicted in this case will spend between 14 and 30 years in federal prison,” said U.S. Attorney Robert K. Hur. “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. Over the course of this investigation, law enforcement seized 42 firearms and convicted 25 gang members. I urge anyone who’s thinking of following these defendants’ example: Please, put down the guns and save a life—maybe even your own.”
According to the evidence presented at the six-week trial, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that operates in Maryland and elsewhere. Founded by Dante Bailey, MMP was modeled after the Italian Mafia. The MMP oath was called the “Omerta Code.” The gang was organized hierarchically, with Dante Bailey as “the Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath. MMP gang paperwork laid out certain rules of conduct by which members were governed, including that “retaliation is a must,” “[w]hen at war fight like you are ready to die,” and “[w]henever we are forced to strike, our only option is to kill.” The most important rule was that “co-operation with authorities that lead[s] to incriminating others” was punishable by death. MMP members enhanced their status in the gang by carrying out acts of violence; for instance, members could earn a “lightning bolt” tattoo for “killing for the Mob.” Dante Bailey has multiple lightning bolt tattoos on his face.
MMP members operated street-level drug distribution shops in various locations in Northwest Baltimore City and neighboring Baltimore County, where they sold large volumes of heroin and crack cocaine, among other controlled substances. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from Western Maryland and neighboring states.
MMP members, including Bailey, used social media websites to assert the gang’s claim to particular drug territories, intimidate rival gangs and drug traffickers, enhance MMP’s status, and enhance members’ status within the gang. Bailey posted rap videos under the stage name “Gutta Almighty,” in which he and other members of MMP flaunted actual firearms, and threatened to kill those who stood in the way of the gang.
The evidence proved that Bailey ordered and committed numerous murders in order to retaliate against rivals, impose discipline within the gang, and eliminate potential witnesses against the gang. He distributed large volumes of heroin and crack cocaine in the gang’s territories in Northwest Baltimore. After he was arrested, he continued to conduct the gang’s affairs from behind bars, ordering hits on rivals and witnesses, and plotting various ways to obstruct justice.
For example, on October 15, 2012, Bailey directed another MMP member to murder Victim 1 because Victim 1 was believed to be cooperating with law enforcement. That MMP member shot Victim 1 multiple times in the head and torso with a .45-caliber firearm outside the crowded Mirage Nightclub in downtown Baltimore. A closed-circuit television camera captured the shooting, and showed Bailey arriving at the club with the shooter and other MMP members, one of whom was wearing a shirt that said “MOBB SQUAD.” Bailey recounted the events surrounding the attempted murder of Victim 1 in a semi-autobiographical screenplay that investigators recovered from his residence in 2016. The screenplay included a scene in which Bailey learned that Victim 1 was “a rat” and a scene in which Victim 1 “gets hit” at “Club Mirage.”
In November 2012, Bailey ordered another MMP member to murder Antoine Ellis because Ellis had allegedly shown disloyalty to the gang. On Thanksgiving Day, that MMP member shot Ellis to death in a baseball field in the 5200 block of Windsor Mill Road. A few hours before the murder, the shooter had posted a comment to his Facebook profile that said: “198 n risen”—a reference to that year’s murder tally in Baltimore City, which he was about to increase by one.
On February 12, 2015, Dante Bailey murdered James Edwards for showing disloyalty to the gang. Bailey shot Edwards to death in the 300 block of Collins Avenue, using the same gun he had used to shoot at rivals in the 5200 block of Windsor Mill Road three nights earlier.
On April 28, 2016, Bailey armed himself and went looking to retaliate against members of a rival drug organization they believed were responsible for killing an MMP member. Jamal Lockley drove Bailey to the rival drug organization’s territory, where Bailey observed Anthony Hornes, whom he suspected—wrongly—had been involved in the MMP member’s murder. Bailey shot Hornes in the head, killing him. Lockley was the getaway driver.
In September 2017, while in pretrial custody, Dante Bailey caused a hit letter to be mailed to a co-conspirator that directed the murder of a witness against the gang, and included the witness’s address. ATF Special Agents arrested the co-conspirator while in possession of the hit letter as well as a recently purchased firearm.
The evidence showed that Lockley worked in concert with other MMP members to distribute heroin and crack cocaine in MMP’s territory in the area around Windsor Mill Road and Forest Park Avenue, and to avoid detection by law enforcement. He distributed heroin that caused a young woman to overdose and nearly lose her life, and he continued to deal drugs after learning of the overdose. He was the getaway driver for a retaliatory gang murder committed by Dante Bailey. He discussed retaliating against a rival of the gang with another MMP member and he conspired with Bailey to kill a witness against the gang by sending him to an MMP hitman.
Twenty-five defendants have been convicted in the case and twenty-four defendants, including Bailey and Lockley, have been sentenced, with most receiving between 14 and 30 years in federal prison. The final defendant is awaiting trial.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur praised the ATF, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Hur thanked Assistant United States Attorneys Christina Hoffman and Lauren E. Perry, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Baltimore Plaintiffs’ Law Firm Saiontz & Kirk, P.A., Pays the United States over $90,000 to Settle Allegations that it Failed to Reimburse Medicare for Payments Made on Behalf of Firm ClientsRead the Press Release
Baltimore, Maryland – United States Attorney for the District of Maryland Robert K. Hur announced that Saiontz & Kirk, P.A., a Baltimore-based law firm, has paid the United States $91,406.98 to resolve allegations that it failed to reimburse Medicare for conditional payments that had been made to medical providers on behalf of firm clients.
“Plaintiffs’ attorneys cannot refer a case to or enter into a joint representation agreement with co-counsel and simply wash their hands clean of their obligations to reimburse Medicare for its conditional payments,” said U.S. Attorney Robert K. Hur. “We intend to hold attorneys accountable for failing to make good on their obligations to repay Medicare for its conditional payments, regardless of whether they were the ones primarily handling the litigation for the plaintiff.”
According to the settlement agreement, over a number of years, Medicare made conditional payments to healthcare providers to satisfy medical bills for firm clients. Under the Medicare statute and regulations, Medicare is authorized to make conditional payments for medical items or services under certain circumstances, with the requirement that when an injured person receives a tort settlement or judgment, those receiving the proceeds of the settlement or judgment, including the injured person’s attorney, are required to repay Medicare for the conditional payments.
During that period, the firm referred clients to or entered into joint representation agreements with co-counsel on four of the six matters about which the U.S. Attorney’s office contacted the firm. The government contends that the firm, either itself or together with co-counsel, negotiated for and received settlement proceeds for the firm’s clients, but neither the firm nor its clients repaid Medicare for conditional payments that Medicare made to medical providers.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Saiontz & Kirk, P.A., nor a concession by the United States that its claims are not well founded.
This settlement reminds attorneys of their obligation to reimburse Medicare for conditional payments after receiving settlement or judgment proceeds for their clients. This is no less true for plaintiffs’ attorneys who refer cases to co-counsel or jointly represent plaintiffs.
U.S. Attorney Robert K. Hur commended Eric Wolfish, Assistant Regional Counsel, United States Department of Health and Human Services, Office of the General Counsel, Region III, for his work in the investigation. Mr. Hur also thanked Assistant United States Attorney Alan C. Lazerow, who handled the case.
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Former Silver Spring Physician Sentenced to Two Years in Federal Prison for Fraudulently Obtaining over Half a Million Dollars of Her Deceased Mother’s Retirement BenefitsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Crystal Mebane McGinty, age 59, of Silver Spring, Maryland, to two years in prison, followed by three years of supervised release, for mail fraud and for theft of government property in connection with a scheme to obtain over $517,000 of her deceased mother’s social security and City of New York teachers’ retirement benefits. Judge Xinis also ordered McGinty to forfeit and pay restitution in the form of a money judgment of $517,000.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division.
“This prosecution demonstrates that we will not tolerate criminals who lie, cheat, and steal to obtain benefits to which they are not entitled. Crystal McGinty will now serve two years in federal prison, where there is no parole—ever. She not only defrauded the Social Security Administration, but all law-abiding citizens, and I am hopeful that this sentence will deter others who may be tempted to do the same,” said U.S. Attorney Robert K. Hur.
According to her plea agreement, during the course of the fraud McGinty worked as a physician at practices in Maryland and Washington, D.C. McGinty’s mother died on June 17, 2005, and McGinty was listed as the informant on the death certificate.
McGinty admitted that from June 2005 through June 2018, she engaged in a scheme to commit mail fraud and theft of government property by spending her deceased mother’s Social Security Administration (SSA) retirement payments and Teachers’ Retirement System of the City of New York (TRSCNY) pension payments. McGinty did not disclose and concealed her mother’s death from TRSCNY and the SSA, in part, by posing as her deceased mother, in order to continue receiving her mother’s retirement payments.
As detailed in the plea agreement, McGinty deposited her mother’s TRSCNY checks, which were mailed to McGinty’s home, into a joint checking acount. The checks bore McGinty’s signature and her mother’s signature. McGinty’s mother’s SSA payments were also deposited into that bank account. Further, TRSCNY records show that from 2012 to 2017, McGinty signed and submitted several proof-of-life forms to TRSCNY, including some in which she identified herself as her deceased mother’s physician, in order to continue to receive her mother’s retirement benefits. TRSCNY records also show that after they stopped mailing her mother’s pension checks, McGinty called TRSCNY on May 31, 2016, posing as her deceased mother and provided her deceased mother’s identifying information, in an effort to get the pension benefits reinstated.
Further, McGinty admitted that she routinely withdrew her deceased mother’s TRSCNY and SSA retirement benefits from the bank through cash withdrawals or by transferring the funds to her personal accounts each month. McGinty used the funds to pay for the mortgage and utility bills at her Silver Spring home, renewal of her medical license, department store purchases, tuition at a private high school in Washington, D.C., international and domestic travel, and a cruise vacation.
According to public records, the Maryland Board of Physicians suspended McGinty’s license on January 17, 2019, and McGinty permanently surrendered her license on April 23, 2019.
United States Attorney Robert K. Hur commended the SSA Office of Inspector General for its work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Michael F. Davio, who prosecuted the case.
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Annapolis MS-13 Member Convicted After Trial of Federal Charges, Including Murder in Aid of RacketeeringRead the Press Release
Baltimore, Maryland – A federal jury convicted Juan Carlos Sandoval-Rodriguez, a/k/a “Picaro,” “El Pastor,” and “Gasper,” age 21, of Annapolis, Maryland, of murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering, in connection with his participation in the activities of La Mara Salvatrucha, or MS-13. The verdict was returned late on October 31, 2019.
The guilty verdict was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division; Special Agent in Charge John Eisert of Homeland Security Investigations-Baltimore Field Office; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Baltimore Field Division; Police Chief Timothy J. Altomare of the Anne Arundel County Police Department; and Anne Arundel County State’s Attorney Anne Colt Leitess.
“The MS-13 gang uses violence, extortion, and intimidation to terrorize their communities, both here in the U.S. and abroad. The gang’s chilling motto is ‘mata, viola, controla,’ or ‘kill, rape, and control.’ This MS-13 member showed his allegiance to the gang through murder. Now he faces a mandatory sentence of life in federal prison. His conviction for murder, and our ongoing work with our law enforcement partners to bring other gang members to justice, demonstrates our unflagging commitment to eliminate MS-13 and its campaign of wanton violence,” said United States Attorney Hur. “We will continue to root out and prosecute violent gang members to obtain justice for their victims.”
“This individual’s crime is yet another example of the terror and violence that criminal gangs like MS-13 inflict upon our communities,” said HSI Baltimore Special Agent in Charge John Eisert. “HSI is committed to working with our law enforcement partners to investigate and dismantle these gangs to make our streets safer.”
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 Anne Arundel County, Prince George’s County, Montgomery County and Frederick County, Maryland. In Maryland, MS-13 cliques often work cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. These cliques include the Hempstead Locos Salvatrucha (HLS or Hempstead), Fulton Locos Salvatruchs (FLS or Fulton), and Langley Park Salvatrucha (LPS), among others. 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.
According to the evidence presented at his 9-day trial, from at least 2015 through 2017, Sandoval-Rodriguez was a member and associate of the Fulton clique. As a member of the MS-13 gang, Sandoval-Rodriguez participated in racketeering activities including drug trafficking, extortion, and murder.
The evidence at trial proved that Sandoval-Rodriguez and other MS-13 members and associates conspired to murder an individual whom they believed to be a rival gang member. Specifically, on March 11, 2016, Sandoval-Rodriguez lured the victim to a park in Annapolis, with the intent to murder the victim. Once the victim arrived at the park, members of the gang struck the victim on the head with a branch or stick. Sandoval-Rodriguez and the other members and associates of MS-13 then stabbed the victim repeatedly, killing the victim. The members and associates of MS-13 then buried the victim in a shallow grave in the park. Sandoval-Rodriguez and his co-conspirators murdered the victim in Annapolis, for the purpose of gaining entrance to, maintaining, and increasing their position in MS-13.
As a result of his conviction for murder in aid of racketeering, Sandoval-Rodriguez faces a mandatory life sentence. Chief U.S. District Judge James K. Bredar has not yet scheduled sentencing.
Co-defendants Marlon Cruz-Flores, a/k/a “Little S,” age 22; Fermin Gomez-Jimenez, age 20; and David Diaz-Alvarado, age 21; all of Annapolis, Maryland, previously pleaded guilty to their roles in the racketeering enterprise. The other defendants are awaiting sentencing. All of the defendants are detained.
United States Attorney Robert K. Hur and AAG Benczkowski commended HSI, the ATF, the Anne Arundel County Police Department, and the Anne Arundel County State’s Attorney’s Office. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorney Zachary Stendig, Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section, and Special Assistant U.S. Attorney Samantha Mildenberg, a cross-designated Anne Arundel County Assistant State’s Attorney, who are prosecuting this case.
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Frederick County Man Sentenced to More Than 12 Years in Federal Prison for Posing as a Teenaged Girl Online and Inducing Minor Males to Produce and Send Sexually Explicit Images and VideosRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett today sentenced Jake Tyler Patterson, age 21, of Adamstown, Maryland, to 150 months in federal prison, followed by lifetime supervised release, for coercion and enticement of a minor to engage in illegal sexual activity in order to produce child pornography. Judge Bennett also ordered that, upon his release from prison, Patterson must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
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; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Frederick County State’s Attorney J. Charles Smith.
“Patterson, like many criminals, took advantage of the anonymity of the Internet to pose as a minor female and solicit young boys to send him sexually explicit images and video,” said U.S. Attorney Robert K. Hur. “Now he will serve over 12 years in federal prison, where there is no parole—ever. One alert parent checked their child’s smartphone, found sexually explicit photos, and called the police. That call may have prevented more children from being abused by this predator.”
According to his guilty plea, beginning in approximately fall of 2017, Patterson set up an online social media profile pretending to be a 15- or 16- year-old girl who resided outside of Maryland. Using that profile, Patterson sought out minor males and established online relationships with them. Patterson initiated sexually explicit conversations with the victims and convinced them to produce and send sexually explicit images and videos of the victims. As part of his inducement, Patterson sent sexually explicit files displaying female genitals. Patterson also paid some of the victims with gift cards, including Amazon, iTunes, Xbox, and PlayStation.
As detailed in his plea agreement, from July to December 2018 Patterson’s victims ranged in age from 12 to 15 years old and resided in Colorado, Michigan, Texas, and Maryland. All of the victims sent at least one sexually explicit image or video to Patterson, and several victims sent more than that. Patterson offered, and sent, the victims gift cards to induce them to send more sexually explicit images and videos. For example, a review of Patterson’s Amazon account showed that Patterson had purchased 55 gift cards in the previous 10 months, totaling approximately $2,600.
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 Frederick County Sheriff’s Office, and the Frederick County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow and Special Assistant U.S. Attorney Joyce King, a cross-designated Frederick County Assistant State’s Attorney, who prosecuted the federal case.
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Methamphetamine Dealer Sentenced to 15 Years in Federal Prison for Two Drive-By Shootings and Distributing DrugsRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Josue Balbino Ruiz-Reyes, age 25, of Adelphi, Maryland, to 15 years in federal prison, followed by five years of supervised release, for conspiracy to distribute and to possess with intent to distribute methamphetamines and for using, carrying, brandishing, and discharging a firearm in connection with a drug trafficking offense.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Acting Chief Marcus Jones of the Montgomery County Police Department.
United States Attorney Robert K. Hur stated, “All too often, guns and drugs go hand in hand—and both are killers. As today’s sentence demonstrates, we are committed to getting both off of our streets and to reducing violent crime in our neighborhoods. Josue Ruiz-Reyes will now serve 15 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 his guilty plea, from about 2016 through November 21, 2018, Ruiz-Reyes conspired with others, including Individual 1, to distribute methamphetamine. During that time, Ruiz-Reyes distributed crystal methamphetamine to individuals in and around Maryland in exchange for cash, services, or items of value, such as hotel stays. In October or November 2018, Ruiz-Reyes paid Individual 1 approximately $500 in cash for a future delivery of methamphetamine. Despite repeated requests from Ruiz-Reyes, Individual 1 failed to deliver the methamphetamine or repay the money.
As detailed in his plea agreement, late on November 15 or early November 16, 2018, Ruiz-Reyes drove a silver-colored vehicle to a house on Twig Road in Silver Spring, Maryland, where he knew Individual 1 often stayed with Individual 2. Ruiz-Reyes repeatedly fired a 9mm semi-automatic pistol at the Twig Road House in retaliation for Individual 1’s failure to pay the drug debt, and to induce Individuals 1 and 2 to repay the drug debt. In the evening of November 16, 2018, Ruiz-Reyes returned to the house in his silver vehicle and again discharged his weapon at the house over the drug debt owed to him by Individual 1. Ruiz-Reyes also sent threatening messages over social media to Individual 2 regarding the drug debt.
On November 21, 2018, Ruiz-Reyes was arrested in Hanover, Maryland, as he returned to his car in the parking lot of a casino/hotel. Officers executed a search warrant on the vehicle and recovered: the 9mm semi-automatic pistol used in the shooting, as well as spent shell casings from the exterior windshield and floorboard of the car; 20 small bags of crystal methamphetamine, weighing a total of 19.02 grams; a digital scale; empty clear plastic bags; two glass pipes; a knife; and a ski mask.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and Montgomery County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Catherine K. Dick and Leah B. Grossi, who prosecuted the case.
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Baltimore Pimp Pleads Guilty to Conspiring to Commit Sex Trafficking of a ChildRead the Press Release
Greenbelt, Maryland – Sean Dean, age 26, of Baltimore, pleaded guilty to conspiracy to engage in sex trafficking of a minor. Dean admitted that he conspired to traffic four minor girls to engage in commercial sex acts for his financial benefit. Dean entered his guilty plea on October 29, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Chief Russell E. Hamill III of the City of Laurel Police Department; and Special Agent in Charge John Eisert of Homeland Security Investigations (HSI).
“Sean Dean cruelly preyed on vulnerable girls in order to profit by selling them for sex,” said U.S. Attorney Robert K. Hur. “Children cannot consent to have sex for money and the sex trafficking of children will not be tolerated in Maryland. Through the Maryland Human Trafficking Task Force, law enforcement is working with non-profit organizations to help human trafficking victims and prosecute the traffickers.”
According to Dean’s plea agreement, from December 2017 until January 2018, Dean recruited, harbored, transported, and/or maintained five females, including four minors ranging from 15 to 17 years old, to engage in commercial sex acts. Dean utilized social media and cellular telephones to recruit, monitor, direct, and communicate with the four girls and the woman.
In furtherance of the sex trafficking enterprise, Dean and/or a co-conspirator rented hotel rooms in Timonium and Laurel, Maryland to be used by the victims to engage in commercial sex acts. Dean and his co-conspirator transported the victims to the various hotels where they would stay for multiple days. While in the hotel rooms, at Dean’s direction the victims used a website to advertise themselves for commercial sex acts. The advertisements contained pictures of the victims in provocative poses and provided contact information for clients to use to secure a “date” with the victims. The victims were required to share a portion of the proceeds from any commercial sex acts with Dean and his co-conspirator.
As detailed in his plea agreement, during the first week of January 2018, Dean and his co-conspirator transported three of the minor girls and the woman to a hotel in Timonium. The victims were at the hotel for approximately one week and met with multiple customers per day to engage in commercial sex acts. During that time, Dean texted one of the minors to bring lingerie to wear in photos and texted one or more of the victims to confirm that they had posted advertisements on the commercial sex website. The victims shared a portion of the proceeds earned from their commercial sex acts with Dean and the co-conspirator. The following week, Dean rented rooms at a hotel in Laurel, where the victims stayed for one or two days, again engaging in commercial sex acts with multiple clients. Dean also recruited the fourth minor girl to come to the hotel to engage in sex acts.
On January 11, 2018, Dean and his co-conspirator transported all five victims to another hotel in Laurel, where Dean had rented rooms for the victims to use for commercial sex acts. In response to a complaint, law enforcement responded to two different rooms rented by Dean. Law enforcement located three minor girls and the woman in the two rooms. The fourth minor girl had already left the hotel. Dean and the co-conspirator fled to avoid detection by law enforcement. After leaving the area, Dean exchanged messages with the woman indicating that he had left to avoid law enforcement because he knew one of the victims was under age. Dean also directed the woman to delete their messages.
As part of his plea agreement, Dean 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).
Dean and the government have agreed that if the Court accepts the plea agreement Dean will be sentenced to 10 years in federal prison. U.S. District Judge George J. Hazel has scheduled sentencing for February 28, 2020 at 2:00 p.m.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Robert K. Hur commended the Laurel Police Department and HSI Baltimore for their work in the investigation and thanked the Baltimore County Police Department and the Federal Bureau of Investigation for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Joseph R. Baldwin and Elizabeth Wright, who are prosecuting the case.
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Fraudster Who Created False Documents to Facilitate $396 Million Ponzi Scheme Sentenced to 14 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Jay B. Ledford, age 55, of Westlake, Texas and Las Vegas, Nevada to 14 years in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud, aggravated identity theft, and a money-laundering transaction, arising from a $396 million investment fraud scheme that operated from 2013 through September 2018, with an additional $260 million in attempted investments at the time of Ledford’s arrest. Judge Bennett also ordered Ledford to pay restitution in the full amount of the victims’ losses, which is at least $189,166,116. Judge Bennett will also enter an order of forfeiture, with the exact amount of forfeiture still to be determined. On October 10, 2019, Judge Bennett sentenced co-defendant Kevin B. Merrill, age 54, of Towson, Maryland, to 22 years in federal prison.
The U.S. Securities and Exchange Commission (SEC) has a pending parallel civil action in this matter.
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 Robert W. Manchak of the Federal Housing Finance Agency, Office of Inspector General.
“Jay Ledford created phony documents and operated a debt collection center to provide credibility to Kevin Merrill’s false claims to investors, duping them into paying millions of dollars into this Ponzi scheme,” said U.S. Attorney Robert K. Hur. “The effects of this kind of fraud can be devastating and a number of victims have lost their life savings. This sentence sends a strong message that law enforcement will root out, prosecute, and send to prison criminal fraudsters like Jay Ledford and his co-conspirators.”
According to his plea agreement, Ledford was a certified public accountant in Texas, starting his own practice in Amarillo in 1996 and later expanding to Dallas. In 1999, Ledford met Kevin Merrill in Dallas, when Merrill was a salesman for a Baltimore company that sold supplies for X-ray machines for hospitals and doctors’ practices. Ledford and Merrill became friends, attending sporting events and visiting casinos together. Ledford prepared Merrill’s taxes for several years.
“Consumer debt portfolios” are defaulted consumer debts to banks/credit card issuers, student loan lenders, and car/truck financers which are sold in batches called “portfolios” to third parties that attempt to collect on the debts. Ledford and Merrill both had businesses that collected on consumer debt or purchased consumer debt. Beginning in January 2013, Ledford and Merrill joined forces to perpetrate a Ponzi scheme to defraud investors. Specifically, Ledford and Kevin Merrill invited investors to join them in purchasing consumer debt portfolios. Ledford provided fictitious sales agreements and other documents, including false tax returns, to Merrill, knowing that Merrill was using them to induce individuals to invest with his companies, Delmarva Capital and Global Credit Recovery. For 2013, Merrill took in approximately $4.3 million from investors, while Ledford raised just over $186,000 from investors. Thereafter, Merrill’s superior sales ability caused Ledford to assume a background role, while Merrill was the “front man,” promoting the fraudulent investments to potential investors.
The conspirators falsely represented to investors that they would use the investors’ money to buy consumer debt portfolios and make money for them by (1) collecting the payments that people made on their debts or (2) selling the portfolios for a profit to other third-party debt buyers, in a practice called “flipping.” According to court documents, the victim investors included small business owners, restauranteurs, construction contractors, retirees, doctors, lawyers, accountants, bankers, talent agents, professional athletes, and financial advisors, located in Maryland, Washington, D.C., Virginia, Colorado, Texas, Illinois, New York, and elsewhere.
Ledford admitted that to induce investors to participate, he and his co-conspirators falsely represented who they were buying the debt portfolios from and how much they were paying for the portfolios, whether they were investing their own funds, and their track record of success. According to the plea agreement, sometimes there was no underlying debt portfolio purchased with the investors’ money. To conceal the truth, Ledford, created imposter companies with names similar to actual consumer debt sellers or brokers and opened bank accounts in the names of those imposter companies. In addition, to lend credibility to the transactions, Ledford created false portfolio overviews, sales agreements which used the names and forged signatures of actual employees of the sellers, created false collections reports, and falsified bank statements and merchant account reports. In late 2014, Ledford transferred employee and co-defendant Cameron Jezierski to manage debt collections for the Riverwalk and DeVille companies. DeVille had a collections center in Euless, Texas, and the conspirators began to invite prospective investors to tour Riverwalk’s office and the collections center, which added substance to their claims regarding the success of their portfolio purchasing strategy and collections efforts. In December 2017, Ledford recruited Jezierski to the criminal conspiracy because his analytical skills enabled him to contribute significantly to creating false documentation to induce investors to invest, and to conceal the mark-up Ledford and Merrill added to the purchase price charged to investors for debt portfolios.
Further, Ledford admitted that he and Merrill falsely represented that the monies the conspirators paid to investors were “proceeds” from collections and/or flipping debt portfolios, when in fact, the proceeds were paid from funds provided by other investors. The conspirators provided monthly or quarterly reports to investors regarding the “purported progress of the portfolio and its recovery,” which Ledford and Merrill created. From 2013 to 2018, the scheme to defraud took in over $396 million; the co-conspirators spent only 14% on purchasing consumer debt portfolios. At the time of their arrests, the co-conspirators were attempting to obtain an additional $260 million from investors. Ledford assisted Merrill to divert investors’ funds to purchase a home in Naples, Florida, and also helped Merrill falsify records to the bank lender. Ledford himself diverted fraud proceeds to purchase and renovate a home in Las Vegas, Nevada, to refinance a home in Texas, to gamble at casinos, to purchase luxury automobiles and jewelry, and otherwise to support a lavish lifestyle.
At today’s hearing, the government presented evidence that over the course of the scheme, Ledford used more than $42 million in investors’ funds to gamble at casinos throughout the United States. Generally, Ledford would deposit a cashier’s check with the casino, which provided Ledford with chips up to the value of the check. At the end of the gambling trip, if Ledford won, the casino would pay any winnings to Ledford by cash or check, and return the “front money” cashier’s check to Ledford. If Ledford lost at the casinos, the casino deposited the “front money” cashier’s check to cover his losses, and paid Ledford the difference by cash, check, or chips. Ledford returned over $18 million in casino wires or checks to the Ponzi scheme. Currency Transaction Reports filed by the casinos show that Ledford took $14.9 million in cash out of casinos and paid over $9 million in cash into the casinos. Over the six years of the fraud, according to casino records, Ledford had net losses of more than $16 million.
For example, on December 28, 2017, a group of investors paid over $14 million into a Merrill account to invest in credit portfolios. Of those funds, Ledford spent over $3.5 million on actual credit portfolios purchases, but he also paid Merrill, gave a bonus to Jezierski, and bought a $2.5 million cashier’s check which he gambled against at the Las Vegas Sands, home of The Venetian and The Palazzo casinos. Ledford lost over $1.5 million of the investors’ monies on that gambling trip.
Cameron R. Jezierski, age 28, of Fort Worth, Texas, previously pleaded guilty to his role in the scheme and is scheduled to be sentenced on November 14, 2019, at 3:00 p.m. Kevin Merrill’s wife, Amanda Merrill, age 30 of Towson, Maryland, pleaded guilty on October 9, 2019, to conspiracy to remove and conceal assets in violation of court orders, and is scheduled to be sentenced on January 22, 2020, at 3:00 p.m. Merrill and Ledford have been detained since their arrest on September 18, 2018, and Amanda Merrill and Cameron Jezierski are released under the supervision of U.S. Pretrial Services.
United States Attorney Robert K. Hur commended the FBI in Baltimore, Dallas, Las Vegas and Tampa; the Federal Housing Finance Agency, Office of the Inspector General; and the SEC for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Joyce K. McDonald and Martin J. Clarke, who are prosecuting the criminal case.
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Baltimore Business Owner Convicted After Trial on Federal Charges for Conspiring to Burn Down His Business in Order to Obtain Insurance ProceedsRead the Press Release
Baltimore, Maryland – A federal jury convicted Demetrios Stavrakis, a/k/a Jimmy, age 53, of Lutherville-Timonium, Maryland, for an arson conspiracy to damage his business by setting it on fire in order to obtain insurance proceeds. The verdict was returned late on October 28, 2019.
The guilty verdict was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Maryland State Fire Marshal Brian Geraci; and Commissioner Michael Harrison of the Baltimore Police Department.
U.S. Attorney Robert K. Hur stated, “The evidence proved that ‘Jimmy’ Stavrakis conspired to burn down his business in order to defraud his insurance company of millions of dollars in insurance proceeds. Criminals who commit fraud destroying property by fire, jeopardizing their community and first responders, then spend the stolen money on luxury cars, watches, and jewelry, must be held accountable
According to evidence presented at his 7-week trial, beginning in July 2015, Stavrakis made a plan to set fire to commercial property he owned at 234 S. Haven Street in Baltimore, in order to collect insurance proceeds on the property. The building housed Adcor Industries, Inc., a manufacturing shop owned by Stavrakis since 1991, as well as Adcor Beverage, LLC and other LLC’s owned and created by Stavrakis.
Testimony at trial revealed that by 2010, Adcor’s business experienced a down turn due to the loss of a contract with Colt Industries. From 2011 to 2015, Stavrakis’s businesses defaulted on various loans, struggled to pay suppliers resulting in legal action, and sold off profitable divisions of the business to satisfy defaulted loans. In 2014, Adcor incurred an operating loss of $2,053,427 and its liabilities exceeded its assets by almost $900,000. Financial records showed that during 2014, Stavrakis liquidated personal assets and injected the proceeds into Adcor to utilize as working capital. A public accounting firm hired by Adcor to review its financial condition reported to Stavrakis that the balance of cash and cash equivalents as of December 31, 2014 was inadequate to fund operations through December 31, 2015. More losses followed, and Adcor was again in default on a line of credit and their monthly operating losses put them on a pace to lose approximately $2.9 million for the year.
The evidence proved that on July 28, 2015, just before 6 p.m., Stavrakis used adhesive tape to defeat one of the security features on the front door of the building so that the person or persons setting the fire could enter the building.
According to the trial evidence, at 12:25 a.m. on July 29, 2015, someone disarmed the alarm inside the building by entering the four-digit code. At 12:33 a.m., an alarm in another part of the building was disarmed. At approximately 1:30 a.m., the fire was reported to law enforcement by a passer-by who saw smoke emanating from the building. The Baltimore Fire Department responded to extinguish the blaze. The fire destroyed an office on the shop floor of the building and damaged a portion of the ceiling directly above the office area. Later on July 29, 2015, Stavrakis contacted a public adjuster firm that his company had previously retained to notify them of the fire and to request their assistance in filing claims with the insurance company.
Trial evidence proved that from July 29, 2015 through August 5, 2016, the adjusters, acting on behalf of Stavrakis and his companies, submitted insurance claims totaling more than $21 million. The insurance company paid a total of approximately $15,081,435. Of that amount, approximately $7.5 million was used to purchase new machinery, purchase parts inventory, restore the building, and for other business expenses. In addition, insurance proceeds were transferred or used for other expenses, including $600,000 which was transferred to an account in the name of Stavrakis’s wife, after which additional monthly payments of approximately $6,000 followed; approximately $98,499.20 used to purchase a 2016 Mercedes-Benz GL 550, titled and registered to Stavrakis; approximately $52,890.55 used to purchase a BMW titled and registered in the name of Stavrakis’s wife; approximately $25,500 used to purchase a 2016 Harley-Davidson Street Glide motorcycle; and approximately $35,087 in watches and jewelry.
Stavrakis faces a mandatory minimum sentence of five years and a maximum of 20 years in prison for the malicious destruction of property by fire; a mandatory 10 years in prison, consecutive to any other sentence imposed, for use of fire to commit a federal felony; and a maximum sentence of 20 years in prison for each of two counts of wire fraud. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January 24, 2020.
United States Attorney Robert K. Hur commended the ATF, the Office of the Maryland State Fire Marshal, and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Judson T. Mihok and Paul E. Budlow, who are prosecuting the case.
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Maryland Man Facing Federal Indictment for Sex Trafficking and Drug DistributionRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging De’Angelo Johnson, a/k/a Cowboy, a/k/a D, age 31, of Maryland, with sex trafficking and distribution of heroin and cocaine. The indictment was returned on October 22, 2019.
The federal indictment 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; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Chief Lisa D. Myers of the Howard County Police Department; and Howard County State’s Attorney Rich H. Gibson, Jr.
“Sex traffickers prey on vulnerable women in order to profit by selling them for sex. These particularly cruel crimes often involve the use of violence and threats and the exploitation of victims’ drug addictions,” said U.S. Attorney Robert K. Hur. “Through the Maryland Human Trafficking Task Force, local, state and federal law enforcement partners are working with non-profit organizations to help human trafficking victims and prosecute the traffickers. Together, we are determined to rescue victims and bring sex traffickers to justice.”
According to the six-count indictment, from August 2018 through May 21, 2019, Johnson was a pimp, engaging in the business of recruiting, enticing, harboring, transporting, providing, obtaining, advertising, and maintaining women to engage in commercial sex acts for his own financial benefit. The indictment refers to five victims, all over the age of 18 and residents of Maryland, whom Johnson allegedly caused to engage in commercial sex acts for his own financial benefit, by means of force, fraud, and coercion.
The indictment alleges that Johnson routinely took half or all of the money the victims working for him had earned through sex acts and kept it for himself. Further, the indictment alleges that all of the sex trafficking victims suffered from serious substance abuse disorders, including addictions to heroin and crack cocaine. According to the indictment, Johnson sold narcotics, including heroin and crack cocaine, to the victims, who were required to pay him with whatever money they were permitted to retain from the sex acts they had performed. Johnson also was allegedly responsible for posting advertisements of the victims on websites that marketed commercial sex workers, often not allowing the victims to see or have access to the advertisements, even when they asked. Johnson allegedly communicated with potential sex customers regarding price, location, and all other logistics, often purporting to be the victim during these communications.
If convicted, Johnson faces a mandatory minimum sentence of 15 years in federal prison and a maximum sentence of life in federal prison for each of five counts of sex trafficking. Johnson faces a maximum sentence of 20 years in federal prison for distribution of controlled substances. An initial appearance has not yet been scheduled in U.S. District Court in Baltimore. Johnson remains detained on unrelated state charges.
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 investigated by law enforcement agencies who are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members of the Task Force include federal, state, and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html. Suspected instances of human trafficking can be reported to HSI’s tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Robert K. Hur commended HSI, the Baltimore County Police Department, the Howard County Police Department, and the Howard County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Hur thanked Assistant U.S. Attorney Mary Setzer, who is prosecuting the federal case.
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