District of Maryland
Press releases recorded for this federal judicial district.
Four Cherry Hill Hillside Gang Members Sentenced to at Least 20 Years in Federal Prison—And A Fifth Sentenced to 14 Years in Federal Prison—For Racketeering Conspiracy ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III this week sentenced Kevin Horsey, a/k/a What What, age 26; Terrell Luster, a/k/a Relly, age 30; Caesar Rice, age 27; and Michael Evans, a/k/a Pee Wee, age 25, all of Baltimore, to 20 years, 23 years, 22 years, and 14 years in federal prison, respectively, each followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise related to their activities as members of the Hillside gang that operated in the Cherry Hill neighborhood of Baltimore. Horsey’s sentence was imposed on July 11, 2019. Evans, Luster, and Rice were sentenced today. A fifth Cherry Hill gang member, Christopher Dukes, age 27, of Baltimore, was sentenced on June 26, 2019, to 23 years in federal prison for his gang activities. The defendants admitted to participating in murders, attempted murders, robberies, and the distribution of narcotics.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
“These armed gang members showed little regard for life, using violence to hurt, to rob, and to kill while selling deadly drugs in our city. Defendant Dukes even tried to murder a police officer by hitting him with his car. We are relentless in pursuing and stopping this type of violence.” said U.S. Attorney Robert K. Hur. “These dangerous defendants now face lengthy terms in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to their plea agreements, the defendants were members and associates of the Hillside Enterprise, which they knew distributed powder and crack cocaine, heroin, oxycodone and marijuana, primarily in the Cherry Hill Shopping Center, in other locations throughout Cherry Hill, and in west and southwest Baltimore City. The members of the Hillside Enterprise used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization, including narcotics trafficking. Hillside members used residences in and around Cherry Hill to cut and package drugs for distribution, primarily heroin, powder cocaine, and crack. These locations included a house at 453 Roundview Road and an apartment at 2300 Terra Firma Road in Cherry Hill. Only trusted members of the Hillside Enterprise were admitted to these locations while the drugs were being prepared for sale. In an effort to distinguish their narcotics, Hillside members used colored topped vials or colored the drugs with food coloring. All five defendants admitted that they distributed drugs as a member of Hillside, and on behalf of the gang.
Members of the Hillside Enterprise routinely carried firearms and committed acts of violence in furtherance of the organization’s activities, including robberies, shootings, beatings, murders, and other violence in order to intimidate others who would interfere with their narcotics trafficking. Acts of violence were also committed to discipline members within the Hillside Enterprise for transgressions, real or perceived, against the conspiracy.
Hillside members and associates have been in a long-running dispute with persons not part of the gang, including Up Da Hill (“UDH”), the Lakebrook Circle Boys, and others. Members and associates of Hillside have routinely engaged in acts of violence, including murder, directed at members of these rival organizations, or persons who happen to be located on territory controlled by these rival organizations. The defendants all knew that these acts of violence, including the homicides, were committed by Hillside members and associates. For example, Horsey, Luster, Rice, and Evans all admitted that they participated in, or were present at shootings, generally of individuals whom they and their fellow Hillside members believed to be rival gang members. Dukes admitted participating in a murder, the attempted murder of a police officer (after he attempted to hit the officer with his car), and two shootings.
According to the ATF, a reward of $10,000 is available for information leading to the arrest of the final defendant in this case, fugitive Deaven Raeshawn Cherry, a/k/a Gotti, age 22, of Baltimore, who is charged federally with drug and racketeering conspiracies, including murders. He is actively being sought by ATF Baltimore Special Agents and the U.S. Marshals Service and should be considered armed and dangerous. Law enforcement believes he is likely still in Baltimore City or the counties surrounding it. Anyone with information should contact ATF at (888) ATF-TIPS, [email protected], text “ATFBAL” to 63975, or contact ATF via the mobile reportit® app. Co-defendant Travis Eugene Alewine, a/k/a Sticks, age 27, of Baltimore, who had been a fugitive for two years, was arrested on May 23, 2019, after law enforcement received a tip as to his whereabouts.
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, the Baltimore 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 Patricia C. McLane and Michael C. Hanlon, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Towson Man Pleads Guilty to Federal Charge of Distribution of Child PornographyRead the Press Release
Baltimore, Maryland –Stephen Bayne Fields, Jr., age 47, of Towson, Maryland, pleaded guilty today to distribution of child pornography by 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.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) 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 his 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 residences and seized a laptop computer and other electronic devices.
As part of his plea agreement, Fields 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).
Fields faces a mandatory minimum of five years and up to 20 years in prison for distribution of child pornography. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for October 10, 2019, at 1:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the 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 is prosecuting the federal case.
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Fraudster and Identity Thief Who Used the Personal and Account Information of AT&T Customers to Purchase Apple iPhones Sentenced to More Than Four Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Toni Ann Bobet, age 30, of New York, New York, to 50 months in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud and for aggravated identity theft, in connection with a scheme to fraudulently obtain and charge the costs of upgraded Apple iPhones against true AT&T customers. Judge Xinis also ordered Bobet to pay restitution of $95,001.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Matthew S. Miller of the United States Secret Service - Washington Field Office; and Acting Chief Marcus Jones of the Montgomery County Police Department.
According to the plea agreements of Bobet, and co-defendants Alonia Anderson Perkins, age 42, of Tampa, Florida and Celeste Nyleen Carmona, age 23, of New York, New York, they conspired to obtain, charge, and finance the costs of upgraded Apple iPhones against true AT&T customers’ accounts. The defendants admitted that they used stolen account information, telephone upgrade eligibility, and personal identifying information of actual AT&T Mobility customers to obtain the iPhones, which Bobet then provided to her co-conspirators in New York City.
Specifically, in July 2015 and April 2016, respectively, Bobet recruited Carmona and Perkins into the scheme. In May 2016, Bobet drove Perkins and Carmona from New York City to Apple Stores located in Maryland and elsewhere to obtain Apple iPhones for resale. For example, on May 16, 2016, Bobet provided Perkins and Carmona with fraudulent identification cards that contained the stolen personal information of victim AT&T customers, but bore the photographs of Perkins and Carmona, as well as counterfeit credit and debit cards in the victim customers’ names. Bobet obtained the stolen identity information from her co-conspirators in New York City. Bobet drove Perkins and Carmona to the Apple Store located at The Mall in Columbia, Maryland. Perkins and Carmona entered the Apple store while Bobet remained in the car. Perkins and Carmona each posing as a victim customer, purchased an Apple iPhone on the victim customers’ accounts. Bobet then drove Perkins and Carmona to Westfield Montgomery Mall in Bethesda. Carmona, posing as a victim customer purchased two more iPhones on the account of that customer. Perkins attempted to purchase an iPhone on the account of a fourth victim customer, but that customer’s account reflected a past due balance of $100, and Perkins was unable to upgrade any lines on that victim’s account until the balance was paid. Perkins abandoned the transaction and left the store, while Carmona completed her transaction.
Police responded to the Westfield Mall and located Bobet’s vehicle in the parking lot. Bobet attempted to leave, but law enforcement stopped the vehicle. Bobet, Perkins, and Carmona were taken into custody and transported to police headquarters. A search of Bobet recovered two cellular phones which contained AT&T account information and personal identifying information of at least 20 individuals. Bobet’s vehicle was seized and a search warrant for the vehicle was obtained. Law enforcement recovered a laptop, a tablet, counterfeit identification cards, credit and debit cards, and a black duffle bag containing the four fraudulently obtained Apple iPhones.
AT&T records also showed that during the timeframe of the conspiracy, the name of Alonia Perkins was fraudulently added to four AT&T accounts in Florida and that three of these victims’ accounts had their billing addresses changed to Perkins’ address in Florida. The records also showed that Perkins later financed at least six Apple iPhones against the four victim customers’ accounts. AT&T records further showed that the name Nyleen C. Carmona, or derivatives of that name, were added to 24 victims’ accounts, and Carmona later financed at least 46 Apple iPhones against the victims’ accounts.
Perkins and Carmona previously pleaded guilty and were sentenced for their roles in the scheme.
United States Attorney Robert K. Hur praised the U.S. Secret Service and the Montgomery County Police Department’s Economic Crimes Task Force and Electronic Crimes Unit for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jennifer R. Sykes, who prosecuted the case.
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St. Mary’s County Drug Dealer Sentenced to 10 Years in Federal Prison for Distributing Fentanyl Resulting in a Victim’s DeathRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Matthew Joseph Lusby, age 46, of Mechanicsville, Maryland, to 10 years in federal prison, followed by three years of supervised release, for distribution of fentanyl. As a result of Lusby’s drug distribution, a victim died.
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; and St. Mary’s County Sheriff Tim Cameron.
“Federal, state, and local law enforcement are working together to arrest and prosecute those who peddle deadly fentanyl,” said U.S. Attorney Robert K. Hur. “Fentanyl is killing thousands of people each year in Maryland. We must do everything we can to reduce overdose deaths from this drug and from all opioids.”
According to Lusby’s plea agreement, on May 18, 2018, Lusby distributed fentanyl to Victim 1. Victim 1 was found unresponsive in his home on May 19, 2018, next to hypodermic needles and a small bag of powder that tested positive for fentanyl. Shortly thereafter, the Victim 1 was pronounced dead. The medical examiner determined that the cause of death was fentanyl and morphine intoxication. Phone records showed that Victim 1 had a 10-minute phone conversation with Lusby the day before he died. Law enforcement then began investigating Lusby for distributing heroin and fentanyl in Southern Maryland.
As detailed in his plea agreement, on August 16, 2018, a confidential informant working at the direction of law enforcement, purchased heroin from Lusby in Lusby’s home. On September 6, 2018, a search warrant was executed at Lusby’s residence and law enforcement recovered 14 grams of heroin mixed with fentanyl, 30.9 grams of pure fentanyl, drug packaging materials, four digital scales, several needles, and a credit card in Lusby’s name with heroin and fentanyl residue.
United States Attorney Robert K. Hur praised the DEA and the St. Mary’s County Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Jessica Collins, who prosecuted the case.
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Gaithersburg Man Sentenced to 20 Years in Federal Prison for Kidnapping ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Reynaldo Alexis Granados-Vasquez, a/k/a “Fuego,” age 23, of Gaithersburg, Maryland, today to 20 years in federal prison, followed by five years of supervised release, for a kidnapping conspiracy.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Acting Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“With today’s sentence, three MS-13 members and associates will now be prevented from inflicting any further harm on our community for years to come,” said United States Attorney Robert K. Hur. “This case and our ongoing work with our law enforcement partners to bring other gang members to justice, demonstrates our unflagging commitment to eliminate MS-13 and its campaign of violence.”
According to Granada-Vasquez’s plea agreement, he conspired with Jose Israel Melendez-Rivera, a/k/a “Liar,” and Neris Moreno-Martinez to trick a victim, Jordy Mejia, to travel from New Jersey to Maryland, under the false promise that Mejia would meet a woman. As detailed in court documents, Granados-Vasquez, Melendez-Rivera, and Moreno-Martinez were all members and associates of MS-13.
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. In Maryland and elsewhere MS-13 members are organized in “cliques,” smaller groups that operate in a specific city of region. MS-13 members are required to commit acts of violence, both to maintain membership and discipline 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.
According to the plea agreement, Moreno-Martinez traveled to Maryland on October 15, 2016. Later that day, Mejia also traveled to Maryland. Granados-Vasquez admitted that he traveled with Melendez-Rivera and Moreno-Martinez to a wooded area in Maryland. As a result of Mejia being tricked into coming from New Jersey to Maryland, Mejia was murdered in that same wooded area.
Melendez-Rivera, age 21, of Gaithersburg, Maryland, was sentenced on June 17, 2019 to 20 years in federal prison. Moreno-Martinez, age 22, of New Jersey, was sentenced to 30 years in federal prison on June 25, 2019.
United States Attorney Robert K. Hur commended HSI, the Montgomery County Police Department, and the Montgomery County State’s Attorney Office for their work in the investigation and thanked the Gaithersburg Police Department and the Guttenburg, New Jersey Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Thomas P. Windom and Timothy F. Hagan, Jr., who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Federal Indictment Charges 16 in Violent Baltimore Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging 16 individuals in a violent drug distribution conspiracy operating in the Edmondson Village neighborhood in southwest Baltimore. The indictment was returned on June 20, 2019 and unsealed on July 3, 2019. Fourteen defendants have been arrested and of those, 12 have been ordered to be detained pending trial, including Justin Antoine, who had his detention hearing yesterday. The following defendants, all from Baltimore, are charged in the indictment:
Justin Antoine, a/k/a Justo, age 23;
Rodney Bass, a/k/a Boo, age 57;
Corey Bell, a/k/a Bell, age 38;
Davon Boykin, age 33;
Calvin Claxton, a/k/a Cal, age 39;
Cortney Crawley, a/k/a C Murda, age 25;
Eryica Davis, a/k/a Miss Cookie, age 45;
Cedric Hite, a/k/a Hector, age 68;
William Jackson, age 56;
Raekwon Jones, a/k/a Kwon, age 20;
Ronald Jones, age 51;
Shelton Lewis, age 54;
Adam Martin, a/k/a Fats, age 36;
Rodney Matthews, a/k/a Rod, age 20;
Neal Pinkney, age 52; and
Robert Williams, a/k/a Uncle Rob, age 62.The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; 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.
“Federal, state, and local law enforcement are working together to target members of violent drug gangs operating in Baltimore City,” said U.S. Attorney Robert K. Hur. “This indictment alleges that this drug trafficking organization brought danger to our community through the deadly combination of guns and drugs. Now they will face years in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
The six-count superseding indictment alleges that from at least 2018 to June 20, 2019, the defendants were members and associates of the Adam Martin and Calvin Claxton drug trafficking organization, and conspired to distribute heroin, powder cocaine, and crack cocaine to drug users and redistributors in and around the Edmondson Village neighborhood of southwest Baltimore. According to the superseding indictment, members of the drug trafficking organization used residences in and around Baltimore to process, cut, package, and prepare the drugs for distribution. The defendants allegedly changed cell phones frequently to prevent the interception of their communications by law enforcement, and possessed firearms in furtherance of their drug trafficking activities.
According to the superseding indictment, the members of the conspiracy used violence to retaliate against those seeking to rob or cheat the drug trafficking organization. The superseding indictment details several of these acts, including a shooting murder on May 5, 2018, a gunfight on October 16, 2018 in which an unarmed bystander was struck in the crossfire, and the planned robbery of an unlicensed taxi driver.
As detailed in the superseding indictment, during the course of the investigation law enforcement seized at least ten firearms, ammunition, drugs, and more than $20,000 in drug proceeds.
If convicted, the defendants each face a maximum sentence of life in prison for the conspiracy. Justin Antoine, Eryica Davis, and Shelton Lewis also face a maximum of life in prison for possession of a firearm in relation to a drug trafficking crime. Antoine also faces a maximum of 40 years in prison for possession with intent to distribute heroin and cocaine; Lewis faces a maximum of life in prison for being a felon in possession of a firearm; and Robert Williams faces a maximum of three years in prison for selling and offering to sell drug paraphernalia. Law enforcement are still seeking Davon Boykin and Cedric Hite.
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 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 ATF, and the Baltimore Police Department for their work in the investigation and thanked the Anne Arundel County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Michael Goldsticker, who are prosecuting the case.
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Montgomery County Felon Sentenced to 10 Years in Federal Prison for Armed Bank RobberyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte today sentenced Jerail Melik Netcliff age 28, of Rockville, Maryland, to 10 years in prison, followed by five years of supervised release, for an armed bank robbery, and for violating his supervised release from a previous federal conviction. In that case, on March 10, 2017, Netcliff was sentenced to five years in federal prison, followed by five years of supervised release, for possession of a firearm during and in relation to a drug trafficking crime.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea on the morning of January 24, 2019, Netcliff robbed a bank in Derwood, Maryland. Netcliff approached the victim teller, pointed a black handgun at the teller and other customers, and demanded $10,000 with no bait money. Fearing for her safety, the teller gave Netcliff $10,000 in cash and Netcliff fled the bank on foot.
As detailed in his plea agreement, law enforcement officers responding to the scene tracked footprints behind the bank which led to the discovery of surveillance video from a residence. The video showed the armed robber enter a white U-Haul van, with artwork on the rear driver’s side of the van. U-Haul confirmed to law enforcement that the artwork on the van was specific to only one van in their inventory, which was rented to Netcliff on January 24, 2019 in Rockville. Video surveillance of the U-Haul transaction revealed that Netcliff was wearing the same clothing he wore to rob the bank later that day.
Netcliff was charged and arrested at his place of employment in Bethesda, Maryland on January 25, 2019. Search warrants were executed at Netcliff’s residence and on a backpack seized at his place of employment when he was arrested. Law enforcement located a U-Haul rental agreement and a replica black handgun at Netcliff’s home and recovered $2,770 in cash, Netcliff’s Maryland driver’s license, and gloves consistent with those worn by the robber in the bank surveillance video.
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’s Cross Border Task Force and the Montgomery County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jennifer Sykes and Thomas M. Sullivan, who prosecuted the case.
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Fraudster Sentenced to 18 Months in Federal Prison for Scheme in Which She Defrauded Five Victims of More Than $1.2 MillionRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Nely Rider, age 74, of Bowie, Maryland, to 18 months in federal prison, followed by nine months of home detention as part of three years of supervised release, for wire fraud in connection with a scheme to defraud at least five individuals in Maryland, Virginia, and elsewhere, of a total of more than $1.285 million. Judge Hazel also entered an order requiring Rider to forfeit and to pay restitution in the amount of $1,285,545.01.
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.
“This defendant took advantage of her victims’ generosity and lied to steal over a million dollars,” said United States Attorney Robert K. Hur. “The victims she preyed upon included the elderly, for whom the loss of retirement savings is particularly tragic. The Justice Department is committed to bringing fraudsters like these to justice.”
According to Rider’s plea agreement, from December 2009 through May 2014, Rider defrauded five victims by falsely stating that an individual in Mexico, named Patricia, was in danger and needed assistance to travel to the United States. Rider falsely stated that once “Patricia” was safely in the United States, she would have access to money to repay the victims.
Based on Rider’s false statements, the victims provided her with approximately $1,285,545.01, which she used at casinos and elsewhere for her personal benefit. As a result of the fraud, some elderly victims lost their retirement savings.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
United States Attorney Robert K. Hur praised the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leah B. Grossi and David I. Salem, who prosecuted the case.
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Former Carroll County Public School Teacher Sentenced to 22 Years in Federal Prison for Production of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Kenneth Brian Fischer, age 41, of Westminster, Maryland, to 22 years in federal prison, followed by lifetime supervised release, for production of child pornography. Judge Bennett also ordered Fischer to pay restitution of $3,000 to each of the 11 identified victims, for a total of $33,000. Upon his release from prison, Fischer will be required to register as a sex offender in the places where he resides, is an employee, and is a student, pursuant to the Sex Offender Registration and Notification Act (SORNA), and the laws of the state of his residence.
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; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Sheriff James T. DeWees of the Carroll County Sheriff’s Office; Colonel Edwin C. Roessler Jr. of the Fairfax County, Virginia Police; Carroll County State’s Attorney Brian DeLeonardo; and Fairfax County Commonwealth's Attorney Raymond F. Morrogh.
“Kenneth Fischer was a teacher who exploited children by enticing them to engage in sexually explicit conduct for his own gratification,” said United States Attorney Robert K. Hur. “Now he faces years in federal prison, where there is no parole—ever. Law enforcement will continue to work to identify and prosecute those who prey on our children.”
According to his plea agreement, Fischer was a resident of Carroll County, Maryland and at the time of the conduct was employed as a teacher by the Carroll County School System. In August 2017, Fischer was identified by law enforcement after he communicated with an undercover agent posing as a minor male on a social networking application geared toward gay and bisexual men. In his chats with the undercover detective, Fischer attempted to arrange a meeting with the detective posing as a minor male, in order to engage in sexually explicit conduct. Fischer also sent the detective a sexually explicit photo of an adult male, wearing a green shirt with white lettering. The face of the individual was not visible in the photo.
On September 13, 2017, law enforcement executed a search warrant at Fischer’s residence, and seized numerous electronic devices and a green t-shirt with white lettering that matches the t-shirt worn by the individual in the sexually explicit photo Fischer sent to the detective. A search of Fischer’s electronic devices revealed that Fischer had been communicating with five real minors beginning in November 2014 and continuing through his arrest in September 2017.
Fischer admitted that he enticed minor males to engage in sexually explicit conduct with him and took images and videos documenting that conduct. Fischer also attempted to entice two other minor males to engage in sexually explicit conduct with him. In addition, Fischer engaged in online chats with at least an additional nine minor males in which he either attempted to or did obtain sexually explicit photos of the minor males at his request. One minor male was 13 years old at the time the nude photos were exchanged.
Fischer was previously arrested in Westminster, Maryland on related charges and has been in custody since September 13, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Maryland State Police, the Carroll County Sheriff’s Office, the Carroll County State’s Attorney’s Office, the Fairfax County Police, and the Fairfax County Commonwealth’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.
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Baltimore Man Sentenced to More Than 10 Years in Federal Prison for Armed Robbery of a Restaurant During Which He Brandished a Gun, Pointing it at One of the VictimsRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jason Walker, age 31, of Baltimore, Maryland, today to 121 months in federal prison, followed by five years of supervised release, for an armed commercial robbery and for brandishing a firearm during and in relation to a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
“Jason Walker has learned a hard lesson—that gun crime leads 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 and save a life—maybe even your own.”
As detailed in guilty plea, on February 21, 2018, Walker and a co-conspirator robbed a restaurant in the 2200 block of Wilkins Avenue in Baltimore. Walker admitted that during the robbery he pointed a handgun at one of the victims, while his co-conspirator took all the money from the cash register. In addition, Walker and his co-conspirator took the victims’ personal cell phones before fleeing the restaurant.
After the 911 call, an officer with the Baltimore Police Department, who was canvassing the area, saw two men in an alley who matched the description provided by the victims. The men were standing by a wall counting cash. Officers detained the men and brought one of the victims to the location. That person identified Walker as one of the men that had committed the robbery. Walker was arrested and searched. Officers recovered $272 in cash, a plastic bag full of change, blue bandanas, two cellular telephones that belonged to two of the victims of the robbery, and a receipt from the restaurant. Officers also recovered a fully loaded revolver from the area where Walker was counting money. Walker admitted that it was the gun he brandished during the robbery of the restaurant.
Federal charges in connection with the robbery against co-defendant Joseph Coates, age 28, of Baltimore, remain pending. Trial is scheduled to begin on December 2, 2019. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael A. Goldsticker who is prosecuting the case.
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Baltimore Felon Sentenced to Nine Years in Federal Prison for Illegal Possession of A Stolen FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Yusef Payne, age 35, of Baltimore, Maryland, to nine years in federal prison, followed by three years of supervised release, for illegal possession of a stolen firearm. Payne admitted that he had at least two previous felony convictions and was prohibited from possessing firearms or 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 Commissioner Michael Harrison of the Baltimore Police Department.
“Yusef Payne knew that as a result of his previous convictions he was prohibited from possessing guns or ammunition. Now he faces nine years in federal prison,” said United States Attorney Robert K. Hur. “Armed criminals must know that gun crime will lead to federal time, which has no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to his guilty plea on October 30, 2017, Baltimore Police officers were patrolling and saw Payne, who had an open warrant from an October 15, 2017 handgun charge involving a 9mm handgun with a magazine containing ten 9mm cartridges.
When the officers pulled over to arrest Payne, he ran, discarding a handgun. One of the officers chasing Payne retrieved the weapon, which was a different 9mm handgun with a magazine containing seven cartridges. Payne admitted that he knew, or had cause to believe, that the gun was stolen.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation and thanked the Maryland Department of Public Safety and Correctional Services for its assistance. Mr. Hur thanked Assistant U.S. Attorney Joan C. Mathias, who prosecuted the case.
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Maryland Woman Pleads Guilty to Theft of Government Money and Aggravated Identity TheftRead the Press Release
Greenbelt, Maryland – Stephanie Twyman, age 47, of Clinton, Maryland, pleaded guilty on July 3, 2019, to theft of government money and aggravated identity theft, in connection with a tax fraud scheme.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, between 2011 and 2013, Stephanie Twyman was part of a conspiracy to fraudulently obtain tax refund checks by filing false tax returns with the Internal Revenue Service (IRS) using the names and Social Security numbers of unemployed individuals. Once the refund checks in these individuals’ names were obtained, Twyman sent runners to cash the checks at a check cashing business in Clinton, Maryland, where co-conspirators worked as tellers. The runners brought the proceeds back to Twyman, who then paid the tellers for cashing the fraudulently obtained checks. The total tax loss resulting from Twyman’s fraudulent conduct is approximately $566,261.
Twyman faces a maximum sentence of ten years in prison on the theft count and a mandatory two years in prison, consecutive to any other sentence, for the aggravated identity theft count. U.S. District Judge Paul W. Grimm has scheduled sentencing for October 4, 2019.
U.S. Attorney Hur and Principal Deputy Assistant Attorney General Zuckerman thanked agents of the Department of Treasury, Office of Inspector General, and IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Gregory Bernstein and Trial Attorney William Guappone, who are prosecuting the case.
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Two D.C. Felons Convicted After Trial of Committing Two Armed Robberies in Prince George’s CountyRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Ronnell Francis Lewis, a/k/a Punkin, age 45, and William David Hill, a/k/a Old Man and Tank, age 62, both of Washington, D.C., for conspiring to commit a commercial robbery; for using, carrying, brandishing, and discharging a weapon during and in relation to a crime of violence; for being felons in possession of firearms; and for interstate transportation of stolen vehicles, in connection with two armed robberies committed by the defendants in November 2016. Lewis was also convicted of witness tampering.
The convictions 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 the evidence presented at the seven-day trial, Lewis, Hill and a co-conspirator robbed an auto repair business in Clinton, Maryland, on November 22, 2016. Specifically, the evidence proved that the robbers entered the business brandishing firearms and ordered two employees to get on the ground. The defendants took money from the victims’ pockets and then ordered them into the front office. One victim was then bound with zip ties and gagged with duct tape. The second victim fought, was shot by the robbers, and ultimately paralyzed. The robbers then fled in a vehicle they had stolen earlier that day.
As detailed at trial, on November 26, 2016, the defendants robbed a barbershop in Seat Pleasant, Maryland. According to the trial testimony, the two defendants entered the business, ordered everyone to the ground and then robbed them. During the robbery, the defendants threatened the victims with violence. According to the evidence, the robbers put the cash in a dark single strap duffle bag and fled in a stolen minivan. Police saw the minivan at a traffic light and attempted to stop the vehicle but the driver refused to stop, fleeing into Washington, DC. Three individuals exited the vehicle and attempted to run away. The driver and Lewis were captured. The third person, later identified as Hill, escaped but was apprehended later.
Police searched Lewis after his arrest and recovered his cell phone. From the floor of the minivan, Metropolitan Police officers recovered two loaded 9 millimeter handguns, one with an obliterated serial number.
Further, the evidence proved that after the robberies, and while he was detained, Lewis called several people from jail and asked them to visit the victims of the barbershop robbery to persuade them not to cooperate in the investigation, including not testifying before the federal grand jury.
Lewis and Hill each face a maximum sentence of life in prison. U.S. District Judge George J. Hazel has scheduled sentencing for October 21, 2019 at 10 a.m. and 12:00 p.m. They remain detained pending sentencing.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation and thanked the Prince Georges County Police Department, the Seat Pleasant Police Department, and the Metropolitan Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Dwight J. Draughon, who are prosecuting the case.
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Two Baltimore County Men Indicted in Federal Court for Allegedly Distributing Fentanyl, Heroin, and Cocaine in MarylandRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Deandre Laquan Jones, a/k/a “Cuz,” age 26, of Towson, Maryland, and Tyrell Daront Curry, a/k/a “Mike,” age 28, of Baltimore, on the federal charges of conspiracy to distribute and possess with intent to distribute controlled substances, distribution of controlled substances, possession with intent to distribute drugs near a school, maintaining a drug-involved premises, as well as related firearms charges. The indictment was returned on June 25, 2019, and was unsealed at their initial appearances.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
U.S. Attorney Robert K. Hur stated, “Guns and drugs take far too many lives in our communities. All too often, guns and drugs go hand in hand—and both are killers. We will continue to work with our law enforcement partners to identify and disrupt drug trafficking organizations, especially those who use guns and sell drugs near our schools. Federal, state, and local law enforcement are united in our commitment to get guns, drugs, and violent criminals off our streets and to reduce violent crime in our neighborhoods.”
According to the indictment, from December 2018 to February 2019, Jones and Curry distributed fentanyl, heroin, and cocaine. On February 22, 2019, Jones allegedly possessed fentanyl, heroin, and cocaine which he intended to distribute within 1,000 feet of a public elementary school. The indictment alleges that during the time of the conspiracy Jones used an apartment in Parkville, Maryland, to manufacture and distribute fentanyl, heroin, crack cocaine, and powder cocaine. Finally, as alleged in the indictment, Jones illegally possessed firearms and ammunition in furtherance of drug trafficking.
If convicted, Jones faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison for the conspiracy and for possession with intent to distribute fentanyl, heroin, and cocaine; a mandatory minimum of five years and up to 80 years in prison for possession with intent to distribute drugs within 1,000 feet of a school; a maximum of 20 years in prison for maintaining a drug-involved premises and for distribution of drugs; a maximum of 10 years in prison for being a felon in possession of firearms and ammunition; and a mandatory minimum of five years and a maximum sentence of life in prison for possession of firearms in furtherance of drug trafficking.
If convicted, Curry faces a mandatory minimum sentence of five years and a maximum sentence of 40 years in prison for the conspiracy, and a maximum of 20 years in prison for both possession with intent to distribute heroin, and for distribution of cocaine, heroin, and fentanyl.
At their initial appearance in U.S. District Court in Baltimore yesterday, U.S. Magistrate Judge Stephanie A. Gallagher ordered that Jones and Curry be detained pending a detention hearing scheduled for July 5, 2019 at 2:00 p.m, and July 8, 2019 at 2:30 p.m., respectively.
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 HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Christopher J. Romano, who are prosecuting the case.
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Silver Spring Man Sentenced to 75 Months in Federal Prison for Bank Fraud Conspiracy and Aggravated Identity Theft with Losses of Hundreds of Thousands of DollarsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Emmanuel Kusi Appiah, a/k/a Manny, age 47, of Silver Spring, Maryland, to 75 months in federal prison, followed by five years of supervised release, for conspiracy to commit bank fraud, four counts of bank fraud, and two counts of aggravated identity theft, in connection with a years-long bank fraud scheme that resulted in losses of hundreds of thousands of dollars. A federal jury convicted Appiah on March 12, 2019, after a five-day trial.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Chief Robert D. MacLean of the U.S. Park Police; and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service.
According to the evidence presented at his trial, from June 2013 through March 2018, Appiah committed a bank fraud scheme that defrauded individuals and financial institution victims of several hundred thousand dollars.
Specifically, the trial evidence proved that Appiah conspired with others to open bank accounts at 10 different financial institutions using the stolen identities of at least five individual victims, and under the business names of five shell corporations, including Global Tax Services Incorporated, Merchandise Services Incorporated, Imperial Pipe Incorporated, SJ Metal Incorporated, and Morgan Incorporated. Appiah and his conspirators then used those fraudulent accounts to deposit stolen and altered business checks, convenience checks, and tax refunds. Witnesses testified that Appiah then withdrew the fraudulent proceeds in cash, transferred the proceeds to other fraudulent accounts, or laundered the proceeds through the purchase of money orders, which Appiah and others used for their personal benefit.
United States Attorney Robert K. Hur commended the U.S. Park Police and the U.S. Postal Inspection Service for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Burden H. Walker, who prosecuted the case.
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Maryland Woman Pleads Guilty to Theft of Government Money and Aggravated Identity TheftRead the Press Release
A Maryland woman pleaded guilty to theft of government money and aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney for the District of Maryland Robert K. Hur.
According to court documents, between 2011 and 2013, Stephanie Twyman was part of a conspiracy to fraudulently obtain tax refund checks by filing false tax returns with the Internal Revenue Service (IRS) using the names and Social Security numbers of unemployed individuals. Once the refund checks in these individuals’ names were obtained, Twyman sent runners to cash the checks at a check cashing business in Clinton, Maryland, where co-conspirators worked as tellers. The runners brought the proceeds back to Twyman, who then paid the tellers for cashing the fraudulently obtained checks. The total tax loss resulting from Twyman’s fraudulent conduct is approximately $566,261.
Sentencing is scheduled for Oct. 4, 2019. Twyman faces a maximum sentence of 10 years in prison on the theft count and a mandatory two years in prison on the aggravated identity theft count, a term of supervised release, restitution, and a fine.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked agents of the Department of Treasury, Office of Inspector General, and IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney William Guappone and Assistant U.S. Attorney Gregory Bernstein, who are prosecuting the case.
Former NSA Subcontractor Pleads Guilty to Submitting False Claims for Hours Worked on Government ContractsRead the Press Release
Baltimore, Maryland – Kyle Duran Smego, age 40, of Raleigh, North Carolina, pleaded guilty on July 2, 2019, to submitting false claims to the United States, specifically for inflating the number of hours he claimed to have worked on two government contracts.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Robert P. Storch, Inspector General of the National Security Agency.
The National Security Agency (NSA) is a component of the United States Department of Defense. During the period from February 2016 to present, the NSA had two ongoing contracts with an outside company (Contractor A). Each of these contracts required Contractor A to supply information technology (IT) services to the NSA. Contractor A subcontracted with Subcontractors 1 and 2, respectively, to provide software engineers and developers needed to carry out its obligations under each contract.
According to his plea agreement, from February 2016 through May 2018, Kyle Duran Smego was successively employed on a full-time basis by Subcontractors 1 and 2 to work as a software engineer/front end developer on the two separate contracts held by Contractor A. Because the subject matter of these contracts involved classified information, all of the work had to be performed at secure, access-controlled locations. Smego was therefore required to be physically present at his assigned duty locations to do his work.
Between February 2016 and November 2017, Smego reported to Subcontractor 1 that he had worked 3,289 hours on their contract. Between November 2017 and May 2018, Smego reported to Subcontractor 2 that he had worked 797.5 hours on their contract. A subsequent review by the NSA of key card and timecard information demonstrated that Smego was not actually present at his assigned duty stations for at least 1,326 of the 3,289 hours he had reported to Subcontractor 1 (40.3%) and 375 of the 797.5 hours he had reported to Subcontractor 2 (47%). In addition to overstating the number of hours he had worked, the timesheets that Smego submitted to Subcontractors 1 and 2 included entries for 119 separate days in which Smego represented that he had worked an average of 8 hours when, in fact, he had not worked at all on those days.
All of the hours that were falsely reported by Smego were subsequently billed by the subcontractors to Contractor A, and were in turn billed by Contractor A to, and paid by, NSA. Based upon the false billing records submitted by Smego, the NSA overpaid a total of $220,379.42 to Contractor A. Contractor A, in turn, paid most of those funds over to Subcontractors 1 and 2, who ultimately paid Smego $115,110 for work he had not performed.
As part of his plea agreement, Smego will be required to pay restitution and to forfeit any assets derived from or traceable to the offense.
Smego faces a maximum sentence of five years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 3, 2019 at 3:00 p.m.
United States Attorney Robert K. Hur commended NSA Senior Investigator Lori Hazenstab and the NSA OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
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Armed Carjacker Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Mouhamed Camara, age 29, of Reisterstown, Maryland to 10 years in federal prison, followed by five years of supervised release for Carjacking, and Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to Camara’s plea agreement, on January 9, 2018, the victim had started her 2010 Toyota Corolla to warm the engine outside of her home in Reisterstown, Maryland. She was scraping ice off of the windows when she spotted Camara on the other side of the street. When she turned around, Camara pointed a gun in her face, but did not say a word. The victim ran for safety. Camara entered the victim’s car, which contained her purse and cellphone, and drove away.
Baltimore County Police Officers later located the vehicle in the area of an apartment complex in Reisterstown, Maryland. Detectives placed a GPS tracker on the carjacked vehicle to track its movements. A short time later, the vehicle was observed traveling towards Hanover Pike and onto I-795 South. Detectives followed the vehicle onto I-695 where they stopped the vehicle. Camara was the operator and sole occupant of the vehicle.
Detectives obtained a search warrant for Camara’s cellphone. A search of the cellphone revealed a photo of a black semi-automatic handgun that was consistent with the description of the firearm provided by the victim. There was also a photo of the defendant’s girlfriend stamped with a geolocation near a residence in Reisterstown, Maryland, taken on January 8, 2018, the day prior to the carjacking.
On January 10, 2018, detectives went to the residence and found Camara’s girlfriend and another male exiting the residence. Detectives approached and spoke with them. Camara’s girlfriend indicated that she and Camara had been living at the residence and had a black backpack inside the residence.
Detectives obtained a search warrant for the residence and recovered a loaded handgun, along with a black backpack, and some clothing belonging to Camara. The firearm seized matched the firearm seen in the photo on Camara’s phone.
United States Attorney Robert K. Hur commended the FBI's Baltimore Field Office and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney John Sippel, who is prosecuting the case.
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Anne Arundel Medical Center to Pay More Than $3 Million to Settle Federal False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – Anne Arundel Medical Center (“AAMC”), located in Annapolis, Maryland, has agreed to pay the United States $3,154,000 to settle allegations under the False Claims Act that it submitted false claims to Medicare for services that were not medically necessary.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services, Maureen Dixon; Norbert E. Vint, Acting Inspector General of the U.S. Office of Personnel Management; and Robert E. Craig, Jr., Special Agent in Charge for the Defense Criminal Investigative Services, Mid-Atlantic Division.
“Companies that submit false bills to the government must be held accountable. The United States Attorney’s Office is committed to taking the steps necessary to protect Medicare and other federal healthcare programs from fraud and abuse and recover taxpayers’ money,” said U.S. Attorney Robert K. Hur.
In or about June 2007, AAMC opened its Anticoagulation Clinic (“the Clinic”) to monitor outpatient’s anticoagulation therapy. Patients who take Coumadin or the generic equivalent have their blood routinely tested to monitor their clotting times. These tests are known as prothrombin time international normalized ration (PT-INR) tests. These tests measure how much time it takes for a patient's blood to clot and can be billed by a clinic using Current Procedural Terminology (CPT) code 85610. If test results indicate the need to adjust a patient’s Coumadin dose, or the patient presented with a change in medical condition, the provider may perform, and submit a claim for, an Evaluation and Management (E/M) service. According to the settlement agreement, between January 1, 2010 and December 31, 2013, AAMC submitted false claims to Medicare, TRICARE, and the Federal Employees Health Benefits Program for E/M services that were not medically reasonable and necessary at the same time it submitted and was paid for claims for the blood tests.
Effective January 1, 2014, CMS updated the hospital outpatient prospective payment system by bundling PT-INR tests with E/M services, when E/M services were provided during the same visit. The new CPT code that the clinic would use is G0463. According to the settlement agreement, between January 1, 2014 and December 31, 2017, AAMC submitted false claims to Medicare for both the bundled code G0463 and CPT 85610, notwithstanding that the PT-INR tests were included in G0463 claims.
The United States alleged that for the time period before January 1, 2014, a substantial percentage of the claims for CPT 99211 submitted by AAMC were not medically reasonable and necessary when submitted with CPT 85610. Further, the United States alleged that after January 1, 2014, all claims submitted by AAMC for CPT 85610 represented false claims when submitted with G0463.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by AAMC, nor a concession by the United States that its claims are not well founded.
Contemporaneous with the civil settlement, AAMC entered into a five-year Corporate Integrity Agreement (CIA) with the HHS-OIG which requires, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks on an ongoing basis. The CIA requires training, auditing, and monitoring designed to address the conduct at issue in the case.
The settlement resolves a lawsuit brought by Barbara McHenry, a former AAMC employee, under the qui tam, or whistleblower, provisions of the False Claims Act, captioned United States, et al. ex rel. McHenry v. Anne Arundel Medical Center, Case No. ELH-15-1256. As part of the settlement, the whistleblower will receive $473,100.
The Maryland United States Attorney’s Office’s action in this matter illustrates its commitment to combat health care fraud using the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
United States Attorney Robert K. Hur commended the U.S. Department of Health and Human Services - Office of Inspector General; OPM-Office of Inspector General; and the Defense Criminal Investigative Services, Mid-Atlantic Division for its work in the investigation. Mr. Hur also thanked Assistant United States Attorney Roann Nichols, who handled the case.
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MS-13 Associate Sentenced to 30 Years in Federal Prison for Kidnapping Conspiracy, in Connection with the Murder of an Individual He Believed to Be A Rival Gang MemberRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Neris Moreno-Martinez, age 22, of West New York, New Jersey, to 30 years in federal prison, followed by five years of supervised release, for conspiracy to kidnap.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Acting Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to court documents, Moreno-Martinez was a paro in the L.A. clique of MS-13. His co-defendants also were in the gang; Jose Israel Melendez-Rivera, a/k/a “Liar,” was an observation, and Reynaldo Granados-Vasquez, a/k/a “Fuego,” was a paro. In the summer of 2016, Moreno-Martinez told Melendez-Rivera about the victim, Jordy Mejia, whom Moreno-Martinez alleged was a member of the rival 18th Street gang, although there is no evidence to suggest that was true. Prior to October 1, 2016, Moreno-Martinez created a social media account in the name “Shaila Smith.” Between October 2 and October 15, 2016, Moreno-Martinez posed as Shaila Smith and through social media expressed to Mejia that Shaila Smith was romantically interested in Mejia. Melendez-Rivera admitted that he and Granados-Vasquez were aware of the ruse and that the goal was to trick Mejia into coming to Maryland where the three intended to murder Mejia.
According to court documents, Moreno-Martinez traveled to Maryland to meet Melendez-Rivera on October 15, 2016. Later that day, at the direction of Moreno-Martinez posing as Shaila Smith, Mejia also traveled to Melendez-Rivera’s address in Gaithersburg, where he was told someone would pick him up. While Mejia waited to be picked-up, Melendez-Rivera drove his co-defendants to a residence near a wooded area where the two were to lay in wait for Mejia, then drove back to his apartment, picked up Mejia, and drove back to the wooded area where his co-defendants were waiting.
After Moreno-Martinez lured Mejia into the wooded area, the co-defendants murdered Mejia.
Melendez-Rivera, age 21, of Gaithersburg, Maryland, and Granados-Vasquez, age 23, of Gaithersburg, have also pleaded guilty to the kidnapping conspiracy. Melendez-Rivera has been sentenced to 20 years in federal prison; Granados-Vasquez is to be sentenced on July 9, 2019.
Background on MS-13
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. In Maryland and elsewhere MS-13 members are organized in “cliques,” smaller groups that operate in a specific city or region. Cliques of MS-13 often work together cooperatively 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. MS-13 members are required to commit acts of violence, both to maintain membership and discipline within the gang and against rival gangs. MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controla,” which translates to, “kill, steal, rape, control.” One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
Prospective members who sought to join MS-13 were required to complete an initiation process. Individuals who associated with and were friends of the gang were called “paisas.” Individuals who did favors and other acts for the gang were called “paros.” Persons being observed by the gang for potential membership were called “observations,” and individuals who had advanced to the final level before being “jumped in” were called “chequeos,” or “cheqs.” To become a full member of MS-13 or a “homeboy,” prospective members were required to complete an initiation process, often referred to as being “jumped in,” during which other MS-13 members would beat the new member, usually until a gang member finished counting aloud to the number 13.
United States Attorney Robert K. Hur commended HSI, the Montgomery County Police Department, and the Montgomery County State’s Attorney Office for their work in the investigation and thanked the Gaithersburg Police Department and the Guttenburg, New Jersey Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Thomas P. Windom and Timothy F. Hagan, Jr., who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Defendant in Gaithersburg Drug Distribution Conspiracy Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Leandro Acevedo Lozada, age 34, of Gaithersburg, Maryland to 150 months in federal prison, followed by five years of supervised release, for a conspiracy to distribute fentanyl, heroin, and cocaine and being a felon in possession of a firearm.
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 U.S. Drug Enforcement Administration (DEA) Washington Field Division; and Acting Chief Marcus Jones of the Montgomery County Police Department.
“State and federal law enforcement and prosecutors in Maryland are working together to arrest and prosecute those who sell deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “We’re also targeting drug dealers who use guns and increase the risk of gun violence in Maryland. Working together with law enforcement partners, we are determined to reduce the number of opioid related deaths in Maryland.”
According to his plea agreement, from at least January 2017 through February 2017, Lozada, a/k/a “Dro,” conspired with Bradley Wade Seabolt and others to distribute fentanyl, heroin, and cocaine through street-level drug dealers.
Although Lozada was not certain of the exact chemical compounds contained in opioids he sold to Seabolt and others, he knew that the substance was bright white in color and very strong. Because of those two features, Lozada suspected that it was fentanyl. Because the opioids he sold were so strong, Lozada used powdered sugar to dilute them, in an effort to both expand its volume, and thus his profit, as well as to make it safer for his customers.
On January 11, 2017, emergency medical personnel responded to Victim A’s residence in Montgomery County, Maryland, where they found Victim A unresponsive. Victim A had ingested a quantity of a substance containing both acetyl fentanyl and fentanyl distributed by Seabolt, who acquired it from Lozada. Victim A was taken by ambulance to Shady Grove Adventist Hospital, where he/she was later pronounced deceased.
The Office of the Chief Medical Examiner for the State of Maryland determined that Victim A’s death resulted from fentanyl, acetyl fentanyl, and cocaine intoxication. The fentanyl and acetyl fentanyl ingested by Victim A was a but-for cause of Victim A’s death.
On February 17, 2017, law enforcement executed search warrants at two locations, a residence in Damascus, Maryland and a residence in Gaithersburg, Maryland, where Lozada spent time during the course of this conspiracy and kept various property.
Collectively, officers seized approximately 147 grams of a substance that contained detectable amounts of both fentanyl and acetyl fentanyl; approximately 23 grams of cocaine; a bag of powdered sugar that Lozada used as a cutting agent for his opioids; $4,452.00 in U.S. currency; a digital scale that Lozada used to weigh and process his narcotics for sale; and a loaded handgun which belonged to Lozada. Lozada knowingly and intentionally possessed the handgun and all of the aforementioned narcotics, which he intended to distribute.
The handgun was manufactured outside of Maryland, and therefore traveled in and affected interstate and foreign commerce prior to Lozada possessing this firearm on February 17, 2017. Prior to February 17, 2017, Lozada had been convicted of a crime punishable by more than one year of imprisonment, which prohibited him from legally possessing the handgun and/or any ammunition.
Co-defendant Bradley Wade Seabolt, age 30, of Gaithersburg, Maryland, was sentenced to 48 months in federal prison, followed by three years of supervised release.
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-Washington Field Division and the Montgomery County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Gregory Bernstein, who is prosecuting the case.
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Eastern Shore Drug Dealer Sentenced to 12 Years in Federal Prison for Distribution of Fentanyl AnaloguesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Narada Walls, age 38, of Salisbury, Maryland, today to 12 years in federal prison, followed by three years of supervised release, for conspiracy to possess and to distribute fentanyl and fentanyl analogues. Fentanyl analogues are chemical compounds designed to have effects similar to fentanyl and can be just as deadly. Judge Russell also ordered that Walls must forfeit anything of value seized during the investigation, including $29,650 in cash.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
U.S. Attorney Robert K. Hur stated, “Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution. We’re also targeting drug dealers who buy fentanyl on the dark web and re-sell this poison to our citizens. Working together with our local, state, and federal partners, we are determined to reduce the number of opioid overdose deaths in Maryland.”
“Individuals like Narada Walls are producing and profiting from deadly addictions, and the snares of these addictions entrap more people every day,” said HSI Baltimore Acting Special Agent in Charge Cardell T. Morant. “This significant sentence takes one more access point off the street and means fewer network may be permitted to rampantly poison our community.”
According to his plea agreement, in fall 2017, law enforcement began an investigation into a drug trafficking organization operating on the Eastern Shore of Maryland and in Baltimore, which was responsible for importing and distributing fentanyl and fentanyl analogue substances. This investigation revealed that Narada Walls was part of the conspiracy and used assumed names and a fake e-mail address to purchase methoxyacetyl fentanyl directly from suppliers in China. Walls had this product shipped to addresses of his acquaintances along the Eastern Shore of Maryland to distance himself from the packages. Walls imported more than 1.5 kilograms of methoxyacetyl fentanyl in this manner.
In September and November, 2017, a confidential source purchased fentanyl analogue substances from Walls, at the direction of law enforcement. On each occasion, Walls brought the drugs to Baltimore, where he met with the source. During their interactions Walls discussed with the source the potency of this product and how it needed to be diluted with cutting agents or offered only to experienced drug users, or else overdoses could occur.
In December 2017, law enforcement executed a search warrant at Walls’ residence in Salisbury. Inside a safe found at the home was approximately 419 grams of methoxyacetyl fentanyl and approximately $18,650 in drug proceeds. Law enforcement recovered other drug-related paraphernalia from Walls’ bedroom, including a blender, a digital scale, and packaging materials.
Walls agreed that, in June 2017, he was in a relationship with a recovering heroin user. According to a witness, on June 14, 2017, Walls asked this woman to clean up the kitchen, which was the area where Walls mixed his drug product. In the process of cleaning up the blender in the kitchen, the victim ingested some of this fentanyl analogue product. The victim was subsequently found unresponsive on the kitchen floor, next to her minor child. Paramedics were called, and she was later pronounced dead. An autopsy determined that the woman’s death was caused by her exposure to this fentanyl analogue product.
United States Attorney Robert K. Hur commended HSI and Maryland State Police Gang Enforcement Unit East for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jason D. Medinger and Burden Walker, who prosecuted the case.
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Black Guerilla Family Gang Member Sentenced to Life in Prison for Federal Racketeering and Drug Conspiracy ChargesRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Marquise McCants, a/k/a Digga, age 26, of Baltimore, to life in prison for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (BGF). In January 2018, McCants was convicted by a federal jury of racketeering conspiracy, conspiracy to distribute and possess with intent to distribute controlled substances, and possession of a firearm by a convicted felon. At the sentencing hearing, the government also presented evidence that McCants committed an additional murder that was unsolved at the time of McCants’ trial.
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 - Baltimore Field 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; Maryland Attorney General Brian E. Frosh; and Baltimore City State’s Attorney Marilyn Mosby.
“Marquise McCants and his fellow gang members brought terror and death to Baltimore’s Greenmount Avenue neighborhood with guns, drugs, and violence,” said U.S. Attorney Robert K. Hur. “As a result of a coordinated effort by our federal, state, and local law enforcement partners, nine members of the BGF Greenmount Regime have been removed from our community and Marquise McCants faces the rest of his life in federal prison, where there is no parole—ever. I urge anyone who’s thinking of following these gang members’ example: Please, put down the guns and save a life—maybe even your own.”
According to the evidence presented at the two-month trial, McCants was a member of an organization known today as the BGF Greenmount Avenue Regime, a violent set of BGF. Between 2005 and 2017, the gang and its members were responsible for seven murders; three non-fatal shootings; more than 10 armed robberies; and over 12 years of street-level drug dealing. McCants was a member of the gang during that time and dealt drugs, and committed stabbings, robberies, and attempted murders in furtherance of BGF.
Beginning in approximately 2005 and continuing until early 2007, co-defendant and BGF Greenmount Regime leader Gerald Johnson supplied distribution quantities of cocaine, crack cocaine, heroin, and methylenedioxy-methamphetamine (ecstasy) to YGF members, including McCants, who was then a juvenile. According to witness testimony, McCants primarily sold crack cocaine in the vicinity of Barclay and 24th Streets. McCants also participated in violence on behalf of the gang. For example, on May 9, 2008, in the 2400 block of Greenmount Avenue, McCants, who was not even sixteen years old at the time, led a group of individuals who attacked and stabbed a twelve-year-old member of a rival Bloods gang. A witness who identified McCants as the person who led the attack testified that afterward, members of BGF walked back and forth in front of the witness’s residence in an apparent effort to silence the witness. The witness’ family moved out of the neighborhood shortly thereafter, in fear for their lives.
Witnesses testified at trial that on August 26, 2010, McCants and an unknown accomplice committed an armed home invasion and robbery of a family in Elkton, Maryland. Further, the evidence proved that in August 2011, McCants assaulted and stabbed a member of a rival Bloods gang in a prison in Hagerstown, Maryland.
On February 4, 2017, while a fugitive in the case, McCants attempted to murder an individual in the vicinity of Greenmount and North Avenues, shooting him seven times in the legs and back. McCants then fled to a residence in the 5600 block of Pioneer Drive, where he was arrested after a multi-hour standoff with a U.S. Marshals Task Force. Before surrendering, McCants disassembled the .40 caliber firearm used to shoot the victim and hid it behind a wall in a bathroom of the residence. In recorded jail calls after his arrest, McCants attempted to direct confederates to dispose of the weapon. Law enforcement officers monitoring his jail calls were able to recover the gun, which was then examined and linked to the February 4 shooting.
On September 26, 2017, a hidden audio-video recording device in a common area at the Chesapeake Detention Facility captured McCants telling co-conspirator Norman Handy about a brutal murder he committed with a fellow BGF member in retaliation for the victim shooting up the BGF member’s residence on Druid Hill. According to McCants, he and his co-conspirator convinced the victim to come for a ride with them. Upon reaching their destination, the victim started to get out of the car, when McCants grabbed the victim’s shirt and fired 11 rounds at him, killing him. McCants bragged that he took the victim’s phone while “he was still twitching.”
Based on evidence presented at the sentencing hearing, the Court also found that McCants shot and killed George Cookson on January 19, 2017, in connection with an effort to collect a drug debt owed to an associate. The gun used to murder Cookson was recovered during the execution of a search warrant on a vehicle parked in the driveway of the associate’s home in northeast Baltimore, where McCants was arrested. The gun was found in a hidden compartment in the vehicle, along with another firearm.
Eight co-defendants, also members of the BGF gang, were convicted of conspiring to violate federal racketeering and drug trafficking laws and have been sentenced, including Gerald Thomas Johnson, a/k/a “Geezy,” age 35; and Kenneth Jones, a/k/a “K-Slay” and “Slay,” age 30, both of Baltimore, who were convicted after trial and sentenced to life in prison.
United States Attorney Robert K. Hur commended the ATF, the FBI, the Baltimore Police Department, the Maryland Attorney General’s Office, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Peter J. Martinez and Christina Hoffman, who prosecuted the case.
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Lead Defendant in Baltimore Drug Distribution Conspiracy Sentenced to More Than 11 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Ashley Grossman, age 30, of Baltimore to 135 months in federal prison, followed by five years of supervised release, for a conspiracy to distribute fentanyl, heroin, and cocaine in the German Park area in Baltimore’s Central District. The sentence was imposed on June 19, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Marilyn J. Mosby.
“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. “We’re also targeting drug dealers who use guns and increase the risk of gun violence in Maryland. More and more people are dying from fentanyl overdoses in Baltimore City and throughout the state. Working together with law enforcement partners, we are determined to reduce the number of opioid overdose deaths in Maryland.”
According to her plea agreement, from at least January 2017 through July 2018, Ashley Grossman conspired with others to distribute fentanyl, heroin, and cocaine through a street-level drug shop called the Young Finesse Kings (“YFK”). Ashley Grossman was one of the leaders of the shop, which operated primarily in the German Park area of Baltimore City.
Law enforcement conducted surveillance of the YFK drug shop and observed many drug transactions, and Baltimore Police officers arrested members of the conspiracy on several occasions. In addition, law enforcement obtained wiretaps for Ashley Grossman’s cellular phone and intercepted numerous communications with co-conspirators discussing the operation of the drug shop. For example, in one conversation, Grossman was overheard discussing the payment made to another co-conspirator, Anthony Whitaker, for coordinating the drug sales at the shop. In addition, law enforcement intercepted a number of communications between Grossman and her supplier, Barry Martin, including several on March 14, 2018, coordinating a meeting that day. Investigators tried to observe the meeting but arrived just as Grossman’s truck was leaving the location. Investigators saw Grossman exit the truck carrying a small black bag, which was believed to contain narcotics obtained from Barry Martin, and go into a home in the 1700 block of Hollins Street. A short time later, another conspirator was seen leaving the home, placing an item in the rear passenger seat of the truck and driving away.
Law enforcement executed a search warrant at the Hollins Street residence on April 12, 2018 and recovered scales and other drug paraphernalia consistent with the YFK street operations. On July 11, 2018, law enforcement executed a search at Barry Martin’s residence and recovered two firearms, approximately 529 grams of suspected heroin/fentanyl, 254 grams of suspected cocaine, and $157,658 in cash.
Co-defendants Brandon Reese, a/k/a “Gangsta.” age 36; Ratrez Colson, age 20; Anthony Whitaker III, a/k/a “TY,” age 24; and Barry Martin, age 44, all of Baltimore, have all pleaded guilty to the drug conspiracy. Martin was sentenced to 11 years in federal prison and each of the other defendants faces a minimum mandatory sentence of 10 years in prison and up to life in prison. Judge Blake has scheduled sentencing for Colson on July 12, 2019 at 9:15 a.m.; for Whitaker on August 1, 2019 at 9:15 a.m.; and for Reese on September 20, 2019 at 10:30 a.m. Four other co-defendants are awaiting trial.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI, the Baltimore Police Department, the 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 Christine Goo and Brandon K. Moore, who are prosecuting the case.
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Hart to Heart Ambulance Services to Pay $1.25 Million to Settle Federal False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – After a multiple-year investigation and the government’s intervention in a whistleblower lawsuit, Hart to Heart Ambulance Services, d/b/a/ Hart to Heart Transportation Services has agreed to pay the United States $1,250,000 to settle allegations under the False Claims Act that it submitted false claims to Medicare for ambulance transport that was not medically necessary.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services, Maureen Dixon.
“Companies that submit false bills to the government must be held accountable. The United States Attorney’s Office is committed to taking the steps necessary to protect Medicare and other federal healthcare programs from fraud and abuse and recover taxpayers’ money,” said U.S. Attorney Robert K. Hur.
“When health care providers participate in fraudulent billing schemes in order to increase profits, they steal from the pockets of the taxpayer and jeopardize federal healthcare programs,” said Maureen Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to be relentless in our efforts to hold such providers accountable.”
On November 30, 2018, the United States filed a complaint in U.S. District Court alleging that Hart to Heart, its billing affiliate, EMS Billing Solutions, Inc. (“EMS”), and the owners and operators of those organizations violated the False Claims Act by submitting or causing the submission of false claims to Medicare for ambulance transport that was not medically necessary, and for which the defendants received millions of taxpayer dollars. Medically necessary ambulance transportation requires that a patient’s medical condition is such that other methods of transportation are contraindicated, but Hart to Heart submitted a high rate of ambulance claims for patients who could have been transported by wheelchair van or other means. The complaint cites accounts from numerous former Hart to Heart employees about management’s pressure and directions to falsify documentation to make Medicare reimbursement more likely.
In reaching this settlement, the parties have resolved allegations that, from January 2, 2010 to December 31, 2017, Hart to Heart knowingly submitted fraudulent claims to Medicare for non-emergency Basic Life Support (BLS) ambulance transports hospital discharges that were not medically necessary.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Hart to Heart Transportation Services or its affiliates, nor a concession by the United States that its claims are not well founded.
The government’s action in this matter illustrates its commitment to combat health care fraud using the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
Bryan Arvey, a former Hart to Heart employee, originally filed this lawsuit under the qui tam, or whistleblower, provisions of the False Claims Act, which permits private individuals with knowledge of fraud to sue on behalf of the government for false claims and to share in any recovery. Mr. Arvey will receive approximately $251,000 from the settlement with Hart to Heart. The case is captioned United States, et al. ex rel. Arvey v. Hart to Heart Transportation Services, Inc. et al., Case No. RDB-13-1554.
United States Attorney Robert K. Hur commended the U.S. Department of Health and Human Services - Office of Inspector General for its work in the investigation. Mr. Hur also thanked Assistant United States Attorneys Roann Nichols and Molissa Farber, who handled the case.
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Clinton Drug Dealer Sentenced to 15 Years in Federal Prison for Possession with Intent to Distribute Crack Cocaine and MarijuanaRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Russell Lee Battle, age 54, of Clinton, Maryland, on June 17, 2019, to 15 years in federal prison, followed by three years of supervised release, for possession with intent to distribute crack cocaine and marijuana.
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.
U.S. Attorney Robert K. Hur stated, “Guns and drugs take far too many lives in our communities. All too often, guns and drugs go hand in hand—and both are killers. Federal, state, and local law enforcement are united in our commitment to get guns, drugs, and violent criminals off our streets and to reduce violent crime in our neighborhoods.”
According to Battle’s plea agreement, early in the morning of January 12, 2018, Prince George’s County Police officers stopped the vehicle Battle was driving for not having illuminated tag lights. Battle was the sole occupant of the vehicle and the vehicle was registered to Battle.
While speaking with the officer on the driver’s side of the vehicle, Battle was attempting to locate his vehicle registration when he pulled a digital scale from the center console and placed it on the passenger seat. The officer positioned on the passenger side of the vehicle also observed the digital scale. Battle claimed that he did not know what the scale was and handed it to the officer, who saw that it contained a white powder-like substance and cut marks. When Battle was not able to find his registration, the officers returned to their cruiser and determined that Battle had previous narcotics-related convictions and had falsely claimed that he didn’t know what the digital scale was.
The officer then conducted a search of Battle’s vehicle and recovered two semi-automatic firearms, each loaded with at least 20 rounds of ammunition, as well as an additional extended magazine. Officers also recovered three bags of crack cocaine, totaling approximately 9.8 grams. One of the bags contained 10 small baggies, each with crack cocaine inside. Officers also recovered 21.7 grams of marijuana packaged into nine individual baggies, as well as $637 in cash.
Battle admitted that he intended to distribute the crack cocaine and marijuana found in his vehicle.
United States Attorney Robert K. Hur praised the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Kelly O. Hayes and Erin Pulice, who prosecuted the case.
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Baltimore Felon Sentenced to 15 Years in Federal Prison on Charges of Unlicensed Dealing in Firearms and Illegal Possession of Firearms and AmmunitionRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Terrel Edward Elliott, Jr., age 24, of Baltimore, Maryland, today to 15 years in federal prison, followed by three years of supervised release, for unlicensed dealing in firearms and for being a felon in possession of firearms and ammunition. Elliott admitted that he was dealing in firearms less than two months after his release from prison for a first-degree assault conviction in Howard County.
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; Chief Lisa D. Myers of the Howard County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
“Terrel Elliott contributed to our community’s alarming problem of gun violence by putting firearms in the hands of people intent on violence,” said U.S. Attorney Robert K. Hur. “Statistics show that gun violence is fueled by repeat offenders, like Terrel Elliott, illegally possessing and selling firearms. Now he will spend 15 years in federal prison, where there are no suspended sentences and no parole—ever. Put down the guns and save a life—maybe even your own.”
According to his plea agreement, Elliott was convicted of first-degree assault in Howard County and was sentenced to eight years in prison, with six years and a half years of that sentence suspended, and eighteen months of unsupervised probation. Elliott was also given a supervised probation period of five years. Elliott was released after serving his sentence on September 24, 2016.
As detailed in his plea agreement, Elliott was arrested on April 14, 2017 in possession of drugs, 14 .22-caliber bullets and a handgun with an obliterated serial number. On November 13, 2017, Elliott pleaded guilty in Howard County to possession of a firearm by a convicted felon. On February 12, 2018, Baltimore Police officers were surveilling Elliott, who had an open warrant for his arrest, when they saw him leave his residence and get into a car with a woman. Officers performed a traffic stop to execute the arrest warrant, but Elliott ran away. Officers gave chase and Elliott was captured at the back door of his residence and arrested. Officers recovered a handgun from the path Elliott took.
During the ensuing investigation, law enforcement obtained a search warrant for Elliott’s Instagram account. Law enforcement recovered multiple photographs of Elliott in possession of numerous firearms, as well as Instagram messages with prospective firearm customers, including juveniles and family members. One of the earliest photos posted on Elliot’s Instagram account was of Elliott with a gun on November 8, 2016—less than two months after he was released from prison. In January 2018, Elliott sold a gun to a minor and later messages reflect the discussion of more gun sales to the minor. Elliott’s Instagram posts include more than 4,700 pages and contains numerous references to selling guns for profit. Elliott admitted that between eight and 24 firearms were involved in his offenses, and that he knew or had reason to believe that the guns would be used or possessed in connection with other felonies, including robberies and drug trafficking.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF, the Howard County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Sandra Wilkinson and Michael Goldsticker, who prosecuted the case.
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Gaithersburg MS-13 Associate Sentenced to 20 Years in Federal Prison for Kidnapping Conspiracy, in Connection with the Murder of an Individual he Believed to be a Rival Gang MemberRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Jose Israel Melendez-Rivera, a/k/a “Liar,” age 21, of Gaithersburg, Maryland, today to 20 years in federal prison, followed by five years of supervised release, for conspiracy to kidnap.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Acting Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
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. In Maryland and elsewhere MS-13 members are organized in “cliques,” smaller groups that operate in a specific city of region. Cliques of MS-13 often work together cooperatively 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. MS-13 members are required to commit acts of violence, both to maintain membership and discipline within the gang and against rival gangs. MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controla,” which translates to, “kill, steal, rape, control.” One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
Prospective members who sought to join MS-13 were required to complete an initiation process. Individuals who associated with and were friends of the gang were called “paisas.” Individuals who did favors and other acts for the gang were called “paros.” Persons being observed by the gang for potential membership were called “observations,” and individuals who had advanced to the final level before being “jumped in” were called “chequeos,” or “cheqs.” To become a full member of MS-13 or a “homeboy,” prospective members were required to complete an initiation process, often referred to as being “jumped in,” during which other MS-13 members would beat the new member, usually until a gang member finished counting aloud to the number 13
According to Melendez-Rivera’s plea agreement, he illegally entered the United States in 2014 from El Salvador, where he held the rank of observation in MS-13. Initially, Melendez-Rivera did not participate in gang activities when he arrived in the United States, but in December 2015, he was recruited back into the L.A. clique of the gang by an MS-13 member in El Salvador. In the spring of 2016, that MS-13 member provided Melendez-Rivera with the cell phone number of co-defendant Neris Moreno-Martinez, who was a paro in the L.A. clique and lived in New Jersey. After talking for several months, Melendez-Rivera and Moreno-Martinez agreed to work together to accomplish MS-13 goals. According to the plea agreement, Moreno-Martinez wanted to achieve the rank of chequeo, which required him to participate in a murder, but he was concerned that there were not enough forests in New Jersey where he could dispose of a victim.
As detailed in the plea agreement, in the summer of 2016, Moreno-Martinez told Melendez-Rivera about the victim, Jordy Mejia, whom Moreno-Martinez alleged was a member of the rival 18th Street gang, although there is no evidence to suggest that was true. Prior to October 1, 2016, Moreno-Martinez created a social media account in the name “Shaila Smith.” Between October 2 and October 15, 2016, Moreno-Martinez posed as Shaila Smith and through social media expressed to Mejia that Shaila Smith was romantically interested in Mejia. Melendez-Rivera admitted that he and co-defendant Reynaldo Alexis Granados-Vasquez, who was a paro in MS-13 at that time, were aware of the ruse and that the goal was to trick Mejia into coming to Maryland where the three intended to murder Mejia.
According to the plea agreement, Moreno-Martinez traveled to Maryland to meet Melendez-Rivera on October 15, 2016. Later that day, at the direction of Moreno-Martinez posing as Shaila Smith, Mejia also traveled to Melendez-Rivera’s address in Gaithersburg, where he was told someone would pick him up. While Mejia waited to be picked-up, Melendez-Rivera admitted that he drove his co-defendants to a residence near a wooded area where the two were to lay in wait for Mejia, then drove back to his apartment, picked up Mejia, and drove back to the wooded area where his co-defendants were waiting. Thinking that Melendez-Rivera was Mejia, Moreno-Martinez and Granados-Vasquez accidentally struck Melendez-Rivera with a brick or rock and Mejia then ran toward the road. As detailed in the plea agreement, Granados-Vasquez caught up to Mejia, kicking him into a small stream, where Melendez-Rivera and Moreno-Martinez held Mejia’s head under the water, drowning him. Melendez-Rivera admitted that the three defendants then carried Mejia’s body into the woods nearby, dug a shallow grave in which to place Mejia, and then each took turns stabbing Mejia’s dead body with machetes they had brought.
Neris Moreno-Martinez, age 22, of New Jersey, and Reynaldo Alexis Granados-Vasquez, a/k/a “Fuego,” age 23, of Gaithersburg, have also pleaded guilty to the kidnapping conspiracy and are scheduled to be sentenced on June 25, 2019 at 10:00 a.m., and on July 9, 2019, at 2:00 p.m., respectively.
United States Attorney Robert K. Hur commended HSI, the Montgomery County Police Department, and the Montgomery County State’s Attorney Office for their work in the investigation and thanked the Gaithersburg Police Department and the Guttenburg, New Jersey Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Thomas P. Windom and Timothy F. Hagan, Jr., who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Employee of Federal Contractor Pleads Guilty to Federal Bribery Charge for Accepting Cash to Falsify Urinalysis Results to U.S. Probation and Pretrial ServicesRead the Press Release
Greenbelt, Maryland – Michael Andre Brown, age 47, of Waldorf, Maryland, pleaded guilty today to a federal bribery charge, in connection with his employment with a federal contractor in which he administered urinalysis tests to individuals on federal probation, supervised release and pre-trial supervision.
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 Henry P. Stawinski III of the Prince George’s County Police Department.
According to his plea agreement, Brown was an employee at a company in Camp Springs, Maryland, that provided drug and alcohol treatment and testing services. Through a federal contract, the business was tasked with, among other things, administering urinalysis tests to individuals on federal probation, supervised release, and pre-trial supervision on behalf of the U.S. Probation and Pretrial Services Office of the District of Maryland. Brown was a urinalysis technician for the company. Brown admitted that from at least December 2018 through February 2019, Brown, in his official capacity, accepted cash payments in exchange for falsely reporting urinalysis results as negative for controlled substances, when in fact, the results were positive for controlled substances.
As detailed in his plea agreement, on December 26, 2018, an FBI undercover task force officer (UC) posing as a federal probationer who had been ordered to submit to urine analysis as part of his/her probation, met with Brown at the company in Camp Springs. The UC indicated to Brown that he/she expected to have a positive urinalysis result. Brown told the UC that he was willing to work with the UC. According to the plea agreement, Brown subsequently took the UC to a bathroom to perform the urinalysis. The UC submitted a urine sample that would produce a positive result for marijuana. Brown inspected the cup and indicated to the UC that it was positive for drug use, but again said that he would “take care of” the UC. The UC expressed his appreciation to Brown and placed $100 on the bathroom sink. Brown admitted that he took the money.
Brown admitted that he then gave instructions to the UC on how to check in on his/her next date for urine analysis, but also informed the UC that his/her next date would be December 28, 2018, two days away, and that Brown would be working again on that date. Such dates are assigned daily and are not supposed to be divulged to the probationers until the evening before.
According to the plea agreement, on December 28, 2018, the UC provided another urine sample to Brown, but instead of checking it, Brown told the UC, “Go ahead and pour it [the urine] out,” “Cause if it was dirty the other day, it’s gonna be dirty today.” The UC again expressed appreciation to Brown and asked if Brown “needed anything.” Brown admitted that he again accepted $100 from the UC and indicated that he would do so on future dates, as well. Brown also accepted $150 from the UC on February 11, 2019, without requiring the UC to submit a urine sample at all, before Brown falsely reported a negative urinalysis result for the UC. The company then reported that false result to U.S. Probation and Pretrial Services.
Brown faces a maximum sentence of 10 years in prison for bribery. U.S. District Judge Paula Xinis has scheduled sentencing for August 28, 2019, at 10:00 a.m.
United States Attorney Robert K. Hur commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Elizabeth G. Wright, who is prosecuting the case.
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Member of Maryland MS-13 Extortion Operation in DC Suburbs Is Convicted After Federal TrialRead the Press Release
Greenbelt, Maryland –A federal jury has convicted Gerdandino Delgado-Escobar, a/k/a “Pumba,” age 24, of Hyattsville, a member of La Mara Salvatrucha, or MS-13, of conspiracy to interfere with interstate commerce by extortion. The verdict was returned late on June 13, 2019.
The guilty verdict was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Assistant Director in Charge John P. Selleck of the FBI Washington Field Office; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) 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.
“We will not tolerate the fear and violence perpetrated by MS-13 in Maryland,” said U.S. Attorney Robert K. Hur. “This prosecution sends a strong message to MS-13 gang members that 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.”
Delgado-Escobar remains detained pending his sentencing, which has not yet been scheduled.
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 William D. Moomau and Catherine K. Dick, who are prosecuting this case.
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IBM Agrees to Pay $14.8 Million to Settle False Claims Act Allegations Related to Maryland Health Benefit ExchangeRead the Press Release
International Business Machines Corporation (IBM) and Cúram Software have agreed to pay $14.8 million to settle alleged violations of the False Claims Act arising from material misrepresentations to the State of Maryland during the Maryland Health Benefit Exchange (MHBE) contract award process for the development of Maryland’s Health Insurance Exchange (HIX) website and IT platform, the Department of Justice announced today.
“Making misleading statements to win contract awards violates fundamental tenets of government contracting and harms the government and taxpayers,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department is committed to protecting the American taxpayer from false claims and preserving the integrity of federal funding decisions.”
“When companies misrepresent their products and capabilities in order to win government contracts, they enrich themselves at taxpayers’ expense,” said U.S. Attorney Robert K. Hur. “Today’s resolution demonstrates our continuing commitment to hold companies accountable for their actions.”
“Companies are expected to be candid about products, skills and abilities during contract negotiations,” said Maureen R. Dixon, Special Agent in Charge, for the Department of Health and Human Services, Office of the Inspector General. “We will continue to work with the U.S. Department of Justice to ensure taxpayer dollars are only spent for honest, high-quality health care products and services.”
On Dec. 19, 2011, IBM completed its acquisition of Cúram Software Ltd (Cúram). That same day, a proposal was submitted to the State of Maryland to support the HIX, which was drafted in part by Cúram and included Cúram as a subcontractor for software and services. On Jan. 5, 2012, as part of the bid evaluation process and with IBM’s knowledge, Cúram participated in a presentation to the State of Maryland that illustrated Cúram software conducting eligibility determinations for health assistance coverage, calculating applicable tax credits, addressing changes in life events (e.g. changes in income), and illustrating the integration of Cúram’s software with another subcontractor’s health plan shopping software. On Feb. 22, 2012, the State, acting through MHBE, awarded the contract for development of Maryland’s HIX website and IT platform. Cúram-IBM served as a subcontractor on the project. Federal grants from the U.S. Department of Health and Human Services partially funded MHBE’s contract for the Maryland HIX.
The settlement covers the time period from Jan. 1, 2011, through May 31, 2014, and resolves allegations against Cúram-IBM regarding material misrepresentations made to the State of Maryland during the HIX contract procurement process, including misrepresentations regarding the development status of the Cúram for Health Care Reform software; the existing functionality of the Cúram software to meet the State’s technical requirements, such as addressing life events and calculating tax credits under the Patient Protection and Affordable Care Act; and the integration of Cúram software with other software needed to provide a properly functioning HIX website. After repeated problems following the launch of the HIX website in October 2013, Maryland, acting through MHBE, terminated the contract and replaced the HIX website and IT platform, including the Cúram software.
The investigation and settlement in this matter were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Maryland, the Department of Health and Human Services Office of Inspector General, and the Office of the Attorney General of Maryland. The claims resolved by this settlement are allegations only and there has been no determination of liability.
IBM Agrees to Pay $14.8 Million to Settle Federal False Claims Act Allegations Relating to Maryland Health Benefit ExchangeRead the Press Release
Baltimore, Maryland – International Business Machines Corporation (IBM) and Cúram Software have agreed to pay $14.8 million to settle allegations under the federal False Claims Act that they made material misrepresentations to the State of Maryland during the Maryland Health Benefit Exchange contract award process for the development of Maryland’s Health Insurance Exchange (HIX) website and IT platform.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division; and Special Agent in Charge Maureen R. Dixon of the Office of Inspector General for the Department of Health and Human Services.
“When companies misrepresent their products and capabilities in order to win government contracts, they enrich themselves at taxpayers’ expense,” said U.S. Attorney Robert K. Hur. “Today’s resolution demonstrates our continuing commitment to hold companies accountable for their actions.”
“Making misleading statements to win contract awards violates fundamental tenets of government contracting and harms the government and taxpayers,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department is committed to protecting the American taxpayer from false claims and preserving the integrity of federal funding decisions.”
“Companies are expected to be candid about products, skills and abilities during contract negotiations,” said Special Agent in Charge Maureen R. Dixon of the Office of Inspector General for the Department of Health and Human Services. “We will continue to work with the U.S. Department of Justice to ensure taxpayer dollars are only spent for honest, high-quality health care products and services.”
According to the settlement agreement, on December 19, 2011, IBM completed its acquisition of Cúram Software Ltd (Cúram). That same day, a proposal was submitted to the State of Maryland to support the HIX, which was drafted in part by Cúram and included Cúram as a subcontractor for software and services. On January 5, 2012, as part of the bid evaluation process and with IBM’s knowledge, Cúram participated in a presentation to the State of Maryland that illustrated Cúram software conducting eligibility determinations for health assistance coverage, calculating applicable tax credits, addressing changes in life events (e.g., changes in income), and illustrating the integration of Cúram’s software with another subcontractor’s health plan shopping software. On February 22, 2012, the State, acting through MHBE, awarded the contract for development of Maryland’s HIX website and IT platform. Cúram-IBM served as a subcontractor on the project. Federal grants from the U.S. Department of Health and Human Services partially funded MHBE’s contract for the Maryland HIX.
After repeated problems following the launch of the HIX website in October 2013, Maryland, acting through MHBE, terminated the contract and replaced the HIX website and IT platform, including the Cúram software. The settlement covers the time period from January 1, 2011, through May 31, 2014, and resolves allegations against Cúram-IBM regarding material misrepresentations made to the State of Maryland during the HIX contract procurement process, including misrepresentations regarding the development status of the Cúram for Health Care Reform software; the existing functionality of the Cúram software to meet the State’s technical requirements, such as addressing life events and calculating tax credits under the Patient Protection and Affordable Care Act; and the integration of Cúram software with other software needed to provide a properly functioning HIX website.
The claims resolved by this settlement agreement are allegations. The settlement is not an admission of liability by IBM, nor a concession by the United States that its claims are not well founded.
The investigation and settlement in this matter were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Maryland, the Department of Health and Human Services Office of Inspector General, and the Office of the Attorney General of Maryland. U.S. Attorney Robert K. Hur thanked Assistant United States Attorneys Allen F. Loucks and Rebecca A. Koch, and Michael Hoffman with the Civil Division’s Commercial Litigation Branch, who handled the case.
Cheverly Man Sentenced to 14 Years in Federal Prison for Enticing and Coercing A Minor to Produce Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Wilmer Flores Mejia, age 44, a naturalized citizen of the United States residing in Cheverly, Maryland, to 14 years in federal prison, followed by 25 years of supervised release, for coercion and enticement of a minor to produce child pornography. Judge Grimm also ordered that, upon his release from prison, Flores Mejia 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 imposed on June 13, 2019.
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 his plea agreement, in December 2015, Flores Mejia used a messaging application to communicate with the victim, who was a 15-year-old boy living in El Salvador. During the course of a sexually explicit conversation, Flores Mejia agreed to pay the victim to send Flores Mejia a sexually explicit photograph of himself, which the victim did.
Flores Mejia’s messaging account showed that he had engaged in other sexually explicit conversation with minor boys on several occasions. Cellular phones seized from Flores Mejia contain conversations with minor boys, including regarding sexual topics. A federal search warrant executed at the residence of Flores Mejia in Maryland also recovered a notebook which contained the names and ages of boys from a village in El Salvador, including the name and age of the victim.
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 and thanked the Prince George’s County Police Department, U.S. Customs and Border Protection, and the Policia Nacional Civil of El Salvador for their assistance. Mr. Hur thanked Assistant U.S. Attorney Joseph R. Baldwin, who prosecuted the federal case.
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Nigerian National Sentenced to 30 Months in Federal Prison after Pleading Guilty to Forgery and False Use of a Passport, Misusing a Visa, and Money LaunderingRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Johnson Olatunji Ogunyemi, age 50, a Nigerian national residing in Owings Mills, Maryland, to 30 months in federal prison, after Ogunyemi pleaded guilty to forgery and false use of a passport, fraud and misuse of a visa, and money laundering. Judge Blake also ordered Ogunyemi to forfeit $105,561.
The guilty plea and sentence were 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 his plea agreement, Ogunyemi is a Nigerian national who arrived in the United States on January 31, 2015. Ogunyemi was authorized to remain until July 30, 2015, but did not leave the U.S. On August 16, 2017, the New Carrollton Police Department (“NCPD”) arrested Ogunyemi at a bank in New Carrollton, Maryland, after Ogunyemi presented a fraudulent Nigerian passport and visa in the name of Benjamin Smith to the teller to conduct a financial transaction. During the arrest, NCPD took possession of three Nigerian passports with U.S. visas, all with Ogunyemi’s photo, but in the names of Benjamin Smith, Benjamin Johnson, and John Wale, as well as a Nigerian driver’s license in the name of Benjamin Smith and an Ohio driver’s license in the name of David Durston recovered from Ogunyemi or from the vehicle that he drove to the bank.
As detailed in his plea agreement, on November 10, 2017, Diplomatic Security Service (“DSS”) agents arrested Ogunyemi at his residence in Owings Mills. When DSS arrived at the residence to execute the arrest warrant, Ogunyemi absconded through a third-floor balcony and attempted to flee. DSS also executed a search warrant on Ogunyemi’s vehicle and found an additional Nigerian passport and Nigerian Driver’s License containing Ogunyemi’s photo in the name of Ola Badru, as well as mail addressed to Ogunyemi’s other known aliases. The Department of Homeland Security Forensic Laboratory determined that all of the identity documents recovered from Ogunyemi or his vehicles were counterfeit. Ogunyemi admitted that he assumed at least five identities in the United States, including four for which he possessed altered Nigerian passports, each containing a forged United States visa.
Ogunyemi further admitted that he participated in a fraud scheme. Specifically, Ogunyemi opened bank accounts in the names of his various aliases, using the false passports and visas, as well as the name of a purported business. Ogunyemi received wire transfers, check and cash deposits of hundreds of thousands of dollars into the bank accounts that he exercised control over. Ogunyemi knew that the funds that he received and deposited into his accounts were the proceeds of unlawful activity, including scams against vulnerable individuals and the defrauding of businesses by email hacking and/or by counterfeit checks. Ogunyemi, using his various aliases, used the proceeds received and deposited into his accounts to conduct financial transactions in an effort to conceal the unlawful source of the funds.
The amount of money laundered by Ogunyemi as part of the conspiracy was at least $307,300.
United States Attorney Robert K. Hur commended DSS for their work in the investigation and thanked the New Carrollton Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Joan C. Mathias and Tamera L. Fine, who prosecuted the case.
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Medical Device Maker ACell, Inc. Pleads Guilty and Will Pay $15 Million to Resolve Criminal Charges and Civil False Claims AllegationsRead the Press Release
Baltimore, Maryland – ACell, Inc. (ACell), a Maryland-based medical device manufacturer, pleaded guilty to charges relating to its MicroMatrix powder wound-dressing product (MicroMatrix). ACell entered a guilty plea before U.S. District Court Judge Ellen L. Hollander in the District of Maryland to one misdemeanor count of failure and refusal to report a medical device removal in violation of the Federal Food, Drug, and Cosmetic Act (FDCA). In addition, ACell has agreed to settle allegations that it caused false claims to be submitted to federal health care programs for MicroMatrix, and to pay $15 million to resolve its criminal and civil liability arising from these matters.
The guilty plea and settlement were announced by United States Attorney for the District of Robert K. Hur; Assistant Attorney General Joseph H. Hunt of the Justice Department’s Civil Division; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
“When companies use contaminated materials to manufacture devices and fail to notify the FDA of recalls of their products due to concerns of patient safety, they undermine the integrity of the FDA recall process and may cause patients to receive devices that are not safe,” said U.S. Attorney for the District of Maryland Robert K. Hur. “This joint criminal and civil resolution holds ACell accountable for this violation while returning dollars back to the Medicare program for false claims.”
“Today’s settlement underscores the Department’s commitment to holding device manufacturers accountable for ensuring that their products are safe, which includes making timely notifications to the FDA when a product recall is required,” said Assistant Attorney General Joseph H. Hunt of the Department of Justice.
“Neglecting to provide vital medical device information to the FDA, medical professionals, and even the company’s own sales force, posed a significant threat to the lives of patients across the country,” said Maureen Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services region including Maryland. “Compounding that crime, the government contended the company paid thinly-veiled bribes to health providers and stuck taxpayers with inflated bills.”
As charged in a criminal information unsealed today, ACell removed MicroMatrix from its point of use to reduce a risk to health posed by the device, but failed to report the removal to the Food and Drug Administration (FDA). The United States alleges that in 2012, ACell clandestinely removed its MicroMatrix devices from sales representative inventories, hospitals, and other healthcare centers, due to a risk to patient health posed by endotoxin contamination of those devices. Endotoxin exposure on the human body can cause fever, infection, septic shock, and death.
Pursuant to a plea agreement, ACell admitted that it learned in January 2012 that more than 30,000 MicroMatrix devices were contaminated with endotoxin levels that posed a risk to patient health. Due to that health risk, ACell initiated a removal of certain sizes of MicroMatrix devices from the market. ACell admitted that it did not report the removal of these devices from the market to FDA. ACell also admitted that it concealed the reason for the product removal from doctors, hospitals, and the company’s own sales force, and did not notify doctors who had already used MicroMatrix devices from the lots subject to removal of the elevated endotoxin levels. Under the terms of the plea agreement, ACell agreed to pay a criminal fine of $3 million. ACell must also abide by an agreement with the Department of Justice requiring ACell to enact extensive compliance reforms.
Pursuant to the civil settlement under the False Claims Act, ACell will pay $12 million over five years to resolve its civil liability for causing false claims for MicroMatrix to be submitted to government health care programs. Specifically, the United States alleged that, beginning in 2011, ACell’s marketing of MicroMatrix, which is indicated for the treatment of topical wounds, was false and misleading because, at the direction of management, ACell sales representatives stated to physicians that the use of MicroMatrix powder non-topically and internally was safe and effective, when the sales representatives knew that no such clinical data existed. Additionally, the United States contended that, beginning in March 2012, ACell provided incorrect coding recommendations to healthcare providers for ACell devices and improperly inflated reimbursement from Medicare. ACell continued to provide this erroneous guidance even after two separate coding consultants advised ACell that it was incorrect. Finally, the United States alleged that ACell induced prescribers to order ACell products by providing improper inducements, including entertainment, payments for being part of ACell’s speaker program, and free products, designed to encourage orders from the recipients of those inducements.
Contemporaneous with the civil settlement, ACell entered into a Corporate Integrity Agreement (CIA) with the HHS-OIG. Along with the civil settlement, ACell entered into a Corporate Integrity Agreement (CIA) with the HHS-OIG. The five-year CIA requires, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks on an ongoing basis. In addition, the CIA enhances individual accountability by requiring sign-off certifications from the ACell Board of Directors and specified executives. The CIA requires training, auditing, and monitoring designed to address the range of activities (promotional and otherwise) at issue in the case.
The civil settlement resolves a lawsuit filed by John Murtaugh, a former employee of ACell, under the qui tam or whistleblower provisions of the False Claims Act, which permit private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. The qui tam suit was filed in the District of Maryland and is captioned United States ex rel. John Murtaugh v. ACell, Inc., Action No. ELH-13-1820 (D. Md.). Murtaugh will receive $2,366,004 of the civil settlement.
Except as to conduct admitted as part of the guilty plea, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
The government is represented in the criminal case by Assistant U.S. Attorney Roann Nichols of the U.S. Attorney’s Office for the District of Maryland and Trial Attorneys Clint Narver and Ann Entwistle of the Civil Division’s Consumer Protection Branch, with assistance from FDA’s Office of Chief Counsel. The civil settlement was the result of the coordinated efforts of Assistant U.S. Attorney Thomas Corcoran of the U.S. Attorney’s Office for the District of Maryland and Senior Counsel Natalie Waites of the Civil Division’s Commercial Litigation Branch. The investigation was conducted by HHS-OIG, FDA’s Office of Criminal Investigations, the Federal Bureau of Investigation, and the Department of Defense Criminal Investigative Services.
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Medical Device Maker ACell Inc. Pleads Guilty and Will Pay $15 Million to Resolve Criminal Charges and Civil False Claims AllegationsRead the Press Release
ACell Inc. (ACell), a Maryland-based medical device manufacturer, pleaded guilty to charges relating to its MicroMatrix powder wound dressing product (MicroMatrix), the Department of Justice announced today. ACell entered a guilty plea before U.S. District Court Judge Ellen L. Hollander in the District of Maryland to one misdemeanor count of failure and refusal to report a medical device removal in violation of the Federal Food, Drug, and Cosmetic Act (FDCA). In addition, ACell has agreed to settle allegations that it caused false claims to be submitted to federal health care programs for MicroMatrix, and to pay $15 million to resolve its criminal and civil liability arising from these matters.
“Today’s settlement underscores the Department of Justice’s commitment to holding device manufacturers accountable for ensuring that their products are safe, which includes making timely notifications to the FDA when a product recall is required,” said Assistant Attorney General Jody Hunt of the Civil Division.
“When companies use contaminated materials to manufacture devices and fail to notify the FDA of recalls of their products due to concerns of patient safety, they undermine the integrity of the FDA recall process and may cause patients to receive devices that are not safe,” said U.S. Attorney for the District of Maryland Robert K. Hur. “This joint criminal and civil resolution holds ACell accountable for this violation while returning dollars back to the Medicare program for false claims.”
“The FDA will not tolerate the actions of companies that put patients at risk by failing to report the market withdrawal of their medical devices to the FDA,” said Acting FDA Commissioner Ned Sharpless, M.D. “By not notifying the FDA nor being forthcoming about their reasons for the product removal, ACell executives placed profit above patient safety. They risked that doctors would use the devices in procedures that could jeopardize patient health, and violated both the trust of patients and the medical community in their medical device. We will continue to investigate and bring to justice companies that do not follow FDA’s postmarket compliance requirements, which are important to ensure the protection of the public health.”
Along with the civil settlement, ACell entered into a Corporate Integrity Agreement (CIA) with the HHS-OIG. The five-year CIA requires, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks on an ongoing basis. In addition, the CIA enhances individual accountability by requiring sign-off certifications from the ACell Board of Directors and specified executives. The CIA requires training, auditing, and monitoring designed to address the range of activities (promotional and otherwise) at issue in the case.
“Neglecting to provide vital medical device information to the FDA, medical professionals, and even the company’s own sales force, posed a significant threat to the lives of patients across the country,” said Maureen Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services region including Maryland. “Compounding that crime, the government contended the company paid thinly-veiled bribes to health providers and stuck taxpayers with inflated bills.”
As charged in a criminal information unsealed today, ACell removed MicroMatrix from its point of use to reduce a risk to health posed by the device, but failed to report the removal to the Food and Drug Administration (FDA). The United States alleges that in 2012, ACell clandestinely removed its MicroMatrix devices from sales representative inventories, hospitals, and other healthcare centers, due to a risk to patient health posed by endotoxin contamination of those devices. Endotoxin exposure on the human body can cause fever, infection, septic shock, and death.
Pursuant to a plea agreement, ACell admitted that it learned in January 2012 that more than 30,000 MicroMatrix devices were contaminated with endotoxin levels that posed a risk to patient health. Due to that health risk, ACell initiated a removal of certain sizes of MicroMatrix devices from the market. ACell admitted that it did not report the removal of these devices from the market to FDA. ACell also admitted that it concealed the reason for the product removal from doctors, hospitals, and the company’s own sales force, and did not notify doctors who had already used MicroMatrix devices from the lots subject to removal of the elevated endotoxin levels. Under the terms of the plea agreement, ACell agreed to pay a fine of $3,000,000. ACell must also abide by an agreement with the Department of Justice requiring ACell to enact extensive compliance reforms.
Pursuant to the civil settlement under the False Claims Act, ACell will pay $12 million over five years to resolve its civil liability for causing false claims for MicroMatrix to be submitted to government health care programs. Specifically, the United States alleged that, beginning in 2011, ACell’s marketing of MicroMatrix, which is indicated for the treatment of topical wounds, was false and misleading because, at the direction of management, ACell sales representatives stated to physicians that the use of MicroMatrix powder non-topically and internally was safe and effective, when the sales representatives knew that no such clinical data existed. Additionally, the United States contended that, beginning in March 2012, ACell provided coding recommendations to healthcare providers for ACell devices that were incorrect and improperly inflated reimbursement from Medicare. ACell continued to provide this erroneous guidance even after two separate coding consultants advised ACell that it was incorrect. Finally, the United States alleged that ACell induced prescribers to order ACell products by providing improper inducements, including entertainment, payments for being part of ACell’s speaker program, and free product, designed to encourage orders from the recipients of those inducements.
The civil settlement resolves a lawsuit filed by John Murtaugh, a former employee of ACell, under the qui tam or whistleblower provisions of the False Claims Act, which permit private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. The qui tam suit was filed in the District of Maryland and is captioned United States ex rel. John Murtaugh v. ACell, Inc., Action No. ELH-13-1820 (D. Md.). Murtaugh will receive $2,366,004 of the civil settlement.
The government is represented in the criminal case by Assistant U.S. Attorney Roann Nichols of the U.S. Attorney’s Office for the District of Maryland and Trial Attorneys Clint Narver and Ann Entwistle of the Civil Division’s Consumer Protection Branch, with assistance from FDA’s Office of Chief Counsel. The civil settlement was the result of the coordinated efforts of Assistant U.S. Attorney Thomas Corcoran of the U.S. Attorney’s Office for the District of Maryland and Senior Counsel Natalie Waites of the Civil Division’s Commercial Litigation Branch. The investigation was conducted by HHS-OIG, FDA’s Office of Criminal Investigations, the FBI, and the Department of Defense Criminal Investigative Services.
Except as to conduct admitted as part of the guilty plea, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. To learn more about the U.S. Attorney’s Office for the District of Maryland, visit its website at https://www.justice.gov/usao-md. To learn more about the Fraud Section, visit its website at https://www.justice.gov/civil/fraud-section.
Former Navy Employee Pleads Guilty to Child Pornography Offenses with Multiple VictimsRead the Press Release
A former Navy employee who resided in Maryland before moving to Japan pleaded guilty today to the production, transportation and possession of child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur of the District of Maryland and Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office made the announcement.
Spencer E. Steckman, 35, formerly of Silver Spring, Maryland, was charged in March 2018 with one count of production of child pornography, one count of transportation of child pornography and one count of possession of child pornography. Steckman was detained by the Naval Criminal Investigative Service (NCIS) in Japan on March 27, 2018, and transported back to Maryland by the United States Marshals Service to appear in U.S. District Court. U.S. District Judge Paul W. Grimm for the District of Maryland scheduled sentencing for Nov. 7, 2019. Steckman has remained in custody since his initial detainment.
According to admissions made in connection with his plea agreement, between Aug. 17, 2017, and Sept. 22, 2017, while in Maryland, Steckman enticed a 13-year-old boy to take photographs of himself engaged in sexually explicit conduct and then send them to Steckman in exchange for money or PlayStation videogame redemption codes. Between Sept. 24, 2017, and Dec. 4, 2017, Steckman enticed another 13-year-old boy to take photographs and videos of himself engaged in sexually explicit conduct and then send them to Steckman in exchange for an iPhone. In mid-November 2017, Steckman moved to Japan to work with Commander Navy Region Japan, where he transported and possessed the child pornography.
Further investigation revealed eight other victims whom Steckman had enticed to produce child pornography, ranging in age from 12 to 17 years old, and dating back to the years 2008 to 2010, when Steckman was residing in San Diego, California.
The FBI’s Baltimore Field Office and the Maricopa County, Arizona, Sheriff’s Office are investigating the case, with substantial assistance from NCIS. Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Joseph Baldwin of the District of Maryland are prosecuting the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Navy Employee Pleads Guilty to Child Pornography Offenses with Multiple VictimsRead the Press Release
Greenbelt, Maryland – Spencer Eugene Steckman, age 35, a Navy employee formerly of Silver Spring, Maryland, pleaded guilty today to the production, transportation, and possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office.
According to admissions made in connection with his plea agreement, between August 17, 2017, and September 22, 2017, while in Maryland, Steckman enticed a thirteen-year-old boy to take, and send to Steckman, photographs of the boy engaged in sexually explicit conduct, in exchange for money and PlayStation videogame redemption codes. Between September 24, 2017, and December 4, 2017, Steckman enticed another thirteen-year-old boy to take, and send to Steckman, photographs and videos of the boy engaged in sexually explicit conduct, in exchange for an iPhone. In mid-November 2017, Steckman moved to Japan for work, where he transported and possessed the child pornography.
Steckman was detained by the Naval Criminal Investigative Service (NCIS) in Japan on March 27, 2018, and transported back to Maryland by the United States Marshals Service to appear before the U.S. District Court for the District of Maryland. He has remained in custody since that time.
Further investigation revealed eight other victims whom Steckman had enticed to produce child pornography, ranging in age from twelve to seventeen years old, and dating back to 2008-2010, when Steckman was residing in San Diego, California.
As part of his plea agreement, Steckman 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).
Steckman and the government have agreed that, if the Court accepts the plea, Steckman will be sentenced to between 25 and 45 years in federal prison. U.S. District Court Judge Paul W. Grimm scheduled sentencing for November 7, 2019.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
United States Attorney Robert K. Hur commended the FBI, the NCIS, and the Maricopa County, Arizona, Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Joseph Baldwin and Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), who are prosecuting the case.
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Annapolis MS-13 Member Sentenced to 24 Years in Federal Prison for a Racketeering Conspiracy and for Discharging a Firearm Related to His MS-13 Gang ActivitiesRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Manuel Martinez-Aguilar, a/k/a “El Lunatic” and “Zomb”, age 20, of Annapolis, Maryland, today to 24 years in federal prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise and for using, carrying, and discharging a firearm during a crime of violence, in connection with his MS-13 gang activities.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Baltimore Field Division; Chief Timothy J. Altomare of the Anne Arundel Police Department; and State’s Attorney Anne Colt Leitess of the Anne Arundel County State’s Attorney Office.
MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Anne Arundel County, Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively as “Programs,” with the purpose of increasing the gang’s levels of organization, violence, extortion, and other criminal activity, and to assist one another in avoiding detection by law enforcement. In Maryland and the surrounding area, these cliques include Hempstead Locos Salvatruchas (“HLS”), Parkview Locos Salvatrucha (“PVLS”), Normandie Locos Salvatrucha (“NLS” or “Normandie”), Sailors Locos Salvatrucha Westside (“SLSW” or “Sailors”), Langley Park Salvatrucha (“LPS”), Weedoms Locos Salvatrucha (“Weedoms”), and Cabanas Locos Salvatruchas (“Cabanas”). A person within the participating cliques is selected as the Program leader.
To protect the gang and to enhance its reputation, MS-13 members and associates are expected to use any means necessary to force respect from those who show disrespect, including acts of intimidation and violence. MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controla,” which translates to, “kill, steal, rape, control.” One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to Martinez-Aguilar’s plea agreement, prior to 2015, and continuing through 2017, Martinez-Aguilar was a member and associate of the Hempstead clique of MS-13, and participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery, and drug trafficking. For example, Martinez-Aguilar conspired to and attempted to murder two victims in Annapolis, for the purpose of gaining entrance to, maintaining, and increasing position in MS-13.
As detailed in his plea agreement on October 23, 2016, Martinez-Aguilar and other MS-13 members met in a park to discuss the plan to murder Victim 2, an unlicensed cab driver who was believed to be a member of a rival gang. At the meeting, each member of the conspiracy was assigned a task to complete the murder and dispose of the evidence. The group planned to use machetes, knives, and guns to kill the victim. All the members of the conspiracy, including Martinez-Aguilar, were aware that guns would be used in the murder. Martinez-Aguilar and another MS-13 member were tasked with disposing of Victim 2’s vehicle after the murder. The group planned to bury the victim’s body in the park.
According to the plea agreement, a member of the conspiracy called Victim 2 using another member’s cell phone to arrange for an unlicensed taxi ride. Victim 2 arrived with another passenger, Victim 3. The conspirator asked Victim 2 to drive to the area of 700 block of Annapolis Neck Road in Annapolis. When they arrived, another MS-13 member approached the vehicle and pointed a gun at the victims and the MS-13 member in the car also produced a gun and pointed it at the victims. Victim 3 attempted to run away and was shot in the leg, while another MS-13 member attacked the victim with a machete. Victim 2 also tried to run. Martinez-Aguilar and another MS-13 member took Victim 2’s vehicle and attempted unsuccessfully to run him over with the car. Two MS-13 members chased Victim 2 and repeatedly struck Victim 2 with a sharp instrument, causing stab wounds. The conspirators fled when they heard police sirens. Both victims were transported to the University of Maryland Shock Trauma Center with life threatening injuries. Both victims survived but have permanent injuries as a result of the attack.
On October 24, 2016, police detectives located Victim 2’s car, which smelled of gasoline. Officers recovered burned cigarettes from the car the contained DNA from Martinez-Aguilar.
Further, Martinez-Aguilar admitted that between January 2016 and February 2017, he and other members of MS-13 sold cocaine and marijuana to raise funds for the gang. The proceeds were used for the purchase of more narcotics, weapons, and to send to MS-13 members and associates in other states and in El Salvador, among other purposes.
Co-defendant David Diaz-Alvarado, age 20, pleaded guilty to murder in aid of racketeering related to a murder committed on March 11, 2016, in connection with his MS-13 gang activities. Charges remain pending against four other co-defendants, who all remain detained pending trial.
United States Attorney Robert K. Hur commended HSI, ATF, Anne Arundel Police Department, and Anne Arundel State’s Attorney Office. Mr. Hur thanked Assistant U.S. Attorney Zachary Stendig, Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section, as well as Special Assistant U.S. Attorney Samantha Mildenberg, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Maryland Auto Parts and Scrap Metal Dealers Convicted of Tax FraudRead the Press Release
Greenbelt, Maryland – Robert Mason Underwood, Sr., age 72, and his wife, Deborah Jean Underwood, age 63, both of Clinton Maryland, were convicted by a federal jury today of one count of conspiracy to defraud the Internal Revenue Service (IRS) and four counts of filing false income tax returns.
The conviction was announced by United States Attorney for the District of Robert K. Hur; Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“When criminals cheat the IRS, they rob all of us as taxpayers,” said U.S. Attorney Robert K. Hur. “Prosecutions like this demonstrate that we will not tolerate those who attempt to cheat the system and will hopefully deter others from stealing taxpayer funds.”
“The jury’s guilty verdicts embody the formidable commitment of the Tax Division, along with its partners in the United States Attorney’s Office and the IRS, to prosecute business owners, who cheat the tax system in violation of our criminal laws and in doing so also gain an unfair advantage over other small business owners,” stated Principal Deputy Assistant Attorney General Zuckerman.
“Today’s verdict confirms that choosing to evade the payment of taxes, causing hardworking taxpayers to bear the brunt, is an action that cannot be tolerated,” said IRS-CI Special Agent in Charge Kelly Jackson. “The conviction of the Underwood’s solidifies this agreement with the American public that everyone must pay their fair share.”
According to court documents and evidence presented in court at their seven-day trial, the Underwoods operated a used automobile parts and scrap metal business in Clinton under the names “B Underwood’s Used Auto Parts” and “B Underwood Used Auto Parts, LLC.” The business purchased used and salvage cars, stripped the cars for parts to resell, and sold the remaining scrap metal to a Baltimore-based scrap yard.
The Underwoods requested to be paid in cash for their scrap-metal sales and conspired to conceal from the IRS their subsequent receipt of substantial amounts of cash. The Underwoods filed a false amended individual income tax return for 2010 and false individual income tax returns for 2011 and 2012 with the IRS. The false tax returns did not include the full gross receipts from the sales. The Underwoods also filed a false 2012 partnership tax return for their business that did not report all gross receipts of the business.
The Underwoods each face a maximum sentence of five years in prison for the conspiracy count and three years in prison for each of four counts of filing a false tax return. U.S. District Judge Theodore D. Chuang has scheduled sentencing for September 30, 2019, at 2:00 p.m.
U.S. Attorney Hur and Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney David I. Salem and Trial Attorney Michael C. Vasiliadis of the Justice Department’s Tax Division, who are prosecuting the case.
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Maryland Auto Parts and Scrap Metal Dealers Convicted of Tax FraudRead the Press Release
A married Clinton couple were convicted by a federal jury today of one count of conspiracy to defraud the Internal Revenue Service (IRS) and four counts of filing false income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur for the District of Maryland.
“The jury’s guilty verdicts embody the formidable commitment of the Tax Division, along with its partners in the United States Attorney’s Office and the IRS, to prosecute business owners, who cheat the tax system in violation of our criminal laws and in doing so also gain an unfair advantage over other small business owners,” stated Principal Deputy Assistant Attorney General Zuckerman.
“When criminals cheat the IRS, they rob all of us as taxpayers,” said U.S. Attorney Robert K. Hur. “Prosecutions like this demonstrate that we will not tolerate those who attempt to cheat the system and will hopefully deter others from stealing taxpayer funds.”
“Choosing not to pay your taxes and causing hardworking taxpayers to bear the brunt cannot be tolerated and today’s verdict reinforces that principle,” said Don Fort, Chief, IRS Criminal Investigation. “The conviction of the Underwoods validates the most basic principle of our agreement with the American public that everyone must pay their fair share and we will hold those who cheat the system accountable.”
According to court documents and evidence presented in court, the Underwoods operated a used automobile parts and scrap metal business in Clinton under the names “B Underwood’s Used Auto Parts” and “B Underwood Used Auto Parts LLC.” The business purchased used and salvage cars, stripped the cars for parts to resell, and sold the remaining scrap metal to a Baltimore-based scrap yard.
The Underwoods requested to be paid in cash for their scrap-metal sales and conspired to conceal from the IRS their subsequent receipt of substantial amounts of cash. The Underwoods filed a false amended individual income tax return for 2010 and false individual income tax returns for 2011 and 2012 with the IRS. The false tax returns did not include the full gross receipts from the sales. The Underwoods also filed a false 2012 partnership tax return for their business that did not report all gross receipts of the business.
The Underwoods each face a maximum sentence of five years in prison for the conspiracy count and three years in prison for each count of filing a false tax return. The Underwoods also face a term of supervised release and monetary penalties, including restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney David I. Salem and Trial Attorney Michael C. Vasiliadis of the Justice Department’s Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Member of the Violent “Murdaland Mafia Piru” Bloods Gang Sentenced to 14 Years in Federal Prison for Racketeering and Drug ConspiraciesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Devon Dent, age 28, of Baltimore, Maryland to 14 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. Dent admitted that as part of his gang activities, he distributed crack cocaine for the gang and he was present when a MMP co-defendant attempted to kill a victim outside a Baltimore nightclub, shooting that person multiple times in the head and chest.
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 Terrence B. Sheridan of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
According to Dent’s plea agreement and court documents, 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.
Dent admitted that he was a member of MMP and participated in the gang’s affairs through a pattern of racketeering activities, that included offenses involving drug distribution. Specifically, as detailed in his plea agreement, on October 15, 2012, Dent was present when a co-defendant attempted to murder a victim, shooting him multiple times in the head and chest with a .45-caliber firearm outside Club Mirage in downtown Baltimore. A closed-circuit television camera captured the incident, and showed Dent arriving at Club Mirage with four other MMP members, including one who was wearing a red shirt with the words “MOBB SQUAD” on the back and filmed the victim with a tablet device shortly before the shooting.
On November 4, 2012, Dent possessed with intent to distribute roughly 12 grams of heroin and 21 grams of crack cocaine, as well as MMP paperwork. The paperwork detailed the history and structure of the gang, as well as certain rules of conduct, including that “retaliation is a must,” and that “co-operation with authorities that lead[s] to incriminating others” is punishable by death.
On April 15 and April 22, 2015, Dent distributed crack cocaine on Gwynn Oak Avenue to an undercover officer who was wearing an audio-video recording device.
Twenty-five defendants have been convicted in the case, including five who were convicted by a federal jury on April 30, 2019 after a six-week 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.
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.
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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Fort Washington Man Sentenced to 66 Months in Federal Prison for Two Separate Drug CasesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Daniel Mark Wilkerson, age 45, of Fort Washington, Maryland today to 66 months in federal prison, followed by five years of supervised release, for possession with intent to distribute more than 100 kilograms of marijuana, and in a separate case for conspiring to steal prescription drugs from federal military hospitals. Judge Grimm also ordered that Wilkerson pay restitution of $4,450,679.60, and forfeit $16,320.44.
The sentence was announced by United States Attorney for the District of Robert K. Hur; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid‑Atlantic Field Office; and Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations-Metro Washington Field Office.
Wilkerson admitted that from January 2008 to June 11, 2013, he conspired with Rodger Gurdon, Issa Wasco Koroma, and others to steal Norditropon, Humatrope, Somatotropin, Botox and other branded varieties of human growth hormone from pharmacies located at Fort Belvoir Community Hospital in Fort Belvoir, Virginia; Walter Reed National Military Medical Center (Walter Reed) in Bethesda, Maryland; and the former Walter Reed Medical Center (Old Walter Reed) in Washington, D.C. They re-sold the stolen pharmaceuticals for profit.
Gurdon and Koroma were pharmacy technicians at Old Walter Reed. From January 2008 until the closure of Old Walter Reed, Gurdon stole Humatrope from the pharmacy and sold it to Wilkerson for no less than $100 per box. The cost to the government for each box of Humatrope was approximately $300. Between January 1, 2009 and June 30, 2011, the conspirators stole more than $2.1 million worth of Humatrope from Old Walter Reed. After Old Walter Reed closed, Gurdon was assigned to work in the pharmacy at Fort Belvoir. At Fort Belvoir Gurdon resumed his theft of HGH, which he distributed to Wilkerson in exchange for payment. Between August 2011 and June 2013, Wilkerson and Gurdon stole more than $850,000 worth of pharmaceuticals from Fort Belvoir.
From January 2008 through June 2013, Koroma was a pharmacy technician at Walter Reed. Beginning no later than the middle of 2011, Koroma began to steal brands of human growth hormones and Botox from the pharmacy at Walter Reed at Gurdon’s request. Koroma met with Gurdon on a regular basis to exchange the drugs for payment from Gurdon. Gurdon then distributed the drugs to Wilkerson. From August 2011 to June 2013, Koroma and Gurdon stole over $1.3 million worth of pharmaceuticals from the pharmacy at Walter Reed.
Wilkerson shipped the stolen HGH and Botox to individuals in California, who paid Wilkerson by cash that was mailed to him from California, as well as by wire transfers from a bank in Mexico.
The total loss to the United States caused by Wilkerson, Gurdon, and Koroma was at least $4,467,000.
According to Wilkerson’s plea agreement in a second and unrelated case, on August 11, 2017, law enforcement officers executed a search warrant for a crate that had been shipped from California to a business in Baltimore and discovered 384 pounds (174 kilograms) of marijuana, worth more than $1 million. Undercover officers conducted surveillance at the business in an effort to determine the identity of the person to whom the crate had been sent. During their surveillance, Wilkerson, who was driving a red Hyundai, was seen driving in the vicinity of the business, and at one point, got out of his car and asked an officer if he was an employee at the business. Later that day, the crate containing the marijuana was claimed by a man who arrived at the business in a pick-up truck with two other men. The crate was placed into the truck and the men left the business, followed by law enforcement. Officers stopped the vehicle, detained the men, and seized the crate containing the marijuana. At the same time, another officer stopped Wilkerson, who was driving his Hyundai nearby. Wilkerson admitted that the crate of marijuana was his and that he had hired the individuals to assist him in picking-up and transporting the crate.
Roger George Gurdon pleaded guilty to conspiracy to steal government property, interstate receipt of stolen property, and conspiracy to distribute marijuana, and was sentenced to 70 months in federal prison. Issa Wasco Koroma, age 62, of Springdale, Maryland, pleaded guilty to conspiracy to steal government property and theft of medical products and was sentenced to five years in prison.
United States Attorney Robert K. Hur praised the DCIS and FDA-OCI for their work in the investigation. Mr. Hur thanked Assistant United States Attorney Thomas P. Windom, who prosecuted the case.
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Final Defendant Pleads Guilty to $550 Million Ponzi Scheme—One of the Largest Ever Charged in MarylandRead the Press Release
Baltimore, Maryland – Jay B. Ledford, age 55, of Westlake, Texas and Las Vegas, Nevada pleaded guilty today to conspiracy to commit wire fraud, aggravated identity theft, and a money-laundering transaction in excess of $10,000, arising from a $550 million investment fraud scheme that operated from 2013 through September 2018. Co-defendants Kevin B. Merrill, age 53, of Towson, Maryland, and Cameron R. Jezierski, age 28, of Fort Worth, Texas, previously pleaded guilty to their roles in the scheme. The U.S. Securities and Exchange Commission (SEC) has filed a parallel civil complaint in this matter.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Robert W. Manchak of the Federal Housing Finance Agency, Office of Inspector General.
“Jay Ledford created false documents to help lure 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. “The effects of this kind of fraud can be devastating. As a result of this scheme, a number of victims have lost their life savings. I am proud of the work of federal prosecutors, FBI agents, and our SEC partners whose efforts interrupted this ongoing fraud scheme before the defendants could victimize even more people.”
According to his plea agreement, Ledford was a certified public accountant in Texas, starting his own practice in Amarillo in 1996 and later expanding to Dallas, Texas. In 1999, Ledford met Kevin Merrill in Dallas, when Merrill was a salesman for a Baltimore company that sold supplies for X-ray machines for hospitals and doctors’ practices. Ledford and Merrill became friends, attending sporting events and visiting casinos together. Ledford prepared Merrill’s taxes for several years.
As stated in his plea agreement, in 2001, Ledford began purchasing consumer debt portfolios, forming a company which did business as Platinum Capital Investments, to hold the debt portfolios. “Consumer debt portfolios” are defaulted consumer debts to banks/credit card issuers, student loan lenders, and car/truck financers which are sold in batches called “portfolios” to third parties that attempt to collect on the debts. Ledford also solicited investors to supply capital to buy a portfolio or invest in his company. After learning of Ledford’s financial success with Platinum Capital, Merrill expressed interest in getting started in the business. Ledford sold Merrill a few credit portfolios and introduced Merrill to his contacts with the debt reporting services. Merrill formed his own debt collection business, had capital investors, and purchased debt portfolios.
Beginning in January 2013, Ledford and his co-conspirators perpetrated a Ponzi scheme to defraud investors of more than $394 million. Specifically, Ledford and Kevin Merrill invited investors to join them in purchasing consumer debt portfolios. Ledford provided fictitious sales agreements and other documents, including false tax returns, to Merrill, knowing that Merrill was using them to induce individuals to invest in 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 the related complaint in the civil action filed by the SEC, 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, Denver, Texas, Chicago, New York, and elsewhere.
At today’s hearing, Ledford admitted that to induce investors to participate, he and his co-conspirators falsely represented who they were buying the debt portfolios from and how much they were paying for the portfolios, whether they were investing their own funds, and their track record of success. According to the plea agreement, sometimes there was no underlying debt portfolio purchased with the investors’ money. To conceal the truth, Ledford, Merrill, 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, 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 Ledford and Merrill added to the purchase price charged to investors for debt portfolios.
Further, Ledford admitted that he and Merrill falsely represented that the monies the conspirators paid to investors were “proceeds” from collections and/or flipping debt portfolios, when in fact, the proceeds were paid from funds provided by other investors. Merrill and Ledford provided monthly or quarterly reports to investors regarding the “purported progress of the portfolio and its recovery,” which Ledford and Merrill created. From 2013 - 2018, the scheme to defraud took in over $394 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 falsisfy records to the bank lender. Ledford diverted fraud proceeds to purchase and renovate a home in Las Vegas, Nevada, to refinance a home in Texas, to gamble at casinos, purchase luxury automobiles, jewelry, and to support a lavish lifestyle.
As part of his plea agreement, Ledford is required to pay restitution in the full amount of the victims’ losses and to forfeit property acquired with the proceeds of the offenses. The U.S. District Court has appointed a receiver to marshal the assets for the benefit of the victims.
Anyone who thinks they may be a victim is urged to contact the FBI at www.FBI.Gov/MerrillLedford or e-mail [email protected].
Ledford faces a maximum of 20 years in prison for the wire fraud conspiracy; a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft; and a maximum of 10 years in prison for money laundering, as well as a possible fine of $250,000, or twice the gross gain, for each of the three counts. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 29, 2019, at 10 a.m.
Kevin B. Merrill, age 53, of Towson, Maryland, and Cameron R. Jezierski, age 28, of Fort Worth, Texas, previously pleaded guilty to their roles in the scheme. Judge Bennett has scheduled sentencing for Merrill on October 10, 2019, at 9:30 a.m., and for Jezierski on August 12, 2019 at 3:00 p.m. Kevin Merrill’s wife, Amanda Merrill, age 30 of Towson, Maryland, is charged with conspiracy to obstruct justice. No court appearance is currently scheduled for Amanda Merrill. Kevin Merrill and Ledford have been detained since their arrests 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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Rap Artist “Chad Focus” Facing Federal Indictment for Wire Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Chad Arrington, a/k/a “Chad Focus,” age 31, of Randallstown, Maryland, on federal charges of conspiracy, wire fraud, and aggravated identity theft in connection with allegations that he used a company credit card to make over $4.1 million in unauthorized purchases. The indictment was returned on May 29, 2019, and was unsealed at his initial appearance today.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office.
According to the indictment, Arrington was employed by Company 1 as a Search Engine Optimization (“SEO”) Specialist from approximately 2011 to August 2018. As an SEO Specialist, Arrington was responsible for promoting and marketing Company 1’s products and services online. Company 1 assigned Arrington an American Express company credit card (the “credit card”) after Arrington signed an agreement in which he agreed to use the credit card only for business expenses related to Company 1.
The indictment alleges that from at least January 2015 through August 2018, Arrington and four co-conspirators used the credit card for fraudulent purchases, including to promote the Chad Focus brand and to make unauthorized purchases that benefitted them each personally. According to the indictment, Arrington used the credit card to make over $1.5 million in unauthorized purchases from entities and accounts controlled by Co-Conspirator 2 and Co-Conspirator 3, and then Co-Conspirator 2 and Co-Conspirator 3, in turn, kicked back hundreds of thousands of dollars to Arrington by funneling cash payments to Arrington and to accounts controlled by Arrington.
For example, the indictment alleges that Arrington used the credit card to purchase sound equipment, studio kits, instruments, and music technology, which he then used to create an artist alter-ego “Chad Focus,” and produce a number of hip-hop songs through the company he formed, Focus Music Entertainment LLC. Arrington allegedly used the credit card to make additional unauthorized purchases: from online streaming platforms that offered services for artists to pay to have the platforms artificially increase Arrington’s song play counts on other music platforms; to purchase “likes,” “followers,” “tags,” and “views” across social media and viewing platforms; to purchase services from a company that promoted mixtape videos and singles, his image, and music; and to make unauthorized payments to multiple billboard companies to display images of Arrington and his website throughout the United States and to promote Chad Focus and Focus Music Entertainment LLC. Arrington allegedly utilized the credit card to make more than $250,000 in purchases related to a bike-sharing business, including electric bikes, hover boards, and scooters. The indictment further alleges that Arrington used the credit card for concert tickets, various unauthorized international and national travel expenses, including hotels, airfare, restaurant bills, luxury vehicle rentals, and nightlife expenses, and for travel expenses and airline tickets for the benefit of Co-Conspirators 1 and 2.
In order to conceal the scheme, Arrington allegedly asked Co-Conspirator 1 and Co-Conspirator 4 to use computer software to make false entries on the credit card billing statements in order to conceal the recipient of the payments from Arrington’s supervisor and Company 1. In addition, the indictment alleges that Arrington forged the signature of his supervisor on his credit card billing statements to make it appear as though he had received approval for certain purchases when, in fact, he had not. According to the indictment, Arrington then sent those false payment authorizations to other employees who relied on the authorizations to ultimately pay off the outstanding balance of the credit card.
If convicted, Arrington faces a maximum sentence of 20 years in prison for the wire fraud conspiracy and for each of two counts of wire fraud; and a mandatory minimum of two years in prison, consecutive to any other sentence, for each of four counts of aggravated identity theft. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Stephanie Gallagher ordered that Arrington be detained pending a detention hearing scheduled for June 7, 2019, at 2:00 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Derek E. Hines and Mary W. Setzer, who are prosecuting the case.
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Maryland U.S. Attorney Announces Support to Baltimore City as Part of the National Public Safety Partnership to Combat Violent CrimeRead the Press Release
Baltimore, Maryland – As the Department of Justice continues its efforts to fulfill President Donald J. Trump’s commitment to reducing violent crime in America, Attorney General William P. Barr today announced that the city of Baltimore, Maryland was selected to join the National Public Safety Partnership (PSP) initiative. PSP provides a framework for enhancing federal support of state, local and tribal law enforcement officials and prosecutors as they aggressively investigate and pursue violent criminals, specifically those involved in gun crime, drug trafficking, and gang violence.
“The Public Safety Partnership is a successful program that directs federal law enforcement resources to the cities where they can have the greatest impact,” Attorney General Barr said. “These resources help police departments to diagnose where crime is highest—and why—and to find, arrest and prosecute criminals. Several participating cities have already seen dramatic reductions in violent crime over the past two years. As we expand this program to 10 more cities across America, we are determined to replicate that success.”
U.S. Attorney Robert K. Hur stated, “Violent crime in Baltimore, especially gun crime, takes far too many lives and undermines our ability to educate our children and build thriving businesses. Federal, state, and local law enforcement are united in our commitment to get guns and violent criminals off our streets and to reduce violent crime in our neighborhoods. All hands are on deck to make Baltimore safer, and the technical assistance available to Baltimore as part of the Justice Department’s Public Safety Partnerships will be crucial to our efforts.”
The Justice Department created PSP and the Task Force on Crime Reduction and Public Safety in response to President Trump’s February 9, 2017, Executive Order charging the agency with leading a national effort to combat violent crime. In June 2017, the Department of Justice announced the formation of the National Public Safety Partnership initiative.
To be considered for selection, a site must have sustained levels of violence that far exceed the national average and demonstrate a commitment to reducing crime. Cities must also display compliance with federal immigration requirements.
The 10 sites announced today are as follows:
- Anniston, Alabama
- Oxford, Alabama
- Anchorage, Alaska
- Davenport, Iowa
- Wichita, Kansas
- Baton Rouge, Louisiana
- Baltimore, Maryland
- Cleveland, Ohio
- Amarillo, Texas
- Harris County, Texas
More than 30 cities have participated in PSP. The primary participating Justice Department components include the Office of Justice Programs, Office on Violence Against Women, Office of Community Oriented Policing Services, Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, U.S. Drug Enforcement Administration and U.S. Marshals Service.
More information about PSP can be found at: http://www.nationalpublicsafetypartnership.org.
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Former Baltimore Police Sergeant Pleads Guilty to Conspiracy to Deprive Civil Rights for Assisting a Member of the Baltimore Police Gun Trace Task Force by Planting a Gun at the Scene of an ArrestRead the Press Release
Baltimore, Maryland – Former Baltimore Police Sergeant Keith Allen Gladstone, age 51, of New Park, Pennsylvania, pleaded guilty today to conspiracy to deprive civil rights, in connection with planting evidence at a crime scene. As part of his plea, Gladstone also admitted that he told a witness to lie about the event if questioned by law enforcement.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office.
“Prosecuting criminals who work in police agencies is essential both to protect our communities and to support the many honorable officers whose reputations they unfairly tarnish,” said U.S. Attorney Robert K. Hur.
Keith Allen Gladstone joined the Baltimore Police Department (BPD) as an officer on November 20, 1992, and was promoted to Sergeant on December 16, 2011. Gladstone retired from the BPD on December 25, 2012, but was subsequently reinstated as a Sergeant on December 9, 2013. In March 2014, Gladstone was the officer-in-charge of a Special Enforcement Section (SES) unit assigned to BPD’s Western District. Gladstone retired from the BPD for a second time on May 1, 2017.
According his plea agreement, on the evening of March 26, 2014, Gladstone, who was on duty, was having dinner with Officer 1 when he received a call on his cell phone from a sergeant in the BPD who was in a panic because he had just run over an arrestee, D.S., in the front yard of a home in Northeast Baltimore. Gladstone obtained a BB gun from another officer, then drove with Officer 1 to the site of D.S.’s arrest on Anntana Avenue and Belair Road in Northeast Baltimore City. Gladstone admitted that he dropped the BB gun near a pickup truck where D.S. lay injured on the ground. Gladstone told the sergeant, in Officer 3’s presence, “it’s over by the truck,” or words to that effect. The BB gun was then seen by another BPD officer and ultimately recovered by the BPD’s crime lab unit. Based on a false statement of probable cause written by the sergeant in another officer’s name, D.S. was subsequently charged in Maryland state court with possession, use, and discharge of a gas or pellet gun, for the BB gun that Gladstone planted at the scene of D.S.’s arrest, and a number of drug offenses. D.S. was detained on those charges until at least April 2, 2014. On January 16, 2015, the charges were disposed of by nolle prosequi, which is a form of dismissal.
As a result of his actions, Gladstone conspired to deprive D.S. of his liberty without the due process of law, and conspired to commit offenses against the United States, specifically to impede, obstruct, and influence an investigation.
As detailed in his plea agreement, after the sergeant and six other officers who had been members of the GTTF were arrested on federal racketeering charges, Gladstone and Officer 1 arranged to meet in person. Gladstone arranged for the meeting to take place in a swimming pool, to ensure that Officer 1 was not wearing a recording device. Gladstone admitted that during the meeting, he told Officer 1 that if questioned by federal law enforcement about the events on March 26, 2014, Officer 1 should tell federal investigators that Gladstone and Officer 1 were at the crime scene for “scene security,” which Officer 1 knew was not true. Gladstone also told Officer 1 to tell law enforcement that Gladstone had gotten the BB gun from his trunk, which was also not true, since Gladstone and Officer 1 had obtained the gun from another officer.
Gladstone faces a maximum sentence of 10 years in prison for conspiracy to violate civil rights. U.S. District Judge Catherine C. Blake has scheduled sentencing for September 13, 2019, at 9:15 a.m.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting the case.
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Delaware Man Sentenced to 25 Years in Federal Prison for Sex Trafficking a 15-Year-Old GirlRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Steven M. Williams, a/k/a “Brother Ray,” a/k/a “Ray,” age 39, formerly of Delaware, today to 25 years in federal prison, followed by 10 years of supervised release, for sex trafficking of a child by force, fraud, and coercion. Upon his release from prison, Williams will be required to register as a sex offender in the places where he resides, where he is employed, 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; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Matthew Donnelly of the Elkton Police Department.
“Children cannot consent to have sex for money. Human traffickers such as Steven Williams compel their victims to work for little or no compensation, often using violence and threats to force their victims to engage in prostitution,” said U.S. Attorney Robert K. Hur. “This lengthy sentence should send a powerful message that sex trafficking will not be tolerated in Maryland. Through the Maryland Human Trafficking Task Force, law enforcement is working with non-profit organizations to help human trafficking victims and prosecute the traffickers. Working to end human trafficking is a priority for the Maryland U.S. Attorney’s Office.”
According to his plea agreement, the victim, Girl 1, engaged in commercial sex acts with men in Delaware, along with Williams’ co-defendant Jessica L. Schaefer, an adult. Girl 1 was 15 years old and a resident of Pennsylvania, but lived with her father in Delaware. Schaefer posted ads of herself for commercial sex purposes. Williams responded to one of the ads and determined that Schaefer and Girl 1 would work for him. Williams provided Schaefer and Girl 1 with crack cocaine and they were eventually in debt to Williams. Girl 1 and Schaefer then engaged in commercial sex acts to pay off their debt to Williams. Girl 1 and Schaefer gave any proceeds earned from performing commercial sex acts to Williams. To facilitate the commercial sex acts, Williams rented hotel rooms in his name or the names of men paying for the commercial sex acts, and co-defendant Harry Rivers provided narcotics to the females and their customers, and helped to arrange “dates” for the females.
In July 2017, Williams drove Girl 1 from Delaware to Elkton, Maryland, separating her from Schaefer. Girl 1 woke up in a motel in Elkton with another adult sex worker, AH. At Williams’ direction, AH posted an ad featuring a picture of Girl 1 on a website used to advertise and solicit for commercial sex, including the sexual exploitation of minors. While in Maryland, Girl 1 performed commercial sex acts and gave the monies she earned to Williams. Williams physically abused Girl 1 when he thought she was not giving him all the money she earned, and also displayed his firearm.
On July 13, 2017, Girl 1 attempted to leave and hid in AH’s hotel room. Williams, Rivers, and Schaefer traveled from Newark, Delaware to Elkton, to take Girl 1 back to Delaware, to ensure that she did not leave Williams’ employ. Williams and Rivers each had a firearm which they used to threaten AH, demanding that she produce Girl 1. Schaefer had a taser, which she ignited, barged into AH’s room, and took Girl 1 from the room against her will. Williams and his co-defendants drove Girl 1 back to Delaware so that she could continue to engage in commercial sex acts.
On July 14, 2017, AH reported the abduction of Girl 1 to law enforcement. Girl 1 was located and rescued in Newark, Delaware the next day, and the defendants were arrested.
Co-defendant Harry E. Rivers, a/k/a “Hakeem” and “Pots,” age 29, also of Delaware, pleaded guilty to conspiracy to commit sex trafficking of a child and was sentenced to 12 years in federal prison. Jessica L. Schaefer, a/k/a “Tutti,” age 24, of Pennsylvania, also pleaded guilty to conspiracy to commit sex trafficking of a child and is scheduled to be sentenced on June 6, 2019.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
U.S. Attorney Robert Hur commended the FBI and the Elkton Police Department for their work in the investigation and thanked the Newark (Delaware) Police Department, the Wilmington (Delaware) Police Department, the Cecil County Department of Social Services, the Cecil County State's Attorney's Office, and the Delaware Department of Justice for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Patricia C. McLane and Zachary A. Myers, who are prosecuting the case.
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Hyperbaric Oxygen Therapy Facility Agrees to Pay the United States over $400,000 to Settle False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – HyperHeal Hyperbarics, Inc. (“HyperHeal”) has agreed to pay $414,640.25 to settle claims that it submitted false claims to the United States for physician services that were not rendered and for medically unnecessary hyperbaric oxygen therapy. HyperHeal is a hyperbaric oxygen therapy facility that provides hyperbaric oxygen therapy to patients at multiple locations in Maryland.
The settlement was announced today by United States Attorney for the District of Maryland Robert K. Hur and Robert Craig, Special Agent in Charge for the Defense Criminal Investigative Services, Mid-Atlantic Division.
“The U.S. Attorney’s Office for the District of Maryland is committed to thoroughly investigating claims of fraud and holding health care providers accountable when they subject their patients to unnecessary medical treatment and waste taxpayer dollars.” said U.S. Attorney Robert K. Hur.
According to the settlement agreement, the United States contends that from March 2013 to November 2014, HyperHeal submitted claims for one patient to TRICARE for hyperbaric oxygen therapy as if that therapy were supervised by a physician when, in fact, no physician supervised the therapy. HyperHeal, through its former president and part-owner, Eric Shapiro, prepared bills indicating that the therapy was supervised by a physician when it was not supervised by a physician. During the same time period and for the same patient, HyperHeal submitted claims to TRICARE for medically unnecessary hyperbaric oxygen therapy. No qualified medical professional evaluated the patient’s condition throughout the treatment. Instead, Shapiro, who was a hyperbaric oxygen therapy technician, directed the patient’s treatment and obtained authorization for continued treatment by sending misleading documents to TRICARE.
The settlement resolves a lawsuit brought by whistleblowers, Lesa Schrum and Juliette Skelton, who are former employees of HyperHeal. The lawsuit, which was filed in the District of Maryland in 2016, alleges that HyperHeal and Shaprio submitted or caused the submission of false claims to the United States for hyperbaric oxygen therapy services that were not medically necessary, for hyperbaric oxygen therapy services that were not properly supervised by a physician, and for hyperbaric treatment which was not provided. As part of the settlement, the whistleblowers will receive $74,635.25.
The claims resolved by this settlement are allegations only. The settlement is not an admission of liability by HyperHeal, nor a concession by the United States that its claims are not well founded.
U.S. Attorney Robert K. Hur commended the Defense Criminal Investigative Service for its investigation and thanked Assistant United States Attorneys Matthew P. Phelps and Roann Nichols, who handled the case.
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Baltimore Felon Sentenced to More Than 16 Years in Federal Prison for Illegal Possession of Firearm and AmmunitionRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Erick Rahumid Hobbs, a/k/a Eric Muhammad, age 39, of Baltimore, Maryland, today to 198 months in federal prison, followed by five years of supervised release, for illegally possessing a firearm and ammunition. Hobbs was previously convicted of a felony and was therefore prohibited from possessing firearms or ammunition. A federal jury convicted Hobbs on March 6, 2019, after a three-day trial.
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 Terrence B. Sheridan of the Baltimore County Police Department.
“Erick Hobbs knew that he was prohibited from possessing firearms or ammunition. Far too many people are making the bad choice to carry and use guns,” said U.S. Attorney Robert K. Hur. “Hopefully criminals who are not deterred from carrying guns 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 his trial, between October 2017 and January 2018, Hobbs was dating a woman and gave the woman’s daughter a television as a gift. After the woman broke off their relationship, Hobbs demanded that the woman return the television, even though Hobbs had given it as a gift to her daughter.
The evidence proved that on February 3, 2018, Hobbs broke a rear kitchen window to gain access to the woman’s home. When the woman and her daughter came downstairs to investigate the noise, Hobbs ordered them at gunpoint to open the front door, and he threatened to kill the woman, her daughter, her family, and the police. The woman unlocked the front door. Hobbs, still armed with the gun, forced his way into the residence, then left with the television. The woman called the police to report the incident.
On February 4, 2018, law enforcement located Hobbs in his vehicle and attempted to stop it. Hobbs fled and rear-ended a van nearby. Hobbs got out of his vehicle and was arrested. Officers recovered a loaded 9 mm pistol from the ground by the driver’s side door of Hobbs’ vehicle, where Hobbs was standing at the time of his arrest.
Later that day, Hobbs was captured on recorded jail calls talking to his son and roommate. During one of those calls, Hobbs provided his son with the victim’s address and directed his son to give the address to Hobbs’ roommate who is “gonna take care of it from there.” Hobbs’ son promptly went to Hobbs’ residence and provided his phone to Hobbs’ roommate so he could talk to Hobbs. On a recorded jail call, Hobbs spelled out the victim’s first and last name for his roommate and directed his roommate to get the victim’s address from his son. On the same recorded jail call, Hobbs told his roommate that he needed someone to talk with the victim and suggested Facebook as means to contact her. The roommate agreed and subsequently sent the victim communications via Facebook. The victim notified the Baltimore County Police Department of the Facebook communications and was relocated due to concerns for her safety.
On February 5, 2018, law enforcement obtained a warrant to search Hobbs’ residence and seized 65 rounds of 9 mm ammunition—the same type of ammunition inside of the firearm—from Hobbs’ bedroom dresser, and a paper with the victim’s address written on it from the roommate’s bedroom.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Samika N. Boyd and Christine Goo, who prosecuted the case.
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