District of Maryland
Press releases recorded for this federal judicial district.
Catonsville Man Pleads Guilty to Federal Charges for Sexual Exploitation of Children and CyberstalkingRead the Press Release
Baltimore, Maryland – Bilal Mohammad Siddiqui, age 22, of Catonsville, Maryland, pleaded guilty on October 18, 2019 to federal charges of sexual exploitation of children and cyberstalking.
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 Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, between April 2017 and August 2018, Siddiqui used the Internet-based communication services LiveMe, Snapchat, Kik, and FaceTime to coerce at least six minor females, ages 8 to 14, into creating and sending him sexually explicit images and videos of themselves. Siddiqui also attempted to sexually extort one of those victims, a sixth-grader. When she refused to produce additional sexually explicit videos of herself, he sent images and videos that she had previously shared with him to her sixth-grade classmates and friends.
Prior to September 2017, Siddiqui created an account on LiveMe, a mobile application that allowed users to stream live video over the internet and simultaneously chat with viewers. Siddiqui’s account included an anonymous username and a photograph of a young boy as his profile picture, so that other users would not realize he was an adult male. One of the users misled by Siddiqui was Jane Doe 1, an 8-year-old female.
On September 28, 2017, Jane Doe 1 was using LiveMe to broadcast a video of herself exercising in her pajamas. Siddiqui was among several LiveMe users watching the broadcast. When a number of those viewers asked Jane Doe 1 to show them her underwear, she refused, and eventually terminated the broadcast. Not long after, however, Jane Doe 1 began streaming a new LiveMe broadcast, and a number of her earlier broadcast viewers—including Siddiqui—followed her to the new broadcast. During the new broadcast, Jane Doe 1 told her viewers that she was 13 years old. Again, they enticed her to undress and expose herself. While she initially refused their requests, Jane Doe 1 eventually did what Siddiqui and other viewers asked, undressing and exposing her genitals to the camera.
Toward the end of Jane Doe 1’s broadcast, Siddiqui persuaded her to end her live stream and to contact him privately. They communicated via FaceTime, and during these video chats, Jane Doe 1 again told Siddiqui that she was 13 years old. He nonetheless instructed her to remove her shirt, pants, and underwear, then instructed Jane Doe 1 to use a marker to write “B-1-L-A-L”—his first name—on her skin next to her genitalia. He also instructed her to send him pictures of herself and her genitalia via text message. She complied with his instruction and sent Siddiqui at least one picture of herself.
After viewers of Jane Doe 1’s LiveMe broadcast reported the public conduct described above to the National Center for Missing and Exploited Children, law enforcement identified Siddiqui as the person who persuaded Jane Doe 1 to chat privately and obtained a search warrant for his residence. On September 5, 2018, officers executed the search warrant and located the cellphone that Siddiqui used to communicate with Jane Doe 1.
Siddiqui was present during the search, waived his Miranda rights, and voluntarily agreed to be interviewed by law enforcement. He admitted that the phone was his, that it was passcode-protected, that he had used LiveMe on the phone, and that he created the fake LiveMe profile using a photograph of a former classmate to disguise his identity. He admitted that he used his fake LiveMe account to communicate with Jane Doe 1, and later admitted—after initially denying—that he communicated privately with Jane Doe 1 through FaceTime, including instructing her to write his name next to her genitalia, and that he instructed her to send him nude images of herself via text message, believing Jane Doe 1 was 13 years old.
While Siddiqui was being interviewed, law enforcement conducted an on-scene forensic review of the phone and discovered evidence that he had also sexually exploited Jane Doe 2, a 9-year-old female. When officers asked Siddiqui about Jane Doe 2, he admitted that he created videos of her and estimated that there were ten videos of Jane Doe 2 engaging in sexually explicit conduct saved on his phone. Siddiqui explained that he began communicating with Jane Doe 2 in August 2018 using Snapchat, and continued as recently as September 3, 2018—two days before the search warrant execution. He explained that he captured the videos depicting this conduct by using his phone’s screen recording function, and that he believed Jane Doe 2 was 11 or 12 years old.
Finally, law enforcement asked Siddiqui whether he had engaged in similar conduct with any other children using mobile applications. He responded that he caused more than 10 but fewer than 50 minor females to do sexual things on video and that he derived sexual gratification from it.
Following Siddiqui’s interview, law enforcement sought and obtained records associated with online accounts controlled and used by Siddiqui. Those records showed that Siddiqui had coerced Jane Doe 4, an 11-year-old sixth-grader, into producing and sending him a nude image and nude videos of herself. Siddiqui began communicating with Jane Doe 4 on September 15, 2017, and told her that he was 15 years old and lived in her town. Within days, he had convinced Jane Doe 4 that they were in a relationship, and she revealed the name of the middle school that she was attending.
On October 4, 2017, however, Siddiqui began demanding that Jane Doe 4 send him sexually explicit images of her genitals, and threatened to send one of the videos of Jane Doe 4 to her classmates, friends, and family if she did not produce and send further videos of herself engaging in sexually explicit conduct. Siddiqui specifically told Jane Doe 4, “Don’t play games with me .... I’ll expose u [right now] and ruin your life.” Jane Doe 4 begged him not to follow through on his threats and sent him additional explicit videos. After she sent the videos, Siddiqui told Jane Doe 4 that it was “too late” because he had already sent them to her friends.
On October 7, 2017, Jane Doe 4 tried to end her relationship with Siddiqui through a conversation on Snapchat. Siddiqui reacted to Jane Doe 4’s attempt by demanding that she immediately produce videos of herself engaging in sexually explicit conduct. After she refused, Siddiqui sent one image and two videos—all of which depicted Jane Doe 4 nude—to two unidentified Snapchat users. On October 12, 2017, a classmate of Jane Doe 4 alerted her middle school guidance counselor that images of Jane Doe 4 were being circulated. School administrators conducted a brief investigation to ensure the images had been deleted but did not contact law enforcement.
Electronic evidence further revealed that, between April 2017 and September 2018, Siddiqui used Snapchat and Kik to entice three additional minors, an 11-year-old, a 12-year-old, and a 14-year-old, to produce and send him sexually explicit images and videos. In each instance, he lied about his real age to persuade these minors to send him such materials.
Siddiqui and the government have agreed that, if the Court accepts the plea agreement, he will be sentenced to between 15 and 30 years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for January 24, 2020 at 9:30 a.m.
United States Attorney Robert K. Hur commended the FBI and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Paul E. Budlow, who are prosecuting the case.
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Baltimore Man Sentenced to Six Years in Federal Prison for Possession of A FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Christopher Lovelace, a/k/a Fat Chris, age 41, of Baltimore, Maryland, to six years in federal prison, followed by three years of supervised release, for possession of a firearm by a convicted felon. As part of his guilty plea, Lovelace admitted to possessing fentanyl, as well as the gun.
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 Commissioner Michael Harrison of the Baltimore Police Department.
United States Attorney Robert K. Hur stated, “All too often, guns and drugs go hand in hand—and both are killers. Along with our local, state, and federal partners, we are committed to getting both off of our streets and to reducing violent crime in our neighborhoods. Christopher Lovelace brought both a gun and fentanyl to our streets, and now faces the reality of six years spent in a federal prison with no suspended sentences and no parole––ever.”
According to Lovelace’s plea agreement, on August 25, 2018, a Baltimore Police Officer was observing the 600 block of East 38th Street in northern Baltimore. The officer saw a woman walk up to the intersection of East 38th Street and Old York Road, and hand money to Lovelace. Lovelace then walked away from the woman, towards a dark-colored GMC Yukon, and retrieved something from the front of the car. He walked back towards the woman, and handed something to her. The officer recognized this exchange as a drug transaction, and called in other officers to arrest Lovelace, the woman, and to secure any relevant evidence.
After Lovelace was placed under arrest, officers found U.S. currency, gelcaps containing a white powdery substance, and the keys to the GMC Yukon on his person. During the search of the GMC Yukon, they found a loaded pistol and a clear plastic bag that contained gelcaps containing a white powdery substance, matching the ones found on Lovelace’s person.
Laboratory tests revealed that the gelcaps found on Lovelace during the search contained fentanyl.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Daniel Loveland and Sandra Wilkinson, who are prosecuting the case.
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Baltimore Man Pleads Guilty to Federal Charge for Possession of FentanylRead the Press Release
Baltimore, Maryland – Devron Lasha Young, Jr., age 22, of Baltimore, Maryland, pleaded guilty today to a federal charge of possession with intent to distribute approximately 75 grams of fentanyl and acetyl fentanyl—enough to kill 37,500 people. Young was charged in federal court as part of a federal-state initiative announced in December 2018 to combat the fentanyl crisis in Maryland.
Under this new 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 will prosecute 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.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“Local, state, and federal law enforcement partners in Baltimore City are teaming up to arrest and prosecute those who peddle the deadly poison of fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “As a result of our combined efforts, Devron Young now faces federal prison time, where there are no suspended sentences and no parole, ever. We must do everything we can to reduce overdose deaths from this drug and from all opioids.”
According to his guilty plea, on February 22, 2019, Young hailed an illegal taxi at the intersection of North Avenue and Pennsylvania Avenue in northwest Baltimore, the location of an openair drug market. Young offered the driver $10 to drive him a few blocks away, wait while he went into a building, and drive him back to the corner of North and Pennsylvania. Shortly after Young entered the vehicle, a Baltimore police officer stopped the car for a traffic violation. The officer asked the driver and Young where they were going. Young answered that the driver was a friend from school and that she was giving him a ride home. Neither statement was true.
When the officer asked the driver for her license and registration, she stated that they were in her wallet, which was located in a bag behind the driver’s seat. With the officer’s permission, she retrieved the bag. The officer saw that, aside from the driver’s wallet and some personal items, the bag contained only children’s diapers. The driver then returned the bag to the rear driver-side floor.
The driver produced a learner’s permit, but Young was unable to provide any form of identification. Young provided his personal information to the officer, who then advised Young and the driver that he was going to tow the vehicle because it was unregistered and uninsured. The officer returned to his vehicle to run law enforcement database inquiries on the driver and Young.
While the officer was in his patrol car, he observed Young reaching toward the rear passenger floor. The officer walked back to the vehicle and asked the driver to step out. He asked if there was anything illegal in the vehicle, and the driver told him there was not, then consented without hesitation to a search of the vehicle.
While the driver stayed outside the vehicle, the officer radioed for backup, and returned to the car to speak with Young. The officer asked Young if he had anything illegal on his person, which Young denied. Young then agreed to the officer’s request to perform a protective pat-down outside the vehicle. However, when the officer opened the door, Young tried to run away. Before Young could escape, the officer grabbed Young and placed Young under arrest.
Once Young was in custody, the officer searched the vehicle. He discovered that the bag had been moved to the middle of the vehicle’s back row. The officer seized the bag and noticed that, on top of the diapers, there was now a brown plastic bag that had not been there before. The brown plastic bag contained 30 separate packs holding a total of 752 capsules. The BPD Laboratory Section subsequently analyzed the capsules and determined that each contained both fentanyl and acetyl fentanyl.
Young and the government have agreed that, if the Court accepts the plea agreement, Young will be sentenced to five years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for January 17, 2020 at 11:00 a.m.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation and thanked Baltimore State’s Attorney Marilyn Mosby and her office for their assistance. Mr. Hur thanked Assistant U.S. Attorney Jeffrey J. Izant, who is prosecuting the case.
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Baltimore Repeat Offender Sentenced to 14 Years in Federal Prison for Conspiracy to Distribute Fentanyl, Heroin, and CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Kenneth Grossman, age 29, of Baltimore Maryland, to 168 months in federal prison, followed by five years of supervised release, for conspiracy to distribute fentanyl, heroin, and cocaine.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“Kenneth Grossman was a leader of a drug organization that brought the deadly combination of guns and drugs to the streets of Baltimore,” said U.S. Attorney Robert K. Hur. “Grossman will now serve 14 years in a federal prison far from home, where there is no parole—ever. Please put down the gun. You’ll save a life, maybe even your own.”
According to his plea agreement, from January 2017 until July 2018, Kenneth Grossman conspired to distribute fentanyl, heroin, and cocaine as a leader and member of the Young Finesse Kings (YFK), a drug shop that operated primarily in the German Park area of Baltimore City. During the course of the investigation, investigators from the FBI and the Baltimore Police Department obtained authority to intercept wire and electronic communications of members of the YFK drug shop and conducted physical surveillance of the YFK drug shop documenting many instances of Kenneth Grossman directing and coordinating drug shop operations.
On April 11, 2018, investigators intercepted phone calls which led them to believe that Grossman and several co-defendants were going to commit a retaliatory act of violence, after someone shot at co-defendant Knowledge Sharpe’s car. Sharpe contacted Grossman and other co-conspirators to get them to assist with the retaliation. Investigators immediately responded to the area where the conspirators had discussed meeting: Mount Royal Terrace and North Avenue, in the Central District of Baltimore City. While in the vicinity, investigators observed a gold Nissan van occupied by up to six individuals parked near Druid Park Lake, but the van left the area before investigators were able to stop it. A short time later investigators learned that a gun was discharged in the area of 1700 North Carey Street. Investigators checked the location information of Sharpe’s cellular telephone and compared it to time that the discharging occurred. At the time of the discharging, Sharpe’s cellular telephone was at a location in the same block of Carey Street.
Shortly afterwards, investigators located the gold van in the parking lot of the Security Mall in Baltimore. Kenneth Grossman and co-defendants, Knowledge Sharpe, Dana Dunnock, Anthony Whitaker, Quran Smoot, and another individual were subsequently seen exiting the mall and entering the van. Investigators surrounded the vehicle and stopped the van before it could exit the parking spot. Immediately upon opening the front passenger door, investigators observed a firearm on the front passenger floorboard. All occupants were detained and a search of the van showed six firearms within easy reach of all occupants. Specifically, a CM11 assault pistol with a loaded magazine was located on the front passenger-side floorboard (where Sharpe was sitting), a .32-caliber revolver loaded with 6 rounds and a .380-caliber revolver with a loaded magazine were in the rear third row cup holder and on the rear third row seat, respectively (where Grossman and the other individual were sitting), a 9mm pistol with a loaded magazine in the front center console near the driver (where Smoot was sitting), from Whitaker’s waistband area an officer recovered a .40-caliber handgun loaded with 5 rounds, and from Dunnock’s front waistband area an officer recovered a .45-caliber handgun loaded with 10 rounds and attached to a second magazine containing 9 more rounds. There was also a bag containing loose ammunition and a black ski mask located in the van. Black ski masks were also recovered from Grossman, Sharpe, and Whitaker. Kenneth Grossman and his co-conspirators possessed firearms in furtherance of their drug trafficking activities. Grossman had previous felony convictions and was therefore prohibited from possessing firearms or ammunition.
All nine defendants have pleaded guilty to their roles in the drug conspiracy or for possessing a firearm in the van with Grossman, including; Dana Dunnock, age 21; Knowledge Sharpe, age 19; Quran Smoot, age 21; and Anthony Whitaker, age 24, all of Baltimore. Six defendants, in addition to Kenneth Grossman, have been sentenced including Sharpe who was sentenced to 12½ years in federal prison; Whitaker who was sentenced to 13 years in federal prison; and Dunnock who was sentenced to 135 months in federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christine Goo and Brandon K. Moore, who are prosecuting the case.
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Former Prince George’s County Delegate Pleads Guilty to Federal Wire Fraud ChargeRead the Press Release
Greenbelt, Maryland – Former Maryland State Delegate Tawanna P. Gaines, age 67, of Berwyn Heights, Maryland, pleaded guilty today to a federal wire fraud charge, admitting that she converted more than $22,000 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.
“Our elected officials are entrusted to make decisions in the best interests of the people they represent, not to use their positions of authority to line their own pockets,” said United States Attorney Robert K. Hur. “We will pursue and prosecute those who betray the public trust and break the law, and bring them to justice.”
“Those who serve in public office positions must uphold the public’s trust. Sadly, Tawanna Gaines abused her position for personal gain,” said Special Agent in Charge Jennifer Boone of the FBI's Baltimore Division. “Today’s plea announcement sends a signal that the FBI will investigate any public official who attempts to abuse their position of trust to enrich themselves.”
According to her plea agreement, Gaines was a Maryland State Delegate from December 2001 through the present, representing District 22, which covered portions of Prince George’s County. Over her years in the House of Delegates, Gaines held many committee assignments, including vice-chair of the Appropriations Committee and Assistant Majority Leader. The “Friends of Tawanna P. Gaines” (FTPG) candidate committee was the name of the finance entity for the Gaines campaign for Maryland State Delegate from June 2002 to the present. FTPG was a regulated state election campaign committee with a designated bank account. Separately, Gaines held exclusive control over a PayPal account used to accept electronic donations to FTPG which was not disclosed in State campaign finance filings.
Gaines admitted that from at least January 2015 through April 2018, she defrauded the campaign and its contributors of more than $22,000. Specifically, Gaines solicited campaign contributions, falsely representing to contributors that the funds would be used to facilitate her reelection and maintain her leadership positions within the Maryland General Assembly. Gaines accepted donations from campaign contributors into the FTPG PayPal account, then without authorization and in violation of Maryland campaign finance laws, utilized campaign funds from the FTPG account for her personal use. Gaines admitted that she received campaign contributions and converted them to her own use without causing the contributions to be identified on reports made to the Maryland State Board of Elections.
As detailed in her plea agreement, Gaines used the campaign funds from the FTPG PayPal account to pay for personal expenses, such as fast food, hair styling, dental work, a cover for the pool at her personal residence, an Amazon Fire TV stick, Amazon Prime membership, and payments to Amazon.com. In addition, during the course of the conspiracy Gaines withdrew a total of approximately $1,952.75 in cash from ATM machines and electronically transferred at least $2,061.55 from the FTPG PayPal account directly to her personal checking account. The total loss as a result of Gaines’ fraud was at least $22,565.03. As part of her plea agreement, Gaines is required to forfeit and pay restitution in that amount.
Gaines faces a maximum sentence of 20 years in federal prison for wire fraud. U.S. District Judge Theodore D. Chuang has scheduled sentencing for January 3, 2020, at 10:00 a.m. She is released on her own recognizance under the supervision of U.S. Pretrial Services.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Thomas P. Windom, who is prosecuting the case.
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Serial Fraudster Sentenced to 46 Months in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Curlee Smittee, Jr., age 47, of Baltimore, to 46 months in federal prison, followed by five years of supervised release, for conspiracy to commit wire fraud and bank fraud, and for bank fraud, resulting in losses of more than $373,000. Judge Chasanow also entered an order requiring Smittie to pay restitution of $342,776.89.
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 Smittee’s plea agreement, from March 2013 through July 29, 2015, while Smittee was on supervised release from a previous federal fraud conviction, he and his long-time romantic partner, Douglina Rosa Battle, conspired to defraud at 15 banks and credit card companies.
As detailed in his plea agreement, Smittee and Battle submitted fraudulent credit card and loan applications using false employment and earnings information, and false personal information, including name, address and social security numbers. Once the cards and loans were obtained, Smittie and Battle used them primarily for personal spending, but also applied some of the funds to avoid or postpone default on other fraudulent loans or credit cards. For example, Smittee submitted fraudulent applications to obtain car loans, but after obtaining the loan did not purchase the vehicle, instead depositing the check into a bank account controlled by Smittee and/or Battle.
In all, Smittee and Battle obtained a total of 53 credit cards and personal loans from 15 banks and financial services companies, resulting in losses of more than $373,000. Eleven of the credit cards were obtained by Smittee while he was on federal pretrial release after pleading guilty to a federal fraud charge, in violation of the requirement that he “not open any new lines of credit without prior approval of Pretrial Services.”
Douglina Rose Battle, age 43, of Baltimore, also pleaded guilty to the fraud scheme and was sentenced to four months in federal prison, followed by four months of home detention as part of three years of supervised release. Battle was also ordered to pay restitution of $188,746.81.
United States Attorney Robert K. Hur praised the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
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Member of Baltimore’s Violent “Murdaland Mafia Piru” Bloods Gang Sentenced to 30 Years in Federal Prison for Racketeering and Drug ConspiraciesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Shakeen Davis, a/k/a “Creams,” age 25, of Baltimore, Maryland to 30 years in federal prison, followed by five years of supervised release, for racketeering and drug conspiracies related to his participation in the gang activities of the Murdaland Mafia Piru (MMP), a subset of the Bloods gang. Davis was also convicted of possession with intent to distribute crack cocaine; two counts of possession of a firearm by a felon; and possession of a firearm in furtherance of a drug trafficking crime. The evidence established that Davis attempted to murder two individuals on May 30, 2015, firing multiple rounds at his intended victims with an assault rifle in the middle of a busy intersection in broad daylight. The jury returned its guilty verdict on April 30, 2019.
“Armed drug traffickers are on notice that federal, state and local law enforcement are working together to target leaders and key members of violent gangs,” said U.S. Attorney Robert K. Hur. “We will not tolerate those who peddle death through drugs and gun violence in our neighborhoods. Shakeen Davis will now spend 30 years in federal prison. This sentence sends a strong message that gun crime can lead to federal time, where there is no parole—ever. Please put down the gun. You’ll save a life, maybe even your own.”
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; 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.
According to court documents and 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. MMP was modeled after the Italian Mafia and was organized hierarchically, with “the Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath. For many years, MMP has controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County, including Forest Park, Windsor Mill, Gwynn Oak, Howard Park, Woodlawn, and Walbrook Junction. 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’s members enriched themselves through drug trafficking and other criminal activities, and using violence and threats of violence to intimidate or retaliate against witnesses, protect the gang’s territories, enforce debts, and eliminate rivals.
According to trial testimony, one of the founding principles of the gang was a rule against cooperation with law enforcement. Violations of this rule were punishable by death. MMP members enhanced their status within the gang by carrying out acts of violence against rivals. For instance, members could earn a lightning bolt tattoo for “killing for the Mob.” MMP members, including Davis, 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. Davis posted photographs and comments to social media websites in which he boasted about his membership in MMP and flaunted firearms. For example, on March 9, 2016, Davis posted a comment that said, “Go Against the MOBB GET MURDERED.” The evidence proved that members and associates of MMP participated in the gang’s affairs through a pattern of racketeering activities, including murder, extortion, witness tampering and retaliation, and drug distribution. According to witness testimony, Davis sold both cocaine and heroin and had guns, including an AR-15.
According to trial evidence, on May 30, 2015, Davis attempted to murder two victims in furtherance of MMP. Davis fired at least nine rounds at the two individuals with an assault rifle in broad daylight as the victims sat in their car at a busy intersection. One individual suffered graze wounds to his back, and both victims suffered cuts from broken glass. A witness testified that the shooting was in retaliation for the victims pulling a gun on another MMP member earlier that day.
On April 26, 2016, Davis was arrested by members of the Baltimore County Police Department. The officers recovered a loaded, stolen, police-issue handgun, a loaded AR-15 rifle (with a shoulder strap), and several cell phones from the trunk of Davis’s vehicle. They also recovered a balaclava mask, a small, digital scale, and a bottle of the cutting agent Inositol. Davis is prohibited from possessing firearms or ammunition as a result of a previous felony firearm conviction.
One of the cell phones seized from Davis on April 26, 2016 contained hundreds of text messages in which Davis arranged drug transactions with customers. These included text messages in which customers asked for specific quantities of “boy” and “girl”—street terms for heroin and cocaine, respectively, as well as texts in which Davis advertised the potency of the drugs he had for sale—e.g., “Got fire,” or “I got a bomb.” Importantly, on April 9, 2016, a drug customer who had recently purchased drugs from Davis sent him a text message indicating that he had overdosed and wound up in the hospital. The customer said: “Made it through detox, ended up in the hospital but I’m better now, I’ll send people your way if they are looking.” The cell phone also contained text messages in which Davis indicated that he was “beefing with” certain individuals and was “hunting” for them in order to kill them.
On August 5, 2016, Davis received a message from a co-defendant using coded language to ask Davis to get three guns. On the morning of August 10, 2016, that co-defendant and others abducted, bound, robbed, and murdered Ricardo Johnson, a/k/a “Uncle Rick,” then attempted to set his body on fire. Johnson was found hog-tied, blindfolded, and with over 20 bullet wounds, in the back of a stolen van in at 6:25 a.m. on August 10. The government presented evidence at trial that Davis was involved in Johnson’s murder, including witness testimony that was present when the co-defendant discussed kidnapping and robbing “Uncle Rick,” whom they believed had a lot of drugs. Davis also spoke with the co-defendant by phone at 3:07 a.m. on August 10—roughly half an hour after Johnson had been abducted, and had 12 phone calls with the co-defendant on the day before the murder.
On April 29, 2019, the final day of trial before the case went to the jury for deliberation, Davis was caught trying to smuggle razor blades into the federal courtroom. A Deputy U.S. Marshal conducted a routine search of Davis’s person before he was brought into the courtroom and recovered two razor blades, approximately 3/4-inch in length, located inside each of Davis’s shoes.
Twenty-five defendants have been convicted in the case, including Davis, MMP leader Dante Bailey, Randy Banks, Jamal Lockley, and Corloyd Anderson, who were convicted on April 30, 2019 after a six-week trial. Twenty defendants, including Davis, have been sentenced, with most receiving between 10 and 30 years in federal prison. Judge Blake has scheduled sentencing for Dante Bailey, a/k/a “Gutta,” “Almighty,” and “Wolf,” age 40, of Windsor Mill, Maryland on November 8, 2019; for Jamal Lockley, a/k/a “T-Roy” and “Droid,” age 40, of Baltimore, on November 4, 2019; and for Corloyd Anderson, a/k/a “Bo,” age 36, of Owings Mills, Maryland on November 26, 2019. They all face a maximum of life in 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 A. Hoffman and Lauren E. Perry, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Correctional Officer Pleads Guilty to Federal Racketeering Charge Related to Maryland Correctional Institute JessupRead the Press Release
Greenbelt, Maryland – Correctional Officer Janel Griffin, age 41, of Baltimore, pleaded guilty today to a federal racketeering charge for participating in a scheme to smuggle contraband into the Maryland Correctional Institute Jessup (MCIJ), including narcotics, unauthorized flash drives, tobacco, and cell phones into the prison. Inmate Corey Alston, a/k/a “C,” age 29, pleaded guilty on September 18, 2019, to the same charge.
The 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 Secretary Robert L. Green, of the Maryland Department of Public Safety and Correctional Services.
“This case demonstrates that we will not tolerate employees in positions of trust violating their oaths. Federal, state, and local officials will continue to work together to root out corrupt employees and others who undermine the administration of justice at our prisons,” said U.S. Attorney Robert K. Hur.
According to court documents, MCIJ was a medium-security prison in Anne Arundel County, Maryland, that housed approximately 1,100 male inmates, with 262 custody staff or Correctional Officers (COs) and 52 non-custody staff, including case management, medical, and administrative staff.
According to her plea agreement, Griffin smuggled contraband into MCIJ for at least inmate Corey Alston, including narcotics and tobacco. At Alston’s direction, Griffin met with co-conspirator facilitators, including Tyirisha Johnson, to receive contraband as well as bribe payments. Recorded jail calls between Alston and others confirm that between April 16 and August 14, 2017, Griffin met with Johnson or another facilitator on at least six occasions to obtain contraband and at least $2,800 in bribe payments. Griffin smuggled the contraband, including Suboxone and Percocet, into MCIJ.
Inmate Corey Alston admitted that he was a leader in the racketeering conspiracy. As detailed in the plea agreement, Alston conspired with four outside facilitators, including Johnson, who obtained and packaged contraband, met with the correction officers and employees to provide contraband and bribe payments, and managed the proceeds of illegal contraband sales for Alston. According to his plea agreement Griffin and another MCIJ employee brought the contraband into the prison for Alston, in exchange for bribe payments, and Alston conspired with another inmate to sell the contraband to other inmates.
Alston was overheard by law enforcement on a series of recorded calls arranging for contraband to be smuggled into MCIJ and arranging payment for the contraband and for bribes.
Griffin and Alston each face a maximum sentence of 20 years in prison. U.S. District Judge Paula Xinis has scheduled sentencing for Griffin on February 6, 2020, at 1:00 p.m. Tyirisha Johnson, age 23, of Baltimore, pleaded guilty to her role in the conspiracy on July 23, 2019. Johnson and Alston are also expected to be sentenced in February 2020.
This case arose from the efforts of the Maryland Prison Task Force, coordinated by the U.S. Attorney’s Office and comprised of local, state, and federal stakeholders that meet regularly to share information and generate recommendations to reform prison procedures and attack the gang problem that has plagued Maryland in recent years. The work of the Task Force previously resulted in the federal convictions of more than 80 defendants, including 16 correctional officers, at the Eastern Correctional Institution, and 40 defendants, including 24 correctional officers, at the Baltimore City Detention Center.
United States Attorney Robert K. Hur commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the MCIJ investigation and have been full partners in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Lauren E. Perry and Sean R. Delaney, who are prosecuting this case.
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Baltimore Felon Pleads Guilty to Federal Charge for Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – Malik Moseley, age 28, of Baltimore, Maryland, pleaded guilty today to a federal charge for being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Commissioner Michael Harrison of the Baltimore Police Department; and Anne Arundel County Police Chief Tim Altomare.
“This case is part of the initiative undertaken by state and federal law enforcement to reduce fentanyl overdoses in Baltimore. Under this program, prosecutors in Baltimore City, the U.S. Attorney’s Office, and DEA agents are reviewing every arrest involving distribution of fentanyl in Baltimore, with the support of the Baltimore City Police Department’s Laboratory Section,” said U.S. Attorney Robert K. Hur. “I am grateful to Baltimore City State’s Attorney Marilyn Mosby for providing a cross-designated Assistant State’s Attorney to facilitate and coordinate this review.”
According to his guilty plea, in September and October 2018, members of the Baltimore Police Department conducted two controlled purchases of drugs from Moseley at a residence in the 400 block of Freeman Street in South Baltimore. Law enforcement officers also conducted covert surveillance outside the residence and observed Moseley and another individual engage in suspected hand-to-hand drug transactions in front of the home.
Based on this information, BPD officers obtained a search warrant for the residence, which they executed on October 17, 2018. At the time, Moseley had an open arrest warrant from Anne Arundel County, Maryland. While approaching the residence, the officers observed Moseley standing outside, and they immediately apprehended and arrested him. In a search of Moseley’s person incident to his arrest, the officers recovered a 9mm semi-automatic pistol, loaded with eight rounds of ammunition; a plastic bag containing nine suboxone strips, and $790 in cash. Moseley had a previous felony conviction and was therefore prohibited from possessing a firearm or ammunition.
During the search of the residence, the officers recovered bags containing a total of approximately 47 grams of fentanyl; a bag containing approximately 5 grams of a heroin-fentanyl mixture; drug paraphernalia, including three digital scales with drug residue; razor blades with residue; a glass plate with residue; a pill press with residue; and various drug packaging material. In addition, law enforcement recovered a gun holster; two remote-control surveillance drones; a home surveillance system with two high-definition cameras; $101 in cash, and $30 in counterfeit currency.
Moseley faces a maximum of 10 years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for January 23, 2020 at 10:30 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 DEA, the Baltimore Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Christina A. Hoffman, who is prosecuting the case.
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Ponzi Scheme Promoter Sentenced to 22 Years in Federal Prison for $396 Million Scheme—The Largest Ever Charged in MarylandRead the Press Release
Defrauded Investors Across the Country
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Kevin B. Merrill, age 54, of Towson, Maryland, to 22 years in federal prison, followed by three years of supervised release, for conspiracy and wire fraud 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 Merrill’s arrest. Judge Bennett also ordered Merrill to pay restitution in the full amount of the victims’ losses, which will be determined later, but 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.
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.
“Kevin Merrill lured investors through an elaborate web of lies, duping them into paying millions of dollars into this Ponzi scheme,” said U.S. Attorney Robert K. Hur. “As a result of this scheme, a number of victims were devastated, losing their life savings. This sentence sends a strong message that federal prosecutors, federal agents, and our SEC partners will continue to work together to investigate and prosecute those who perpetrate these kind of fraud schemes for their personal gain—leaving a wave of victims in their wake.”
“Considering there were hundreds of victims and millions of dollars lost, it is fitting that Kevin Merrill will be spending a significant amount of time in federal prison,” said Special Agent in Charge Jennifer Boone of the FBI's Baltimore Division. “The FBI, and our partners, are firmly committed to holding accountable fraudsters who victimize the public by selling a false bill of goods.”
According to his plea agreement, beginning in January 2013, Merrill and his co-conspirators, Jay B. Ledford and Cameron R. Jezierski, perpetrated a Ponzi scheme to defraud investors of more than $396 million. Specifically, Merrill and Ledford invited investors to join them in purchasing consumer debt portfolios. Merrill knowingly used fictitious sales agreements and other documents, including tax returns, provided by Ledford, to induce individuals to invest with his companies, Delmarva Capital and Global Credit Recovery. For 2013, Merrill deposited 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 supplying Merrill with fictitious documents, while Merrill was the “front man,” promoting the fraudulent investments to potential investors.
Specifically, 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., Northern Virginia, Boulder, Texas, Chicago, New York, and elsewhere.
To induce investors to participate, Merrill 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 their plea agreements, sometimes there was no underlying debt portfolio purchased with the investors’ money. To conceal the truth, Merrill, Ledford, and Jezierski 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, created false 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 Cameron Jezierski to manage debt collections for Riverwalk/DeVille. 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 Merrill and Ledford added to the purchase price charged to investors for debt portfolios.
Further, Merrill and Ledford 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. Merrill and Ledford provided monthly or quarterly reports to investors regarding the “purported progress of the portfolio and its recovery,” which Merrill and Ledford created. From 2013 to 2018, the scheme to defraud took in over $396 million, and 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 diverted fraud proceeds to purchase and renovate a home in Las Vegas, Nevada; refinance a home in Texas; gamble at casinos; purchase luxury automobiles and jewelry; and to support a lavish lifestyle.
Finally, Merrill admitted that while the scheme was ongoing, he met with the FBI, lied to the investigating agents, and provided false documents to the FBI. As detailed in his plea agreement, after his arrest, Merrill attempted to obstruct justice by causing his wife to remove assets from their Naples, Florida home on October 13, 2018, and by preparing a handwritten note instructing his wife to conceal assets from the court-appointed receiver, which he intended to hold up to the glass in the detention center on December 5, 2018, when his wife visited. These actions violated the restraining order with which Merrill was served in the criminal case, and the preliminary injunction ordered by the Court in the SEC’s civil action.
The Court has appointed a receiver to marshal the assets for the benefit of the victims.
U.S. District Judge Richard D. Bennett has scheduled sentencing for Jay B. Ledford, age 55, of Westlake, Texas and Las Vegas, Nevada, on October 29, 2019, at 10 a.m. and for Cameron Jezierski, age 28, of Fort Worth, Texas, 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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Former Montgomery County Music Teacher Facing Federal Indictment for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – A federal grand jury today returned an indictment charging Charles Victor Kopfstein-Penk, age 74, of Bethesda, Maryland, with possession of child pornography. Kopfstein-Penk, a music teacher who gave lessons out of his home, was arrested earlier this year on related state charges.
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; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Montgomery County State’s Attorney John McCarthy.
According to the indictment, Kopfstein-Penk possessed images depicting the sexual abuse of children, including images of child pornography involving a prepubescent minor. The indictment also seeks the forfeiture of any property traceable to profits from the offense or used to commit the offense, including a desk top computer and five external hard drives.
Anyone who may have information about possible victims or details related to the investigation of Charles Victor Kopfstein-Penk is asked to contact the Maryland Center for Missing and Exploited Children at 1-800-637-5437.
If convicted, Kopfstein-Penk faces a maximum sentence of 20 years in federal prison for possession of child pornography. Kopfstein-Penk had an initial appearance in U.S. District Court in Greenbelt, and was released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 HSI, the Maryland State Police Internet Crimes Against Children Task Force, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Rajeev Raghavan and Kristi N. O’Malley, who are prosecuting the federal case.
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Federal Jury Convicts Baltimore Heroin and Fentanyl DealerRead the Press Release
Baltimore, Maryland – A federal jury convicted Maximo Gondres-Medrano, age 35, of Baltimore, Maryland, after a three-day trial for the federal charge of possession with intent to distribute more than 400 grams of fentanyl and heroin. The jury returned its verdict late on October 9, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; and Commissioner Michael Harrison of the Baltimore Police Department.
“State and federal law enforcement and prosecutors in Baltimore City 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. “I am grateful to Baltimore City State’s Attorney Marilyn Mosby, who shares my resolve and has cross-designated an Assistant State’s Attorney from her office, so that we are effectively using our resources to coordinate our efforts. We are committed to reducing overdose deaths from fentanyl and from all opioids.”
According to evidence presented at his three-day trial, on September 8, 2017, federal law enforcement prepared an operation to arrest and search Gondres-Medrano based on information that he would be transporting a large quantity of narcotics. The agents observed Gondres-Medrano leave his residence in the 800 block of Whitelock Avenue, in Northwest Baltimore, carrying a shoebox believed to contain narcotics, and then enter the passenger seat of a vehicle. The vehicle was stopped and law enforcement recovered the box, which contained a wrapped package of almost 793 grams of a mixture of heroin and fentanyl—a quantity sufficient to kill hundreds of thousands of people. During the investigation, federal law enforcement learned that on August 24, 2017, Gondres-Medrano received a shipment of suspected narcotics in a commercial mail shipping envelope from Mexico. Gondres-Medrano used his phone to record a series of instructional videos of himself opening the envelope while he demonstrated how the narcotics were successfully concealed within the envelope so that it would not be detected. In the videos, Gondres-Medrano filmed himself opening the envelope, peeling back a black film that masked the drugs that came from Mexico, and showing the suspected heroin/fentanyl to viewers.
In a recorded interview with law enforcement after his arrest, Gondres-Medrano admitted that the August 24, 2017 shipping envelope contained heroin, and provided information about his drug trafficking activity. Gondres-Medrano admitted that he had multiple sources of supply of heroin and ordered kilogram-sized quantities from them. Gondres-Medrano testified at trial and denied that he carried the shoebox of narcotics to the car on September 8, 2017, and asserted that he never looked inside the nearly 793 gram package to see that it contained narcotics. However, on cross examination, he admitted that he had taken delivery of the narcotics, which he knew to contain heroin, from one of his sources of supply in order to deliver it to another individual.
Gondres-Medrano faces a mandatory minimum sentence of 10 years in federal prison and a maximum sentence of life in federal prison. U.S. District Judge George L. Russell, III has not yet scheduled Gondres-Medrano’s sentencing.
United States Attorney Robert K. Hur commended the FBI, HSI, and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Jeffrey M. Hann, an Assistant State’s Attorney from the Office of the State’s Attorney for Baltimore City who is cross-designated to handle fentanyl and other drug cases in federal court, and Assistant U.S. Attorney Derek E. Hines, who are prosecuting the case.
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Baltimore Drug Dealer Sentenced to More Than 12 Years in Federal Prison for Conspiracy to Distribute Fentanyl, Heroin, and CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Knowledge Sharpe, age 19, of Baltimore Maryland, to 12 ½ years in federal prison, followed by five years of supervised release, for conspiracy to distribute fentanyl, heroin, and cocaine, and for assaulting a federal officer.
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; U.S. Marshal Johnny Hughes; Commissioner Michael Harrison of the Baltimore Police Department; and Anne Arundel County Police Chief Tim Altomare.
“Knowledge Sharpe brought the deadly combination of guns and drugs to the streets of Baltimore,” said U.S. Attorney Robert K. Hur. “Not only did he endanger members of his own community, but he also attacked a federal law enforcement officer. This sentence demonstrates that we will hold accountable criminals who attempt to terrorize law-abiding citizens and those who are sworn to protect them. Sharpe will serve over 12 years in a federal prison far from home, where there is no parole—ever. Please put down the gun. You’ll save a life, maybe even your own.”
According to his plea agreement, from January 2017 until July 2018, Sharpe conspired to distribute fentanyl, heroin, and cocaine as a member of the Young Finesse Kings (YFK), a drug shop that operated primarily in the German Park area of Baltimore City. During the course of the investigation, investigators from the FBI and the Baltimore Police Department obtained authority to intercept wire and electronic communications of members of the YFK drug shop and conducted physical surveillance of the YFK drug shop observing many instances of drug trafficking.
On April 11, 2018, investigators intercepted phone calls which led them to believe that Sharpe and several co-defendants were going to commit a retaliatory act of violence, after someone had shot at Sharpe’s car. Sharpe contacted his co-conspirators to get them to assist with the retaliation. Investigators immediately responded to the area where the conspirators had discussed meeting: Mount Royal Terrace and North Avenue, in Baltimore City. While in the vicinity, investigators observed a gold Nissan van occupied by up to six individuals parked near Druid Park Lake. That Nissan van was registered to an address used by one of Sharpe’s co-defendants. The van left the area before investigators were able to stop it. A short time later investigators learned that a gun was discharged in the area of 1700 North Carey Street. Investigators checked the location information of Sharpe’s cellular telephone and compared it to time that the discharging occurred. At the time of the discharging, Sharpe’s cellular telephone was at a location in the same block of Carey Street.
Shortly afterwards, investigators located the gold van in the parking lot of the Security Mall in Baltimore. A short time later, Sharpe and co-defendants Kenneth Grossman, Dana Dunnock, Anthony Whitaker, Quran Smoot, and another individual were seen exiting the mall and entering the van. Investigators surrounded the vehicle and stopped the van before it could exit the parking spot. Immediately upon opening the front passenger door, a firearm was observed on the front passenger floorboard. All occupants were detained and a search of the van showed six firearms within easy reach of all occupants. Specifically, a CM11 assault pistol with a loaded magazine was located on the front passenger-side floorboard (where Sharpe was sitting), a .32-caliber revolver loaded with 6 rounds and a .380-caliber revolver with a loaded magazine were in the rear third row cup holder and on the rear third row seat, respectively (where Grossman and the other individual were sitting), a 9mm pistol with a loaded magazine in the front center console near the driver (where Smoot was sitting), from Whitaker’s waistband area an officer recovered a .40-caliber handgun loaded with 5 rounds, and from Dunnock’s front waistband area an officer recovered a .45-caliber handgun loaded with 10 rounds and attached to a second magazine containing 9 more rounds. There was also a bag containing loose ammunition and a black ski mask located in the van. Black ski masks were also recovered from Sharpe, Whitaker, and Grossman. Sharpe admitted that he possessed a firearm in furtherance of his drug trafficking activities. At sentencing, prosecutors proved that Sharpe also made a credible threat of violence.
Sharpe also attacked an employee of the Department of Public Safety and Correctional Services (DPSCS) while he was a pretrial detainee at the Chesapeake Detention Facility, which is run by the U.S. Marshals and maintained by the DPSCS. The victim had denied Sharpe’s request for a second meal. When the victim returned to Sharpe’s housing area later, Sharpe sneaked up behind the victim, struck the victim with a closed fist to his face, and continued to strike the victim after he had fallen to the ground. Other federal detainees also struck the victim, as well as another person who had come to the victim’s aid. After the fight, which was broken up by deploying pepper spray, the two victims of the attack were treated for their injuries.
All nine defendants have pleaded guilty to their roles in the drug conspiracy or for possessing a firearm in the van with Sharpe, including Kenneth Grossman, age 29; Dana Dunnock, age 21; Quran Smoot, age 21; and Anthony Whitaker, age 24, all of Baltimore. Six defendants have been sentenced including Sharpe, Dunnock who was sentenced to 135 months in federal prison, and Whitaker who was sentenced to 13 years in federal prison.
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 U.S. Marshal Service, the Baltimore Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christine Goo and Brandon K. Moore, who are prosecuting the case.
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Wife of Ponzi Scheme Perpetrator Pleads Guilty to Federal Charge for Conspiring to Remove and Conceal Assets in Violation of Court OrdersRead the Press Release
Baltimore, Maryland – Amanda Mahlstedt Merrill, age 30, of Towson, Maryland, pleaded guilty today to the federal charge of conspiracy to remove property to prevent seizure, obstruct justice, and disobey court orders.
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 Robert W. Manchak of the Federal Housing Finance Agency, Office of Inspector General.
“This prosecution demonstrates our commitment to the integrity of the judicial process. When the district court enters an order in a case, we expect the affected persons to abide by the order, not conspire to remove and hide assets,” said U.S. Attorney Robert K. Hur. “We will prosecute those, like Amanda Merrill, who hide assets which are subject to seizure, who obstruct justice, and who attempt to keep ill-gotten gains for their own benefit rather than restoring them to the victims of fraud.”
According to her plea agreement, on September 11, 2018, Amanda Merrill’s husband, Kevin Merrill, was indicted on federal charges of conspiracy to commit wire fraud, identity theft, money laundering conspiracy, and money laundering, in connection with a $394 million Ponzi scheme. The indictment included a forfeiture allegation for $39 million, six real estate properties, 25 cars, a boat, an interest in an aircraft, an insurance policy, and jewelry. The properties to be forfeited included the Merrills’ residence in Towson and a home on Spyglass Lane in Naples, Florida. On September 13, 2018, the Securities and Exchange Commission (SEC) brought a civil enforcement action against Kevin Merrill, other persons and entities, and Kevin Merrill’s companies. The Court issued a temporary restraining order freezing assets and granting other emergency relief and appointed a temporary receiver. Anyone receiving notice of the receivership order who possessed property, business books, records, accounts, or assets of the receivership parties was directed to provide those items to the receiver.
On September 18, 2018, Kevin Merrill was arrested at his residence in Towson and agents seized jewelry, his watch collection, cars, and over $520,000 in cash, mostly from a safe. Kevin Merrill was subsequently ordered to be detained pending trial as a risk of flight and a risk of obstruction of justice. FBI Special Agents provided Amanda Merrill with a receipt of items taken and asked her to disclose any information to assist agents in locating items not collected at the residence. Amanda Merrill was counseled by the FBI agents to be completely truthful in her answers and was warned against attempting to hide or move assets. Amanda Merrill’s counsel was also provided with a copy of the restraining order and the receivership order.
Nevertheless, beginning on October 3, 2018, Amanda Merrill redeemed the points on an American Express business credit card belonging to Kevin Merrill, even though she was not an authorized user. Amanda Merrill received 127 gift cards worth $26,075 for retail businesses such as Target, Home Depot, Nordstrom, Sephora, and Starbucks.
On October 13, 2018, Amanda Merrill and another individual traveled by plane to Naples, Florida, to the Spyglass Lane property, which the Merrills had purchased earlier that year for $10 million. The Merrills were captured on several recorded jail calls that day discussing Amanda Merrill’s trip to the Florida property, which they referred to in coded language as “the restaurant.” On the recorded jail calls, Kevin and Amanda Merrill discussed how to open the safe at the property. Amanda Merrill removed cash and other items from the home, which she placed into her purse, two large suitcases, and a carry-on bag. She told the other individual who accompanied her on the trip that she intended to tell her attorney that she had found the safe unlocked and empty. Video footage from BWI Airport security for October 13, 2018 shows Amanda Merrill returning from Florida rolling a carry-on bag and holding a large purse. Video footage revealed that Amanda Merrill also retrieved two large suitcases from the baggage carousel. American Express statements for Kevin Merrill’s business card (for which Amanda Merrill was not an authorized user) also show the purchase of plane tickets for Amanda Merrill and her companion, and payment for a rental car. Amanda Merrill’s American Express statement shows two airline charges of $75 each for two pieces of luggage, each of which was over the 50-pound limit, for the trip from Ft. Myers, Florida to BWI.
On October 30, 2018, counsel for Amanda Merrill e-mailed a letter directed to “Government, SEC, and Receiver,” which stated, among other things, that Amanda Merrill and her companion had gone to the house in Naples, Florida and “the unlocked safe at the house was empty,” and that they had removed six boxes of children’s clothing and personal items. The statement was false because Amanda Merrill misrepresented what had happened in Florida to her counsel and omitted the cash, the over-weight-limit suitcases, and the carry-on luggage in talking with her attorney.
In early November 2018, FBI Special Agents executed search warrants at the Merrill homes in Towson and Naples. In the Towson home, agents discovered approximately $15,378 in cash, $8,878 in a purse in Amanda Merrill’s bedroom, with the remainder in a closet drawer. Agents also located the two large suitcases, which were still tagged from the trip, but were empty, as well as the six boxes of children’s clothing and personal items in the Towson home. In the Florida home, agents used the transcription of the recorded jail call to gain access to the safe, which was empty.
According to the plea agreement, at sentencing the government will recommend that Amanda Merrill serve 12 months on electronic home monitoring with work release and restitution. U.S. District Judge Richard D. Bennett has scheduled sentencing for January 22, 2020 at 3:00 p.m.
Kevin Merrill, age 54, of Towson, previously pleaded guilty to conspiracy and wire fraud arising from his role in a $394 million investment fraud scheme that operated from 2013 through September 2018. Merrill faces a maximum of 40 years in prison for the wire fraud conspiracy and for wire fraud, as well as a possible fine of $500,000, or twice the gross gain, at his sentencing hearing scheduled to begin on October 10, 2019.
United States Attorney Robert K. Hur commended the FBI in Baltimore 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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Towson Man Sentenced to 12 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – On October 8, 2019, U.S. District Judge Deborah K. Chasanow sentenced Stephen Bayne Fields, Jr., age 47, of Towson, Maryland, to 12 years in federal prison, followed by lifetime supervised release, for distribution of child pornography. Fields admitted using multiple social media accounts to send and receive video and still images of children engaging, and being used to engage in, sexually explicit conduct via the Internet. Judge Chasanow also ordered that, upon his release from prison, Fields 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); Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Fields’ plea agreement, between July and September 2018, Fields used four social media accounts under alias names that were variations of a name beginning with the letter “T” and each included images of an adult female by that name as profile photos. “T” was 20 years old at the time and was known personally to Fields, who obtained the profile photos for his alias accounts from a genuine social media account used by “T” in her own name.
Fields admitted that during this time, using the four social media accounts created using “T’s” name and photos, he sent and received child pornography on numerous occasions. For example, as detailed in the plea agreement, while posing as “T” in July 2018, Fields sent messages to other social media users stating that he (or she) lived in Maryland and requesting “young girl pictures.” Between July 24 and September 2018, Fields received at least five videos depicting prepubescent minors engaged in sexually explicit conduct from other social media users. Fields also sent at least three videos and one still image depicting minors engaged in sexually explicit conduct to other users.
On August 30 and 31, 2018, Fields corresponded through the social media accounts with another user discussing that person’s sexual abuse of a seven-year-old minor female. Fields received two videos from the user depicting an adult male engaging in sexually explicit conduct with a prepubescent female. Fields also sent the other user a sexually explicit video. During their conversations, Fields asked the user to send him photos or videos of the user sexually abusing the girl.
Law enforcement became aware of Fields’ alias accounts through a series of Cybertipline reports made to the National Center for Missing and Exploited Children. Internet Protocol addresses used in August 2018 to access three of these accounts were subscribed by Fields at his residence in Towson. Law enforcement executed a search warrant at the residence and seized a laptop computer and other electronic devices.
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, HSI-Baltimore, the Baltimore County Police Department, and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who prosecuted the federal case.
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Prince George’s County Delegate Facing Federal Wire Fraud ChargeRead the Press Release
Greenbelt, Maryland – A federal criminal information was filed today charging Maryland State Delegate Tawanna P. Gaines, age 67, of Berwyn Heights, Maryland, with a federal wire fraud charge. An initial appearance and arraignment is expected to be scheduled later this week in U.S. District Court in Greenbelt.
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 criminal information, Gaines was a Maryland State Delegate from December 2001 through the present, representing District 22, which covered portions of Prince George’s County. Over her years in the House of Delegates, Gaines held many committee assignments, including vice-chair of the Appropriations Committee and Assistant Majority Leader. The “Friends of Tawanna P. Gaines” (FTPG) candidate committee was the name of the finance entity for the Gaines campaign for Maryland State Delegate from June 2002 to the present. FTPG was a regulated state election campaign committee with a designated bank account. Separately, Gaines held exclusive control over a PayPal account used to accept electronic donations to FTPG which was not disclosed in State campaign finance filings.
The criminal information alleges that from at least January 2015 through April 2018, Gaines defrauded the campaign and its contributors of more than $22,000. Specifically, the information alleges that Gaines solicited campaign contributions representing that the funds would be used to facilitate her reelection and maintain her leadership positions within the Maryland General Assembly. Gaines allegedly accepted donations from campaign contributors into the FTPG PayPal account, then without authorization and in violation of Maryland campaign finance laws, utilized campaign funds from the FTPG account for her personal use. According to the criminal information, Gaines received campaign contributions and converted them to her own use without causing the contributions to be identified on reports made to the Maryland State Board of Elections.
If convicted, Gaines faces a maximum sentence of 20 years in federal prison for wire fraud.
A criminal information is not a finding of guilt. An individual charged by criminal information is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Thomas P. Windom, who is prosecuting the case.
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Previously Convicted Sex Offender Sentenced to More Than 19 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander today sentenced Alexander Massari, age 53, of Owings Mills, Maryland, to 230 months in federal prison, followed by lifetime supervised release, for distribution of child pornography. Judge Hollander also ordered that, upon his release from prison, Massari 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 and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“Crimes involving child pornography perpetuate the cruel and heartless business of the sexual abuse of children for personal gain,” said U.S. Attorney Robert K. Hur. “This sentence sends a clear message that we will bring to justice those who would victimize innocent children.”
According to his guilty plea, on March 15, 2018, federal investigators executed a federal search warrant for two e-mail accounts associated with Massari after the National Center for Missing and Exploited Children (NCMEC) received a Cybertipline Report that one of those accounts had sent or possessed child pornography. The video file associated with the tip contained images documenting the sexual abuse of a prepubescent minor female.
Records obtained as a result of the warrant revealed that in February 2018, Massari exchanged e-mails with individuals requesting child pornography, requested money for the child pornography images, and transmitted videos and images containing child pornography. Investigators also observed e-mails on February 13 and 28, 2018, during which Massari corresponded with another person about exchanging child pornography. During one exchange, Massari wrote “here you go” and the person responded “you got any more.” Massari responded that he did, but that Massari was interested in receiving child pornography in exchange.
On April 11, 2018, a company that provides website hosting services sent a Cybertipline Report to NCMEC for a child pornography violation that occurred on April 10, 2018. The user being reported was a member of Massari’s family, but Massari admitted that he was using the family member’s name and that Massari was the actual user. Although the website had been taken down by the time investigators identified it, the files provided by the web hosting service allowed law enforcement to recreate what the website looked like when it was taken down. FBI investigators viewed the files and at the top of the home page were the words “illegal.cp” and “join now!” The website provided information concerning the prices for different levels of membership that individuals could pay to obtain child pornography files. The home page of the website contained several images of child pornography.
On June 7, 2018, FBI investigators executed a federal search warrant at Massari’s residence and recovered numerous electronic storage devices, including a laptop computer and a computer hard drive. Those devices were examined pursuant to a federal search warrant and investigators recovered more than 600 images of child pornography from Massari’s electronic devices, including images of prepubescent minors engaged in sexually explicit conduct and sadistic conduct.
Massari also has a previous 2006 federal conviction for possession of child pornography.
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 for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael C. Hanlon, who prosecuted the federal case.
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Rockville Man Pleads Guilty in Federal Court to Scheme to Defraud His Employer of More Than $1.7 MillionRead the Press Release
Greenbelt, Maryland – Rakesh Kaushal, age 66, of Rockville, Maryland, pleaded guilty today to the federal charge of conspiracy to commit wire fraud, in connection with a scheme to defraud his employer of more than $1.7 million.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, between August 2015 and approximately January 2017, Kaushal was employed by a company headquartered in Beltsville, Maryland (Victim Company 1), which provided construction and design services, primarily to federal government agencies. Ivan Victor Thrane was the owner and president of three construction companies operating in Dickerson and Beltsville, Maryland (“the Thrane companies”). Kaushal recommended the Thrane companies to be subcontractors on Victim Company 1 projects for which Kaushal was the Project Manager or Project Executive.
Kaushal admitted that between August 2015 and January 2017, he conspired with Thrane to defraud Victim Company 1 by submitting fraudulent payment requests for work purportedly performed by the Thrane companies, which Kaushal reviewed and approved. In fact, the Thrane companies had not performed all of the work indicated on the payment requests and, in some cases, had not performed any work on projects for which payment was requested.
Specifically, Kaushal and Thrane, among other things, caused the Thrane companies to submit payment requests to Victim Company 1. Kaushal prepared the payment requests, which he e-mailed to Thrane. Thrane, or another individual at Thrane’s request, signed the payment requests on behalf of the Thrane companies. Thrane then e-mailed the signed payment requests to Kaushal, who, as Victim Company 1’s project manager and project executive, approved the payment requests, causing Victim Company 1 to pay the Thrane companies. Once payment was received from Victim Company 1, Thrane funneled a portion of those payments to Kaushal, typically by writing checks from his personal bank account or from the Thrane companies, which Kaushal then deposited into his personal bank account.
After Victim Company 1 discovered the overbilling in December 2016, Kaushal and Thrane attempted to conceal the scheme to defraud. For example, on December 28, 2016, Kaushal, using his work e-mail address, sent an e-mail to Thrane that read in part, “Good Morning Mr. Thrane: I have been informed by our accounting department that mistakenly we have overpaid your company for the MPO Skywalk Project. Can you please verify with your accounting and respond by COB today.” Other employees from Victim Company 1 were copied on this e-mail. In fact, Kaushal and Thrane had communicated prior to this e-mail regarding the discovery of overpayments by Victim Company 1. Kaushal and Thrane also agreed on a response, which Thrane then e-mailed to Kaushal, copying other employees from Victim Company 1. Thrane’s response read in part, “…please allow me to review our records with my accountant. My accountant is off this week. . . . Please rest assured that if there have been any overpayment to us by [Victim Company 1], we will return the overpayment immediately.” In fact, the Thrane companies did not have an accountant.
Shortly after the fraud was discovered by Victim Company 1, between January 17 and January 23, 2017, Kaushal wired a total of $650,000, including proceeds of the fraud, from one of his personal bank accounts to an account in India, with Kaushal listed as the beneficiary.
Victim Company 1 eventually initiated civil litigation against Kaushal and Thrane, and obtained a default judgment against Kaushal of $1,740,330. Kaushal then filed for Chapter 7 bankruptcy. During a meeting of creditors in the bankruptcy proceeding, Kaushal testified that he had used some of the proceeds of the fraud to purchase a condominium in India for a family member and that he had lost more than $100,000 gambling at various casinos. Kaushal was unable to account for more than $1 million of the kickback payments he received from Thrane. On May 15, 2019, the Bankruptcy Court entered a default judgment against Kaushal, denying him a discharge.
From approximately September 2015 to December 2016, Victim Company 1 paid the Thrane companies approximately $3,294,675.34 as a result of the scheme to defraud. Upon receipt of these payments from Victim Company 1, Thrane issued 34 kickback payments, totaling approximately $1,740,330 in checks written to Kaushal. On January 3, 2017, after discovering the fraud scheme, Victim Company 1 reversed or voided payments totaling approximately $741,525 to the Thrane companies. Kaushal then provided Thrane with three checks, all dated January 4, 2017, from Kaushal and made payable to one of the Thrane companies, totaling $370,700.06. Kaushal admits that the loss attributable to him as a result of the scheme is between $1.5 million and $3.5 million.
Ivan Victor Thrane, age 65, of Dickerson, Maryland, pleaded guilty to his role in the scheme on August 22, 2019, and is scheduled to be sentenced on January 7, 2020.
As part of their plea agreements, Kaushal and Thrane are required to forfeit and pay restitution in the full amount of the victim’s losses still outstanding, which is at least $988,805.
Kaushal faces a maximum sentence of 20 years in prison for the wire fraud conspiracy. U.S. District Judge Paul W. Grimm has scheduled sentencing for January 14, 2020. Kaushal remains detained.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jessica Collins and Gregory Bernstein, who are prosecuting the case.
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Prince George’s County Man Pleads Guilty to Federal Charges for Possession with Intent to Distribute Marijuana and for Possession of A Firearm in Furtherance of A Drug Trafficking CrimeRead the Press Release
Greenbelt, Maryland – James Robert Dorsey III, age 29, of Oxon Hill, Maryland, has pleaded guilty to federal charges for possession with intent to distribute marijuana and for possessing a firearm in furtherance of a drug trafficking crime. The guilty plea was entered on October 2, 2019.
The guilty plea 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 Chief Henry P. Stawinski III of the Prince George’s County Police Department.
“Armed drug dealers bring both addiction and violence to our streets,” said United States Attorney Robert K. Hur. “Working together with our local, state, and federal law enforcement partners, we are determined to make our communities safer by eliminating illegal drug trafficking and gun violence.”
According to his guilty plea, on May 7, 2019, Prince George’s County Police officers received a call for service in the Seat Pleasant area for individuals suspected of smoking and distributing marijuana. When officers arrived, they observed Dorsey begin to walk away from the area holding the waistband area of his pants, and enter a silver sedan parked nearby. As Dorsey attempted to drive away he struck a vehicle parked in front of him before responding to officers’ directions to stop, and was subsequently removed from his vehicle.
Dorsey was searched and law enforcement recovered a loaded 9x19 millimeter semi-automatic pistol; approximately 15 grams of marijuana; and $552 in cash. During a search of the vehicle, law enforcement located a partially unzipped black shoulder bag on the back seat. Inside the backpack were approximately 11 bags containing a total of 130 grams of marijuana; a digital scale with marijuana residue; and approximately 150 plastic sandwich bags. Dorsey admitted that he possessed the marijuana with the intent to distribute it.
On June 20, 2019, a search warrant was executed at Dorsey’s residence and law enforcement recovered a Glock switch, which is an aftermarket part that, once installed, converts a semi-automatic pistol into a fully automatic pistol. The Glock switch itself is defined as a machinegun under the law.
On July 25, 2019, Dorsey was arrested at a hotel in Largo, Maryland. While conducting surveillance at the hotel, law enforcement observed Dorsey and another male get into a white Mercedes Benz S560 sedan. When law enforcement approached Dorsey, he refused to comply with law enforcement’s instructions and was removed from the front driver’s side of the vehicle, placed into handcuffs, and then searched. As a result of the search, law enforcement recovered the keys for the Mercedes and $3,195 in U.S. currency. Inside the Mercedes, law enforcement recovered: a loaded 9mm handgun; a compact-sized pistol with no serial number, loaded with a magazine containing eight cartridges and one in the chamber; a 15-round magazine with an extension; a white trash bag containing bags of prepackaged marijuana for distribution, totaling approximately 450 grams; and a digital scale.
Dorsey had a previous felony conviction and therefore was prohibited from possessing a firearm or ammunition. Dorsey admitted that he possessed the firearm in furtherance of his drug trafficking.
Dorsey and the government have agreed that, if the Court accepts the plea agreement, Dorsey will be sentenced to between 78 and 114 months in federal prison. U.S. District Judge George J. Hazel has scheduled sentencing for January 3, 2020 at 11 am.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jennifer R. Sykes, who is prosecuting the case.
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Christopher Hasson Pleads Guilty to Federal Charges of Illegal Possession of Silencers, Possession of Firearms by an Addict to and Unlawful User of A Controlled Substance, and Possession of A Controlled SubstanceRead the Press Release
Greenbelt, Maryland –Christopher Paul Hasson, age 50, of Silver Spring, Maryland, pleaded guilty today in U.S. District Court in Maryland to four federal charges, including unlawful possession of unregistered silencers, unlawful possession of firearm silencers unidentified by serial number, possession of firearms by an addict to and unlawful user of a controlled substance, and possession of a controlled substance. Hasson was arrested on related charges on February 15, 2019, and has been detained since his arrest.
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 Art Walker of the U.S. Coast Guard Investigative Service; and Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
“I am grateful for the hard work of the agents and prosecutors to obtain this guilty plea. I look forward to the opportunity for the government to present additional evidence to the Court at sentencing,” said United States Attorney Robert K. Hur.
According to his plea agreement, Hasson was a Lieutenant in the United States Coast Guard. Prior to June 2016, Hasson owned a residence and lived in Currituck, North Carolina. In approximately June 2016, Hasson moved to a residence in Silver Spring, Maryland, and worked at Coast Guard Headquarters in Washington, D.C.
Hasson admitted that from at least March 2016 through early February 2019, he used various e-mail accounts, including an overseas encrypted e-mail account, to order Tramadol, which is an opioid, from various illegal Internet-based distributors. Hasson usually paid for the Tramadol by using MoneyGram or Western Union to send money to individuals in Mexico, at the direction of the Mexico-based distributor. The distributor then had the Tramadol shipped to Hasson, typically in 100mg pills, at addresses Hasson provided, including his North Carolina and Maryland residences. Hasson admitted that he then concealed the Tramadol in other packaging at his residence and work. Hasson ordered at least 4,650 Tramadol pills and personally took the pills, usually daily, including while he was at work. Hasson knew that he did not have a lawful prescription for Tramadol and that his possession of the drug was illegal. During the time of his use of Tramadol, Hasson also conducted Internet searches and visited websites that discussed addiction and Tramadol withdrawal.
As detailed in his plea agreement, at the time of Hasson’s arrest on February 15, 2019, agents recovered 196 Tramadol pills from Hasson’s backpack. Search warrants executed the same day recovered 106 Tramadol pills from Hasson’s desk at Coast Guard Headquarters and 122 Tramadol pills from Hasson’s residence. From Hasson’s residence, law enforcement also recovered the following firearms: seven rifles; two shotguns; four pistols; two revolvers; an assembled firearm silencer; and a disassembled firearm silencer. In close proximity to the guns, agents found multiple magazines that could accept more than 15 rounds of ammunition, as well as hundreds of rounds of ammunition.
According to the plea agreement, Hasson ordered the components of the firearm silencers from a company in California and used a drill to complete and assemble one firearm silencer. Hasson knew the firearm silencers were not registered in the National Firearms Registration and Transfer Record, and that they did not have serial numbers, as required by law.
Hasson faces a maximum sentence of 10 years in prison for each of the three charges related to firearms and the firearm silencers, and a maximum of one year in prison for possession of tramadol. U.S. District Judge George J. Hazel has scheduled sentencing for January 31, 2020, at 9:30 a.m.
United States Attorney Robert K. Hur commended the FBI, the U.S. Coast Guard Investigative Service, and the ATF for their work in the investigation. Mr. Hur thanked his office’s national security prosecutors, who are handling the case.
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Prolific Wholesale Fentanyl Distributor Convicted After Trial on Federal Charges for a Fentanyl Distribution Conspiracy and Related Firearms ChargesRead the Press Release
Baltimore, Maryland – A federal jury convicted Paul Alexander, a/k/a David Paul Hayes and Shorty, age 47, of Hanover, Maryland, on five federal charges including conspiracy to distribute fentanyl, two counts of possession with intent to distribute a controlled substances—specifically fentanyl, possession of a firearm in relation to a drug trafficking crime, and possession of a firearm by a prohibited person. The jury returned its verdict in the evening on Monday, October 1, 2019.
The guilty verdict was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“More people die of opioid overdoses than murder in Maryland, while drug dealers spend their profits on luxury cars and jewelry,” said U.S. Attorney Robert K. Hur. “Fentanyl dealers, like Paul Alexander, sell death and despair, and dealing in fentanyl increases their odds of federal prosecution. We’re also targeting drug dealers who use guns and increase the risk of gun violence in Maryland. Working together with our local, state, and federal partners, we are determined to reduce the number of opioid overdose deaths in Maryland.”
According to the evidence presented at his five-day trial, from April 2018 through January 2019, Paul Alexander distributed large amounts of fentanyl in and around the Baltimore area. An 11-month investigation by DEA into Alexander’s drug trafficking activities resulted in the seizure of more than 10 kilograms of fentanyl—enough fentanyl to kill 5 million people—and over $4 million in cash from Alexander’s car and apartments on January 2, 2019.
The evidence showed that Alexander distributed fentanyl on several occasions to a Baltimore County drug trafficker in 2018. In addition, he was observed conducting narcotics-related transactions with another drug dealer, and surveillance video at his apartment complex revealed that Alexander used several vehicles to store and deliver drugs. The evidence proved that Alexander utilized vehicles and residences in the names of relatives and associates in furtherance of his drug trafficking operation.
Witnesses testified that the DEA and Anne Arundel County police executed search warrants on January 2, 2019, at two apartments associated with Alexander. Law enforcement testified that they recovered a loaded pistol with an extended magazine that contained 24 rounds of ammunition, multiple bags filled with over $4 million in cash, jewelry, and narcotics distribution paraphernalia.
The government also seeks the forfeiture of more than $4 million in cash seized during the investigation, three luxury vehicles, seven Rolex watches, two Cartier bracelets with diamonds, a diamond tennis bracelet, and two designer bags.
Alexander faces a maximum sentence of life in federal prison for the conspiracy; a maximum of life in prison for each of two counts of possession with intent to distribute fentanyl; life in prison for possession of a firearm in relation to drug trafficking; and ten years in prison for illegal possession of a firearm by a previously convicted felon. U.S. District Judge Richard D. Bennett has scheduled sentencing for January 3, 2020 at 9:30 a.m.
United States Attorney Robert K. Hur commended the DEA and Baltimore Police Department for their work in the investigation and thanked the Anne Arundel County Police Department, the Federal Bureau of Investigation, and Homeland Security Investigations for their assistance. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta and First Assistant U.S. Attorney Jonathan F. Lenzner, who tried this Organized Crime Druge Enforcement Task Force case, and Assistant U.S. Attorney Anatoly Smolkin, who handled pre-trial litigation.
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Ellicott City Man Pleads Guilty to Federal Charge for Attempted Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Mark David Franklin, age 44, of Ellicott City, Maryland, pleaded guilty today to the federal charge of attempted possession of child pornography.
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.
According to his guilty plea, between September 7 and October 10, 2018, Franklin used online applications to attempt to induce an individual he believed to be a 13-year-old girl to engage in sexually explicit activity and send Franklin photos of the sexual conduct. In fact, Franklin was communicating with an undercover FBI Special Agent.
As detailed in his plea agreement, Franklin engaged in sexually explicit conversations with the minor female, sent her sexually explicit photographs of himself, and requested that she send him sexually explicit photographs of herself. During their conversations, Franklin also discussed meeting in person to engage in sex acts and described the photographs he wished to take during their sexual encounter.
On October 10, 2018, Franklin traveled from Ellicott City to Frederick, Maryland, to meet and engage in sex acts with the 13-year-old girl. When Franklin arrived at the agreed-upon location, he was arrested. At the time of his arrest Franklin was in possession of a teddy bear requested by the 13-year-old girl, condoms, two blankets, and a towel.
Franklin faces a maximum sentence of 10 years in prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for December 17, 2019 at 10:15 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI’s Child Exploitation Task Force for their work in the investigation and thanked the Frederick City Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Daniel A. Loveland, Jr. and Paul E. Budlow, who are prosecuting the federal case.
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Previously Convicted Sex Offender Pleads Guilty to Federal Charge for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – Santos Nicolas Obando-Flores, age 46, of Brentwood, Maryland, pleaded guilty today to possession of child pornography. In 2015, Obando-Flores was convicted of a sex offense after engaging in sexual contact with a nine-year-old minor and was sentenced to 20 years in prison with all but six years suspended.
The guilty plea 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); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police (MSP).
According to his guilty plea, on September 13, 2018, Obando-Flores was being administered a routine polygraph examination by a Maryland State Police polygraph examiner. The routine polygraph was required because Obando-Flores was a registered sex offender. During the post-polygraph interview, Obando-Flores admitted to the polygraph examiner that he had viewed child pornography on his cellphone and that the pornography was still on the cellphone. Obando-Flores also admitted to having as many as one hundred videos containing child pornography on his phone.
The polygraph examiner stopped the interview and read Obando-Flores his Miranda Rights, which Obando-Flores acknowledged that he understood. Obando-Flores agreed to speak with law enforcement without an attorney present and again admitted to the MSP polygraph examiner that there was child pornography on his cellphone. He explained to the polygraph examiner that he got it from a Facebook page and that he received multiple videos of child pornography through a “group chat” from an application on his phone. Obando-Flores was able to describe some videos depicting prepubescent minors engaged in sex acts or provocatively posed. Obando-Flores admitted that he started getting the videos approximately six to eight months ago.
The polygraph examiner confiscated Obando-Flores’s cellphone, which Obando-Flores had brought with him to the scheduled meeting and Obando-Flores consented to the search of his phone. An MSP trooper previewed the phone and found numerous files of suspected child pornography. Obando-Flores was arrested and a federal search warrant was obtained from the phone. Forensic analysts identified approximately 359 videos and 200 images documenting the sexual abuse of minors.
As part of his plea agreement, Obando-Flores will be required to continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
“Combatting the exploitation of children is a team effort and thanks to our collaboration with our local law enforcement partners, we have one less offender on the streets,” said HSI Baltimore Special Agent in Charge John Eisert. “HSI is committed to continuing to work with our local law enforcement partners to pursue our goals of identifying and rescuing the victims of exploitation.”
Obando-Flores faces a minimum mandatory sentence of 10 years and a maximum of 20 years in federal prison followed by up to lifetime supervised release. U.S. District Judge Peter J. Messitte has scheduled sentencing for February 18, 2020 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI-Baltimore and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jennifer R. Sykes, who is prosecuting the federal case.
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Physician Sentenced to 15 Months in Federal Prison for Passport FraudRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Michael Nana Baako, age 50, a native of Ghana residing in Fulton, Maryland, to 15 months in federal prison, followed by three years of supervised release, for the federal charge of passport fraud. Baako was a physician who practiced in hospitals in Maryland and maintained his own clinic, Biazo Healthcare.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Edwin Guard of the U.S. Department of State’s Diplomatic Security Service (DSS) Washington Field Office.
According to Baako’s plea agreement, since at least 2001, Baako and R.A.A. have lived together in Howard County, Maryland and are the parents of two minor children. Baako and R.A.A. married in Ghana in 1995. Months later, Baako entered the United States legally after obtaining a visitor’s visa. In 1996, Baako applied for certification of his Ghanian medical education in the United States. In 1998, Baako married a U.S. citizen in Virginia, who filed a petition for Baako to become a naturalized United States citizen three weeks later. The petition was denied in 2000 after immigration officials concluded that Baako’s marriage was a “sham” marriage entered into for the sole purpose of obtaining immigration benefits. In 2001, Baako was licensed to practice in Maryland as a physician.
On November 29, 2005, Baako registered to vote in Maryland, swearing that he was a United States citizen, and subsequently voted in 10 federal elections between November 7, 2006 and November 6, 2018.
On December 15, 2006, Baako obtained a new Ghanaian passport in Accra, Ghana, as a Ghanaian national. On April 17, 2007, and September 16, 2009, respectively, Baako and R.A.A. submitted passport applications on behalf of their minor children, in which Baako falsely claimed that he was a citizen of the United States, born in Hillsborough, North Carolina. On April 22, 2008, Baako submitted an application for a United States passport for himself in which he falsely claimed that he was born in North Carolina, as were both of his parents. As part of his passport application, Baako provided an affidavit purporting to be from a family friend, falsely stating that this person was one of the first people to see Baako after his birth and was present at a subsequent naming and baptism ceremony for Baako at a Hillsborough, North Carolina church. Baako was issued a U.S. passport on April 29, 2008, which he used for international travel on several occasions. That passport included the false information that Baako was a citizen of the United States born in North Carolina. On July 31, 2012, Baako and R.A.A. submitted a passport renewal application on behalf of their first child, in which Baako falsely stated that he was a citizen of the United States. On February 20, 2018, Baako filed a passport renewal application for his own passport, again falsely stating that he was a U.S. citizen born in North Carolina. Baako was interviewed by Department of State officials on April 22, 2010, and on June 12, 2018. In both interviews Baako falsely stated that he was born in Hillsborough, North Carolina.
On May 8, 2019, law enforcement officers executed a search warrant at Baako’s home and located his Ghanaian passport and plans for the three-bedroom home Baako purchased in Accra, Ghana in August 2012. Investigators also obtained a number of documents related to Baako’s ongoing efforts to fraudulently obtain documentation establishing that he was a U.S. citizen born in North Carolina, including: a false affidavit purporting to be sworn by the Baako’s mother, claiming that he was born in North Carolina; a page from the family Bible falsely stating it had been presented to Baako at his birth in North Carolina; a falsified baptism certificate purporting to be from a North Carolina church, certifying that Baako was born in North Carolina; and several draft petitions to the Circuit Court for Howard County seeking to fraudulently establish the fact of his birth in North Carolina.
Baako has been detained since his arrest on May 8, 2019. As stated at today’s hearing, the Department of Homeland Security has initiated removal proceedings against Baako.
United States Attorney Robert K. Hur commended DSS for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Zachary A. Myers and Daniel A. Loveland, who prosecuted the case.
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Maryland Man Pleads Guilty to Federal Wire Fraud Charges in Connection with a Scheme to Defraud Trucking Companies and Brokers of More Than $1 MillionRead the Press Release
Baltimore, Maryland – William Francis Hickey III, age 43, of Elkton, Maryland, pleaded guilty to federal charges of conspiracy to commit wire fraud and wire fraud in connection with a scheme to defraud trucking companies and logistical brokers of more than $1 million. The guilty plea was entered on September 26, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Jamie Mazzone of the U.S. Department of Transportation Office of Inspector General.
According to his plea agreement, Hickey was the managing member of Hickey Consulting LLC and president of Latino Consulting LLC, both headquartered in Baltimore. Hickey maintained bank accounts in the names of both companies, which he used to deposit checks fraudulently obtained by his co-conspirators.
Specifically, from May 2016 through January 31, 2019, Hickey conspired with others, including a co-conspirator in Pakistan, to devise and execute a scheme to defraud trucking companies and logistical brokers hired by shippers to arrange for trucking companies to transport their loads. As detailed in the plea agreement, logistical brokers are hired by shippers of goods to arrange for transportation of the goods by trucking companies. Brokers pay trucking companies for transporting loads through “truck industry checks,” by providing a numerical code, referred to in the trucking industry as an “express code,” which the trucking company uses to populate a blank check from its book of truck industry checks. The broker typically makes two payments to the trucking company—a fuel advance, which is made after the company has picked up its load, and the final payment after the load has been delivered. Truck industry checks can be deposited into a bank account or cashed at a truck stop or check-cashing establishment.
Hickey admitted that he and his co-conspirators obtained truck industry checks from brokers by posing as legitimate trucking companies; entering into agreements with brokers to transport loads; re-brokering, or “double brokering,” the same load to an actual trucking company; and then seeking payment from the brokers for transportation services that the members of the conspiracy did not provide. After the legitimate trucking company picked up the load, the conspirators requested an express code from the broker for the fuel advance payment, then used the express code to populate and subsequently cash or deposit a truck industry check. In some cases, the conspirators also requested a second express code from the original broker after the load was delivered, to deposit a second truck industry check. The conspirators did not pay the trucking company that actually transported the goods.
Hickey deposited over 1,000 truck industry checks worth $1,171,314.11 into his business bank accounts, knowing that they were obtained as part of the fraud scheme.
Hickey faces a maximum sentence of 20 years in federal prison for the conspiracy and for the wire fraud. U.S. District Judge George L. Russell, III has scheduled sentencing for December 20, 2019 at 9:30 a.m.
United States Attorney Robert K. Hur commended the U.S. Postal Inspection Service and the U.S. Department of Transportation Office of Inspector General for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Peter J. Martinez and Kathleen O. Gavin, who are prosecuting the case.
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Baltimore Felon Sentenced to Eight Years in Federal Prison for Distributing Heroin, Cocaine and FentanylRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Floyd Montague, age 28, of Baltimore, to eight years in federal prison, followed by three years of supervised release, for possession with intent to distribute heroin, cocaine, and fentanyl.
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; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Carroll County Sheriff James DeWees; Chief Thomas J. Ledwell of the Westminster Police Department; and Baltimore City Sheriff John Anderson.
United States Attorney Robert K. Hur stated, “All too often, guns and drugs go hand in hand—and both are killers. Armed drug dealers, like Floyd Montague, are on notice that gun crime may lead to federal time, where there are no suspended sentences and no parole—ever.”
According to Montague’s plea agreement, on November 29, 2018 and January 29, 2019, Montague met with an individual working with law enforcement at a gas station in Baltimore County. On both occasions the individual got into the front passenger seat of Montague’s vehicle and Montague sold the individual drugs. Specifically, on November 28, 2018 Montague sold the individual 20 vials containing 3.69 grams of cocaine; 10 bags containing 1.2 grams of heroin, and a paper fold containing .503 grams of heroin. On January 29, 2019, Montague sold the individual 24 baggies containing 2.96 grams of a mixture of heroin and fentanyl and 40 vials containing 4.43 grams of cocaine.
Following the sale of drugs on January 29, 2019, police attempted to arrest Montague, but Montague drove his vehicle into oncoming traffic and fled. During his flight, Montague struck an undercover vehicle being driven by police officers, causing extensive damage to the police vehicle. Montague turned into a lumber yard, drove through a chain link fence at the rear of the property, and after the vehicle came to a stop, fled on foot.
Montague was subsequently apprehended and searched. Officers recovered 17 bags containing a mixture of heroin, fentanyl, and cocaine, with a net weight of 2.48 grams. A search of Montague’s vehicle recovered cash totaling $927.80 and a 9mm semi-automatic handgun containing a magazine loaded with ten cartridges. The gun had been reported stolen on May 8, 2016. The firearm had several wet drops of blood on it. Montague’s DNA matched the DNA found in the blood on the firearm. Montague had at least two previous felony convictions and was prohibited from possessing a firearm or ammunition.
United States Attorney Robert K. Hur praised HSI, the Maryland State Police, the Carroll County Sheriff’s Office, the Westminster Police Department, and the Baltimore City Sheriff’s Office, which are part of the Carroll County Drug Task Force, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael Goldsticker, who prosecuted the case.
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Washington, D.C. Man Pleads Guilty to Federal Charge of Involuntary Manslaughter in Connection with a Fatal Crash on the Baltimore-Washington ParkwayRead the Press Release
Greenbelt, Maryland – Darnell E. Bassett, age 24, of Washington, D.C., pleaded guilty to involuntary manslaughter in connection with a fatal accident on the Baltimore-Washington Parkway. The guilty plea was entered on September 25, 2019.
The guilty plea 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 his 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.
Bassett faces a maximum sentence of eight years in prison. As part of his plea agreement, Bassett is also required to pay restitution in the full amount of the victim’s losses and injuries caused to the victim and the victim’s vehicle, which includes but is not limited to the costs of the victim’s funeral and burial costs. U.S. District Judge George J. Hazel has scheduled sentencing for November 27, 2019 at 2:00 p.m.
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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Gaithersburg Man Pleads Guilty to Federal Charges for Receipt of Child Pornography and Extortion by Threat to Ruin the Reputation of AnotherRead the Press Release
Greenbelt, Maryland – Zhi Tian Lang, age 23, of Gaithersburg, Maryland, pleaded guilty on September 25, 2019, to receipt of child pornography and to extortion by threat to ruin the reputation of another. Lang admitted that he threatened to post revealing photos of the victims on social media and other Internet platforms if they did not send him sexually explicit photographs and/or videos of themselves.
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 Acting Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea, between at least January and October 2014 Lang communicated with minor female victims ranging in age from 13 to 17 years old and located throughout the United States, including South Dakota, Wisconsin, and New Jersey. Lang used an Internet messaging application and used the name “Seth” when contacting his victims. Lang would obtain pictures of minor victims from their social media accounts or through direct flirtation. The picture often depicted the victims in their underwear. Lang would then demand that unless the victim provided him with nude pictures, he would post the initial pictures on a public Internet account or send them directly to one or more of the victim’s acquaintances.
As detailed in his plea agreement, at least eight minor victims provided Lang sexually explicit photos and/or videos of themselves in response to Lang’s threats. Lang admitted that he posted photographs of minor victims to coerce them and sent at least one photo to another individual.
As a result of his conviction, Lang 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). Unless indigent, Lang will also be required to pay a special assessment of $5,000.
Lang faces a minimum mandatory sentence of five years and a maximum of 20 years in prison for receipt of child pornography and a maximum of two years in prison for extortion by threat to ruin the reputation of another. U.S. District Judge Peter J. Messitte has scheduled sentencing for January 8, 2020 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and the Montgomery County Police Department 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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Maryland Fentanyl and Heroin Dealer Sentenced Today to 9 Years in Federal Prison for Federal Drug ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Gari Terrell Miller, age 39, of Clinton, Maryland, to 9 years in federal prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute fentanyl, and to possession with intent to distribute fentanyl. Miller was one of the first defendants charged as part of the new federal-state initiative announced in December 2018 to combat the fentanyl crisis in Maryland.
Under this new 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 will prosecute 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.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police.
“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. People are dying from fentanyl overdoses in Baltimore City and throughout Maryland. We must do everything we can to reduce overdose deaths from this drug and from all opioids.”
According to his plea agreement, on April 12, 2018, a Maryland Transportation Authority Police officer conducted a traffic stop near Conway Street in Baltimore, after observing Miller drifting between lanes and turning onto Conway Street without signaling. During the stop, the officer smelled marijuana. After the officer conducted a sobriety test, he searched Miller and recovered approximately $740 in cash and a white powdery substance that was 49 grams of fentanyl—enough to kill 24,500 people. Law enforcement also recovered from Miller’s vehicle $3,300 in cash bound with rubber bands, and a drug ledger listing weights, names, and dollar amounts. The ledger reflects, and Miller admits, that he sold 832 grams of heroin.
Miller further admitted that he conspired with others to distribute fentanyl and heroin in Maryland. Miller had others assisting him with distributing narcotics and collecting the drug proceeds.
United States Attorney Robert K. Hur commended DEA and Maryland Transportation Authority Police for their work in the investigation and thanked Baltimore State’s Attorney Marilyn Mosby and her office for their assistance. Mr. Hur thanked Assistant U.S. Attorney Samika N. Boyd, who prosecuted the case.
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Carroll County Felon Sentenced Today to 8 Years in Federal Prison for Witness Retaliation and Illegal Possession of FirearmsRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Jason Kiser, age 40, of Taneytown, Maryland, to eight years in federal prison, followed by 36 months of supervised release, for witness retaliation and illegal possession of firearms. Kiser admitted that he burned the vehicle of an individual in retaliation for that person providing information to law enforcement concerning Kiser’s illegal possession of 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; Carroll County Sheriff James T. DeWees; and Maryland State Fire Marshal Brian S. Geraci.
“We take witness tampering and witness retaliation very seriously,” said U.S. Attorney Robert K. Hur. “Those who tamper with or retaliate against a witness will face federal prosecution and federal prison, where there is no parole—ever.”
According to his plea agreement, on May 8, 2018, Kiser went to a gunsmithing store in Taneytown, Maryland, which was located in a building next to the owner’s home. The store was in the process of moving to a new location on West Baltimore Street in Taneytown. Kiser asked the owner if he could take the parts from a firearm that Kiser had brought into the store with him, and place them on a stripped receiver that Kiser planned to obtain from another store. The owner of the store knew Kiser and believed that Kiser had previously been convicted of theft of a motor vehicle and possibly other crimes and was therefore prohibited from possessing firearms or ammunition. On May 9, 2018, an ATF investigator conducted a compliance check at the gunsmithing store and the owner advised the investigator of Kiser’s request. The ATF investigator opened a criminal investigation of Kiser.
On May 10, 2018, Kiser arrived at the gunsmithing store’s new location on West Baltimore Street in Taneytown, and provided the owner with an AR-556 rifle; a PWA, Model Commando receiver; and a Model A-15 receiver. Kiser asked the owner to place a forward grip on the AR-556 rifle and take the parts off of the PWA Commando and place them on the A-15 receiver. In coordination with investigators, on May 11, 2018, the owner advised Kiser that the firearms were ready. Law enforcement arrested Kiser as he walked towards the store. Kiser was charged in the Circuit Court for Carroll County with illegal possession of firearms. In the charging documents, the officer identified the store owner as a witness.
In the early morning hours of July 17, 2018, the store owner awoke at his house to the sound of a car horn. The store owner looked out of his bedroom window and saw his vehicle, which was parked in the carport adjacent to his residence, on fire. Firefighters extinguished the fire and called Maryland State Fire Marshals to determine the cause of the fire. Investigators located a glove from behind the carport and recovered a plastic can cover and bolt cutters from next to the driveway. They also recovered pieces of burned debris from the vehicle. DNA evidence recovered from the glove and bolt cutters revealed a high stringency match to Kiser’s DNA, which was submitted to the Combined DNA Index System (CODIS) during Kiser’s previous arrests. Investigators categorized the fire as an arson, based on the DNA evidence.
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 ATF, the Carroll County Sheriff’s Office, and the Office of the Maryland State Fire Marshal for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Patricia C. McLane and Mark Gurzo, formerly a Special Assistant U.S. Attorney in Maryland and now an Assistant U.S. Attorney in the Western District of Pennsylvania, who prosecuted the case.
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Member of Violent “Trained to Go” Gang Convicted at Trial Sentenced Today to 35 Years in Federal Prison for Federal Racketeering and Drug Conspiracies and Related Firearms ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Dennis Pulley, a/k/a Denmo, age 31, of Baltimore, to 35 years in federal prison, followed by five years of supervised release, for conspiring to participate in a drug distribution conspiracy and a violent racketeering enterprise known as Trained To Go (TTG), as well as possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. The racketeering conspiracy included eight murders, as well as drug trafficking and witness intimidation. Pulley and his co-defendants were also convicted of a drug distribution conspiracy involving heroin, marijuana, and cocaine. The TTG gang operated in the Sandtown neighborhood of West Baltimore.
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; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Marilyn J. Mosby.
“Dennis Pulley and his fellow gang members brought violence and misery to West Baltimore, in the form of murders, shootings, armed robbery, witness intimidation, and drug dealing. Now, Pulley will spend 35 years in federal prison,” said U.S. Attorney Robert K. Hur. “Hopefully criminals who are not deterred from terrorizing our neighborhoods by the threat of prison can be deterred by the reality of years spent in a federal prison far from home—where there is no parole. Ever.”
According to the evidence presented at their 24-day trial, Pulley and his co-defendants are all members or associates of TTG, a criminal organization that operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery, and witness intimidation. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The evidence at trial showed that members and associates of TTG sold heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. Pulley served as one of TTG’s primary suppliers of heroin and marijuana. TTG members routinely sold “packs” of heroin and gram quantities of marijuana from multiple locations in Sandtown. Typically, a “pack” contained between 25 and 50 gel capsules of heroin. In addition, the evidence proved that between May 20, 2010 and January 9, 2017, Pulley, his co-defendants, and other members of TTG committed acts of violence, including murders, shootings, armed robbery, and witness intimidation. Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as in murder-for-hire schemes. Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.
For example, in the summer of 2016, a feud developed between Pulley and Chris Pennington, a/k/a “Magic.” Pennington and several other individuals robbed a marijuana distributor that Pulley supplied. When Pulley learned that Pennington was offering money for information concerning Pulley’s location, Pulley solicited members of TTG and others to murder Pennington. On January 9, 2017, Pennington was shot multiple times and died. Search warrants were subsequently executed at Pulley’s home and the home of a co-defendant, Brandon Wilson. Law enforcement recovered the gun used to murder Pennington at Wilson’s home and recovered a .22-caliber pistol, one pound of marijuana, and $32,758 in cash from Pulley’s home. On October 18, 2018, a witness was on the stand testifying about Pulley during the trial. While counsel were participating in a bench conference with the presiding judge, Pulley mouthed the words “I’ll kill you” to the witness, which was seen by a Deputy U.S. Marshal.
The leader of the gang, Montana Barronette, a/k/a Tana and Tanner, age 23, and his brother, Terrell Sivells, a/k/a Rell, age 27, both of Baltimore, were each sentenced to life in prison on February 15 and April 26, 2019, respectively. Timothy Floyd, a/k/a Tim Rod, age 28, of Baltimore, was sentenced to 30 years in federal prison on July 19, 2019. Co-defendants Brandon Wilson, a/k/a Ali, age 24, and Taurus Tillman, a/k/a Tash, age 30, both of Baltimore, were each sentenced to 25 years in prison on March 1 and May 21, 2019, respectively. Two other co-defendants, John Harrison, a/k/a Binkie, age 28, and Linton Broughton, a/k/a Marty, age 25, both from Baltimore, were sentenced to life in prison and to 30 years in prison, respectively, on March 15, 2019. Three other TTG members previously pleaded guilty and were sentenced to between five and 25 years in prison.
Another defendant, Roger Taylor, a/k/a Milk, age 28, of Baltimore, a fugitive since July 2017, was arrested on June 30, 2019, and is now awaiting trial. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County, and Anne Arundel County Police Departments. FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
This case was advanced 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 and Assistant Attorney General Brian A. Benczkowski commended the FBI, the Baltimore Police Department, the ATF, the DEA, the Anne Arundel County Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher J. Romano, Daniel C. Gardner, and Special Assistant U.S. Attorney John C. Hanley formerly of the Justice Department’s Organized Crime and Gang Section, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Maryland Residents Facing Federal Charges for Stealing over $820,000 in V.A. Benefits Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment charging Angela Marie Farr, a/k/a Angela Pace, Angela Mullins, and Angela Biggs, age 33, of Leonardtown, Maryland; Michael Vincent Pace, age 39, of Leonardtown, Maryland, and Mary Francis Biggs, age 62, of Lexington Park, Maryland with conspiracy and theft of government property. Farr was also charged with aggravated identity theft and social security fraud.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge of the Mid-Atlantic Field Office Kim R. Lampkins for the U.S. Department of Veterans Affairs Office of Inspector General; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General.
The five-count indictment alleges that Farr served as the organizer of a conspiracy in which she submitted false and fraudulent documents to the Department of Veterans Affairs (“VA”) claiming that Farr, her then-husband, Michael Pace, and her father, Individual 1, were homebound and required full-time assistance and disability compensation. Farr’s mother, Mary Biggs, conspired with Farr to file fraudulent documents on behalf of Individual 1, and, when Farr so exaggerated Individual 1’s disabilities that the VA determined that Individual 1 could not handle his own finances, appointed Biggs as Individual 1’s fiduciary.
Angela Marie Farr was a member of the United States Navy from August 2, 2005 to April 19, 2007. On October 6, 2009, Farr received a service-connected disability rating of 70% based on fraudulent documentation she submitted, which purported that she suffered from post-traumatic stress disorder from an incident in which she was raped by another serviceman. Farr admitted to local law enforcement to fabricating the incident. Farr also claimed to the VA that she suffered a traumatic brain injury from an on-duty car accident, which was also determined to be a fabrication. Ultimately, the VA increased Farr’s service-connected disability rating to 100% based on additional fraudulent documentation she submitted. As a result, Farr received approximately $390,000 from the VA to which she was not entitled.
Farr is also charged with stealing the identity of a physician identified in the indictment as “Doctor 1” when she submitted forged documents to the VA purportedly authored by that physician. Farr is also charged with social security fraud for fraudulently receiving $35,000 in Social Security Disability Insurance benefits for her claimed disabilities.
Michael Vincent Pace was a member of the United States Army from August 30, 2001, to February 2, 2002, and from January 4, 2005, to June 2, 2006, as well as the United States Army National Guard from May 22, 2007, to October 28, 2007. Pace and Farr were married from 2008 until they divorced on December 5, 2017. Pace was deemed to be 100% disabled by the VA, based on fraudulent medical documentation submitted to the VA. Despite claiming to be profoundly disabled, Pace also received a Caregiver Assistance stipend from the VA exceeding $2,500 per month for purportedly caring for Farr. As a result, Pace received approximately $274,000 from the VA to which he was not entitled.
Mary Francis Biggs was Farr’s mother, and the wife of Individual 1. Individual 1 was a member of the United States Navy from January 29, 1974, to January 31, 1997, and is Farr’s father. Individual 1 received a 100% service-connected disability rating by the VA based on fraudulent documentation Farr and Biggs submitted on his behalf.
On July 5, 2017, the VA determined, based on fraudulent documentation, that Individual 1 was not capable of managing his finances because of his purported disabilities, and appointed Biggs as Individual 1’s fiduciary. As such, Biggs was responsible for the receipt and expenditure of Individual 1’s fraudulently obtained VA benefits funds. As a result, Biggs and Individual 1 received approximately $156,000 in disability compensation and SMC to which they were not entitled. Biggs conspired with Farr to hide from the VA the fact that Individual 1 was capable of working, and was in fact actively employed.
Farr, Pace, and Individual 1 purported to be wheelchair-bound and to require in-home nursing to accomplish everyday tasks due to their claimed service-connected injures. However, during the period they were purportedly disabled, Farr operated a social media marketing company based in Leonardtown, Maryland, Pace raised his three children and regularly exercised at a local CrossFit gym, and Individual 1 was employed as a division head at the Naval Air Warfare Center Aircraft Division in Patuxent River, Maryland.
If convicted, Farr faces a mandatory minimum of 2 years in federal prison and a maximum sentence of 10 years in prison; Biggs and Pace face a maximum sentence of 10 years in prison.
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 VA-OIG and the SSA-OIG for their work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Michael Davio, who is prosecuting the case.
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Baltimore Defense Attorney Facing Federal Indictment for Racketeering, Drug, and Money Laundering ConspiraciesRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Kenneth Wendell Ravenell, age 60, of Monkton, Maryland, on federal charges of racketeering conspiracy, conspiracy to commit money laundering, and narcotics conspiracy. The indictment was returned late on September 18, 2019.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.
Law enforcement will have no comment beyond this press release at this time.
According to the indictment, Ravenell violated the legitimate and lawful purpose of the law firm where he worked in order to enrich himself and Individual 1 by receiving payments from a drug trafficker client and his associates in exchange for instructing the client and his associates how to evade law enforcement and continue their drug trafficking, laundering drug proceeds, and obstructing justice to protect the client and his associates.
Further, the indictment alleges that Ravenell knowingly protected and assisted co-conspirators in their drug trafficking by coaching co-conspirators about law enforcement techniques so that they could evade these techniques when they trafficked in narcotics. Ravenell allegedly used the law firm’s bank accounts to launder hundreds of thousands of dollars and protect the drug trafficking organization. Ravenell allegedly used the law firm’s bank accounts to receive drug payments and make payments to attorneys retained to represent other members of the conspiracy, concealing and misrepresenting the source of the funds to those attorneys. Ravenell allegedly created and caused the creation of false records, including a client file in the name of a person that the law firm did not represent, in order to conceal the source of the funds used to pay other lawyers for their representations of members of the conspiracy. According to the indictment, Ravenell misrepresented to employees of the law firm the purpose of payments he directed them to make for or on behalf of members of the conspiracy. Ravenell also allegedly received substantial cash payments derived from drug sales as compensation for laundering money and for protection he provided to his co-conspirators.
In addition, the indictment alleges that Ravenell and a co-conspirator obtained information about arrested co-conspirators, including whether or not they were cooperating and the status of their cases, and provided such information to other members of the conspiracy so that they could protect ongoing drug operations. The indictment alleges that Ravenell obtained access to incarcerated co-conspirators, whom he did not represent, so that Ravenell could attempt to improperly influence their testimony, attempt to cause them to execute false affidavits and witness statements which he knew to be false, and attempt to cause witnesses to withhold testimony from official proceedings against his client.
Finally, the indictment alleges that Ravenell participated in a conspiracy to distribute 1,000 kilograms or more of marijuana.
If convicted, Ravenell faces a maximum sentence of 20 years in federal prison for the racketeering conspiracy; a maximum of 20 years in prison for the money laundering conspiracy; and a maximum of life in prison for the narcotics conspiracy. The case will be handled by U.S. District Judge Liam O’Grady, who has been assigned to preside over this case in the District of Maryland.
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 IRS-CI, the DEA, the Maryland Transportation Authority Police Department, the Phoenix (Arizona) Police Department, and the Arizona Financial Crimes Task Force for their work in the investigation and thanked the prosecutors who are handling the case.
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Baltimore County Man Pleads Guilty to Possession with Intent to Distribute FentanylRead the Press Release
Baltimore, Maryland – Devon Denzel Thompson, age 26, of Woodlawn, Maryland, pleaded guilty today to possession with intent to distribute three kilograms of fentanyl.
The guilty plea 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 Chief Melissa R. Hyatt of the Baltimore County Police Department.
“Law enforcement partners are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution. We will continue to do everything we can to reduce overdose deaths from this drug and from all opioids. Add a gun to that equation and you face an even longer sentence in federal prison, where there is no parole—ever. Please, put down the gun and save a life—maybe even your own.”
According to his plea agreement, on March 16, 2018, Thompson was pulled over for a traffic violation by Baltimore County Police Department officers. During the course of the traffic stop, law enforcement asked Thompson to get out of his vehicle, but he did not comply. Instead, Thompson drove away, followed by the Baltimore County officers, who observed Thompson throwing items out of the window. Ultimately, Thompson was stopped and placed under arrest. Law enforcement recovered a digital scale and other drug paraphernalia from the vehicle. Law enforcement recovered the items Thompson threw from his vehicle, including a baggie containing over 40 grams of fentanyl.
Based on those recoveries, a warrant was obtained to search Thompson’s residence. During the search, law enforcement recovered three kilograms of fentanyl and over $10,000 from Thompson’s bedroom and a .380-caliber handgun and rounds of live ammunition from other areas of the house. Thompson admitted that the drugs and gun were his and that he possessed the gun in connection with his drug distribution.
As part of his plea agreement, Thompson is required to forfeit any assets directly traceable to the offense, including $14,144 in cash and the .380-caliber firearm and ammunition recovered from his home.
Thompson and the government have agreed that, if the Court accepts the plea agreement, Thompson will be sentenced to between 10 and 12 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for December 20, 2019 at 11:00 a.m.
United States Attorney Robert K. Hur commended the ATF and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher M. Rigali and Lauren E. Perry, who are prosecuting the case.
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Fourth Baltimore Man Pleads Guilty to Participating in A Conspiracy to Rob A Marijuana DealerRead the Press Release
Baltimore, Maryland – James Dorsey, a/k/a Boosey, Boosey Boo, and Bad Ass, age 24, of Baltimore, Maryland, pleaded guilty today to a commercial robbery, which resulted in the death of 18-year-old Markel Benson.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, on October 12, 2015, Dorsey, Ameer Baker, Keyon Hawkins, and a juvenile planned a robbery of Benson, who sold marijuana outside a restaurant located in the 2300 block of W. North Avenue in Baltimore. Before the robbery, Dorsey, Baker, Hawkins, and the juvenile drove around the block where the restaurant was located to make sure that Benson was there. Baker was driving Hawkins’ car. After seeing Benson, Baker drove the men to Pulaski and Smallwood Roads, where they met Deonta Douglas. Baker gave Hawkins a gun. Hawkins, Douglas and the juvenile returned to the restaurant on foot, while Baker and Dorsey drove Hawkins’ car.
At approximately 6:40 p.m., Hawkins, Douglas, and the juvenile approached the restaurant and asked a friend of Benson’s if anyone had any “weed.” Benson’s friend indicated that Benson, who was inside the restaurant, had weed. Hawkins went inside and robbed Benson of his drugs, cash, and phones. Hawkins and the other men ran away. Benson was angry and wanted to find the men who robbed him and get his property back. Benson and his friend went to a nearby associate’s house to get a gun, then walked to the area where Benson believed they would find the robbers. Benson and his friend were captured on a CCTV street camera walking together and Benson appeared to be carrying a gun. The time noted on the CCTV camera was 6:55 p.m.
In the meantime, Douglas, Hawkins, Baker, Dorsey, and the juvenile were back on Ridgehill Avenue. Hawkins returned Baker’s gun to him and gave him Benson’s stolen phone. Hawkins started to roll a joint using Benson’s stolen marijuana when Douglas let the others know that Benson and his friend were coming up the street. Douglas yelled “line ‘em up,” a street phrase meaning to shoot someone. At that moment, Dorsey and Baker ran up an alley and Dorsey fired three shots. One shot hit Benson, killing him. Baker’s gun jammed. The CCTV camera captured individuals scattering on foot, running away from the shots.
Immediately after the shooting, Baker, at Dorsey’s direction, contacted a co-conspirator to take them from the scene of the crime. Baker used Benson’s stolen phone to call Hawkins and a family member.
Dorsey and the government have agreed that, if the Court accepts the plea agreement, Dorsey will be sentenced to 15 years in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for December 16, 2019 at 3:00 p.m.
Keyon Hawkins, age 25; Deonta Douglas, a/k/a Cuzzo, age 24; and Ameer Baker, a/k/a Meer, age 25, all of Baltimore, previously pleaded guilty to their roles in the robbery. Hawkins was sentenced to 111 months in federal prison. Judge Bennett has scheduled sentencing for Baker and Douglas on November 12 and December 4, 2019, respectively, each at 3:00 p.m.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Sandra Wilkinson and Lindsey N. McCulley, who are prosecuting the case.
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Baltimore Bail Bonds Business Owner Sentenced to 7 Years in Federal Prison for A Sex Trafficking Conspiracy Involving A Minor FemaleRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Charles Mario Brown, Sr., age 48, of Baltimore, to seven years in federal prison, followed by 15 years of supervised release, for conspiracy to commit sex trafficking. Brown admitted that he operated a prostitution business involving a 16-year-old female, and at least four adult females, who performed commercial sex acts in the Baltimore area.
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); and Harford County Sheriff Jeffrey R. Gahler.
U.S. Attorney Robert K. Hur stated, “We will continue to work with our law enforcement partners to bring human traffickers to justice. These violent criminals exploit our most vulnerable for profit and must be stopped.”
According to Brown’s plea agreement, Brown and his co-conspirator met a 16-year-old runaway (“Victim 1”) in November 2016, while she was walking in Baltimore. Brown and the co-conspirator directed Victim 1 to meet with sex customers who called or sent text messages in response to online prostitution advertisements featuring the victim, which were posted by the conspirators. The conspirators agreed to provide Victim 1 with food and a place to stay in exchange for money she earned through commercial sex acts, and bought her lingerie that she wore in photos taken for prostitution ads. Brown drove Victim 1 to outcalls, where Victim 1 engaged in commercial sex acts and collected payment. Brown and the co-conspirator directed Victim 1 to give them at least some of the proceeds from her commercial sex acts, and she did so.
On December 9, 2016, an undercover Harford County Sheriff’s Office detective contacted a phone number found in the cell phone of a deceased male sex customer A.G. (A.G. suffered a fatal heroin overdose in a hotel room in Edgewood, Maryland in the presence of one of Brown’s adult female sex workers.) The detective contacted the phone number to arrange an overnight commercial sex date at a hotel in Edgewood and to request heroin. At the co-conspirator’s request, Victim 1 communicated with the detective to make arrangements for the commercial sex date, which included taking $1,000 for the purchase of heroin after arriving at the hotel.
As detailed in his plea agreement, Brown and the co-conspirator transported Victim 1 and an adult female to the hotel. Victim 1 and the woman went into the hotel room identified by the detective. Investigators recognized Victim 1 from prostitution ads posted online, and Victim 1 identified herself by the name listed in those ads. Brown and his co-conspirator, who were waiting in the SUV outside the hotel room, were arrested and their cell phones were seized. Forensic examination of the cell phones revealed numerous communications in furtherance of the prostitution business.
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.
In addition, the case was prosecuted 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 Attorneys’ 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 Homeland Security Investigations and the Harford County Sheriff’s Office for their work in the Brown case. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the case.
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Maryland Man Facing Federal Arson Charge for Fire at a Pasadena BarRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment charging Jamie Clemons, age 34, of Pasadena, Maryland, with malicious destruction of a property by fire, in connection with the fire on July 28, 2017, at a bar in Pasadena. The indictment was returned on September 11, 2019, and unsealed today upon the defendant’s arrest.
The indictment 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; the Anne Arundel County Fire Chief Trisha L. Wolford; and the Anne Arundel County Fire Marshal Division Chief John Lane.
The one-count indictment alleges that Clemons maliciously damaged and destroyed by fire a bar known as Coconut Charlies, located in the 9100 block of Fort Smallwood Road in Pasadena.
If convicted, Clemons faces a mandatory minimum of five years in federal prison and a maximum sentence of 20 years in prison. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge A. David Copperthite ordered that Clemons be detained pending a detention hearing scheduled for Monday, September 16, 2019 at 11:00 a.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 ATF, the Anne Arundel County Fire Department, and the Anne Arundel County Fire and Explosives Investigation Unit for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Judson T. Mihok and Mary W. Setzer, who are prosecuting the case.
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Former Union Treasurer Sentenced to 2 Years in Federal Prison for Embezzling at Least $82,000 in Union FundsRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Annette Elizabeth Jones, age 45, of Port Deposit, Maryland, to 24 months in prison, followed by 3 years of supervised release, for bank fraud in connection with a scheme to embezzle funds from the labor union where she worked. Jones entered her guilty plea on May 7, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor - Management Standards; and Special Agent in Charge of the Mid-Atlantic Field Office Kim R. Lampkins for the US Department of Veterans Affairs Office of Inspector General.
According to her plea agreement, Jones is the former Treasurer of the American Federation of Government Employees (AFGE) Local Union 331, which represented approximately 760 employees of the Department of Veterans Affairs (VA) Medical Center in Perry Point, Maryland.
As detailed in her plea agreement, Jones executed two fraud schemes through which she embezzled at least $82,180.73 from the Union. First, from July 2012 through July 2015, Jones stole at least $80,944.80 in Union funds by forging her colleagues’ signatures on 335 Union checks that she wrote to herself and then cashed or deposited those checks at multiple financial institutions. Second, from January 2014 through July 2015, Jones used a Union-issued credit card to pay for $1,235.93 in personal expenses using Union funds on 20 separate occasions.
Jones admitted that she took steps to conceal the scheme from the Union. For example, not only did Jones have exclusive control of the Union’s checkbook, but she also maintained sole custody of a laptop computer that she was issued by the Union to manage its financial records on Union-purchased accounting software. In that software, Jones frequently recorded false information regarding the business purpose of the fraudulent Union checks she forged and negotiated, or recorded no information at all about the business purpose of such checks. Jones also provided false information about the Union’s finances to the Executive Board and the Union membership, caused reports to be submitted to the federal government that falsely certified the amount of money she received from the Union, and lied to the Union’s independent auditor.
Jones’ fraud was discovered in July 2015, when the Union’s Vice President overheard a phone call in which Jones attempted to purchase a smartphone for a family member using the credit card she had been issued to pay for Union expenses only. The Vice President then reported the conversation to the Union’s President. The President later conducted a search of Jones’s office and found two uncashed Union checks made payable to Jones on which it appeared that the President’s signature had been forged. The Union President then met with the manager of the bank where the Union’s account was held, and reviewed each of the checks to Jones that had been drawn on the Union’s account during the preceding three months. The Union President’s signature had been forged on all of them. When the manager provided the President with copies of the Union’s monthly credit-card account statements, the President also discovered that Jones had made a number of personal charges on her Union-issued card.
Jones was immediately removed from her position as Union Treasurer and resigned from the VA soon thereafter. Although Jones had agreed to return her Union-issued laptop at the time she was removed as Treasurer, Jones admitted that she never returned it.
As part of her sentence, Jones is required to pay restitution in the full amount of the loss, which the parties agreed is $82,180.73.
United States Attorney Robert K. Hur commended the DOL and VA-OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Matthew J. Maddox, who prosecuted the federal case.
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Baltimore Felon Sentenced to 90 Months in Federal Prison for A Fentanyl and Cocaine Distribution Conspiracy and for Illegal Possession of A FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Porsche Anna Cruz, a/k/a Bridget Annette Barnes, Anna de la Cruz, and Ana Cruz, age 45, of Baltimore, Maryland, to 90 months in federal prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute fentanyl and cocaine, being a felon in possession of a firearm, and possession with intent to distribute fentanyl and cocaine.
Her son and co-defendant Chardon Angel Cruz, a/k/a Webbie, age 26, also of Baltimore, was sentenced on July 19, 2019, to five years in prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute fentanyl, crack cocaine, and powder cocaine.
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; and Commissioner Michael Harrison of the Baltimore Police Department.
According to their plea agreements, neighbors living near the defendants’ home in the 2400 block of Washington Boulevard complained to Baltimore Police that the Cruzes sold drugs at the residence. Porsche Cruz admitted that from May through June 2018, she conspired with others to distribute 270 grams of fentanyl—enough to kill 135,000 people, and more than one kilogram of cocaine in Baltimore. Chardon Cruz assisted his mother with distributing narcotics and collecting drug proceeds.
On May 25, 2018, law enforcement executed a search warrant at the Cruzes’ residence and recovered a loaded shotgun, a loaded pistol, three rifles, an additional shot gun, a box of 12 gauge shotgun shells, and other loose ammunition. On May 25 and June 12, 2018, they recovered a total of 52 plastic twist bags containing 2.16 grams of cocaine and 243 gel caps containing 23.49 grams of fentanyl at the Cruzes’ residence, pursuant to search and seizure warrants.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Samika N. Boyd, who prosecuted the case.
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Senior Maryland MS-13 Gang Leader Sentenced to 260 Months in Federal Prison for A Violent Racketeering Conspiracy, Including Attempted MurderRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Jose Augustin Salmeron-Larios (a/k/a Joseph Morales-Martinez, Angel Salvador Gutierrez, Yankee, and Kean), age 26, of Severn, Maryland, to 260 months in federal prison, followed by five years of supervised release, for a conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13; attempted murder in aid of racketeering; and using and carrying a firearm during and in relation to a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse Fong of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI); Acting Chief Marcus Jones of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha N. Braveboy; and Montgomery County State’s Attorney John McCarthy.
“As the founder and leader of the MS-13 gang’s “Maryland Program,” Salmeron-Larios organized and coordinated violence, drug trafficking, and extortion among six MS-13 cliques operating in the Maryland area,” said U.S. Attorney Robert K. Hur. “His arrest and conviction helped to dismantle the gang’s effort to make MS-13 operations in Maryland more organized, efficient, and deadly. Now Salmeron-Larios will spend more than 21 years in federal prison, where there is no parole—ever.”
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 Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. In Maryland and the surrounding area, these cliques include 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”). MS-13 cliques often combine and work together as “Programs,” with the purpose of increasing the gang’s levels of organization, violence, extortion, and other criminal activity. 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.”
According to his plea agreement, from at least January 2015 through September 2016, Salmeron-Larios was a member of the PVLS clique and served as the MS-13 Maryland Program Leader. Salmeron-Larios admitted to participating in numerous acts in furtherance of the racketeering conspiracy.
For example, in April 2015, Salmeron-Larios and other MS-13 members and associates traveled to New York, met with MS-13 members there, and discussed MS-13 business. Salmeron-Larios admitted that on November 7, 2015, he and other MS-13 members and associates traveled to Hyattsville, Maryland, intending to murder Victim 1, who was believed to be a member of the rival 18th Street Gang. Two MS-13 co-conspirators lured Victim 1 to a location in Hyattsville. Salmeron-Larios and two MS-13 co-conspirators, all armed with firearms, went to the meeting location. Salmeron-Larios and the armed MS-13 co-conspirators got out of the car while another MS-13 accomplice waited in the vehicle. The victim arrived in a car driven by another person and one of Salmeron-Larios’s MS-13 co-conspirators fired his handgun into the vehicle, attempting to kill Victim 1, who was struck in the face by one of the gunshots. Salmeron-Larios and his accomplices returned to their vehicle and left the area. The guns used during this crime, including the gun possessed by Salmeron-Larios, were taken to the residence of the co-conspirator who shot Victim 1. Victim 1 survived the shooting but lost an eye, sustained loss of hand and leg function, and was permanently disfigured as a result of the shooting. Salmeron-Larios participated in the shooting in order to gain entrance to, maintain, and increase his position in MS-13.
Salmeron-Larios admitted that in January 2016, he traveled to Florida and obtained firearms, which were distributed to MS-13 members for use in Maryland. In addition, during the time of the conspiracy, Salmeron-Larios possessed and distributed controlled substances, including cocaine, for the benefit of MS-13. Finally, on June 8 and June 9, 2016, Salmeron-Larios discussed an attack upon suspected rival gang members with other MS-13 members. During several conversations, Salmeron-Larios discussed providing a firearm to a member of the Sailors Clique to be used against rival gang members in the area of 23rd Avenue in Langley Park “by the towers.” Salmeron-Larios instructed one individual where to find the loaded gun, and instructed another MS-13 member to loan a gun to a member of the Sailors Clique.
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 DEA; HSI Baltimore, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s County State’s Attorney’s Office, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur also recognized the Montgomery County and Prince George’s County Departments of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Hur thanked Assistant United States Attorneys William D. Moomau, Catherine K. Dick, and Burden H. Walker, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Member of Maryland MS-13 Extortion Operation in DC Suburbs Sentenced to 51 Months in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Gerdandino Delgado-Escobar, a/k/a “Pumba,” age 24, of Hyattsville, a member of La Mara Salvatrucha, or MS-13, to 51 months in federal prison, followed by three years of supervised release, for conspiracy to interfere with interstate commerce by extortion. Judge Xinis also ordered Delgado-Escobar to pay restitution to his victims. A federal jury has convicted Delgado-Escobar late on June 13, 2019. Delgado-Escobar has been detained since his initial appearance on May 8, 2018.
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 FBI Washington Field Office; 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 Field Office; Special Agent in Charge Jesse R. Fong of the U.S. Drug Enforcement Administration (DEA) Washington Field Division; Acting Chief Marcus Jones of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief Amal Awad of the City of Hyattsville Police Department; Prince George’s County State’s Attorney Aisha Braveboy; and Montgomery County State’s Attorney John McCarthy.
“This prosecution and sentence send a strong message to MS-13 gang members that we will not tolerate the fear and violence perpetrated by MS-13 in Maryland,” said U.S. Attorney Robert K. Hur. “Federal, state, and local law enforcement will continue to work together to find and bring to justice MS-13 members who prey on our neighborhoods.”
MS-13 is a violent gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, Anne Arundel 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.
According to trial evidence, in the Washington, DC metropolitan area, MS-13 generated income from various sources, including the extortion of money from businesses. Targeted businesses included drug dealers, brothels, unlicensed “stores” where food, alcoholic beverages, and cigarettes were sold, as well as legitimate businesses, including food and beverage sellers and distributors.
The evidence presented at the four-day trial proved that Delgado-Escobar was a member and associate of the Langley Park Salvatrucha (“LPS”) clique of MS-13. From at least March 2013, Delgado-Escobar, working with other MS-13 members and associates, extracted weekly extortion payments known as “rent” from victim business owners for operating in territory controlled by the LPS and Sailors cliques of MS-13. According to trial testimony, the payments were generally about $40 to $50 per week for beer delivery businesses and around $115 per week for brothel owners.
As proven during the trial, Delgado-Escobar and his co-conspirators extorted numerous business owners operating in the Langley Park area. Delgado-Escobar conspired with other MS-13 members and associates to obtain money from the victims through the use of actual and threatened force, violence, and fear. According to the trial evidence, in one instance a victim who delivered beer was grabbed by the neck, had a gun put to his head, and was threatened with the murder of his entire family if the victim did not pay MS-13 for operating a business in its territory. MS-13 members referred to these extortion payments as “rent.”
U.S. Attorney Robert K. Hur thanked the FBI Washington and Baltimore Field Offices, HSI Baltimore, the DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s County State’s Attorney’s Office, the City of Hyattsville Police Department, and the Montgomery County State’s Attorney’s Office for their work in this investigation. Mr. Hur commended Assistant U.S. Attorneys Catherine K. Dick and William D. Moomau, who are prosecuting this case.
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Baltimore Cocaine and Marijuana Dealer Sentenced to More Than 11 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Delroy Williams, Jr. age 32, of Baltimore, Maryland, to 135 months in federal prison, followed by five years of supervised release, for a conspiracy to distribute five kilograms or more of cocaine, and for possession with intent to distribute cocaine and marijuana. Judge Hollander imposed the sentence on September 5, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Anne Arundel County Police Chief Tim Altomare.
“Drug traffickers must know that gun crime will lead to federal time, which has no parole—ever,” said United States Attorney Robert K. Hur. “Delroy Williams did not heed that message and will now serve more than 11 years in federal prison. We will continue to work with our law enforcement partners to remove those who would commit violence from our community.”
According to the testimony presented at his five-day trial, from at least October 2016 through December 12, 2016, Williams distributed cocaine and marijuana in the Baltimore area. On the evening of December 12, 2016, Williams encountered an associate at a nightclub in Baltimore County. Believing that the associate owed him money, Williams assaulted, robbed, and shot at the individual before ramming the victim’s car and then fleeing the scene. Realizing that the associate knew where Williams lived, Williams took his drugs from his residence and took them to his girlfriend’s home in Glen Burnie, Maryland.
Law enforcement executed a search warrant at the Glen Burnie residence the next day and recovered almost five kilograms of cocaine, several pounds of marijuana, and two guns from the house. Witnesses testified that several more pounds of marijuana, more than $213,000 in cash, scales, and pistol ammunition were recovered from Williams’s truck.
A federal jury convicted Williams on May 20, 2019. Williams was originally scheduled for trial in November 2018, but fled and was a fugitive until his arrest on January 11, 2019. Williams has been detained since that time.
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 DEA, the Baltimore County Police Department, and the Anne Arundel County Police Department for their work in the investigation, and thanked the FBI, the ATF, and the U.S. Marshals Service for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Zachary B. Stendig and John W. Sippel, Jr. who prosecuted the case.
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Marketing Executive for Two Global Companies Pleads Guilty to Federal Charge for Defrauding Her EmployersRead the Press Release
Baltimore, Maryland – Rebecca Jelfo, age 47, of Silver Spring, Maryland, pleaded guilty today to a federal wire fraud charge in connection with a scheme to defraud two employers of a total of at least $855,000 by submitting fraudulent and inflated invoices.
The guilty pleas were 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 took steps to make sure that Company A and Company B paid the 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 1 remitted payments for Jelfo’s personal expenses totaling $263,697, including a $13,000 payment to Jelfo’s Neiman Marcus credit card account, a $28,000 payment to Jelfo’s Saks Fifth Avenue credit card account, and purchasing $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 2. After Company B paid the invoices to Vendor 2, Vendor 2 remitted payments totaling $106,302 to Jelfo’s personal American Express credit card account. On at least one occasion, Jelfo instructed Vendor 3 to submit an inflated invoice to Company B and provided Vendor 3 with fraudulent documentation that appeared to justify the inflated invoice. Based on Jelfo’s request, Vendor 3 sent an invoice to Company B requesting a payment of $74,880. After receiving the payment from Company B, Vendor 3 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 B as a result of this scheme. As part of her plea agreement Jelfo is required 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 at least $855,587.25.
Jelfo faces a maximum sentence of 20 years in prison for the wire fraud. U.S. District Judge Peter J. Messitte has scheduled sentencing for Jelfo on December 10, 2019, at 9:30a.m.
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 are prosecuting the case.
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Baltimore Marijuana Distributor Who Was a Fugitive for More Than Nine Years Pleads Guilty to Federal ChargesRead the Press Release
Greenbelt, Maryland – Jeffrey Putney, a/k/a Jeffy, Tom, and J.P., age 43, of California, formerly of Baltimore, pleaded guilty to federal charges of maintaining a drug-involved premises and to possession with intent to distribute at least 1,000 kilograms of marijuana. Putney has been a fugitive since the indictment was returned in December 2010. The guilty plea was entered on September 4, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse Fong of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Acting Chief Marcus Jones of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Putney’s plea agreement, from 2003 until about June 2009, Putney conspired with Matt Nicka, Gretchen Peterson, Andrew Sharpeta, David D’Amico, and others to distribute marijuana.
As part of the conspiracy, Putney and his co-conspirators obtained large quantities of marijuana grown in Canada and northern California, which they transported by plane and tractor trailer, to warehouses in Maryland and Pennsylvania. Putney and his co-conspirators stored marijuana in warehouses, vehicles, and a storage unit, and purchased and rented residences that were used to store and distribute marijuana and to count and collect cash proceeds from the marijuana sales. For example, Putney shared a storage locker with a co-conspirator where they stored marijuana. Putney had a key to the locker.
As detailed in the plea agreement, three to four times a week Sharpeta, D’Amico, Nicka and, at times, Putney, counted drug proceeds which generally ranged from $20,000 to $100,000, then placed the money in different boxes and set it aside. The money was then bundled into $50,000 packs and loaded into a suitcase or duffle bags in increments ranging from $100,000 to $1 million. The co-conspirators then locked or super-glued shut the suitcases or duffle bags and transported the cash via private airplane or tractor/trailer to pay the source of supply in California.
Putney also personally participated in several financial transactions involving the proceeds of the marijuana conspiracy and designed to conceal the nature, source, ownership, and control of those proceeds. For example, Putney facilitated the purchase of a Lancair IV-P aircraft for $450,000 for the co-conspirators to use to transport marijuana and drug proceeds for the conspiracy. As part of the effort to purchase this aircraft, the co-conspirators created a holding company called Air Sky Holdings and indicated that the purpose of the company was to provide air taxi services so as to disguise the true purpose of the company and the aircraft.
On March 18, 2009, the Drug Enforcement Administration executed a raid on a stash house that Putney oversaw located at 3522 Hickory Avenue in Baltimore, Maryland and which served as one center for operations for the conspiracy. Law enforcement seized from the residence over 100 pounds of marijuana, $20,000 in cash, 31 cellular telephones, documents regarding the purchase of the Lancair IV-P aircraft, four money counters, tally sheets with balances over $1.5 million, and false identifications. On March 18, 2009, prior to the execution of the raid by law enforcement, law enforcement had been following Putney. Putney related his suspicion to Sharpeta just before the police arrested Putney in a car. At the time of his arrest, Putney was in possession of a duffle bag containing $38,000 in cash and five cell phones.
After the raid, Sharpeta and Nicka scrambled to clear out the other warehouses of marijuana and to burn the drug trafficking organization’s ledgers. Nicka collected funds from members of the drug trafficking organization to hire defense attorneys. Putney directed one co-conspirator to use attorney James Michael Farrell, who was subsequently indicted and convicted in a separate case for his role as consiglieri in the marijuana conspiracy.
After the execution of the warrant, and while in hiding, Putney moved from Baltimore to California, to Philadelphia, Pennsylvania, and then returned to California. Putney was aware that he and other members of the conspiracy had been indicted by a federal grand jury in Maryland, and that federal law enforcement was searching for him. At one point, Putney married his girlfriend to prevent her from testifying against him in grand jury. The two later divorced but not before his wife attempted to sell several high-end watches Putney had purchased with drug proceeds during the marijuana conspiracy in order to get money for Putney to remain on the run.
Putney was arrested in January 2019, in Nevada after a Nevada trooper pulled him over for a traffic violation.
Putney and the government have agreed that, if the Court accepts the plea agreement, Putney will be sentenced to eight years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 8, 2019, at 9:30 a.m.
A total of 15 defendants have previously been convicted in this case and were sentenced to up to 188 months in prison.
United States Attorney Robert K. Hur praised the DEA, IRS-CI, and the Montgomery County, Prince George’s County, Baltimore County and Baltimore City Police Departments for their work in the investigation and thanked the U.S. Marshals Service for its assistance. Mr. Hur thanked Assistant United States Sandra Wilkinson, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
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Baltimore Heroin Dealer Sentenced to 10 Years in Federal Prison for Distribution of HeroinRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Coron Demon Johnson, a/k/a Savage, age 25, of Baltimore, Maryland, to 10 years in federal prison, followed by three years of supervised release, for distribution of heroin. Johnson admitted that an individual died as a result of using heroin that he distributed.
The sentence was 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 Henry P. Stawinski III of the Prince George’s County Police Department; and Chief John Nesky of the Bowie Police Department.
“Heroin dealers are selling death and despair and more people die of heroin overdoses than murder in Maryland,” said U.S. Attorney Robert K. Hur. “Federal, state, and local law enforcement are working together to hold drug dealers responsible for the deaths they cause. As a result, Coron Johnson will now spend 10 years in federal prison, where there is no parole—ever.”
According to his plea agreement, on August 11, 2017, Johnson sold heroin to an individual in Annapolis, Maryland. The individual returned to her home in Bowie, Maryland, and went to her bedroom. The next day, the individual was found in her bedroom, unresponsive, holding her cell phone. First responders administered CPR, but the victim was pronounced dead a few minutes later. Law enforcement officers recovered a paper fold containing .025 grams of heroin. The medical examiner performed an autopsy and determined that the victim’s cause of death was heroin intoxication.
Law enforcement officers took possession of the victim’s phone following the fatal overdose. A short time later, Johnson texted the phone, asking if the victim was “coming get some this fire today.” A law enforcement officer, posing as the victim, responded to Johnson. Johnson, via text, arranged to meet the law enforcement officer, posing as the victim, in Bowie, in order to sell the victim $139 worth of heroin.
At the agreed-upon time, Johnson texted that he had arrived at the meeting location. Law enforcement officers initiated a traffic stop on the vehicle. Johnson was in the passenger seat and three other people were also in the vehicle, including two minor children. Johnson had white powder residue on his pants when he got out of the vehicle. Law enforcement recovered a paper fold with powder residue from the floorboard of the passenger side of the car where Johnson had been sitting. Johnson was also in possession of the cell phone used to text the victim’s phone.
Johnson admitted to law enforcement that he primarily distributes heroin in the Newtowne-20 section of Annapolis. Johnson identified a picture of the victim as the individual he thought he was meeting in Bowie, and admitted that he had sold the victim heroin in Annapolis the day before.
United States Attorney Robert K. Hur commended the DEA, the Prince George’s County Police Department, and the Bowie Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Kelly O. Hayes, who prosecuted the case.
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Maryland U.S. Attorney’s Office, Along with Federal, State, and Local Law Enforcement Partners, Announces Strike Force to Combat Violence in BaltimoreRead the Press Release
Baltimore, Maryland – The U.S. Attorney’s Office for the District of Maryland, along with federal, state, and local law enforcement partners, today announced the Baltimore Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force, a new initiative designed to combat violent crime in Baltimore. The mission of the Baltimore OCDETF Strike Force is to disrupt and dismantle the most violent gangs and drug trafficking organizations, and their financial infrastructure, in the Baltimore metropolitan area. While the Strike Force has been conducting investigations for more than a year now, the signing of the fiduciary agreement with the Baltimore County Government will now allow all Strike Force investigators to work in one shared location, which is a key part of the Strike Force concept that has proven successful in other cities.
The Strike Force program was announced by U.S. Attorney for the District of Maryland Robert K. Hur; Adam Cohen, Director of the Department of Justice’s Organized Crime Drug Enforcement Task Forces; Baltimore County Executive Johnny Olszewski; Tom Carr, Executive Director of the Washington/Baltimore HIDTA; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge “Jimmy” Sung H. Yi of the United States Secret Service - Baltimore Field Office; 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; U.S. Marshal Johnny Hughes; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; State’s Attorney for Baltimore City Marilyn Mosby; Commissioner Michael Harrison of the Baltimore Police Department; Secretary Robert L. Green of the Maryland Department of Public Safety and Correctional Services; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Baltimore City Sheriff John W. Anderson; Colonel Woodrow W. Jones, Chief of the Maryland Transportation Authority Police; Anne Arundel County Police Chief Tim Altomare; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“The Baltimore OCDETF Strike Force is a critical part of our strategy to make Baltimore safer by identifying and focusing on those groups responsible for the most violent crime in our city,” said U.S. Attorney Robert K. Hur. “The Strike Force model has worked elsewhere, and it will work here: By creating blended teams of investigators from more than a dozen local, state, and federal law enforcement agencies and tasking them with building investigations of the city’s most violent gangs, we will reduce violent crime together. I’m grateful to all of the many partners who have made it possible for us to bring this model to Baltimore, including Baltimore County Executive Olszewski and the Baltimore County Council for their leadership and agreement to serve as the financial conduit for the federal funds supporting this effort.”
Baltimore and its surrounding communities suffer from criminal violence, much of it driven by gangs and violent drug-trafficking organizations. The Strike Force was born of the desire for federal, state, and local law enforcement agencies in the Baltimore area to better coordinate and combine their resources and efforts to combat that violence. The mission of the Strike Force is to reduce violent, firearms-related, and drug-related crime in Baltimore by identifying criminal organizations and individuals most responsible for generating violence, sharing information about drug trafficking, illegal firearms, and violence, and pursuing the proceeds generated by drug trafficking organizations.
Participating agencies have agreed to assign full-time personnel to the Strike Force, which is led by the Baltimore DEA Assistant Special Agent in Charge and Deputy Chiefs from the FBI, the ATF, HSI, the Baltimore Police Department and the Maryland State Police, as well as prosecutors from the U.S. Attorney’s Office and the State’s Attorney’s Office for Baltimore City. Police officers, agents, and both federal and state prosecutors will work together in open workspace. The physical and organizational structure will lead to collaborative, centralized intelligence sharing in real time. The efforts of the Strike Force will complement and be a force multiplier to the ongoing efforts of the Washington/Baltimore High Intensity Drug Trafficking (HIDTA) Program.
RECENT CASES RESULTING FROM BALTIMORE OCDETF STRIKE FORCE INVESTIGATIONS
Monument Street Drug Trafficking Organization (“DTO”) - In this case, 25 defendants were arrested and charged in a 30-count superseding indictment that was returned by a federal grand jury on June 26, 2019, and unsealed on July 19, 2019. The superseding indictment charges the defendants with conspiring to distribute narcotics in and around the 400 block of North Montford Avenue and Jefferson Street, and around the 2400 block of East Monument Street at Port Street. Beginning in July 2018, members of the conspiracy allegedly distributed heroin, fentanyl, cocaine, and crack cocaine to individual drug users, and in bulk quantities to other drug traffickers, who redistributed the drugs in and around Baltimore. Ten of the conspirators also face firearms charges—including eight defendants charged with illegal possession of a firearm and ammunition by a prohibited person. During the investigation, law enforcement seized nine firearms, more than 14 kilograms of cocaine, approximately 4.5 kilograms of heroin, and 479 grams of fentanyl—enough to kill over 200,000 people. In addition, law enforcement seized more than $472,000 in cash and jewelry and vehicles worth more than $466,000. (Adams Superseding Indictment)
Spencer DTO – A federal indictment was returned on August 21, 2019, charging six defendants in a drug distribution conspiracy allegedly operating in southwest Baltimore. Sonny Spencer is the alleged leader of the DTO, which operates in and around the 400 block of Furrow Street, in southwest Baltimore, distributing primarily crack cocaine, heroin, and fentanyl. During the investigation, law enforcement conducted surveillance in the area where the DTO allegedly conducted its business and supervised numerous controlled purchases of narcotics from the alleged DTO members. In addition, law enforcement seized crack cocaine, a mixture of heroin and fentanyl, a .40 caliber firearm, and more than 70 rounds of ammunition.
U.S. Attorney Hur thanked the Washington/Baltimore HIDTA, the DEA, the U.S. Secret Service, the FBI, the ATF, HSI, the U.S. Marshals Service, the U.S. Postal Inspection Service, the State’s Attorney’s Office for Baltimore City, the Baltimore Police Department, the Maryland Department of Public Safety and Correctional Services, the Maryland State Police, the Baltimore City Sheriff’s Office, the Maryland Transportation Authority Police, the Anne Arundel County Police Department, the Baltimore County Police Department, the Maryland National Guard, and the Baltimore County Executive and Baltimore County Council, for their commitment to the Strike Force. Mr. Hur also commended the dedicated Assistant U.S. Attorneys and Assistant State’s Attorneys who are handling these prosecutions.
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Washington, D.C. Man Sentenced to More Than 11 Years in Federal Prison for Conspiracy to Distribute Synthetic CannabinoidsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore C. Chuang today sentenced Nathaniel Michael Worthy, age 47, of Washington, D.C., to 135 months in federal prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute controlled substances and controlled substance analogues.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Ashan M. Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief Peter Newsham of the Metropolitan Police Department; and Prince George’s County State’s Attorney Aisha N. Braveboy.
According to Worthy’s plea agreement, from at least January 1, 2016 through February 9, 2019, he conspired with others, including Carjandario Danielle Yarborough, to distribute synthetic cannabinoids and other controlled substances and controlled substance analogues. Controlled substance analogues are substances that are chemically manufactured to mimic and create a “high” similar to other drugs. Worthy, Yarborough, and their co-conspirators obtained synthetic cannabinoids, known by various names, including “Salt” and “Black Bag,” and sold them in Maryland and other locations, including the District of Columbia and Virginia. Worthy and his co-conspirators obtained cash from the drug sales and possessed firearms in furtherance of the conspiracy. Worthy and his co-conspirators routinely rented hotel rooms and vehicles to distribute the synthetic cannabinoids.
On September 29 and September 30, 2016, Worthy and Yarborough rented hotel rooms in Temple Hills, Maryland, to prepare and distribute synthetic cannabinoids. While at the hotel, Worthy and Yarborough believed that another co-conspirator, Victim 1, had stolen money from them in connection with the sale of synthetic cannabinoids. When Worthy confronted Victim 1 about the suspected theft, Yarborough stabbed Victim 1 in the chest with a knife, killing him.
After Victim 1 was killed, Worthy and another co-conspirator removed synthetic cannabinoids and drug proceeds from the hotel room. After the co-conspirators left the hotel room where Victim 1 had been killed, Yarborough called 911 and falsely reported that she had killed Victim 1 in self-defense.
On January 4 and February 2, 2017, Worthy and co-conspirators rented hotel rooms in Arlington, Virginia, and College Park, Maryland, respectively, and possessed synthetic cannabinoids intended for distribution, as well as items to facilitate distribution of these substances. Specifically, on January 4, 2017, Worthy possessed a loaded 9mm pistol in furtherance of the drug conspiracy and on February 2, 2017, he possessed packaging materials and $4,752.18 in cash, which was the proceeds from the sales of the synthetic cannabinoids.
On January 30, 2018, Worthy and Yarborough sold synthetic cannabinoids to a law enforcement officer. On February 9, 2018, law enforcement executed a search warrant at the residence where Worthy and Yarborough lived. Law enforcement recovered synthetic cannabinoids intended for distribution, a different 9mm pistol, a .25-caliber pistol, and $1,640.79 in cash, which was generated from the sale of synthetic cannabinoids.
Carjandario Danielle Yarborough, age 35, of Washington, D.C, was sentenced to 20 years in federal prison on July 2, 2019, for conspiracy to distribute and possess with intent to distribute controlled substances and controlled substance analogues, and for murder in furtherance of the conspiracy.
United States Attorney Robert K. Hur commended the ATF, the DEA, the Prince George’s County Police Department, the Metropolitan Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation and recognized Homeland Security Investigations (HSI) Baltimore and the Arlington County Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorneys William D. Moomau and Gregory D. Bernstein, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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MS-13 Member Sentenced to More Than 24 Years in Federal Prison for Conspiring to Participate in a Violent Racketeering Enterprise, Including MurderRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Kevin Alexis Hernandez-Guevara, aka “Stop,” age 22, a citizen of El Salvador illegally residing in Elizabethtown, New Jersey, to 292 months in federal prison, followed by five years of supervised release, for a federal racketeering conspiracy relating to his participation in the activities of the gang known as La Mara Salvatrucha, or MS-13, including murder and drug dealing.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division; Assistant Director in Charge Timothy R. Slater of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore Field Office; Special Agent in Charge Jesse Fong of the U.S. Drug Enforcement Administration (DEA) Washington Field Division; Acting Chief Marcus Jones of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief Amal Awad of the City of Hyattsville Police Department; Prince George’s County State’s Attorney Aisha N. Braveboy; and Montgomery County State’s Attorney John McCarthy.
“MS-13 gang members, like Hernandez-Guevara, show little regard for life, using violence to hurt, to rob, and to kill. We will continue our relentless pursuit of violent MS-13 gang members to stop this type of violence and make our neighborhoods safe,” said U.S. Attorney Robert K. Hur.
According to the plea agreement, 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 Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. MS-13 members and associates are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
Pursuant to his plea agreement, Hernandez-Guevara admitted that from at least July 2016, he was a member and associate of the Sailors Clique of MS-13. Hernandez-Guevara admitted to participating in numerous acts in furtherance of the racketeering conspiracy.
For example, according to the plea agreement, on or about July 29, 2016, Hernandez-Guevara and three other members and associates of MS-13 planned and conspired to murder an individual, who was believed to be a member of a rival gang. On July 29, 2016, pursuant to that plan, Hernandez-Guevara and other MS-13 members and associates lured the victim to a secluded area in Hyattsville, Maryland. One of the MS-13 members and associates shot at the victim, and missed. Hernandez-Guevara collected the fired shell casings from the gunshots fired by Hernandez-Guevara’s co-conspirator. Multiple MS-13 members and associates then assaulted and stabbed the victim with the intention of killing him. The victim died as a result of injuries sustained during this attack, which included 61 sharp-force injuries.
Also, according to the plea agreement, on or about Aug. 9, 2016, in Hyattsville, Hernandez-Guevara and other MS-13 members and associates planned and attempted to rob two individuals of a pound of marijuana that they were going to sell to Hernandez-Guevara and his co-conspirators. During the attempt, the two individuals resisted. In the course of the struggle, the two individuals were shot, stabbed, and sustained serious, permanent, and life-threatening bodily injuries. Hernandez-Guevara and another co-conspirator were also shot.
Hernandez-Guevara also admitted to distributing less than one kilogram of marijuana for and on behalf of the Sailors Clique. His activities included receiving and distributing marijuana and proceeds from the sale of marijuana.
United States Attorney Robert K. Hur and Assistant Attorney General Brian Benczkowski commended the FBI, HSI, the DEA, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s State’s Attorney’s Office, the City of Hyattsville Police Department, and the Montgomery County State’s Attorney’s Office for their investigation. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorneys William D. Moomau, Catherine K. Dick, and Trial Attorney Julie Finocchiaro of the Criminal Division’s Organized Crime and Gang Section, who prosecuted this case.
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Fraudsters Plead Guilty in Federal Court to Their Roles in a Fraudulent Auto Loan Scheme with Losses of More Than $1 MillionRead the Press Release
Baltimore, Maryland – John O’Day, age 48, of Chester and Stevensville, Maryland, and Sarasota, Florida, and Denise White, a/k/a Lisa Young and Lisa White, age 32, of East Point, Georgia, have pleaded guilty to 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. White pleaded guilty on August 28, 2019, and O’Day pleaded guilty on June 4, 2019.
The guilty pleas were 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; Acting Chief Marcus Jones of the Montgomery County Police Department; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to their plea agreements, between April 2016 and January 2018, O’Day and his co-conspirators, including White, 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. At least 27 of the fraudulent applications, including 12 in which White was involved as a co-conspirator, were successful and resulted in the disbursement of loan checks totaling approximately $1,167,192, which O’Day deposited in his personal bank accounts in Maryland. O’Day provided a portion of the fraud proceeds to co-conspirators, including White. 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 other co-conspirators 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.
White admitted that she personally submitted some of the fraudulent auto loan applications and 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 also fabricated documents in support of the fraudulent loan applications and O’Day’s efforts to negotiate the loan checks.
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 then 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.
White and O’Day each face a maximum of 30 years in federal prison for bank fraud, and a mandatory minimum sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge Ellen L. Hollander has scheduled sentencing for O’Day on November 8, 2019 and for White on November 15, 2019, both at 10:00 a.m.
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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Prince George’s County Felon Sentenced to More Than 10 Years in Federal Prison for Drug Distribution and Related Firearms ChargesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore C. Chuang today sentenced Tyrone Lavon White, age 28, of Landover, Maryland, to 126 months in federal prison, followed by five years of supervised release, for possession with intent to distribute controlled substances, possession of firearms and ammunition in furtherance of a drug trafficking crime, and for being a felon in possession of a firearm and ammunition.
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 Chief Henry P. Stawinski III of the Prince George’s County Police Department.
“Drug traffickers must know that gun crime will lead to federal time, which has no parole—ever,” said United States Attorney Robert K. Hur. “We will continue to work with our law enforcement partners to remove those who would commit violence from our community. Please put down the guns. You’ll save a life, maybe even your own.”
According to his guilty plea, White was present at a residence when Prince George’s County Police Department officers executed a search warrant. At the commencement of the search, White and the other occupants of the residence were advised of their rights.
During the search of the residence, law enforcement located in an upstairs bedroom a black backpack that contained a loaded 9x19mm semi-automatic pistol with an extended magazine containing 32 rounds of ammunition; a loaded 9x19mm semi-automatic pistol containing 16 rounds of ammunition; and nine bags of a substance containing marijuana. In addition, two vials of phencyclidine (“PCP”) were recovered from the closet of the bedroom, and $2,250 in cash was found under the mattress in this bedroom. White admitted to the officers that all of the items recovered during the search belonged to him. Further, White admitted that he possessed the guns in furtherance of drug trafficking.
White had two previous felony drug trafficking convictions in Prince George’s County Circuit Court and was prohibited from possessing firearms or ammunition.
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 the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jessica C. Collins, who prosecuted the case.
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