District of Maryland
Press releases recorded for this federal judicial district.
Baltimore Armed Career Criminal Sentenced to 16 Years in Federal Prison for Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Kirk Gross, age 32, of Baltimore, Maryland, today to 16 years in federal prison, followed by five years of supervised release for 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 Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
“Kirk Gross is an armed career criminal with a history of committing violent gun crimes in Baltimore,” said U.S. Attorney Robert K. Hur. “Now he will spend 16 years in federal prison, where there is no parole—ever. We will continue to work with our law enforcement partners to remove violent gun-toting criminals from our communities. The message to armed criminals is, put down the guns and save a life—maybe even your own.”
According to his guilty plea, in the late morning on June 12, 2018, detectives from the Baltimore City Police Department (“BPD”) Eastern District Action Team (“DAT”) received information that an individual named “Kirk Gross” was carrying a firearm in the area of Pittman Place and Barclay Street in East Baltimore. The DAT Detectives responded in two separate vehicles.
Driving north on Barclay Street, the detectives observed an individual wearing all black with a companion walking north on the west side of the street. This individual, later identified as Kirk Gross, was wearing tight-fitting clothes that enabled the officers to see the contours of a firearm—specifically the barrel and handle—pressed into the pants.
As soon as two detectives exited the vehicle, Gross fled west on McAllister Street, with detectives pursuing him. The detectives shouted for Gross to stop as he unsuccessfully tried to remove and discard the firearm. As the pursuit continued, unbeknownst to everyone involved, a Metropolitan Transit Authority Officer was on the street conducting an unrelated investigation. Hearing the shouts of the officers and observing Gross flee from them while holding his waistband, that officer ran southeast across E. North Avenue and tackled Gross to the ground.
Body-worn camera footage captured most of the chase and all of the arrest. Upon apprehending Gross, the detectives searched him and retrieved a 9 mm semiautomatic pistol from Gross’ pants. Officers also recovered a total of approximately 2.28 grams of cocaine in a Ziploc bag with multiple baggies as well as $40.00 in cash.
Gross knew that as a result of his previous felony convictions, including three armed robberies, one using a machine gun, and a shooting, he was prohibited from possessing a firearm.
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 Metropolitan Transit Authority Police for its assistance. Mr. Hur thanked Assistant U.S. Attorney Lindsey N. McCulley, who prosecuted the case.
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Washington D.C. Commercial Sex Customer Sentenced to 10 Years in Federal Prison for Sex Trafficking of a MinorRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Leon R. Harrison, age 56, of Washington D.C., to 10 years in federal prison, followed by lifetime supervised release for sex trafficking of a minor, for having sex with a 15-year-old girl in exchange for money. Judge Blake also ordered that, upon his release from prison, Harrison must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of ICE Homeland Security Investigations (HSI); Chief Tim Altomare of the Anne Arundel County Police Department; and Anne Arundel County State’s Attorney Anne Colt Leitess.
“Children cannot consent to have sex for money, and any adult, like this defendant, who encourages or profits from sexual exploitation of children faces a lengthy term in federal prison,” said U.S. Attorney Robert K. Hur.
According Harrison’s plea agreement, between August 9, 2016 and February 7, 2018, Harrison used his Facebook account to send messages to hundreds of other Facebook users, offering them money in exchange for sending him sexually explicit pictures, watching him masturbate, or meeting with him in person to engage in commercial sex. Several Facebook users told Harrison that they were under 18 years old, and as young as 12 years old. Harrison continued to make the requests even after they stated that they were minors.
Harrison admitted that he met Girl 1 online and began engaging in commercial sex with Girl 1 beginning in 2016 or 2017, when she would have been 13 or 14 years old.
On October 9, 2017, Harrison and Girl 1 reconnected on Facebook, after a period of not communicating with each other. Between October 9, 2017, and February 7, 2018, Harrison and Girl 1 exchanged hundreds of messages over Facebook. At that time, Girl 1 was at a 15-year-old tenth-grade student in Maryland. In the messages, Harrison repeatedly offered to pay Girl 1 in exchange for having sex with him. In twelve instances, Harrison offered her between $40 and $60 for sex.
On February 6, 2018, Girl 1’s mother discovered the Facebook messages and contacted the police. That day, an undercover police detective began operating Girl 1’s Facebook account.
On February 7, 2018, Harrison continued communicating with Girl 1’s Facebook account. Harrison stated that he would meet with Girl 1 that evening, and that he would bring money and condoms. Harrison stated he would pay Girl 1 $50 to have sex with him and made arrangements to meet with Girl 1 at a restaurant in Odenton, Maryland. Harrison agreed that he would get Girl 1 home before 1:00 a.m. because it was a “school night.” Harrison described the sex acts he wished to engage in with Girl 1 and what he wanted her to wear when they met. Harrison also asked to engage in sexual contact with Girl 1 without a condom.
When he arrived at the restaurant, Harrison had condoms, $50 in cash, and two 50ml bottles of flavored vodka in his pants pockets. Harrison was arrested in the parking lot. Following his arrest, Harrison was interviewed by law enforcement officers and admitted that he is HIV-positive, and that he does not disclose that fact to his sexual partners.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI, the Anne Arundel County Police, and the Anne Arundel State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.
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Pennsylvania Man Pleads Guilty to Federal Charges for Illegally Distributing Anabolic Steroids and Other Misbranded DrugsRead the Press Release
Greenbelt, Maryland – George Sambuca, age 33, of Philadelphia, Pennsylvania, formerly of Henderson, Nevada, pleaded guilty today to distribution of anabolic steroids and to introduction of misbranded drugs into interstate commerce with intent to defraud and mislead.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office.
“Offering U.S. consumers misbranded drugs online is a dangerous practice that places the public at risk,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to protect U.S. consumers by investigating and bringing to justice those who defraud the public and circumvent federal law regarding the approval, manufacture, and distribution of human drugs.”
According to his plea agreement, from September 2016 through June 2017, Sambuca distributed anabolic steroids and other body-enhancing injectable drugs to consumers seeking to enhance their physiques. Sambuca admitted that he knew the anabolic steroids and other drugs that he distributed were misbranded within the meaning of the Food, Drug, and Cosmetic Act (FDCA) because they bore false labeling and lacked adequate directions for use, warnings, and other information such as expiration dates. The anabolic steroids that Sambuca distributed included Testosterone, Nandrolone, Stanozolol, Oxandrolone, and Oxymetholone, all of which are controlled substances.
Sambuca distributed anabolic steroids and other misbranded drugs for a company known as Dynasty Lab, which he knew sought buyers for these products by placing advertisements on bodybuilding websites and online forums, and by sending blast e-mail advertisements to customers.
In September 2016, a law enforcement officer acting in an undercover capacity received an unsolicited e-mail from Dynasty Labs in his “inbox” on a website known for promoting unapproved and misbranded underground drug lab sales. The message from Dynasty Labs promoted a “7 day super sale.” In response, on September 12, 2016, the undercover officer contacted Dynasty Labs via undercover e-mail and received a reply e-mail the same day promoting, among other drugs, Viagra, Cialis, Trestalone, Dihydroboldenone. A subsequent e-mail from Dynasty Labs requested that the undercover officer use a specific e-mail provider for “Security,” and undercover officer thereafter registered an undercover e-mail address at that provider.
On November 1, 2016, the undercover officer sent an e-mail to Dynasty Labs ordering anabolic steroids and other misbranded drugs. Dynasty Labs replied with specific payment instructions, including that the payment be made in cash and be sent through the mail.
The undercover officer made the payment as requested and as a result, on November 14, 2016, Sambuca mailed a package from Nevada to Maryland containing, among other items, seven vials labeled “TEST SUSTANON 350MG” containing Testosterone, and seven vials labeled “DECA DURABOLIN 400MG” containing Nandrolone. The steroids were misbranded within the meaning of the FDCA.
On May 15, 2017, the undercover officer e-mailed Dynasty Labs and ordered numerous anabolic steroids and other drugs. On May 20, 2017, Dynasty Labs replied with specific mailing instructions that directed the undercover officer to send $715 in cash to “Steven Thompson” at an address in Henderson, Nevada. On May 22, 2017, the undercover officer sent the cash as directed.
Sambuca admitted that, as a result, on June 16, 2017, he again mailed a package from Nevada to the undercover officer in Maryland containing, among other things, one ziplock bag of white powder labeled “DBOL 5g” containing Stanozolol, Oxandrolone, and Oxymetholone; one ziplock bag of white powder labeled “CLOMID” containing Stanozolol; and one vial labeled “SUSTANON 350MG/ML . . . 100cc” containing Testosterone. The steroids were misbranded within the meaning of the FDCA.
Sambuca faces a maximum sentence of 10 years in prison for distribution of anabolic steroids, and a maximum of three years in prison for introduction of misbranded drugs into interstate commerce. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 15, 2019 at 9:30 a.m.
United States Attorney Robert K. Hur commended the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Kelly O. Hayes, who are prosecuting the case.
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Army Captain Sentenced to Almost 20 Years in Federal Prison after Pleading Guilty to Enticement of Minors to Engage in Unlawful Sexual ActivityRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Kevin J. Gorbsky, age 32, of Bowie, Maryland, to 239 months in federal prison, followed by lifetime supervised release, after Gorbsy pleaded guilty to five counts of enticement of a minor to engage in unlawful sexual activity. Judge Chasanow also ordered that, upon his release from prison, Gorbsky 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 guilty plea and sentence were 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 Commanding General David P. Glaser of the U.S. Army Criminal Investigation Command.
“Kevin Gorbsky took advantage of the anonymity of the Internet to sexually exploit young girls, many of whom were especially vulnerable,” said U.S. Attorney Robert K. Hur. “We will do all we can to find and prosecute these predators to prevent more children from being abused.”
According to his plea agreement, Gorbsky was a Captain in the United States Army, stationed in Kuwait in September 2015, and in Anne Arundel County, Maryland, beginning in July 2016, where he was assigned to work at a secure facility. Gorbsky created and used e-mail accounts “Justin Smelder” and “John Bbeez,” and a social media account, “johnbeez66.” Beginning in October 2015 and continuing through at least January 8, 2018, Gorbsky used those accounts to engage in online chat with hundreds of other users, many of whom identified themselves as minors between 12 and 17 years old. Gorbsky told many of the individuals he chatted with that he was 19 years old, when in fact, he was between 28 and 31 years old. Gorbsky’s chats with the users were sexually explicit. Gorbsky repeatedly persuaded, enticed, and coerced the other users to send him sexually explicit images and to engage in sexually explicit video chat with him. Gorbsky sent many of the users sexually explicit images and videos of himself. On numerous occasions, Gorbsky accessed his accounts and engaged in sexually explicit chats using the unclassified computer system at his workplace.
Specifically, Gorbsky admitted that from September 22, 2017 through January 3, 2018, Gorbsky engaged in sexually explicit communications with a girl who said she was 12 years old, including during times the girl stated she was in school. Gorbsky repeatedly asked the girl for sexually explicit images. At Gorbsy’s request, he and the girl also engaged in video chat calls during which they engaged in sexually explicit conduct. On October 26, 2017, Gorbsky e-mailed a sexually explicit video of himself to the girl.
Further, as detailed in his plea agreement, between October 5, 2017 and January 3, 2018, Gorbsky also engaged in sexually explicit chat with four other girls who stated in their chats that they were ages 13, 17, 17, and 15, respectively. Gorbsky repeatedly asked the girls to send him sexually explicit images of themselves and to engage in sexually explicit video chat with him. All of the girls sent Gorbsky sexually explicit pictures of themselves and the 15-year-old victim also engaged in a video chat during which she and Gorbsky engaged in sexually explicit conduct. During Gorbsky’s conversations with the 13-year-old girl, the girl commented to Gorbsky on numerous occasions that she was suicidal. Gorbsky admitted that he ignored her statements about self-harm and instead redirected the conversation back to sexually explicit matters. Gorbsky also e-mailed sexually explicit videos of himself to one of the girls who was a 17-year-old special needs student.
According to his plea agreement, Gorbsky induced at least eight other users who identified themselves as minor females to send him sexually explicit images and/or to engage in sexually explicit video chat with him. Five of those users have been identified as then-minor girls living in Pennsylvania, Connecticut, Arkansas, and California. These victims were between 14 and 17 years old at the time of the offenses.
One 15-year-old female’s father discovered her communications with Gorbsky. He sent Gorbsky a message stating, “This [victim's] dad. You are talking and trading sexual pics with a minor. She is 15. Your profile and email are being sent to police and other authorities to take action.” Despite this, Gorbsky admitted that he continued to communicate with the minor female, including asking her to send him sexually explicit images and to engage in sexually explicit video chat with him.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and Army CID for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Zachary A. Myers and Derek E. Hines, who prosecuted the federal case.
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Former Baltimore City Police Gun Trace Task Force Detective Sentenced to 12 Years in Federal Prison for Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced former Baltimore Police Detective Jemell Lamar Rayam, age 38, of Owings Mills, Maryland, to 12 years in federal prison, followed by three years of supervised release, for a racketeering conspiracy, including multiple robberies, and overtime fraud.
The sentence 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.
“This case exposed crime and corruption being committed by those sworn to uphold the law and protect citizens,” said U.S. Attorney Robert K. Hur. “We will prosecute criminals whether they wear a badge or not.”
Rayam joined the Baltimore Police Department on July 12, 2005 and was later assigned to the Gun Trace Task Force (GTTF), a division of the Baltimore Police Department. According to his plea agreement, Rayam schemed to steal money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, Rayam prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents. The false reports concealed the fact that Rayam and his co-conspirators had stolen money, property, and narcotics from individuals.
According to his plea agreement, beginning in 2009, Rayam robbed civilians he detained and in some cases arrested and stole money and drugs from them. Rayam shared the proceeds with co-defendants Momodu Gondo, Wayne Jenkins, Daniel Hersl, Marcus Taylor, and others, and on other occasions, he kept all of the proceeds for himself. Rayam also sold, through associates of his, drugs that Jenkins stole from detainees and arrestees, gave them to Rayam, and split the proceeds of those sales with his co-defendant.
Rayam participated in 15 robberies from June 2014 through October 2016. Rayam admitted that he was armed with his BPD service firearm during the robberies, that individual victims of the robberies were physically restrained to facilitate the commission of the offense, and that he authored false and fraudulent incident reports and other official documents in some cases in order to conceal his criminal conduct and otherwise obstruct justice.
Rayam also robbed detainees and arrestees with another police officer, who was not a member of the GTTF. Rayam and this other police officer would falsely represent that they had a search warrant, when they did not, in order to gain access to someone’s home and would then steal money and other things of value. In addition, Rayam had an associate who would inform him when a drug dealer had a significant amount of cash in his home and when the associate knew that the drug dealer would not be in the home. Rayam would then rob the drug dealer’s home with the assistance of other associates of his who were not police officers.
On October 5, 2016, Rayam and his co-conspirators robbed a drug dealer after he and Gondo placed a tracking device on the victim’s car without court authorization so that they could rob his apartment when he was not home. Rayam and Glen Kyle Wells entered the victim’s apartment. Rayam was wearing a ski mask and was armed with a BPD-issued firearm. Rayam and Wells stole a Rolex watch, a firearm, $12,000 to $14,000 in cash, and at least 800 grams of heroin. After the robbery, Rayam and his co-conspirators split the money they had stolen. Wells took the drugs and money, and Wells sold some of the drugs and gave Rayam a portion of the proceeds. Wells then gave Rayam a quantity of drugs that he had been unable to sell, which Rayam in turn sold through an associate.
On June 27, 2014, Rayam and his co-defendants executed a search and seizure warrant at a store that sold birdseed. No illegal contraband or firearms were found at the location. The storeowners, a married couple, had $20,000 in cash at the store that they intended to use to pay off tax liabilities they owed on two homes. Rayam later contacted two associates and agreed to rob the home of the storeowners. The associates presented themselves as police officers and stole $20,000, while Rayam remained in the car so he could intercept the police officers that responded to the incident by pretending to respond to the incident himself. Rayam split the proceeds with his associates.
Rayam admitted that on March 11, 2015, he, Gondo, former Sergeant Thomas Allers, and another person, who was not a police officer, searched a residence and discovered a large quantity of cash. Rayam took between $8,000 and $10,000 of the cash. Gondo and Allers also took some of the cash.
As detailed in his plea agreement, on July 8, 2016, Rayam and his co-defendants Hersl and Gondo detained two victims after a car stop. Rayam stole money from one of the victims. At Jenkins’s direction, Hersl, Rayam, and Gondo transported the two victims to a BPD office to interrogate them. Jenkins told his co-conspirators to treat him like he was the U.S. Attorney. After speaking with one of the individuals, Jenkins, Hersl, Gondo, and Rayam then transported both of the victims to their home and robbed them of $20,000 among themselves. Jenkins, Hersl, Rayam, and Gondo divided the $20,000. Rayam authored a false incident report to conceal the stolen money, which Jenkins approved.
According to the statement of facts agreed upon as part of Rayam’s plea, in the fall of 2016, Jenkins approached Rayam and asked him to sell drugs that Jenkins had stolen from detainees. Rayam agreed and sold the drugs Jenkins gave him and shared the proceeds with Jenkins. Jenkins maintained that Rayam owed him money for drugs that Jenkins had given him. After seizing a firearm and marijuana, Jenkins told Rayam to sell the firearm and marijuana in order to pay Jenkins the money that Jenkins believed Rayam owed him. Gondo subsequently arranged for an associate of his, who was a drug dealer, to buy the firearm and marijuana. Gondo’s associate gave Rayam money for the sale of the firearm and marijuana.
Rayam also admitted that he routinely submitted false and fraudulent individual overtime reports defrauding the Baltimore Police Department and the citizens of the State of Maryland. On these reports, Rayam falsely certified that he worked his entire regularly assigned shifts, when he did not, and that he worked additional hours for which he received overtime pay, when he had not worked all and in some cases any of those overtime hours. Rayam also admitted that he submitted false and fraudulent overtime reports on behalf of his co-defendants.
Lastly, Rayam admitted to obstructing law enforcement by alerting his co-defendants about potential investigations of their criminal conduct, coaching them to give false testimony to investigators from the Internal Investigations Division of the BPD, and turning off his body-worn cameras to avoid recording encounters with civilians.
A total of eight former members of the BPD Gun Trace Task Force were convicted for racketeering and related charges. Former Baltimore Police Sergeant Wayne Earl Jenkins, age 38, of Middle River, Maryland was sentenced to 25 years in federal prison for a racketeering conspiracy, racketeering, two counts of robbery, destruction, alteration, or falsification of records in a federal investigation, and four counts of deprivation of rights under color of law. Former Detectives Daniel Thomas Hersl, age 49, of Joppa, Maryland and Marcus Roosevelt Taylor, age 32, of Glen Burnie, Maryland, were convicted after a three-week trial and were each sentenced to 18 years in federal prison, for racketeering conspiracy and racketeering offenses, including overtime fraud, and robbery. Former Sergeant Thomas Allers, age 49, of Linthicum Heights, Maryland was sentenced to fifteen years in prison, for racketeering conspiracy and racketeering offenses, including nine robberies. Former Detective Momodu Gondo, age 36, of Owings Mills, was sentenced to 10 years in federal prison for a racketeering conspiracy and for conspiracy to distribute and possess with intent to distribute heroin. Former Detectives Evodio Hendrix, age 34, of Randallstown, Maryland, and Maurice Kilpatrick Ward, age 39, of Middle River, were each sentenced to seven years in federal prison, after pleading guilty to a racketeering conspiracy, including several robberies and overtime fraud.
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 prosecuted this Organized Crime Drug Enforcement Task Force case.
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Westminster Man Sentenced to 30 Years in Federal Prison for Production and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Eric Wayne Grinder, age 36, of Westminster, Maryland, to 30 years in prison, followed by lifetime supervised release for five counts of production of child pornography, one count of attempted production of child pornography, two counts of possession of child pornography, and witness tampering. A federal jury convicted Grinder on those charges on February 25, 2019. Judge Blake also ordered that, upon his release from prison, Grinder must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Sheriff James T. DeWees of the Carroll County Sheriff’s Office.
According to the evidence presented at his three-day trial, from June 2013 through August 2016, Grinder sexually abused a minor female when the girl was between seven and nine years old, and produced images of himself and the minor engaged in sexually explicit conduct. Further, Grinder used his laptop computer and cellular phone to store and obtain images documenting the sexual exploitation of prepubescent minors, including the victim.
The evidence also proved that Grinder wrote a letter to an individual in July 2017, in which he asked that person to manipulate the victim into saying that she took the produced images of the abuse, not Grinder. Further, Grinder repeatedly attempted to contact and manipulate the victim’s mother.
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 Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI, the Maryland State Police, the Carroll County Sheriff’s Office, and the Carroll County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Paul Riley and Paul Budlow, who prosecuted the case.
Loan Broker Sentenced to Nine Years in Federal Prison for Bank Fraud Conspiracy to Fraudulently Obtain More Than $100 Million in Sba-Backed Business LoansRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Loren Young Park, age 52, formerly of Falls Church, Virginia, to nine years in federal prison, followed by four years of supervised release, for conspiracy to commit bank fraud, in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration (SBA), with resulting losses of more than $100 million. Loren Park was a fugitive for eight years and was extradited from South Korea to face these charges.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Small Business Administration Inspector General Hannibal “Mike” Ware; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation.
“Our financial system is based on trust,” said U.S. Attorney Robert K. Hur. “Loren Park and his co-conspirators lied during every aspect of the loan process, cheating taxpayers and lenders, causing more than $100 million in losses, and hurting the chances of future small business owners to obtain loans. I am grateful for the patience and diligence of our law enforcement partners to get Loren Park back from South Korea and bring him to justice.”
According to his plea agreement and other court documents, Loren Park and his brother, Joon Park, owned and operated Jade Capital. Jade Capital brokered small business loans, among other services, for clients and on behalf of Loren Park, Joon Park, and their family. According to the plea agreement, Loren and Joon Park and others under their direction encouraged prospective borrowers using the services of Jade Capital to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75% to 90% of qualified loans made by banks and other commercial lending institutions. Under this program, the principals of the small business seeking the loan were required to invest a certain amount of their own money, called an equity injection, before they qualified for a loan. The banks and other lending institutions making the loan bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.
Loren Park admitted that from 2003 until October 2011, he and others under his direction, including Nick Park (no relation), Joo Hyuk “John” Lee, Sang Hyun Kim, and In Jung Ham, submitted SBA loan applications and supporting documentation to loan originators and underwriters on behalf of their clients that contained fraudulent documents, including: bank statements for borrowers that were altered to make it look like the borrowers had more cash to inject into the business they were buying than they in fact did; counterfeit cashiers’ checks and fake gift letters that made it look like the borrowers had more assets at their disposal to use as down payments than they did; fabricated resumes that made it look like the borrowers had more experience running the businesses they sought to purchase than they did; fake tax returns that made it look like the borrowers had greater income than they did; phony interim financial statements that made other businesses the borrowers owned look more profitable than they were; and a number of other misrepresentations.
Loren and Joon Park charged a loan brokerage fee to both the financial institutions and the borrowers for assembling and submitting loan application packages that resulted in the issuance of SBA-guaranteed loans. The fees charged to borrowers were hidden from the financial institutions underwriting the loans. The Parks also had undisclosed ownership interests in businesses involved in some of the transactions and received loan proceeds, unbeknownst to the lenders, in a number of transactions. In one instance, the Parks did not have an ownership interest in a company involved in a transaction but persuaded the seller to assign some of the loan proceeds to them and then converted those proceeds to their own personal use.
Loren Park was on a business trip to South Korea when he learned that he had been indicted in this case. Loren Park had intended to return to the United States, but after learning that he had been indicted, he chose not to return and not face the charges pending against him. Subsequently, he also made several public information requests to the FBI, from South Korea, requesting his criminal record in order to determine whether there were still charges pending against him.
On June 20, 2013, co-defendant Joon Park, a/k/a “Joon Pak” and “Joon Paik,” age 48, of Falls Church Virginia, was sentenced to 188 months in prison, followed by four years of supervised release, and was ordered to pay a money judgment of $91,449,700 and forfeit all the property involved in the offense.
Five other co-defendants were sentenced to between a year and a day in prison and 51 months in prison and were ordered to pay restitution of between $216,472.92 and $3,593,432. In addition, the co-defendants were ordered to pay money judgments of between $11,832,000 and $18,764,900.
United States Attorney Robert K. Hur thanked the SBA Office of Inspector General, the U.S. Postal Inspection Service, and the FBI for their work in the investigation. Mr. Hur praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who prosecuted the case.
Sex Offender Sentenced to 12 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Michael Gene Reed, age 40, of Dundalk, Maryland, to 12 years in prison, followed by lifetime supervised release, for possession of child pornography and for violating his supervised release on a previous federal sex offense conviction. Upon his release from prison, Reed must again register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on February 24, 2009, Reed was convicted of traveling with intent to engage in illicit sexual conduct and possession of child pornography in U.S. District Court in the District of Columbia. Reed was sentenced to 90 months in prison, followed by 15 years of supervised release, and was required to register as a sex offender upon his release. Reed was released from prison on December 24, 2014, and began his supervised release.
Reed admitted that on June 25, 2017 and December 27, 2017, Reed reported to Maryland’s Sex Offender Registry that he resided in an apartment in Dundalk. However, as of November 2017, Reed resided at a rowhome three miles away from his reported residence, with his girlfriend and her minor daughter. Reed did not report to his probation officer that he had moved or that he was living with a minor, as required by the terms of his supervised release.
As detailed in his plea agreement, Reed also participated in an online anonymous chatroom service that does not require user registration. Users can access chatrooms by entering the name of the room and creating a nickname for themselves. Once in the room, users can chat and share images with one another. Reed admitted that on February 14 and November 17, 2017, Reed joined chatrooms using the names “kinkfan” and “pedoperv,” respectively. On each occasion, Reed shared an image with the other users in the chatroom, specifically, an image of two minor girls engaged in sexually suggestive behavior, and an image of an adult male sexually abusing a prepubescent girl.
On January 11, 2018, law enforcement executed a search warrant at Reed’s girlfriend’s rowhome. Reed admitted to law enforcement that he used his work cellphone to chat on the anonymous site, and that he did not report his new address because he did not want his girlfriend’s daughter and her father to learn about his prior conviction. Reed also possessed images documenting the sexual abuse of prepubescent minors.
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, and thanked the Baltimore City Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the federal case.
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Baltimore Man Convicted by Federal Jury on Drug ChargesRead the Press Release
Baltimore, Maryland – A federal jury convicted Delroy Williams, Jr. age 32, of Baltimore, Maryland, for a conspiracy to distribute five kilograms or more of cocaine, and for possession with intent to distribute cocaine and marijuana. The jury returned its verdict late on May 20, 2019. Williams fled and was a fugitive from justice prior to his original trial date in November 2018. Williams was arrested on January 11, 2019, and has been detained since that time.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Anne Arundel County Police Chief Tim Altomare.
According to the testimony presented at his five-day trial, from at least October 2016 through December 12, 2016, Williams distributed cocaine and marijuana in the Baltimore area. On the evening of December 12, 2016, Williams ran into an associate at a nightclub in Baltimore County. Believing that the associate owed him money, Williams assaulted, robbed, and shot at the individual before ramming the victim’s car and then fleeing the scene. Realizing that the associate knew where Williams lived, Williams took his drugs from his residence and took them to his girlfriend’s home in Glen Burnie, Maryland.
Law enforcement executed a search warrant at the Glen Burnie residence the next day and recovered almost five kilos of cocaine, several pounds of marijuana, and two guns from the house. Witnesses testified that several more pounds of marijuana, more than $213,000 in cash, scales, and pistol ammunition were recovered from Williams’s truck.
Williams now faces a mandatory minimum sentence of 10 years in prison and a maximum of life in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for August 20, 209 at 11:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the DEA, the Baltimore County Police Department and the Anne Arundel County Police Department for their work in the investigation, and thanked the FBI, the ATF, and the U.S. Marshals Service for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Zachary B. Stendig and John W. Sippel, Jr. who are prosecuting the case.
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Member of Violent West Baltimore Gang Sentenced to 25 Years in Prison, for Federal Racketeering and Drug ConspiraciesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Taurus Tillman, a/k/a Tash, age 30, of Baltimore, to 25 years in federal prison, followed by five years of supervised release, for conspiring to participate in a drug distribution conspiracy and a violent racketeering enterprise known as Trained To Go (TTG). The racketeering conspiracy included eight murders, as well as drug trafficking and witness intimidation. Tillman and his co-defendants were also convicted of a drug distribution conspiracy involving heroin, marijuana, and cocaine.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Marilyn J. Mosby.
“Taurus Tillman and his fellow gang members terrorized the Sandtown community. Thanks to the partnership between federal, state, and local law enforcement, these drug dealers will no longer peddle death in West Baltimore,” said U.S. Attorney Robert K. Hur. “Violent gang members must know that gun crime leads to federal time. 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 their 24-day trial, Tillman and his co-defendants are all members of TTG, a criminal organization that operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery, and witness intimidation. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The evidence at trial showed that members and associates of TTG, including Tillman, sold heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. The jury found that Tillman distributed at least one kilogram of heroin over the course of the conspiracy. In addition, the evidence proved that between May 20, 2010 and January 9, 2017, Tillman, his co-defendants, and other members of TTG committed acts of violence, including eight murders, shootings, armed robbery, and witness intimidation. Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as in murder-for-hire schemes. Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.
The leader of the gang, Montana Barronette, a/k/a Tana, and Tanner, age 23, and his brother, Terrell Sivells, a/k/a Rell, age 27, both of Baltimore, were each sentenced to life in prison on February 15 and April 26, 2019, respectively. Co-defendant Brandon Wilson, a/k/a Ali, age 24, also of Baltimore, was sentenced to 25 years in prison on March 1, 2019. Two other co-defendants, John Harrison, a/k/a Binkie, age 28, and Linton Broughton, a/k/a Marty, age 25, both from Baltimore, were sentenced to life in prison and to 30 years in prison, respectively, on March 15, 2019.
The remaining defendants convicted at the trial are from Baltimore, and face a maximum sentence of life in prison on the racketeering and drug conspiracies. They include: Dennis Pulley, a/k/a Denmo, age 31; and Timothy Floyd, a/k/a Tim Rod, age 28. The defendants remain detained.
Three other TTG members previously pleaded guilty and were sentenced to between five and 25 years in prison. Another defendant, Roger Taylor, a/k/a Milk, is a fugitive.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County, and Anne Arundel County Police Departments. FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
This case 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.
Tillman is still facing charges for allegedly assaulting employees of the U.S. Marshals Service (USMS) while he was detained and being transported to and from the courtroom during their trial. According to the indictment, on September 21, 2018, Tillman and co-defendant John Harrison assaulted two Deputy U.S. Marshals and a U.S. District Court Security Officer as they were being escorted from the courtroom during a break in the trial. If convicted of the assault charges, Tillman faces a maximum sentence of eight years in prison on these charges. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. The U.S. Marshals Service is investigating the case.
United States Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI, the Baltimore Police Department, the ATF, the DEA, the Anne Arundel County Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher J. Romano, Daniel C. Gardner, and Special Assistant U.S. Attorney John C. Hanley formerly of the Justice Department’s Organized Crime and Gang Section, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Member of Violent West Baltimore Gang Sentenced to 25 Years in Prison for Federal Racketeering and Drug ConspiraciesRead the Press Release
A Baltimore, Maryland, gang member was sentenced to 25 years in federal prison, followed by five years of supervised release, for conspiring to participate in a drug distribution conspiracy and a violent racketeering enterprise known as Trained To Go (TTG). The racketeering conspiracy included eight murders, as well as drug trafficking and witness intimidation.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Robert K. Hur for the District of Maryland; Acting Special Agent in Charge Jennifer L. Moore of the FBI’s Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration (DEA), Baltimore District Office; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Marilyn J. Mosby made the announcement.
Taurus Tillman, aka Tash, 29, was sentenced by U.S. District Judge Catherine C. Blake. Tillman and his co-defendants were also convicted of a drug distribution conspiracy involving heroin, marijuana, and cocaine. The Judge considered the alarmingly violent nature of the gang and therefore varied Tillman’s sentence significantly higher than the advisory guideline range.
According to the evidence presented at their 24-day trial, Tillman and his co-defendants are all members of TTG, a criminal organization that operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery and witness intimidation. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The evidence at trial showed that members and associates of TTG, including Tillman, sold heroin, cocaine and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. The jury found that Tillman distributed at least one kilogram of heroin over the course of the conspiracy. In addition, the evidence proved that between May 20, 2010 and Jan. 9, 2017, members of TTG committed acts of violence, including eight murders, shootings, armed robbery and witness intimidation. Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as murder-for-hire schemes. Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.
The leader of the gang, Montana Barronette, aka Tana and Tanner, 23, of Baltimore, was sentenced to life in prison on Feb. 15, 2019. Co-defendant Brandon Wilson, aka Ali, 24, also of Baltimore, was sentenced to 25 years in prison on March 1, 2019. Two other co-defendants, John Harrison, aka Binkie, 28, and Linton Broughton, aka Marty, 25, both from Baltimore, were sentenced to life in prison and to 30 years in prison, respectively, on March 15, 2019.
The remaining defendants convicted at the trial are all from Baltimore, and face a maximum sentence of life in prison on the racketeering and drug conspiracies. They include: Dennis Pulley, aka Denmo, 31; and Timothy Floyd, aka Tim Rod, 28. The defendants remain detained.
Three other TTG members previously pleaded guilty and were sentenced to between five and 25 years in prison. Another defendant, Roger Taylor, aka Milk, is a fugitive.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County and Anne Arundel County Police Departments. FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
This case 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.
Tillman is still facing charges for allegedly assaulting employees of the U.S. Marshals Service (USMS) while he was detained and being transported to and from the courtroom during their trial. According to the indictment, on Sep. 21, 2018, Tillman and co-defendant John Harrison assaulted two Deputy U.S. Marshals and a U.S. District Court Security Officer as they were being escorted from the courtroom during a break in the trial. If convicted of the assault charges, Tillman faces a maximum sentence of eight years in prison. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. The U.S. Marshals Service is investigating the case.
U.S. Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI, the Baltimore Police Department, the ATF, the DEA, the Anne Arundel County Police Department and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher J. Romano, Daniel C. Gardner and Special Assistant U.S. Attorney John C. Hanley formerly of the Justice Department’s Organized Crime and Gang Section, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Former Washington, D.C. Police Officer Sentenced to 14 Years in Federal Prison for Sex Trafficking of Two Minor GirlsRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Chukwuemeka Ekwonna, age 29, of Glenn Dale, Maryland, today to 14 years in federal prison, followed by five years of supervised release for two counts of sex trafficking of a minor. Specifically, between October 2016 and February 2017, Ekwonna, who was an officer with the Metropolitan Police Department (MPD) in Washington, D.C. at the time, engaged in sexual conduct with two girls, who were 14 and 15 years old, in exchange for money. Both victims were students in the ninth grade at the time of the offenses.
In a separate case, on May 13, 2019, Charles Mario Brown, Sr., age 48, of Baltimore, pleaded guilty to conspiracy to commit sex trafficking. Brown admitted that he operated a prostitution business involving a 16-year-old female, and at least four adult females, who performed commercial sex acts in the Baltimore area.
The sentence and guilty plea were 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 (ICE) Homeland Security Investigations (HSI); Chief Timothy Altomare of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; and Harford County Sheriff Jeffrey R. Gahler.
U.S. Attorney Robert K. Hur stated, “We will continue to work with our law enforcement partners to bring human traffickers to justice and protect our most vulnerable.”
According to Ekwonna’s plea agreement, beginning about January 24, 2016, Ekwonna worked as a police officer with MPD in Washington, D.C. Since 2010, Ekwonna has used an account on a social media and dating platform that allows users to search for others based on location and to engage in real-time chat. Ekwonna used his social media account to solicit many other users to engage in sex acts with him for money, including while he served as a police officer.
Between December 19, 2016, and April 5, 2017, Ekwonna exchanged approximately 200 messages, both text and through the social media dating platform, with a 14-year-old girl (“Girl 1”). On several occasions, Ekwonna offered to pay Girl 1 to engage in sex acts with him. Ekwonna met with Girl 1 and engaged in sex acts with her on at least five occasions, between October 18, 2016, and February 15, 2017. Ekwonna engaged in illegal sex with the underage girl in different locations in the Annapolis area, including in motel rooms and Ekwonna’s vehicle. Ekwonna typically paid Girl 1 between $30 and $40 to have sex with him. Messages between Ekwonna and the 14-year-old girl suggest that she was aware that Ekwonna was a police officer.
On January 9, 2017, Ekwonna exchanged approximately 54 messages through the dating platform with a second underage girl, who was 15 years old at the time (“Girl 2”). In these messages, Ekwonna offered to pay the 15-year-old girl to engage in sex acts with him. Ekwonna met Girl 2 in Glen Burnie, where he gave her $80 and engaged in sex acts with her in the back of his car. According to Girl 2’s testimony at the sentencing hearing, after they had sex, Ekwonna locked her in the car, pointed a black handgun at her and demanded she return the money he had paid her. As part of his sentence, Ekwonna was ordered to pay $80 in restitution to the victim. His car and his black police-issued handgun were ordered forfeited to the government.
According to Brown’s plea agreement, Brown and his co-conspirator met a 16-year-old runaway (“Victim 1”) in November 2016, while she was walking in Baltimore. Brown and the co-conspirator directed Victim 1 to meet with sex customers who called or sent text messages in response to online prostitution advertisements featuring the victim, which were posted by the conspirators. The conspirators agreed to provide Victim 1 with food and a place to stay in exchange for money she earned through commercial sex acts, and bought her lingerie that she wore in photos taken for prostitution ads. Brown drove Victim 1 to outcalls, where Victim 1 engaged in commercial sex acts and collected payment. Brown and the co-conspirator directed Victim 1 to give them at least some of the proceeds from her commercial sex acts, and she did so.
On December 9, 2016, an undercover Harford County Sheriff’s Office detective contacted a phone number found in the cell phone of a deceased male sex customer A.G. (A.G. suffered a fatal heroin overdose in a hotel room in Edgewood, Maryland in the presence of one of Brown’s adult female sex workers.) The detective contacted the phone number to arrange an overnight commercial sex date at a hotel in Edgewood and to request heroin. At the co-conspirator’s request, Victim 1 communicated with the detective to make arrangements for the commercial sex date, which included taking $1,000 for the purchase of heroin after arriving at the hotel.
As detailed in his plea agreement, Brown and the co-conspirator transported Victim 1 and an adult female to the hotel. Victim 1 and the woman went into the hotel room identified by the detective. Investigators recognized Victim 1 from prostitution ads posted online, and Victim 1 identified herself by the name listed in those ads. Brown and his co-conspirator, who were waiting in the SUV outside the hotel room, were arrested and their cell phones were seized. Forensic examination of the cell phones revealed numerous communications in furtherance of the prostitution business.
Brown and the government have agreed that, if the Court accepts the plea, Brown will be sentenced to seven years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 16, 2019, at 1:00 p.m.
These cases were 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 of the Task Force include federal, state, and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html. Suspected instances of human trafficking can be reported to HSI’s tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
In addition, the cases were prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
United States Attorney Robert K. Hur commended Homeland Security Investigations, the Anne Arundel County Police Department, and the Anne Arundel County State’s Attorney’s Office for their work in the Ekwonna investigation, and commended HSI and the Harford County Sheriff’s Office for their work in the Brown case. Mr. Hur thanked Assistant U.S. Attorneys Zachary A. Myers and Matthew D. Maddox, who are prosecuting the Ekwonna and Brown cases, respectively.
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Felon Pleads Guilty to Stealing Firearms from St. Mary’s County Federally Licensed Firearms DealerRead the Press Release
Greenbelt, Maryland – Robert Jacob Eberle, age 30, of Lexington Park, Maryland, pleaded guilty today to the federal charge of theft of firearms, which Eberle admitted he stole from a federally licensed firearms dealer.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and St. Mary’s County Sheriff Tim Cameron.
As detailed in his plea agreement, Eberle admitted that on July 21, 2018, he stole 11 firearms from a federally licensed firearms dealer in St. Mary’s County, Maryland. The guns included seven 9mm pistols, two .45-caliber pistols, a .40-caliber pistol, and a .380-caliber pistol. According to his plea agreement, in order to access the firearms, Eberle used a hammer to break through the rear cinderblock wall of the premises, crawled through the hole, broke the glass case containing numerous handguns, and stole the guns.
Eberle admitted that he sold or traded two or more of the stolen firearms to third parties, even though he had reason to believe that those individuals intended to use or dispose of the firearms illegally. Further, Eberle knew that he had a previous felony conviction and was prohibited from possessing firearms.
As part of his plea agreement, Eberle must forfeit all of the guns stolen from the dealer.
Eberle faces a maximum sentence of 10 years in prison for theft of firearms. U.S. District Judge Paula Xinis has scheduled sentencing for August 26, 2019 at 1:00 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the St. Mary’s County Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Joseph Baldwin, who is prosecuting the case.
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Felon Pleads Guilty to Possession of a Stolen FirearmRead the Press Release
Greenbelt, Maryland – Yusef Payne, age 35, of Baltimore, Maryland, pleaded guilty yesterday to 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 guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
“Armed criminals must know that gun crime will lead to federal time, which has no parole—ever,” said United States Attorney Robert K. Hur. “We will continue to work with our law enforcement partners to remove those who would commit violence from our community. Please, put down the guns 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.
Payne and the government have agreed that if the Court accepts the plea agreement, Payne will be sentenced to nine years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for July 8, 2019, at 10:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF 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 is prosecuting the case.
Felon Sentenced to 10 Years in Federal Prison for Heroin Distribution Conspiracy and for Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Patrick Nathan Broxton, age 48, of Ellicott City, Maryland, today to 10 years in federal prison, followed by four years of supervised release, for a heroin distribution conspiracy and for 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 Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Calvert County Sheriff Mike Evans; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
“Drug traffickers must know that gun crime will lead to federal time, which has no parole—ever,” said United States Attorney Robert K. Hur. “We will continue to work with our law enforcement partners to remove those who would commit violence from our community. Please, put down the guns and save a life—maybe even your own.”
According to his guilty plea from at least June 2016 through July 2017, Patrick Nathan Broxton conspired with Stephen Eugene Clark, Jr., Stephen Michael Kinnison, Robert Eugene Davidson, and others to distribute heroin in Calvert and Prince George’s County. Broxton was a regular source of supply to Stewart, who would then sell smaller quantities of heroin to Kinnison, Davidson, and others. Law enforcement obtained court-ordered wiretaps and intercepted Broxton’s communications with Stewart and others to arrange narcotics transactions. Those intercepted communications, as well as physical surveillance, show that Broxton distributed heroin and cocaine at commercial establishments, including convenience stores and a mall.
For example, between April 11 and 13, 2017, Broxton communicated with a co-conspirator by telephone to arrange a heroin transaction at a convenience store in Anne Arundel County, Maryland. As detailed in his plea agreement, Broxton was employed at a treatment and rehabilitation facility in Crownsville, Maryland, that assisted individuals affected by drug and alcohol dependency, mental health and other conditions. Law enforcement conducted surveillance of Broxton and saw him leave the facility to meet the co-conspirator at the convenience store, where Broxton supplied the co-conspirator with heroin in exchange for cash.
On July 6, 2017, law enforcement executed a search warrant at Broxton’s residence and recovered a 9mm handgun, 48 rounds of 9mm ammunition, a white ballistic vest, heroin which was in a plastic container in the back of a picture frame, a money counting machine, three digital scales with heroin and cocaine residue, and other drug distribution paraphernalia. Broxton, who was not at home at the time of the search, was subsequently arrested at his place of employment.
Broxton was on probation for a previous violent crime conviction at the time of the drug conspiracy and knew that he was prohibited from possessing a firearm or ammunition.
Co-defendants Stephen Eugene Clark, Jr., age 55, of Laurel, Maryland; Stephen Michael Kinnison, age 44, of Lusby, Maryland; and Robert Eugene Davidson, age 29, of Sunderland, Maryland, previously pleaded guilty to their roles in the conspiracy. Clark was sentenced to 19 months in federal prison. Kinnison and Davidson are scheduled to be sentenced on November 19 and November 21, 2019, respectively. Co-defendant Charles Benjamin Stewart, Jr., age 46, of Upper Marlboro, Maryland, remains detained pending trial, which is scheduled to begin on November 5, 2019.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the DEA, the ATF, the Calvert County Sheriff’s Office, and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jennifer R. Sykes and Erin B. Pulice, who are prosecuting the case.
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Front Man Pleads Guilty to $550 Million Ponzi Scheme—One of the Largest Ever Charged in MarylandRead the Press Release
Baltimore, Maryland – Kevin B. Merrill, age 53, of Towson, Maryland, pleaded guilty today to conspiracy and wire fraud arising from a $550 million investment fraud scheme that operated from 2013 through September 2018. Co-defendant Cameron R. Jezierski, age 28, of Fort Worth, Texas, previously pleaded guilty to his role 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.
“Federal prosecutors, FBI agents, and our SEC partners together interrupted an ongoing fraud scheme, with the potential to victimize even more people. Kevin Merrill lured investors through an elaborate web of lies, duping them into paying millions of dollars into this Ponzi scheme,” said U.S. Attorney Robert K. Hur. “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.”
According to his plea agreement, beginning in January 2013, Merrill and his co-conspirators perpetrated a Ponzi scheme to defraud investors of more than $394 million. Specifically, Merrill and a co-conspirator invited investors to join them in purchasing consumer 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. Merrill, using the names of collection businesses he owned, including Delmarva Capital and Global Credit Recovery, among others, falsely represented to investors that he 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. As detailed in the plea agreement, Merrill admitted that the scheme caused financial hardship to at least five victims, and Merrill knew that at least one of those was a vulnerable victim.
At today’s hearing, Merrill 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, Merrill, Jezierski, and others 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, the defendants 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.
Further, Merrill admitted that he 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 provided monthly or quarterly reports to investors regarding the “purported progress of the portfolio and its recovery,” which he invented. Merrill used the proceeds of the scheme to purchase and/or renovate five high-end homes in Maryland and Florida, gamble at casinos, purchase luxury automobiles, jewelry, artwork, collectibles such as comic books and sports memorabilia, and a share in a jet plane, and support a lavish lifestyle.
Finally, Merrill admitted that while the scheme was ongoing, he met with the FBI, lied to the investigating agents, and provided false documents to the FBI. As detailed in his plea agreement, after his arrest, Merrill attempted to obstruct justice by causing his wife to remove assets from their Naples, Florida home on October 13, 2018, and by preparing a handwritten note instructing his wife to conceal assets from the court-appointed receiver, which he intended to hold up to the glass in the detention center on December 5, 2018, when his wife visited. These actions violated the restraining order with which Merrill was served in the criminal case, and the preliminary injunction ordered by the Court in the SEC’s civil action.
As part of his plea agreement, Merrill 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 SEC has appointed a receiver to marshal the assets for the benefit of the victims.
Merrill faces a maximum of 40 years in prison for the wire fraud conspiracy and for wire fraud, as well as a possible fine of $500,000, or twice the gross gain. U.S. District Judge Richard D. Bennett has scheduled sentencing for Merrill on September 19, 2019, at 9:30 a.m., and for Jezierski on August 12, 2019 at 3:00 p.m. Co-defendant Jay B. Ledford, age 55, of Westlake, Texas and Las Vegas, Nevada, is scheduled for a rearraignment on June 6, 2019, at 10:00 a.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 arrest on September 18, 2018, and Amanda Merrill and Cameron Jezierski are released under the supervision of U.S. Pretrial Services.
United States Attorney Robert K. Hur commended the FBI in Baltimore, Dallas, Las Vegas and Tampa; the Federal Housing Finance Agency, Office of the Inspector General; and the SEC for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Joyce K. McDonald and Martin J. Clarke, who are prosecuting the criminal case.
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U.S. Attorney Thanks and Honors Law Enforcement During Police WeekRead the Press Release
Baltimore, Maryland - U.S. Attorney Robert K. Hur sent the following message to law enforcement officers serving in Maryland:
“Working with the exceptional men and women of Maryland law enforcement is one of the true highlights of my work as U.S. Attorney. To witness daily the courage and honor with which they serve is inspirational, and a source of pride to be part of such a dedicated profession that risks all in service to others. Thank you for your courage and your devotion to justice.”
In 2019, National Peace Officers Memorial Day falls on Wednesday, May 15. The official dates for National Police Week are May 12 through May 18, although many events are taking place before or after those dates. During National Police Week, we pay tribute to police officers who have died in the line of duty and give thanks to officers who faithfully protect and serve.
This year, according to the National Law Enforcement Memorial Fund, the names of 158 officers killed in the line of duty in 2018 will be engraved on the wall of the National Law Enforcement Officers Memorial in Washington, DC. Sadly, two Maryland officers will be added to the Memorial this year:
Sergeant Mujahid Abdul Mumin Ramzziddin
Prince George's County Police Department, MD
Police Officer Amy Sorrells Caprio
Baltimore County Police Department, MD
Every day agents, officers, deputies, and troopers risk their lives to protect our communities. For example, in April of 2019, a convicted felon was sentenced to 11 years in federal prison after his conviction of being a felon in possession of a firearm. Court records show that two Baltimore police officers responding to a call for a man with a gun approached a suspect who produced a firearm. In the ensuing struggle, the suspect shot and wounded one officer, but was quickly taken into custody without further violence. That violent repeat offender will spend over a decade in federal prison, and the community is safer for the valiant efforts of those two police officers.
The successful collaborative efforts of federal, state, and local law enforcement are a testament to the diligence, courage, and dedication of its members. Due to the extraordinary efforts of these professionals, violent individuals are removed from our neighborhoods. For example, on October 31, 2018, Terrell Sivells of Baltimore was convicted for his role in a racketeering conspiracy that included eight murders and drug trafficking. He was subsequently sentenced to life in prison. Members of the Baltimore City and Anne Arundel County Police Departments, the FBI, ATF, and DEA, along with prosecutors from the U.S. Attorney’s Office and the Baltimore City State’s Attorney’s Office investigated and prosecuted Sivells, his brother Montana Barronette, and their fellow gang members for murder, drug distribution, armed robbery and witness intimidation. They were part of a gang known as Trained To Go (TTG) that operated in the Sandtown neighborhood of West Baltimore, and was one of the most violent gangs in the City.
These cases are but two examples of the extraordinary work done by law enforcement officers and agents in Maryland. During this week of national recognition, it is appropriate that we thank and honor these dedicated professionals. It is even more important that we never forget their service, bravery, and sacrifice.
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Owner of High-End Wine Storage Facility Pleads Guilty in Federal Court to Embezzling from His CustomersRead the Press Release
Baltimore, Maryland – William Lamont Holder, age 54, of Hanover, Maryland, pleaded guilty on May 14, 2019 to a federal wire fraud charge for stealing between $550,000 and $1.5 million of wine from his clients, primarily private collectors and commercial establishments.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Anne Arundel County Police Chief Tim Altomare.
According to his plea agreement, William Lamont Holder was the sole owner and operator of Safe Harbour Wine Storage, LLC (“Safe Harbour”). Through Safe Harbour, Holder stored and transported upscale wines for private collectors and commercial establishments. In return for a monthly fee, Holder would arrange for the transportation of a customer’s wine to Safe Harbour’s storage facility in Glen Burnie, Maryland, where it would be inventoried and stored. Holder did not possess a license to sell wine in the State of Maryland.
From January 2013 through December 2017, Holder developed a scheme to obtain payments and wine from the customers of Safe Harbour for his own personal financial gain. Unbeknownst to his customers, he offered their wine for sale to wine retailers and brokers around the country, including in Napa, California, all the while continuing to collect the customers’ monthly storage fees and accept additional wine for storage.
Holder represented to potential third-party buyers that he was the lawful owner of the wine that he was offering to sell. By e-mail and facsimile, he sent them lists of bottles of wine stored in his warehouse with detailed descriptions of the winery, vintage, and asking price. After the buyers selected the bottles they wanted to purchase, Holder boxed and shipped the wine, and sent his bank account information. After inspecting the shipment of wine, the buyers would either wire the money directly into Holder’s bank account or send a check. Holder kept the proceeds from the sales and spent it on personal expenses.
Holder and the government have agreed that, if the Court accepts the plea agreement, he will be sentenced to 18 months in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for July 31, 2019 at 10:30 a.m.
United States Attorney Robert K. Hur commended the FBI, and the Anne Arundel County Police Department for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorney Martin Clarke, who prosecuted the federal case.
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Eight Baltimore Defendants Indicted for Fentanyl Distribution ConspiracyRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging eight defendants with participating in a heroin and fentanyl distribution conspiracy allegedly operating in the Baltimore area since at least February 2018, as well as related charges. The superseding indictment was returned on May 7, 2019, and unsealed May 9, 2019. The following defendants are charged with conspiracy to distribute and possess with intent to distribute fentanyl, cocaine, and heroin:
Raheem Benjamin, age 26, of Baltimore;
Tyrone Milton Gholston, age 39, of Baltimore;
Daryl Hart, age 38, of Edgewood, Maryland;
Joshua Johnson, age 28, of Baltimore;
Ellison Mccrea, age 28, of Baltimore;
Raynard Minter, age 21, of Baltimore;
Morranda Phimpisane, age 32, of Baltimore; andApril Wilkes, age 36, of Baltimore.
The superseding indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“More and more people are dying from fentanyl overdoses in Baltimore City and throughout the state,” said U.S. Attorney Robert K. Hur. “We are continuing to do everything possible to reduce overdose deaths from fentanyl and from all opioids, by investigating and prosecuting those who distribute this poison in our community.”
In addition to the drug conspiracy, the seven-count superseding indictment charges Benjamin with possession of a firearm and ammunition by a prohibited person and with possession of a firearm in furtherance of a drug trafficking crime. Gholston is charged with maintaining a drug-involved premises. Hart, Minter, and Phimpisane are charged with possession with intent to distribute a mixture of fentanyl and heroin, and Johnson is charged with possession with intent to distribute fentanyl.
If convicted, the defendants each face a minimum mandatory sentence of 10 years in prison and a maximum sentence of life in prison for the drug conspiracy. Benjamin also faces a mandatory minimum of five years in prison, consecutive to any other sentence imposed and a maximum of 10 years in prison for being a felon in possession of a firearm and ammunition; and a maximum of life in prison for possession of a firearm in furtherance of a drug trafficking crime. Hart, Minter, Phimpisane, and Johnson each face a maximum of 20 years in prison for possession with intent to distribute controlled dangerous substances.
All of the defendants except Gholston have been arrested and are in federal or state custody. Hart and Phimpisane had an initial appearance on May 9, 2019 in U.S. District Court in Baltimore, and were ordered to be detained pending detention hearings. The six other defendants do not yet have an initial appearance scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 and the Baltimore Police Department for their work in the investigation and thanked the State’s Attorney’s Office for Baltimore City for its assistance. Mr. Hur thanked Assistant U.S. Attorney Michael A. Goldsticker, who is prosecuting the case.
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Towson Woman Sentenced to More Than Three Years in Federal Prison for Wire Fraud and Identity TheftRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen Hollander today sentenced Alice Gardner, age 44, of Towson, Maryland, to 37 months in prison, followed by five years of supervised release, for conspiracy to commit wire and bank fraud, and aggravated identity theft. On May 6, 2019, co-defendant Natasha Wyche, age 42, of Owings Mills, Maryland, was sentenced to three years in prison, followed by five years of supervised release, on the same charges. Judge Hollander ordered both defendants to pay restitution in the amount of $170,837.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Chief Terrence B. Sheridan of the Baltimore County Police Department; Chief Lisa Myers of the Howard County Police Department; and Chief Michael Birmingham of the Maryland Motor Vehicle Administration (MVA) Investigative Division.
According to their plea agreements, from February 2013, through December of 2014, Gardner and Wyche conspired with Chris Jordan, Cynquetta Martin, and others to commit bank and wire fraud. The conspirators would acquire the social security number (SSN) of a victim, often a minor child, then use that number on paperwork to purchase vehicles from car dealerships.
For example, on December 4, 2012, Wyche went to a car dealership in Owings Mills, and applied for a vehicle loan to purchase a 2010 Acura TL using a victim’s SSN. The approved loan was for $29,194. On August 30, 2014, Wyche went to three car dealerships in Maryland, and applied for three vehicle loans to purchase a 2008 Honda Odyssey, a 2014 Hyundai Sonata, and a 2013 Toyota Corolla, using the SSN of a victim. The approved loans were for $20,409, $29,368, and $21,247, respectively.
On November 24, 2014, Gardner went to two car dealerships and applied for two vehicle loans to purchase a 2009 Toyota Camry and a 2009 Lexus RX350, using the stolen SSN of a victim. The loans were approved for 12,631 and $22,704 respectively. In addition, on December 6, 2014, Gardner went to another car dealership, and applied for a loan to purchase a 2015 Hyundai Sonata, using the SSN of a victim. The loan was approved for $32,947.
The vehicles acquired would be sold by a co-defendant to unsuspecting buyers through an online marketplace. The proceeds of the scheme, which total approximately $300,000, were split between Gardener, Wyche, and other co-defendants.
Chris Jordan, and Cynquetta Martin have pleaded guilty to their roles in the scheme. No date has been set for their sentencing.
United States Attorney Robert K. Hur commended the SSA Office of Inspector General, the Baltimore County Police Department, the Howard County Police Department, and the MVA Investigative Division for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorney Judson Mihok, and Special Assistant U.S. Attorney Michael Davio, who prosecuted the federal case.
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Maryland Fentanyl and Heroin Dealer Pleads Guilty to Federal Drug ChargesRead the Press Release
Faces Nine Years In Federal Prison
Baltimore, Maryland – Gari Terrell Miller, age 38, of Clinton, Maryland, pleaded guilty on May 9, 2019 to conspiracy to distribute and possess with intent to distribute fentanyl, and to possession with intent to distribute fentanyl. Miller was one of the first defendants charged as part of the new federal-state initiative announced in December 2018 to combat the fentanyl crisis in Maryland.
Under this new initiative, titled the “Synthetic Opioid Surge,” or “SOS” for short, every arrest involving distribution of fentanyl made by law enforcement in Baltimore is reviewed jointly by the State’s Attorney’s Office for Baltimore City, the Drug Enforcement Administration, and the U.S. Attorney’s Office to determine whether the case will be handled in the state or federal system. The U.S. Attorney’s Office will prosecute more cases involving fentanyl as a result of this new program. The use of federal resources and statutes, which carry significant terms of imprisonment, is necessary to prosecute those individuals who pose the greatest threat to public safety in distributing lethal doses of fentanyl.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer Moore of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police.
“State and federal law enforcement and prosecutors in Baltimore City are teaming up to arrest and prosecute those who peddle the deadly poison of fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “As a result of our combined efforts, Gari Miller now faces federal prison time, where there are no suspended sentences and no parole, ever. We must do everything we can to reduce overdose deaths from this drug and from all opioids.”
According to his plea agreement, on April 12, 2018, a Maryland Transportation Authority Police officer conducted a traffic stop near Conway Street in Baltimore, after observing Miller drifting between lanes and turning onto Conway Street without signaling. During the stop, the officer smelled marijuana. After the officer conducted a sobriety test, he searched Miller and recovered approximately $740 in cash and a white powdery substance that was 49 grams of fentanyl—enough to kill 24,500 people. Law enforcement also recovered from Miller’s vehicle $3,300 in cash bound with rubber bands, and a drug ledger with weights, names and dollar amounts listed. The ledger reflects, and Miller admits, that he sold 832 grams of heroin.
Miller further admitted that he conspired with others to distribute fentanyl and heroin in Maryland. Miller had others assisting him with distributing narcotics and collecting the drug proceeds.
Miller and the government have agreed that, if the Court accepts the plea agreement, Miller will be sentenced to nine years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for July 16, 2019 at 9:15 a.m.
United States Attorney Robert K. Hur commended the DEA and Maryland Transportation Authority Police for their work in the investigation and thanked Baltimore State’s Attorney Marilyn Mosby and her office for their assistance. Mr. Hur thanked Assistant U.S. Attorney Samika N. Boyd, who is prosecuting the case.
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Former Union Treasurer Pleads Guilty to Embezzling at Least $82,000 in Union FundsRead the Press Release
Baltimore, Maryland – Annette Elizabeth Jones, age 45, of Port Deposit, Maryland, pleaded guilty today to bank fraud in connection with a scheme to embezzle funds from the labor union where she worked. Jones entered her guilty plea on May 7, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor - Management Standards; and Inspector General Kim R. Lampkins, Special Agent in Charge, Mid Atlantic Field Office, of the U.S. Department of Veterans Affairs.
According to her plea agreement, Jones is the former Treasurer of the American Federation of Government Employees (“AFGE”) Local Union 331, which represents approximately 760 employees of the Department of Veterans Affairs (VA) Medical Center in Perry Point, Maryland.
As detailed in her plea agreement, Jones executed two fraud schemes through which she embezzled at least $82,180.73 from the Union. First, from July 2012 through July 2015, Jones stole at least $80,944.80 in Union funds by forging her colleagues’ signatures on 335 Union checks that she wrote to herself and then cashed or deposited those checks at multiple financial institutions. Second, from January 2014 through July 2015, Jones used a Union-issued credit card to pay for $1,235.93 in personal expenses using Union funds on 20 separate occasions.
Jones admitted that she took steps to conceal the scheme from the Union. For example, not only did Jones have exclusive control of the Union’s checkbook, but she also maintained sole custody of a laptop computer that she was issued by the Union to manage its financial records on Union-purchased accounting software. In that software, Jones frequently recorded false information regarding the business purpose of the fraudulent Union checks she forged and negotiated, or recorded no information at all about the business purpose of such checks. Jones also provided false information about the Union’s finances to the Executive Board and the Union membership, caused reports to be submitted to the federal government that falsely certified the amount of money she received from the Union, and lied to the Union’s independent auditor.
Jones’ fraud was discovered in July 2015, when the Union’s Vice President overheard a phone call in which Jones attempted to purchase a smartphone for a family member using the credit card she had been issued to pay for Union expenses only. The Vice President then reported the conversation to the Union’s President. The President later conducted a search of Jones’s office and found two uncashed Union checks made payable to Jones on which it appeared that the President’s signature had been forged. The Union President then met with the manager of the bank where the Union’s account was held, and reviewed each of the checks to Jones that had been drawn on the Union’s account during the preceding three months. The Union President’s signature had been forged on all of them. When the manager provided the President with copies of the Union’s monthly credit-card account statements, the President also discovered that Jones had made a number of personal charges on her Union-issued card.
Jones was immediately removed from her position as Union Treasurer and resigned from the VA soon thereafter. Although Jones had agreed to return her Union-issued laptop at the time she was removed as Treasurer, Jones admitted that she never returned it.
As part of her plea agreement, Jones will be required to pay restitution in the full amount of the loss, which the parties agree is $82,180.73.
Jones and the government have agreed that, if the Court accepts the plea agreement, Jones will be sentenced to two years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 10, 2019 at 1:00 p.m.
United States Attorney Robert K. Hur commended the DOL and VA-OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Matthew J. Maddox, who are prosecuting the case.
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Former Union Treasurer Pleads Guilty to Embezzling at Least $82,000 in Union FundsRead the Press Release
Baltimore, Maryland – Annette Elizabeth Jones, age 45, of Port Deposit, Maryland, pleaded guilty today to bank fraud in connection with a scheme to embezzle funds from the labor union where she worked. Jones entered her guilty plea on May 7, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor - Management Standards; and Inspector General Kim R. Lampkins, Special Agent in Charge, Mid Atlantic Field Office, of the U.S. Department of Veterans Affairs.
According to her plea agreement, Jones is the former Treasurer of the American Federation of Government Employees (“AFGE”) Local Union 331, which represents approximately 760 employees of the Department of Veterans Affairs (VA) Medical Center in Perry Point, Maryland.
As detailed in her plea agreement, Jones executed two fraud schemes through which she embezzled at least $82,180.73 from the Union. First, from July 2012 through July 2015, Jones stole at least $80,944.80 in Union funds by forging her colleagues’ signatures on 335 Union checks that she wrote to herself and then cashed or deposited those checks at multiple financial institutions. Second, from January 2014 through July 2015, Jones used a Union-issued credit card to pay for $1,235.93 in personal expenses using Union funds on 20 separate occasions.
Jones admitted that she took steps to conceal the scheme from the Union. For example, not only did Jones have exclusive control of the Union’s checkbook, but she also maintained sole custody of a laptop computer that she was issued by the Union to manage its financial records on Union-purchased accounting software. In that software, Jones frequently recorded false information regarding the business purpose of the fraudulent Union checks she forged and negotiated, or recorded no information at all about the business purpose of such checks. Jones also provided false information about the Union’s finances to the Executive Board and the Union membership, caused reports to be submitted to the federal government that falsely certified the amount of money she received from the Union, and lied to the Union’s independent auditor.
Jones’ fraud was discovered in July 2015, when the Union’s Vice President overheard a phone call in which Jones attempted to purchase a smartphone for a family member using the credit card she had been issued to pay for Union expenses only. The Vice President then reported the conversation to the Union’s President. The President later conducted a search of Jones’s office and found two uncashed Union checks made payable to Jones on which it appeared that the President’s signature had been forged. The Union President then met with the manager of the bank where the Union’s account was held, and reviewed each of the checks to Jones that had been drawn on the Union’s account during the preceding three months. The Union President’s signature had been forged on all of them. When the manager provided the President with copies of the Union’s monthly credit-card account statements, the President also discovered that Jones had made a number of personal charges on her Union-issued card.
Jones was immediately removed from her position as Union Treasurer and resigned from the VA soon thereafter. Although Jones had agreed to return her Union-issued laptop at the time she was removed as Treasurer, Jones admitted that she never returned it.
As part of her plea agreement, Jones will be required to pay restitution in the full amount of the loss, which the parties agree is $82,180.73.
Jones and the government have agreed that, if the Court accepts the plea agreement, Jones will be sentenced to two years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 10, 2019 at 1:00 p.m.
United States Attorney Robert K. Hur commended the DOL and VA-OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Matthew J. Maddox, who are prosecuting the case.
Prince George’s County Man Pleads Guilty to Federal Charge of Sex Trafficking of a MinorRead the Press Release
Baltimore, Maryland – Rody L. Bowden, age 40, of Prince George’s County, Maryland, pleaded guilty on May 7, 2019, to the federal charge of sex trafficking of a minor. Bowden was a registered sex offender at the time of the offense.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“This is an egregious case because the defendant was already a twice-convicted sex offender and his victim was a 14- year old child,” said U.S. Attorney Robert K. Hur. “This prosecution sends a powerful message that sex trafficking of children will not be tolerated in Maryland. Rody Bowden is now facing at least 20 years in federal prison, where there are no suspended sentences and no parole - ever”
According to Bowden’s plea agreement, in late 2016 and early 2017, Bowden engaged in commercial sex acts with a 14-year-old ninth-grade student, including in Anne Arundel County motel rooms. On January 4, 2017, Bowden recorded a video of the victim engaged in oral sex with him. The next day, Bowden created an account on a streaming pornographic website and uploaded the video to his account, where it could be viewed by all of Bowden’s followers on the site. On September 4, 2017, Bowden e-mailed a copy of the video to another account that he controlled.
Bowden was previously required to register as a sex offender, stemming from two convictions for third-degree sex offenses in Prince George’s County and Charles County. Bowden has been detained since his arrest.
Bowden and the government have agreed that if the Court accepts the plea agreement, Bowden will be sentenced to between 20 and 25 years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for July 30, 2019 at 9:15 a.m.
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.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Robert K. Hur commended HSI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Zachary A. Myers, who is prosecuting the case.
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Physician Facing Federal Indictment for Passport Fraud, Falsely Claiming U.S. Citizenship, and Illegal Voting by an AlienRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Michael Nana Baako, age 50, a native of Ghana residing in Fulton, Maryland, on the federal charges of passport fraud, falsely claiming U.S. citizenship, and illegal voting by an alien. Baako was a physician who practiced in hospitals in Maryland and maintained his own clinic, Biazo Healthcare. The indictment was returned on May 1, 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 Special Agent in Charge Edwin Guard of the U.S. Department of State’s Diplomatic Security Service (DSS) Washington Field Office.
According to the indictment, since at least 2001, Baako and R.A.A., also born in Ghana, have lived together in Howard County, Maryland and are the parents of two minor children. Baako and R.A.A. entered the United States legally after obtaining a visa in 1995. In 1996, Baako applied for certification of his Ghanian medical education in the United States through the Educational Commission for Foreign Graduates. In 1998, Baako married a U.S. citizen in Virginia, who filed a petition for Baako to become a naturalized United States citizen. On June 20, 2000, the petition was denied after immigration officials concluded that Baako’s marriage was a “sham” marriage entered into for the sole purpose of obtaining immigration benefits. In 2001, Baako was licensed to practice in Maryland as a physician.
The indictment alleges that on November 29, 2005, Baako registered to vote in Maryland, swearing that he was a United States citizen, and subsequently voted in 10 elections between November 7, 2006 and November 6, 2018.
Further, the indictment alleges that on April 17, 2007, and September 16, 2009, respectively, Baako and R.A.A. submitted passport applications on behalf of their minor children, in which Baako falsely claimed that he was a citizen of the United States, born in Hillsborough, North Carolina. On April 22, 2008, Baako allegedly submitted an application for a United States passport for himself in which he falsely claimed that he was born in North Carolina, as were both of his parents. As part of his passport application, Baako allegedly provided an affidavit purporting to be from a family friend, falsely stating that this person was one of the first people to see Baako after his birth and was present at a subsequent naming and baptism ceremony for Baako at a Hillsborough, North Carolina church. Baako was issued a U.S. passport on April 29, 2008, which he allegedly used for international travel on several occasions. That passport included the false information that Baako was a citizen of the United States born in North Carolina. According to the indictment, on July 31, 2012, Baako and R.A.A. submitted a passport renewal application on behalf of their first child, in which Baako falsely stated that he was a citizen of the United States. On February 20, 2018, Baako allegedly filed a passport renewal application for his own passport, again falsely stating that he was a U.S. citizen born in North Carolina. Baako was interviewed by Department of State officials on April 22, 2010, and on June 12, 2018. The indictment alleges that in both interviews Baako falsely stated that he was born in Hillsborough, North Carolina. The indictment alleges that in the 2018 interview Baako also falsely stated that he never applied for any immigration benefit with U.S. immigration authorities, nor submitted documents in an attempt to become a naturalized United States citizen.
If convicted, Baako faces a maximum sentence of 10 years in prison for each of four counts of passport fraud; a maximum of three years in prison for false claim to U.S. citizenship; and a maximum of one year in prison for each of three counts of illegal voting by an alien. At today’s initial appearance in U.S. District Court in Baltimore/ Greenbelt, U.S. Magistrate Judge Stephanie Gallagher ordered that Baako be detained pending a detention hearing scheduled for May 10, 2019, at 11:45 a.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the State Department’s DSS for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Zachary A. Myers and Daniel A. Loveland, who are prosecuting the case.
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Fraudster Sentenced to 11 Years in Federal Prison for Stealing the Identities of Hundreds of Victims to Fraudulently Obtain More Than $2.2 Million in Tax RefundsRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Toyosi Alatishe, a/k/a Felix Victor Johnson, age 49, of Columbia, Maryland, today to 11 years in federal prison, followed by 3 years of supervised release, for a conspiracy to commit credit/debit card fraud, wire fraud, and for aggravated identity theft, in connection with two separate schemes to obtain fraudulent tax refunds. Judge Blake entered an order requiring Alatishe to pay restitution in the amount of $2,287,959.67. A federal jury convicted Alatishe on all 16 counts on January 24, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Chief Lisa Myers of the Howard County Police Department.
“This criminal stole the personal information of law-abiding citizens, including the disabled residents of the group homes where he worked, to file bogus tax returns claiming fraudulent ‘refunds,’ and stole over $2.2 million from the IRS,” said U.S. Attorney Robert K. Hur. “Those who prepare and file fraudulent returns cheat all honest taxpayers. We are committed to investigating, stopping, and prosecuting these crimes.”
According to the evidence presented at Alatishe’s six-day trial, in the first scheme, which occurred from 2012 to 2013, Alatishe misused his position as a caretaker for residents of a group home for individuals suffering from severe mental and physical disabilities, by using their personal information to file fraudulent tax returns with the IRS and the State of Maryland. Alatishe also obtained access to the personal identifying information of other mentally disabled Maryland victims, who lived at group homes run by a company where Alatishe’s ex-wife worked. After filing the fraudulent tax returns through an online tax filing company, Alatishe had the tax refunds deposited into bank accounts he controlled, including an account opened using a fraudulent Nigerian passport in the name of Felix Victor Johnson.
The evidence proved that, in 2013, Alatishe also filed fraudulent tax returns using the names and social security numbers of eight other victim taxpayers from across the United States without their authority. The fraudulent tax returns contained false information concerning the taxpayers, including their marital status, spouses, dependents, employers, wages, withholdings, tax due and owing, and refund amounts. This resulted in Alatishe receiving fraudulently obtained tax refunds of more than $30,000 in March and April 2013, which the IRS direct deposited into the Felix Victor Johnson bank account.
In the second scheme, a conspirator in Florida used the identifying information of a Florida accountant to fraudulently purchase debit cards from First View Financial, purportedly so that customers of the accountant could have their tax refunds transferred directly from the IRS to the cards. The co-conspirator asked First View to mail 2,000 prepaid debit cards to him at an address in Tampa, Florida, which was actually the address of Regus Management Group, LLC, a company that provided virtual office services to businesses. Still posing as the accountant, the co-conspirator contracted with Regus for mail forwarding. Specifically, the evidence proved that all mail received by Regus in the victim accountant’s name was forwarded to Alatishe’s address in Columbia, Maryland. Trial evidence showed that during January and February 2015, First View sent out the debit cards in five different shipments, which Regus then forwarded to Alatishe’s address.
Further, the government presented evidence proving that in 2015, the personal identifying information of more than 300 individuals from across the United States was used without their permission and knowledge to file false tax returns with the IRS in order to obtain refunds. More than 300 of the First View debit cards were activated and loaded with IRS tax refund money from the fraudulently filed tax returns. The total value of the IRS funds loaded onto the cards was more than $2.2 million. During February and March 2015, Alatishe and his co-conspirator withdrew more than $1 million through ATM and point-of-sale transactions, including the purchase of $40,000 in money orders.
Further, between March 6 and March 15, 2015, Alatishe was captured on security video repeatedly using ATMs at a specific financial institution in Columbia, Maryland. As detailed in the trial testimony, withdrawals occurred in short periods of time with many different cards from First View, in approximate withdrawal amounts of $300. The large number of transactions and high dollar value resulted in the ATMs running out of money. The financial institution conducted an investigation and notified law enforcement and First View, resulting in First View and other financial institutions freezing the remaining funds on the First View debit cards on about March 17, 2015.
According to trial testimony, a federal search warrant was executed at Alatishe’s residence in June 2016. Law enforcement recovered electronic evidence, including evidence as to Alatishe’s involvement in both fraudulent tax refund schemes. Agents also seized physical evidence, including numerous handwritten lists containing the personal identifying information of identity theft victims. Some of these handwritten documents were identified by Alatishe as his handwriting and the information on the handwritten sheets matched even more extensive lists of personal identifying information from his computer. In 2013, Alatishe had been the subject of an investigation and search warrant by the Howard County Police Department, which led to the seizure of important evidence used during the federal trial of the two schemes.
United States Attorney Robert K. Hur praised the IRS-CI, DCIS, U.S. Postal Inspection Service, and Howard County Police Department for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Harry M. Gruber and Dana J. Brusca, who prosecuted the case.
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District Heights Man Sentenced to 10 Years in Federal Prison for Serving as Lookout and Driver for Five Armed Commercial RobberiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Joshua Isaiah Potter, age 22, of District Heights, Maryland, today to 10 years in prison, followed by five years of supervised release, for his participation in a series of commercial robberies in which the robbers brandished a gun.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer Moore of the Federal Bureau of Investigation, Baltimore Field Office; Acting Chief Russell E. Hamill of the Montgomery County Police Department; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
“Joshua Potter knowingly chose to be a part of this conspiracy to commit dangerous armed robberies,” said U.S. Attorney Robert K. Hur. “All members of a conspiracy can be held responsible for the actions of all of the conspirators. Potter will now spend 10 years in federal prison, where there is no parole—ever. Put down the guns and save a life—maybe even your own.”
According to his guilty plea, between December 27, 2016 and January 7, 2017, Potter and his co-defendants, Deniro Wesley Southern-Robinson and Deandre Denzil Proctor, conspired with others to commit a series of robberies of businesses. In each robbery, Southern-Robinson and/or Proctor entered the locations, brandished a gun, and robbed the employees of the proceeds of the business, while Potter served as a lookout during the robberies and drove the getaway vehicle.
Specifically, on December 27, 2016, Potter drove co-defendant Deandre Proctor and another conspirator to a convenience store, where Proctor and the co-conspirator entered and robbed the store, stealing approximately $130. Potter served as the lookout and getaway driver. In less than two hours in the early morning of December 29, 2016, the conspirators robbed three businesses in Myersville, Frederick, and Bethesda, Maryland. In each robbery, Southern-Robinson brandished a silver revolver and Proctor brandished a BB gun. Both men covered their faces with bandanas or masks. In the first robbery, they confronted an employee and demanded to know where the safe was. The victim informed them that there was no safe and began pushing one of the robbers before noticing that both appeared to be brandishing firearms. Southern-Robinson and Proctor emptied the cash registers into their pockets and a duffel bag, stealing approximately $517. As they fled, they threatened to kill the employee if he/she called the police. In the other two robberies, Southern-Robinson and Proctor confronted employees and demanded they open the cash registers, stealing $232 and $350, respectively. Potter was the lookout and getaway driver for each robbery.
On January 7, 2017, Potter drove the robbers to a business in Myersville, Maryland. Southern-Robinson and Proctor entered the business, again brandishing a silver revolver and BB gun, respectively, and wearing masks to cover their faces. The robbers confronted two store employees, with Proctor pointing the BB gun at the chest of one of the victim store employees, and asked for the safe. The victim led them to where the safe was located and Southern-Robinson removed cash from the safe and put it in a duffel bag. Southern-Robinson and Proctor stole approximately $773. Potter served as the getaway driver after the robbery was completed.
Several minutes later, law enforcement officers saw Potter’s vehicle traveling from the direction of the business and initiated a traffic stop. Proctor, the front seat passenger, was wearing the same distinctive shoes he had worn in the December 29th robberies. Law enforcement arrested the defendants and obtained a search warrant for the vehicle. Law enforcement seized the silver revolver, a .22-caliber handgun loaded with four rounds of ammunition, from the right rear passenger door, where Southern-Robinson had been seated. From the front passenger floor, where Proctor was sitting, law enforcement recovered black clothing that matched the clothing worn during the robberies, a black BB gun, and the duffel bag that had been used in the robberies. Law enforcement also recovered $789 from the pouch on the back of the front passenger seat, where Southern-Robinson has been seated, and three cell phones, among other items. Additional search warrants were executed at the residences of Southern-Robinson and Proctor that recovered additional cash and other clothing worn during the December 29th robberies.
Deniro Southern-Robinson, age 21, of Largo, Maryland, pleaded guilty to his role in the robberies and was sentenced to 10 years in federal prison. Deandre Denzil Proctor, age 22, of Upper Marlboro, Maryland, has also pleaded guilty and is scheduled to be sentenced on May 6, 2019 at 9:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI Cross-Border Task Force, the Montgomery County Police Department, the Frederick County Sheriff’s Office, 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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Prince George’s County Felon Sentenced to More Than 12 Years in Federal Prison for PCP Distribution Conspiracy and for Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Fatai Gafari, a/k/a Freak Dawg, age 28, of Temple Hills, Maryland, today to 151 months in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute phencyclidine (“PCP”), and for 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 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.
United States Attorney Robert K. Hur stated, “Fatai Gafari brought danger to our community through the deadly combination of guns and drugs. Now he faces more than 12 years in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to Gafari’s plea agreement, from July 2017 and continuing through December 2017, Gafari and co-defendants Marquez Gary Freeman, Jordan Lee Phillips, Javon Antonio Reid, Terrell Andre Shields, and Timmy Rae Shields, conspired to distribute PCP. In general, Gafari and Timmy Shields—who operated at the direction and under the supervision of Gafari—worked together to supply Phillips, Reid, Freeman, and Terrell Shields with PCP. Gafari often directed Timmy Shields to deliver PCP to and collect money from customers of both Gafari and Shields. During the course of the conspiracy, Gafari distributed at least 273 fluid ounces of PCP, which equals approximately 5.7 kilograms of PCP.
In July 2017, Gafari supplied 16 ounces of PCP to Phillips, who in turn sold it to a cooperating source. On September 26, 2017, Gafari directed Timmy Shields to drive Gafari’s vehicle to Phillips’s residence in order to distribute six ounces of PCP to Phillips, which Phillips later sold to a cooperating source.
On November 20, 2017, Gafari sold PCP “dippers”, which are cigarettes dipped in PCP and then smoked, to users on Parkway Terrace in Suitland, Maryland. Law enforcement officers stopped Gafari in his vehicle as he left the area. When he was stopped, Gafari removed a glass bottle from his clothing and threw it on the ground. That bottle—which did not break—was recovered and contained a half-ounce of PCP.
Between November 30 and December 6, 2017, Gafari and Reid sold a cooperating source more than 43 ounces of PCP. Gafari and Timmy Shields travelled to Cleveland, Ohio to purchase PCP that Gafari, Timmy Shields, and Terrell Shields intended to sell, including 32 ounces of PCP that was sold to the cooperating source on December 6, 2017.
On December 12, 2017, while executing a search warrant on Gafari’s residence in Maryland, federal agents recovered 207 ounces of PCP, drug paraphernalia, and a loaded firearm. Gafari admitted that he possessed the firearm to protect his PCP supply. Gafari had a previous felony conviction and was prohibited from possessing firearms or ammunition.
Co-defendants Marquez Gary Freeman, a/k/a Cheese, age 22; Jordan Lee Phillips, a/k/a J Rock, age 27; Javon Antonio Reid, a/k/a Gucci, age 28; Terrell Andre Shields, a/k/a Hell Rell and Rell, age 31; and Timmy Rae Shields, a/k/a Tim Dawg, age 27, all of Suitland, Maryland, have previously pleaded guilty to their roles in the PCP distribution conspiracy. Terrell Shields was sentenced to five years in federal prison, Phillips was sentenced to two years in federal prison, and Freeman was sentenced to a year and a day in federal prison. Judge Xinis has scheduled sentencing for Timmy Rae Shields on May 10, 2019, at 1:00 p.m. and Javon Reid is scheduled to be sentenced on July 8, 2019 at 10:00 a.m.
United States Attorney Robert K. Hur commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory D. Bernstein, Jennifer R. Sykes, and Thomas M. Sullivan, who are prosecuting the case.
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Owner of the Surrogacy Group Facing Federal Charge for Allegedly Defrauding Clients of Fees Paid to Find and/or Support a Pregnancy SurrogateRead the Press Release
Baltimore, Maryland – Federal prosecutors in Maryland have filed a federal criminal complaint charging Gregory Ray Blosser, age 37, of Tampa, Florida, on a federal wire fraud charge in connection with an alleged scheme to defraud clients of The Surrogacy Group (TSG), which he operated. Blosser was arrested on April 29th in Florida. The criminal complaint was unsealed at his initial appearance.
The federal criminal complaint 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.
“The allegations in this case are especially egregious because they involve someone taking advantage of individuals who are trying to become parents,” said U.S. Attorney Robert K. Hur. “Criminals who line their pockets through such heartless deceit will be held accountable.”
According to the criminal complaint, TSG offers and sells surrogacy-related services to individuals who desire to have children using a pregnancy surrogate. TSG has been operated by Blosser since 2012 and has offices in Annapolis, Maryland and Tampa, Florida.
The criminal complaint alleges that Blosser solicits and accepts funds from clients seeking to have a child using a surrogate, promising to use those funds to support the surrogate during a pregnancy, but Blosser fails to do so.
As detailed in the affidavit filed in support of the criminal complaint, at Blosser’s direction, at least seven victims paid fees to establish an escrow account to be controlled by Blosser, with the funds to be used to find a suitable surrogate, and to support the surrogate during a pregnancy. The victims lived in Maryland, Australia, North Carolina, Germany, and Virginia. In each case, after the victims deposited funds into the escrow account, Blosser either did not locate a suitable surrogate, or did not pay the surrogate the agreed-upon fees. The victims were not able to obtain refunds, despite numerous attempts by phone and e-mail. Victims whose surrogates were not paid by Blosser had to pay the surrogates directly, even though they had provided funds to Blosser for that purpose.
Blosser is also facing related civil suits filed by the States of Maryland and Florida.
If you believe you may have been a victim, or have information concerning these charges, please complete a brief questionnaire at www.fbi.gov/tsg or you can email [email protected]. Your responses are voluntary. You may be contacted by the FBI.
If convicted, Blosser faces a maximum sentence of 20 years in prison for wire fraud. Blosser had an initial appearance in U.S. District Court in Miami, Florida, on April 30 and was ordered to be detained pending a detention hearing scheduled for Friday, May 3, 2019 at 10:00 a.m. He is expected to have an initial appearance in Maryland later this month.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.
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Cherry Hill Hillside Gang Member Sentenced to More Than 12 Years in Federal Prison for Participating in a Racketeering ConspiracyRead the Press Release
Total of 19 Hillside Gang Members and Associates Have Pleaded Guilty
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Delonte Conley, age 27, of Baltimore to 150 months in federal prison, followed by three years of supervised release, for conspiracy to participate in a racketeering enterprise related to his activities as a member of the Hillside gang that operated in the Cherry Hill neighborhood of Baltimore.
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; and Baltimore City State’s Attorney Marilyn J. Mosby.
“Delonte Conley chose to join an organized criminal enterprise that preyed on the Cherry Hill neighborhood by dealing drugs and committing violent gun crimes,” said U.S. Attorney Robert K. Hur. Now he will spend over 12 years in federal prison, where there is no parole—ever. Put down the guns and save a life—maybe even your own.”
“Identifying, investigating, and incarcerating the armed gunmen that menace Baltimore’s communities is ATF’s primary focus,” said ATF Baltimore Special Agent in Charge Rob Cekada. “ATF is determined to collaborate with our law enforcement partners in our fight to ensure Baltimore neighborhoods can be free of violence.”
According to his plea agreement, Conley was a member and associate of the Hillside Enterprise, which he 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. Between December 13, 2014 and November 12, 2015, Conley was captured on video in both of the cut houses, preparing controlled substances for distribution. In an effort to distinguish their narcotics, members used colored topped vials or colored the drugs with food coloring. Conley admitted that he distributed drugs as a member of the Hillside Enterprise, and on behalf of the gang. Throughout Conley’s involvement in Hillside, he was aware that Hillside distributed between one and three kilograms of heroin, and between five and 15 kilograms of cocaine, as well as crack cocaine.
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. Conley knew that these acts of violence, including the homicides, were committed by Hillside members and associates. Conley further admitted that he personally participated in an armed robbery where shots were fired during the robbery, but no one was hit, as well as an assault on another Hillside member as punishment for improperly handling drug proceeds.
Eighteen other Hillside gang members have pleaded guilty to their participation in the racketeering conspiracy. Of those, eight have been sentenced to between 10 and 30 years in federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the 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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Four Members of the Violent “Murdaland Mafia Piru” Bloods Gang Convicted of Federal Racketeering and Drug Conspiracies and Related Charges after Six-Week TrialRead the Press Release
Defendants Committed Gun Violence in Northwest Baltimore City and Baltimore County, Including with Assault Rifle
Baltimore, Maryland – Late on April 30, 2019, a federal jury convicted the following four defendants for racketeering and drug trafficking conspiracies, as well as firearms and other related charges connected to their participation in the gang activities of Murdaland Mafia Piru (MMP), a subset of the Bloods gang:
Dante Bailey, a/k/a “Gutta,” “Almighty,” and “Wolf,” age 40, of Windsor Mill, Maryland;
Jamal Lockley, a/k/a “T-Roy” and “Droid,” age 40, of Baltimore;
Corloyd Anderson, a/k/a “Bo,” age 36, of Owings Mills, Maryland; and
Shakeen Davis, a/k/a “Creams,” age 24, of Baltimore.The jury convicted co-defendant Randy Banks, a/k/a “Dirt,” age 41, of Baltimore, of the drug trafficking conspiracy. He was found not guilty of the racketeering conspiracy.
The guilty verdicts were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; Chief 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.
“These gang members brought terror and death to Baltimore and Baltimore County neighborhoods with guns and drugs,” said U.S. Attorney Robert K. Hur. “Now they face up to life in federal prison, where there are no suspended sentences and no parole—ever. I urge anyone who’s thinking of following these defendants’ example: Please, put down the guns and save a life—maybe even your own.”
“The gun violence resulting from these gang turf wars and rivalries is tearing this city apart,” said ATF Baltimore Special Agent in Charge Rob Cekada. “We remain committed in our mission to identify, investigate, and incarcerate anyone using firearms to commit these violent crimes.”
According to the evidence presented at the six-week trial, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that operates in Maryland and elsewhere. MMP was modeled after the Italian Mafia, and was organized hierarchically, with Dante Bailey as “the Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath. For many years, MMP controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County. 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 used violence and threats of violence to intimidate or retaliate against witnesses, protect the gang’s territories, enforce debts, and eliminate rivals.
According to trial testimony, one of the founding principles of the gang was a rule against cooperation with law enforcement. Violations of this rule were punishable by death. MMP members enhanced their status within the gang by carrying out acts of violence against rivals. For instance, members could earn a lightning bolt tattoo for “killing for the Mob.” Several MMP members, including Dante Bailey, have lightning bolt tattoos on their faces or bodies. MMP members used social media websites to assert the gang’s claim to particular drug territories, intimidate rival gangs and drug traffickers, enhance MMP’s status, and enhance members’ status within the gang. MMP members and associates posted photographs and rap videos to these social media websites in which they flaunted firearms and threatened to kill those who stood in the way of the gang. The evidence proved that members and associates of MMP participated in the gang’s affairs through a pattern of racketeering activities, including murder, extortion, witness tampering and retaliation, and drug distribution.
For example, on February 12, 2015, Dante Bailey murdered James Edwards for showing disloyalty to the gang. Bailey shot Edwards to death in the 300 block of Collins Avenue, using the same gun he had used to shoot at rivals in the 5200 block of Windsor Mill Road three nights earlier. On May 30, 2015, Shakeen Davis attempted to murder two rivals in the 5200 block of Windsor Mill Road, firing multiple rounds at them with an assault rifle in broad daylight at a busy intersection. In September 2017, while in pretrial custody, the gang’s leader, Dante Bailey, caused a letter to be mailed to a co-conspirator that directed the murder of a co-defendant who was cooperating with law enforcement. ATF Special Agents recovered the hit letter from the co-conspirator’s residence, as well as a recently purchased firearm.
The evidence proved that Randy Banks was part of the drug conspiracy, which began in at least 2011 and distributed narcotics, including heroin, crack cocaine, and powder cocaine.
Bailey faces a mandatory life sentence for murder in aid of racketeering. Lockley, Anderson, and Davis each face a maximum of life in prison for the racketeering and drug conspiracies. Lockley faces a mandatory minimum of 25 years in prison for the drug conspiracy. Anderson faces a mandatory minimum of 15 years in prison for possession of a firearm by a felon. Davis faces a mandatory minimum sentence of 10 years in prison for the drug conspiracy. Banks faces a maximum sentence of 20 years in prison for the drug conspiracy. U.S. District Judge Catherine C. Blake has not yet scheduled sentencing for the defendants.
Twenty co-defendants previously pleaded guilty to their roles in the conspiracies. The final defendant, Sydni Frazier, was part of this trial, but had a mistrial declared after his attorney could not continue due to health reasons. His new trial date has not yet been scheduled. He is the final defendant of the 26 indicted in the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur praised the ATF, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Hur thanked Assistant United States Attorneys Christina Hoffman and Lauren E. Perry, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Virginia Online Gamer Sentenced to 18 Months in Federal Prison After He Pleads Guilty to Sending Threatening Messages to Employees of an Online Gaming Company Based in MarylandRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Michael Dunaway, age 59, of Hamilton, Virginia, today to 18 months in federal prison, after Dunaway pleaded guilty to sending messages threatening acts of violence to employees of an online gaming company based in Lutherville, Maryland.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to his plea agreement, an online gaming company based in Lutherville, Maryland launched a combat strategy game entitled “DomiNations.” DomiNations is a massive multiplayer online game in which players build a base nation containing different types of buildings and resources and build and train an army to defend the nation and attack other nations to collect resources. Players can enhance their playing experience by purchasing certain resources.
In early April 2018, Dunaway contacted the online gaming company through the DomiNations game’s help and service application to address issues he had experienced while playing the game. Starting on April 17, 2018, however, Dunaway changed his behavior from complaining about the game to threatening acts of violence against employees at the company. Between April 17 and July 26, 2018, Dunaway sent at least 14 messages threatening to kill company employees or kill others. The threatening communications resulted in a substantial disruption of the company’s business functions and services.
United States Attorney Robert K. Hur commended the FBI and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys John W. Sippel, Jr. and Michael Goldsticker, who prosecuted the case.
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Fraudster Sentenced to Five Years in Federal Prison for Defrauding Employers of Nearly $5 MillionRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Michael Peterson, age 48, of Alpharetta, Georgia, on April 26, 2019, to five years in federal prison, followed by three years of supervised release, after Peterson pleaded guilty to wire fraud in connection with a scheme to defraud four employers, including an employer in Maryland, of a total of almost $5 million. Judge Blake entered an order requiring Peterson to pay restitution of approximately $3.9 million.
The guilty plea and sentence were 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 Peterson’s plea agreement, from March 2014 through March 2018, Peterson defrauded several employers by obtaining pay for non-existent contracts that he falsely claimed to have obtained or was in the process of obtaining from various entities. While employed at each of the companies he defrauded, Peterson occupied a position of trust as an executive salesperson within the company.
Specifically, Peterson created fake e-mail accounts and identities, which he falsely represented to his employers were officials at companies with which he claimed to have obtained contracts. Peterson created and signed false documents, sent e-mails to himself and co-workers purportedly from those officials, in an effort to conceal his fraud. All the while, Peterson admitted that he collected salaries ranging from $115,000 to $150,000 per year, commissions, loans, travel reimbursements, and other benefits from his employers. Eventually, each of Peterson’s employers became suspicious, uncovered the fraud, and then terminated Peterson’s employment.
For example, from February 2015 to October 2016, Peterson worked remotely from his residence in Georgia, first as Vice President for Business Development and then as Vice President of Sales at Company B, headquartered in Glenwood, Maryland. Company B provided health care services for various entities. From March 2015 until September 2016, Peterson deceived Company B employees into believing that they were conducting business with employees from Mitas Tires North America, Inc, or persons authorized to represent Mitas in connection with a multi-million dollar contract. Company B undertook various steps to implement the alleged contract with Mitas, including hiring an additional 11 employees to work on matters related to the contract. Over the course of the next year, Peterson continued to deceive Company B employees into believing that the Mitas contract was progressing towards implementation, including by having co-conspirators pose as officials at Mitas. Between April and July 2016, Peterson’s supervisor tried repeatedly by telephone and e-mail to arrange an in-person meeting with alleged Mitas employees, but each time the meeting was postponed or cancelled at the last minute. Eventually, the supervisor became so suspicious that he drove to the location in New Jersey that he understood to be the Mitas headquarters, but there was no Mitas facility at that location. Company B undertook an internal investigation into Peterson’s conduct, including the Mitas contract and two other contracts Peterson had obtained. Company B determined that neither Mitas nor the other two companies had ever contracted with, or had any association with Company B, and that Peterson had presented fraudulent contracts. Company B terminated Peterson’s employment in October 2016.
United States Attorney Robert K. Hur praised the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Kathleen O. Gavin, who prosecuted the case.
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Former Maryland Insurance Agent and Financial Planner Pleads Guilty to Federal Wire Fraud Charge in $2.8 Million Fraud SchemeRead the Press Release
Baltimore, Maryland – Jonathan Williams, age 48, of Boston, Massachusetts, a former Maryland insurance agent and financial planner with New York Life, pleaded guilty today to wire fraud, in connection with a scheme to defraud clients of more than $2.8 million.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.
According to his plea agreement, from February 2006 through March 2015, Williams worked as a New York Life insurance agent and was licensed to sell insurance in Maryland, and registered with the Financial Industry and Regulatory Authority (FINRA). Williams was only authorized to sell New York Life related products and provide financial planning through a New York Life affiliate. New York Life did not sell certificates of deposit (CDs) nor was Williams authorized to sell CDs. New York Life authorized the use of “doing business as” entities (DBAs) for marketing purposes only and approved Williams’ use of Mid-Atlantic Financial and Williams Investment Group as DBAs. Williams was not permitted to have premiums made payable to him or his DBAs.
Williams admitted that from 2009 to 2015, Williams deceived New York Life and its customers, and fraudulently obtained more than $2.8 million. At Williams’ direction, customers paid money to entities with bank accounts that Williams controlled, including Advanced Retirement Solutions, Jonathan Williams Financial Planning, and Mid-Atlantic Financial. Williams used the victim funds to make cash withdrawals, to pay personal and business expenses, to pay employees, to take vacations, and other miscellaneous expenses.
For example, Williams misrepresented to one small business that he was creating a defined benefit plan for the company’s employees by purchasing life insurance, long-term policies, and other investments. In 2015, after more than five years, the business learned that Williams never created the defined benefit plan. In addition to the money that he took from the business, Williams caused New York Life and the small business to incur substantial costs to recreate the benefit plan and avoid arduous tax consequences stemming from Williams’ illegal conduct.
Further, Williams admitted that he provided fake certificate of deposit account statements to another victim, but never invested the client’s money. That victim lost more than $350,000. A third victim, who had spent more than 30 years in the U.S. Navy, invested $100,000 with Williams, supposedly for Williams to establish investment accounts with Fidelity. Williams lied to the victim in e-mails, claiming that the victim’s money was invested with Fidelity. In fact, an account was never created for the victim at Fidelity and Williams used the victim’s money for his personal enrichment.
In March 2015, Williams provided phony bank records to New York Life after officials questioned Williams about his financial transactions with New York Life customers. Even after he lost his license to sell insurance in May 2015, Williams continued to mislead clients, telling one client in July 2016 that he was leaving New York Life to work for another company. New York Life subsequently terminated Williams’ employment and paid to settle with the victims of Williams’ fraud who suffered financial losses stemming from his illegal conduct.
Williams faces a maximum sentence of 20 years in prison for wire fraud. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for August 7, 2019 at 9:30 a.m.
United States Attorney Robert K. Hur commended the U.S. Postal Inspection Service for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Harry M. Gruber and Tamera L. Fine, who are prosecuting the case.
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Terrell Sivells, a Leader of Violent West Baltimore Gang, Sentenced to Life in Prison for Federal Racketeering and Drug Conspiracy Charges, Including Murders and Witness IntimidationRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Terrell Sivells, a/k/a Rell, age 27, of Baltimore, to life in prison, followed by 10 years of supervised release, for conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG). The racketeering conspiracy included eight murders—one committed by Sivells—as well as drug trafficking. Sivells and his co-defendants were also convicted of conspiracy to distribute and possess with intent to distribute heroin, marijuana, and cocaine. A federal jury convicted Sivells and seven co-defendants on October 31, 2018.
The sentencing 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; Acting Special Agent in Charge Jennifer Moore of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Marilyn J. Mosby.
“Terrell Sivells and his brother, Montana Barronette, led one of the most violent gangs operating in Baltimore City. Sivells personally participated in at least one murder and was a leader in the gang’s drug dealing,” said U.S. Attorney Robert K. Hur. “He and his fellow gang members terrorized the Sandtown neighborhood in order to profit from the drug trade. As a result of today’s sentence, justice has been served. Federal, state and local law enforcement will continue to work together to remove armed, violent criminals from our neighborhoods and bring them to justice in the federal system, which has no parole—ever.”
According to the evidence presented at their 24-day trial, Sivells and his co-defendants are all members of TTG, a criminal organization that operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery, and witness intimidation. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The evidence at trial showed that Terrell Sivells and Montana Barronette served as the leadership for TTG. Members and associates of TTG sold heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory.
Specifically, the evidence proved that between May 20, 2010 and January 9, 2017, Sivells, his co-defendants, and other members of TTG committed acts of violence, including eight murders, shootings, armed robbery, and witness intimidation. Sivells was convicted of personally participating in at least one murder. The violent acts were intended to further the gang’s activities, protect the gang’s drug territory, and maintain and increase a member’s position within the organization. Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as in murder-for-hire schemes. Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.
Montana Barronette, a/k/a Tana, and Tanner, age 23, of Baltimore, was sentenced to life in prison on February 15, 2019. Co-defendant Brandon Wilson, a/k/a Ali, age 24, also of Baltimore, was sentenced to 25 years in prison on March 1, 2019. Two other co-defendants, John Harrison, a/k/a Binkie, age 28, and Linton Broughton, a/k/a Marty, age 25, both from Baltimore, were sentenced to life in prison and to 30 years in prison, respectively, on March 15, 2019.
The remaining defendants convicted at the trial are all from Baltimore, and face a maximum sentence of life in prison on the racketeering and drug conspiracies. They include: Taurus Tillman, a/k/a Tash, age 29, of Baltimore; Dennis Pulley, a/k/a Denmo, age 31; and Timothy Floyd, a/k/a Tim Rod, age 28. The defendants remain detained.
Three other TTG members previously pleaded guilty and were sentenced to between five and 25 years in prison. Another defendant, Roger Taylor, a/k/a Milk, is a fugitive.
The investigation was conducted by the FBI Baltimore Safe Streets Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County, and Anne Arundel County Police Departments. FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
This case 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. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI, the Baltimore Police Department, the ATF, the DEA, the Anne Arundel County Police Department, and the Office of the State’s Attorney for Baltimore City, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Daniel C. Gardner, Christopher J. Romano, and Special Assistant U.S. Attorney John C. Hanley formerly of the Justice Department’s Organized Crime and Gang Section, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Maryland MS-13 Gang Member Sentenced to 35 Years in Federal Prison for a Violent Racketeering Conspiracy, Including MurderRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Oscar Ernesto Delgado-Perez, a/k/a “Complicado” and “Indio,” age 26, of Gaithersburg, Maryland today to 35 years in federal prison, followed by five years of supervised release, for conspiring to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
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; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Acting Chief Russell E. Hamill, III of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; and Montgomery County State’s Attorney John McCarthy.
“We will not tolerate the violence perpetrated by MS-13 in Maryland,” said U.S. Attorney Robert K. Hur. “Today’s sentence 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 commit these heinous crimes.”
“The most foundational tenets of MS-13 rest on unadulterated evil,” said Acting Special Agent in Charge Cardell T. Morant, HSI Baltimore. “Our investigators will not stand for this or any other transnational criminal organization living and operating here without detection and, ultimately, consequence.”
MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively 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 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.”
According to his plea agreement, beginning before June 2016, Delgado-Perez was a member of the Sailors clique of MS-13. Delgado-Perez admitted that he conspired with other MS-13 members and associates to participate in numerous acts in furtherance of the racketeering conspiracy, including extortion and murder.
As detailed in his plea agreement, in 2016 in the area of Gaithersburg, Maryland, Delgado-Perez, distributed illegal drugs for the gang, including marijuana and cocaine.
According to his plea agreement, on June 15 and June 16, 2016, Delgado-Perez, along with other MS-13 members and associates, planned and conspired to murder an individual, whom they believed to be a member of the rival 18th Street gang. On June 16, 2016, as part of the plan to murder the victim, a female MS-13 co-conspirator lured the victim to a wooded area within the Malcolm King Park in Gaithersburg, Maryland. While the victim was with the female co-conspirator in the park, Delgado-Perez and another co-conspirator attacked the victim, stabbing the victim multiple times with knives, with the intention of killing him. Two other MS-13 co-conspirators also took part in the attack, and stabbed the victim, who died as a result of the attack. According to the autopsy report, the injuries to the victim included approximately 153 sharp force injuries consisting of stab wounds, puncture wounds and cutting wounds.
Co-defendants Jose Augustin Salmeron-Larios, a/k/a “Joseph Morales-Martinez,” “Angel Salvador Gutierrez,” “Yankee,” and “Kean,” age 26, of Severn, Maryland; Juan Carlos Espinal-Rapalo, a/k/a “Chiki,” age 21; Daniel Adonai Ramos-Romero, a/k/a “Romero Taylor Binga,” “Taylor Romero,” and “Binga,” age 22; and all of Gaithersburg, Maryland, have pleaded guilty to the racketeering conspiracy and other charges related to their MS-13 gang activity. They remain detained as they await sentencing.
Co-defendants Noe Coreas-Mejia, a/k/a “Tsunami,” age 22, of Hyattsville, Maryland and Kevin Henriquez-Chavez, a/k/a “Loco” and “Crazy,” age 24, of Washington Grove, Maryland, also pleaded guilty to the racketeering conspiracy and were sentenced to 33 years and 30 years in federal prison, respectively.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the DEA; HSI Baltimore, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s County State’s Attorney’s Office, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur also recognized the Gaithersburg Police Department, the Montgomery County and Prince George’s County Departments of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Hur thanked Assistant United States Attorneys William D. Moomau, Ray D. McKenzie, Catherine K. Dick, and Burden H. Walker who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Former Philadelphia Police Officer Sentenced to 9 Years in Federal Prison for Conspiring with Former Baltimore Police GTTF Detective to Distribute Heroin and Other NarcoticsRead the Press Release
Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced former Philadelphia Police officer Eric Troy Snell, age 34, of Philadelphia, Pennsylvania, today to nine years in federal prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and cocaine. On November 1, 2018, after three days of trial, Snell admitted that he conspired with former Baltimore Police Gun Trace Task Force (GTTF) Detective Jemell Rayam and others to sell heroin and cocaine seized by GTTF members.
The sentence 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.
“The community needs to know that when we have evidence of wrongdoing, we will follow that evidence and prosecute you--whether you wear a badge or not,” said Maryland U.S. Attorney Robert K. Hur. “Prosecuting law enforcement officers is painful, but necessary if we are to restore the public’s trust in our justice system. No one is above the law.”
According to court documents and statements at his plea hearing today, Snell is a former Baltimore Police Department (BPD) Officer, who received his training at the Baltimore Police Academy with Jemell Rayam, a former Detective with the BPD Gun Trace Task Force. Snell left the BPD in March 2008, and became an officer in the Philadelphia Police Department on September 29, 2014.
Snell admitted that from at least October 2016 through June 26, 2017, he conspired with Rayam and others to sell heroin and cocaine seized by members of the BPD in Maryland. On October 3, 2016, GTTF Sergeant Wayne Jenkins, Rayam, and other detectives, engaged in a high-speed police chase of G.H. G.H. threw nine ounces of cocaine out of the window of his vehicle before crashing near Mondawmin Mall in Baltimore. The BPD officers retrieved the cocaine and Jenkins told Rayam to sell most of the cocaine and give Jenkins the proceeds of the sale, which Rayam agreed to do.
On October 18, 2016, after learning about the cocaine from Rayam, Snell asked Rayam to give him the cocaine that was stolen from G.H. and not submitted as evidence to BPD. Rayam agreed and on October 20, 2016, traveled to Philadelphia to meet Snell at his residence. Ryam provided the cocaine to Snell, who made arrangements to meet with Snell’s brother, who would sell the cocaine for Snell and Rayam. Later that day. Snell, Rayam, and Snell’s brother met and discussed: the sale of the cocaine; the price the cocaine should be sold for; the amount of money that Snell’s brother would pay Snell after the sale of the cocaine; and the amount of money that Snell would pay Rayam after the sale of the cocaine. On October 23, 2018, Rayam and Snell agreed that Rayam would provide Snell with heroin for Snell to sell and distribute.
Snell admitted that he communicated with Rayam on October 27, 2016, to advised that Snell had received “2K” ($2,000) from the sale of illegal drugs and subsequently deposited $1,000 into Rayam’s bank account. Snell met Rayam several other times to coordinate the drug trafficking and exchange drugs and cash. Snell admitted that he paid Rayam on subsequent occasions for drug proceeds, including making a $2,500 deposit into Rayam’s bank account.
Following Rayam’s arrest on June 26, 2017, Snell spoke with Rayam on the recorded phone system in place at the jail where Rayam was detained. Snell instructed Rayam to “say less” on the recorded jail phones so that law enforcement would not detect their illegal drug trafficking.
On November 14, 2017, Snell was arrested and transported to Baltimore for his initial appearance. During the transport, Snell admitted that he lied to FBI agents when he told them that the payments he made to Rayam were for the repayment of a gambling debt, when in fact, the payments were for drugs he received from Rayam.
During a search of Snell’s residence on November 14, 2017, law enforcement recovered a box in which Snell stored items containing cocaine residue, next to a package of razor blades that were used to cut and process narcotics for distribution, as well as .40-caliber and 9 mm handgun ammunition. From the master bedroom, law enforcement recovered Snell’s Philadelphia Police Department service weapon, a 9 mm handgun, as well as a 40-caliber handgun, and two unregistered short-barrel assault rifles.
Snell admits that the amount of narcotics reasonably foreseeable to him in furtherance of the conspiracy is the equivalent of at least 100 kilograms of marijuana.
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 Leo J. Wise, who prosecuted these Organized Crime Drug Enforcement Task Force cases.
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Delaware Man Sentenced to 12 Years in Federal Prison for Conspiring to Commit Sex Trafficking of a 15-Year-Old GirlRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Harry E. Rivers, a/k/a “Hakeem” and “Pots,” age 29, of Delaware, today to 12 years in federal prison, followed by five years of supervised release, for conspiracy to commit sex trafficking of a child.
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.
“When an adult profits from sex with a child, that is human trafficking, period,” said Maryland U.S. Attorney Robert K. Hur. “Adults, like Harry Rivers, who encourage or profit from sexual exploitation of children face lengthy terms in federal prison, where there are no suspended sentences and no parole.”
According to his plea agreement, Rivers conspired with co-defendants Steven M. Williams and Jessica L. Schaefer to traffic a 15-year-old girl to engage in commercial sex acts. According to Rivers’ Williams’ and Schaefer’s plea agreements, Schaefer and the victim, Girl 1, engaged in commercial sex acts with men in Delaware. 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 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 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 to her in a threatening manner.
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. Rivers, Williams, and Schaefer 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.
Steven M. Williams, a/k/a “Brother Ray”, a/k/a “Ray,” age 39, formerly of Delaware, previously pleaded guilty to sex trafficking of a child by force, fraud, and coercion, and is scheduled to be sentenced on May 17, 2019. Jessica L. Schaefer, a/k/a “Tutti,” age 24, of Pennsylvania, pleaded guilty to conspiracy to commit sex trafficking of a child and is scheduled to be sentenced on June 6, 2019. Williams and Schaefer face a maximum sentenced of life in prison.
As part of their plea agreements, the defendants will be required to register as sex offenders in the places where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (SORNA).
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, the Elkton Police Department, 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 work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Patricia C. McLane and Zachary A. Myers, who are prosecuting the case.
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Baltimore Felon Sentenced to 16 Years in Federal Prison for Committing a Carjacking at GunpointRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Jonathan Thompson, age 25, of Baltimore, Maryland, to 16 years in prison, followed by five years of supervised release for carjacking and for brandishing a firearm in furtherance of a crime of violence. The sentence was imposed on April 25, 2019.
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.
“Jonathan Thompson used a gun to commit a carjacking and now faces the reality of 16 years spent in a federal prison with no suspended sentences and no parole - ever,” said U.S. Attorney Robert K. Hur. “Local, state, and federal law enforcement will not tolerate this type of gun crime that terrorizes our streets. We are committed to identifying and prosecuting armed criminals to make our communities safer. To those who would do as this defendant did, I say, please put down the gun. You will save a life—maybe even your own.”
According to Thompson’s guilty plea, the victim was sitting in her vehicle at the intersection of Ednor and Lakeside Avenues in Baltimore. Thompson approached the vehicle and ordered the victim out of the vehicle at gunpoint. Thompson then got into the driver’s side of the vehicle and co-defendant Dominique Chase got into the passenger side of the vehicle and Thompson drove away. Several minutes later Thompson and Chase switched seats, and Chase continued driving away from the location.
The victim called 911, then spoke with Baltimore Police Department (BPD) officers. BPD officers located the vehicle later that day. Chase surrendered to police, but Thompson ran away and hid a loaded firearm as he ran. Several minutes later, officers located Thompson hiding behind a garbage can and arrested him. The officers also recovered the firearm that Thompson had hidden.
At the time that Thompson committed this carjacking, he was on probation from a state sentence for robbery with a deadly weapon. Thompson was released from prison at the end of October 2017. As a condition of his probation, Thompson was wearing a GPS ankle monitor at that time, which electronically tracked Thompson’s location and corroborated Thompson’s movements during the carjacking.
Dominique Chase, age 25, of Baltimore, previously pleaded guilty to carjacking, and faces a maximum of 15 years in federal prison. Both defendants remain detained.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Anatoly Smolkin, who are prosecuting the case.
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Baltimore City Felon Sentenced to 11 Years in Federal Prison for Possession with Intent to Distribute Narcotics and for Illegal Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Allen Johnson, age 38, of Baltimore City, Maryland, to 11 years in federal prison, followed by five years of supervised release, for possession with intent to distribute narcotics and for possession of a firearm in furtherance of drug trafficking. The gun discharged while Baltimore City Police Officers were placing Johnson into custody. Johnson was also prohibited from possessing a firearm due to previous felony convictions. The sentence was imposed on April 25, 2019.
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 City Police Department.
“This officer, like all law enforcement officers, put his life on the line in order to make our community safer,” said United States Attorney Robert K. Hur. “All too often, guns and drugs go hand in hand—and both are killers. We are committed to working with our law enforcement partners to get both off of our streets and to reduce violent crime in our neighborhoods.”
According to Johnson’s plea agreement, on November 29, 2017, Baltimore City Police officers were on patrol in the Cherry Hill/Brooklyn neighborhoods when they received information that an armed man was in the 800 block of Bridgeview Avenue and had the firearm hidden in his waistband. Police officers responded to the 800 block of Bridgeview Avenue and observed a man matching the description they had been provided, who was later identified as Johnson. As the officers approached Johnson they asked Johnson to show his hands. One of the officers asked Johnson if he possessed a firearm, and Johnson turned away and reached for his waistband. Johnson attempted to flee, and the officer grabbed Johnson from behind. With the officer’s arms wrapped around him, Johnson continued to reach for his waistband. As the officer struggled with Johnson, the firearm discharged, shooting the officer in the wrist. An officer deployed his Taser and subdued Johnson, who was handcuffed and placed under arrest.
A search of Johnson after his arrest recovered 19 vials of cocaine and $80 in cash. Johnson admitted that he intended to distribute the cocaine.
United States Attorney Robert K. Hur commended the ATF and the Baltimore City Police Department for their work in the investigation. Mr. Hur thanked Assistant United States Attorneys John W. Sippel, Jr., Patricia C. McLane, and Lindsey McCulley, who prosecuted this case.
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New Jersey Man Pleads Guilty to Federal Charges for $3.5 Million Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – Mehul Khatiwala, age 37, of Voorhees, New Jersey, pleaded guilty today to conspiracy to commit bank fraud and to three counts of bank fraud, in connection with a scheme to fraudulently obtain loans from Cecil Bank to purchase hotels and a multifamily residential property, resulting in losses of more than $3.5 million.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Robert Manchak of the Federal Housing Finance Agency (FHFA), Office of Inspector General; Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation (FDIC); Special Inspector General Christy Goldsmith Romero of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and Inspector General Hannibal “Mike” Ware of the Small Business Administration - Office of Inspector General.
“Mehul Khatiwala and his co-conspirators submitted false statements and fraudulent documentation in order to obtain more than $15 million in loans from Cecil Bank, much of which was guaranteed by the SBA.” said U.S. Attorney Robert K. Hur. “The defendants used deceit to steal millions of dollars from the victims, which ended up including not only the bank but the American taxpayers. Federal law enforcement are committed to prosecuting and deterring this type of costly fraud.”
According to his plea agreement, from February 2011 through January 2014, Khatiwala and two co-conspirators executed a scheme to defraud Cecil Bank, the Small Business Administration (SBA), and other financial institutions by misrepresenting material facts in order to obtain financing for the purchase of two hotels and a multifamily residential property. The defendant defaulted on the loans, causing losses to Cecil Bank and the SBA of more than $3.5 million. According to the indictment and information presented at today’s plea hearing, on December 23, 2008, Cecil Bank’s holding company, Cecil Bankcorp, Inc., received an $11.5 million bailout from the Troubled Asset Relief Program (TARP).
Specifically, beginning in approximately April 2011, Khatiwala and Conspirator A made plans to apply for a $5 million loan at Cecil Bank to purchase the Memphis Airport Hotel in Memphis, Tennessee, as well as a $1.6 million loan to renovate that hotel. In order to obtain a loan, Khatiwala concealed Conspirator A’s 80% ownership of the borrowing entity because Conspirator A had already reached his legal lending limit at Cecil Bank. In May 2011, Cecil Bank’s Board of Directors approved the $5 million loan, with the condition that it be guaranteed by the SBA. The SBA required Khatiwala, as the purported 100% owner of the borrowing entity, to show that he had equity in the borrowing entity, or cash on hand of approximately $1.8 million. Conspirator B, who was an employee at another bank, falsely verified that Khatiwala had over $2 million on deposit at the co-conspirator’s bank. Khatiwala admitted that he signed and submitted this statement, which he knew to be false. The SBA approved its 75% guarantee of the $5 million loan funded by Cecil Bank. The loan went into default in January 2015.
Khatiwala and others owned the Best Western Hotel in York, Pennsylvania. In 2007, they refinanced a loan for this property in the amount of $6.635 million. In early 2010, Khatiwala and his co-owners became delinquent on the loan and began discussions with the loan servicing company. In August 2011, Khatiwala reached an agreement with the loan servicer to accept a discounted payoff of $3.625 million on the unpaid principal balance of approximately $6.6 million. Khatiwala submitted fraudulent documentation and a fraudulent settlement statement to the loan servicer showing that the funds were being provided by a private lender. In fact, Khatiwala had arranged for the sale of the hotel to related parties for the sum of $4.3 million. As early as April 2011, prior to the time the defendant made the misrepresentations to the loan servicer to negotiate the payoff, he began implementing the second step of his short-sale fraud scheme by arranging the sale of the hotel to Person B and one of Khatiwala’s employees. Khatiwala fraudulently obtained a $3.225 million loan from Cecil Bank, which was guaranteed by the SBA. During the loan application review and underwriting process performed by Cecil Bank and the SBA, Khatiwala submitted false documents as to the ownership of the selling and purchasing entities, as well as false financial statements for the purchasers. Khatiwala knew that the funds paid at closing would come from Khatiwala’s own personal bank account and other businesses, not from the purchasers, as was falsely represented to the bank and the SBA, in order to obtain approval of the loan. As a result of this short-sale fraud, the original holder of the note on the Best Western Hotel lost $675,000, which instead went to Khatiwala.
Finally, Khatiwala admitted that beginning in February 2011, he negotiated the purchase of a multifamily residential property in Perryville, Maryland. In order to obtain the loan, he established a company to serve as the borrowing and purchasing entity, representing to Cecil Bank that Persons A and B, a husband and wife, were the 100% owners of the company, and Khatiwala was the manager. In fact, Conspirator A owned 50% of the company and agreed to serve as guarantor on the loan. The bank approved a $7,122,500 loan for the purchase of the property with Persons A and B as the 100% owners of the purchasing entity. On about March 28, 2011, several days before settlement, Khatiwala e-mailed to Conspirator A an Amended and Restated Operating Agreement reflecting Conspirator A’s 50% interest in the property and his agreement to indemnify Persons A and B for any loss, cost, liability or expense arising in connection with any enforcement of Cecil Bank’s rights under the loan guarantee agreement. Khatiwala, Conspirator A, and Persons A and B signed the Amended Agreement; however, that material fact and document were never disclosed to Cecil Bank before or after the settlement, thus concealing Conspirator A’s ownership interest in the property. As early as February 2012, the loan payments of approximately $29,000 per month became delinquent and the loan went into default. Cecil Bank ultimately sold the note to a private lender for $3.252 million in lieu of foreclosure, incurring a loss of $3,583.170.
Khatiwala faces a maximum sentence of 30 years in prison on each of the four counts. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 10, 2019, at 2:30 p.m.
United States Attorney Robert K. Hur commended the FHFA, the FDIC, SIGTARP, and the SBA-OIG, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the case.
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Two Chinese Nationals Facing Federal Indictment for Conspiracy to Traffick in Counterfeit Goods and Mail FraudRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Xiaoying Xu, age 34, a Chinese citizen, and Yiwen Zhu, age 34, a Chinese citizen and legal permanent resident of the United States, both residing in Covina, California, on a federal conspiracy charge, mail fraud, and trafficking in counterfeit goods. The indictment was returned on April 23, 2019, and the defendants were arrested today.
The indictment 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; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Casey Durst, Director of Field Operations, U.S. Customs and Border Protection - Baltimore Field Office.
“These defendants allegedly imported counterfeit goods from China and sold them as legitimate merchandise using the registered trademarks of legitimate companies.” said U.S. Attorney Robert K. Hur. “Those who traffick in counterfeit goods are committing a crime which results in American jobs lost, American business profits stolen, and American consumers tricked into receiving substandard products.”
According to the 13-count indictment, from about August 2016 until approximately April 2019, Xu and Zhu conspired with others to defraud e-commerce customers by importing and selling counterfeit consumer goods, specifically Pandora jewelry and Ray-Ban sunglasses. The indictment alleges that the defendants used their residence and offices in El Monte and Alhambra, California, as destination points for shipments of counterfeit goods shipped from Hong Kong and China. Xu and Zhu allegedly repackaged the counterfeit goods, then mailed them to unsuspecting customers throughout the United States who believed they had purchased authentic goods.
The defendants allegedly used fraudulent accounts set up with e-commerce marketplace companies to sell the counterfeit goods, misrepresenting to customers that they were authentic. Xu and Zhu obtained funds from the victims of the counterfeit scheme through fraudulently acquired customer accounts opened in the names of other people at a global online payment company. The online payment company sent the victims’ money to Xu and Zhu by electronic transfer to bank accounts or by check, which the defendants then cashed at ATMs. The indictment alleges that the defendants then transferred the proceeds of the scheme from their bank accounts to other bank accounts opened in the names of other Chinese nationals.
If convicted, the defendants face a maximum sentence of five years in prison for conspiracy to commit mail fraud and traffick in counterfeit goods; a maximum of 20 years in prison for each of six counts of mail fraud; and a maximum of 10 years in prison for each of six counts of trafficking in counterfeit goods. The defendants are expected to have an initial appearance in U.S. District Court in the Central District of California. No court appearance has been scheduled yet in Maryland.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI, HSI, U.S. Postal Inspection Service, and U.S. Customs and Border Protection, in Maryland and in Los Angeles, California; Seattle, Washington; and Tampa, Florida for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Peter J. Martinez, who are prosecuting the case.
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Carroll County Felon Pleads Guilty to Illegal Possession of Firearms and to Witness RetaliationRead the Press Release
Baltimore, Maryland –Jason Kiser, age 40, of Taneytown, Maryland, pleaded guilty today to the federal charges of illegal possession of firearms and witness retaliation. Kiser admitted that he burned the vehicle of an individual in retaliation for that person providing information to law enforcement concerning Kiser’s illegal possession of firearms.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Baltimore Field Division; Carroll County Sheriff James T. DeWees; and Maryland State Fire Marshal Brian S. Geraci.
“We take witness tampering and witness retaliation very seriously,” said U.S. Attorney Robert K. Hur. “Those who tamper with or retaliate against a witness will face federal prosecution and federal prison, where there is no parole—ever.”
According to his plea agreement, on May 8, 2018, Kiser went to a gunsmithing store in Taneytown, Maryland, which was located in a building next to the owner’s home. The store was in the process of moving to a new location on West Baltimore Street in Taneytown. Kiser asked the owner if he could take the parts from a firearm that Kiser had brought into the store with him, and place them on a stripped receiver that Kiser planned to obtain from another store. The owner of the store knew Kiser and believed that Kiser had previously been convicted of theft of a motor vehicle and possibly other crimes and was therefore prohibited from possessing firearms or ammunition. On May 9, 2018, an ATF investigator conducted a compliance check at the gunsmithing store and the owner advised the investigator of Kiser’s request. The ATF investigator opened a criminal investigation of Kiser.
On May 10, 2018, Kiser arrived at the gunsmithing store’s new location on West Baltimore Street in Taneytown, and provided the owner with an AR-556 rifle; a PWA, Model Commando receiver; and a Model A-15 receiver. Kiser asked the owner to place a forward grip on the AR-556 rifle and take the parts off of the PWA Commando and place them on the A-15 receiver. In coordination with investigators, on May 11, 2018, the owner advised Kiser that the firearms were ready. Law enforcement arrested Kiser as he walked towards the store. Kiser was charged in the Circuit Court for Carroll County with illegal possession of firearms. In the charging documents, the officer identified the store owner as a witness.
In the early morning hours of July 17, 2018, the store owner awoke at his house to the sound of a car horn. The store owner looked out of his bedroom window and saw his vehicle, which was parked in the carport adjacent to his residence, on fire. Firefighters extinguished the fire and called Maryland State Fire Marshals to determine the cause of the fire. Investigators located a glove from behind the carport and recovered a Folger’s plastic can cover and bolt cutters from next to the driveway. They also recovered pieces of burned debris from the vehicle. DNA evidence recovered from the glove and bolt cutters revealed a high stringency match to Kiser’s DNA, which was submitted to the Combined DNA Index System (CODIS) during Kiser’s previous arrests. Investigators categorized the fire as an arson, based on the DNA evidence.
Kiser and the government have agreed that, if the Court accepts the plea, Kiser will be sentenced to between eight and 10 years in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for August 7, 2019, at 11:00 a.m. Kiser remains detained.
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 Carroll County Sheriff’s Office, and the Office of the Maryland State Fire Marshal for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Patricia C. McLane, who is prosecuting the case.
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Baltimore Felon Sentenced to Nine Years in Federal Prison for Possession with Intent to Distribute Drugs and Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Baltimore, Maryland –U.S. District Judge Ellen L. Hollander sentenced Steven Cole, age 31, of Baltimore, Maryland, today to nine years in federal prison, followed by five years of supervised release, for possession with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
The sentencing 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.
According to his guilty plea, on December 5, 2017, Cole was selling narcotics in the 2400 block of Winchester Street in Baltimore, less than a block from an elementary school and across the street from a baseball field adjacent to the school. Cole carried a revolver-style handgun to facilitate his drug trafficking. Officers observed Cole engaged in what they believed to be a drug transaction. When Cole saw the officers, he fled into the stairwell of a nearby apartment complex. Officers gave chase, with one officer proceeding up the north stairwell and the other officer taking the south stairwell.
The officer in the south stairwell located Cole’s glasses and on the third floor found Cole, a few feet away from the black jacket he had previously been wearing. Cole had placed it on the ground next to a bag of garbage. Cole was arrested and the jacket was secured. Within the jacket was a black fanny pack that contained a .32-caliber revolver, loaded with five rounds of ammunition. Law enforcement searched Cole after his arrest and recovered oxycodone pills, as well as $443 in cash, which was proceeds from his drug sales.
A federal search warrant was subsequently obtained for Cole social media accounts. Law enforcement discovered photos of Cole wearing the jacket recovered in the apartment complex; pictures of Cole handling large amounts of cash; a picture of OxyContin pills; pictures of two handguns; and various gang-related posts.
Cole was prohibited from possessing guns and ammunition as a result of several felony conviction, including two previous convictions for possession with intent to distribute drugs.
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 Paul A. Riley, who prosecuted the case.
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Brazilian Citizens Sentenced to More Than Three Years in Federal Prison for Using Counterfeit Credit Cards to Purchase over $52,000 in Merchandise and for Aggravated Identity TheftRead the Press Release
Baltimore, Maryland –U.S. District Judge Richard D. Bennett sentenced two Brazilian citizens residing in Florida to 40 months each in federal prison, followed by three years of supervised release, on wire fraud charges in connection with a scheme to use counterfeit debit and credit cards to purchase merchandise at various retail stores in Maryland and other states. Lucas Pimenta Diogo Das Gracas, age 23, was sentenced on April 11, 2019, and his co-conspirator, Diogo Miranda Araujo, age 23, was sentenced on April 1, 2019. Judge Bennett ordered the defendants to pay restitution totaling $41,116. Das Gracas was ordered to pay $34,540 and Araujo was ordered to pay $6,576.
The defendants previously pleaded guilty to the wire fraud conspiracy. Araujo also pleaded guilty to aggravated identity theft for his role in the scheme in Maryland. Das Gracas also pleaded guilty to possession of counterfeit access devices and aggravated identity theft in connection with a separate case in the U.S. District Court for the Southern District of Mississippi.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Sung Yi of the U.S. Secret Service, Baltimore Field Office; Special Agent in Charge Raimund Seifart of the Naval Criminal Investigative Service – Washington Field Office; Colonel Lance Royce of the Naval Support Activity Police Department; and Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police.
According to Araujo’s plea agreement, in November 2017, while he was on pretrial release for related Illinois state charges, Araujo traveled from Florida to Maryland, Virginia, and North Carolina, where he used large number of cloned payment cards as well as fake Brazilian identification cards in fraudulent retail transactions in Maryland and the surrounding area. On November 19, Araujo was arrested by a Maryland Transportation Authority Police (“MTAP”) officer who conducted a traffic stop of Araujo’s vehicle and learned that Araujo was driving on a suspended license. A search of the vehicle resulted in the seizure of approximately 164 counterfeit payment cards, four fake Brazilian identification cards displaying the same photo of Araujo but listing four different names, multiple receipts, and several recently purchased items of merchandise, including two laptop computers, six GPS devices, and sports equipment. Merchandise recovered from the vehicle had an approximate total value of $4,355. Most of the counterfeit payment cards displayed names listed among Araujo’s four fake identification cards and were encoded with compromised foreign credit and debit card accounts.
Also in November 2017, Das Gracas, co-conspirator Victor Andrade Carneiro Brito, and another co-conspirator possessed at least 189 counterfeit payments cards, which they used, along with false identification documents, to rent a vehicle and make fraudulent retail purchases in Maryland and surrounding states. Das Gracas and Brito were arrested in Maryland on November 29, 2017, after they and another co-conspirator made numerous purchases of computers and other merchandise using the counterfeit payment cards. Law enforcement stopped the vehicle that Das Gracas was driving. As Das Gracas got out of the vehicle, law enforcement officers observed numerous credit cards inside an open white box on the center console of the vehicle. All 166 cards found in the vehicle were scanned and found to be counterfeit. Most of the cards were encoded with foreign credit and debit card accounts.
Araujo further admitted that from May through July 2017, he traveled from Florida to Minnesota, Ohio, Wisconsin, and Illinois making fraudulent purchases at retailers using counterfeit payment cards. Specifically, co-conspirators in Florida sent Araujo cloned payment cards, which Araujo would pick up at commercial mail service locations and use at retailers in the area. On July 29, 2017, after making a number of fraudulent purchases at an Illinois department store, Araujo was arrested. Illinois law enforcement recovered approximately 197 cloned payment cards and approximately 157 items of merchandise, including cellular phones, small electronics, and other items valued at approximately $48,089. A search of the laptop computer found in Araujo’s luggage revealed an open document listing approximately 432 credit and debit card account numbers with associated data, and an open American Express webpage. Most of the listed credit and debit card accounts were held by financial institutions located in various foreign countries.
In connection with the Mississippi case, Das Gracas further admitted that between October 4 and October 14, 2017, Das Gracas and other co-conspirators possessed and installed “shimmer” devices on automated teller machines at financial institutions in Gulfport, Ocean Springs, Biloxi, Long Beach and D’Iberville, Mississippi. A shimmer device is equipment designed and used to record data surreptitiously from the chip of a credit, debit, or bank card. On October 18, Das Gracas and other conspirators traveled to ATMs in Hattiesburg, Mississippi, to conduct fraudulent cash withdrawals, using the account numbers and personal identification numbers obtained through the use of the previously installed shimmer devices. A total of approximately 82 payment cards were compromised and information associated with 35 of those cards was subsequently used, resulting in losses of approximately $19,235, as well as an additional $11,358 in losses to the financial institutions to repair and replace ATM card readers damaged by Das Gracas and co-conspirators when installing shimmer devices.
Victor Andrade Carneiro Brito pleaded guilty to possession and use of counterfeit access devices and aggravated identity theft in the U.S. District Court for the Southern District of Florida and was sentenced to two years in federal prison.
United States Attorney Robert K. Hur commended the U.S. Secret Service Baltimore and Chicago Field Offices, the NCIS, Navy Police, Maryland Transportation Authority Police, and the St. Charles, Illinois Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who prosecuted the case.
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Baltimore Felon Sentenced to More Than Eight Years in Federal Prison for Illegal Possession of a Stolen FirearmRead the Press Release
Baltimore, Maryland –U.S. District Judge Ellen L. Hollander sentenced Douglas Sparrow, age 35, of Baltimore, Maryland, today to 100 months in federal prison, followed by three years of supervised release, for illegal possession of a stolen firearm.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
United States Attorney Robert K. Hur stated, “We are committed to working with our law enforcement partners to get guns out of the hands of drug dealers and off of our streets, in order to reduce violent crime in our neighborhoods. If you use a gun, you could face federal time, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to his guilty plea, on March 1, 2018, law enforcement executed a search of Sparrow’s residence in Baltimore and recovered a stolen semi-automatic pistol and ammunition in the couch, as well as marijuana that Sparrow planned to distribute. Sparrow possessed the firearm in furtherance of his drug trafficking and knew that the firearm was stolen. Sparrow also had at least two prior felony convictions and was therefore prohibited from possessing firearms or ammunition.
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 Brandon Moore, who prosecuted the case.
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Twenty Defendants Indicted on Federal Racketeering and Related Charges at Maryland Correctional Institute JessupRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted 20 defendants on federal racketeering and related charges at the Maryland Correctional Institute Jessup (MCIJ), including correctional officers, employees, contractors, inmates, and outside “facilitators,” for allegedly paying bribes to correctional officers and other staff members to smuggle contraband, including narcotics, unauthorized flash drives, tobacco, and cell phones into the prison. The indictment was returned on March 28, 2019, and made public today upon the arrest of the defendants.
The indictment 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 Acting Secretary J. Michael Zeigler, of the Maryland Department of Public Safety and Correctional Services.
“Our public officials—including correctional officers and prison staff—must conduct their duties with integrity and professionalism,” said U.S. Attorney Robert K. Hur. “The indictment alleges that prison officials took bribes to smuggle contraband for inmates, and assaulted inmates. Corrupt correctional officers and staff endanger the lives of their co-workers and of the inmates entrusted to their care and supervision, and undermine everyone’s faith in the administration of justice.”
“One of the FBI’s top priorities continues to focus on the detection of corruption,” said FBI Assistant Special Agent in Charge Brian Nadeau. “Today’s arrests are the result of the seriousness the FBI takes regarding unlawful actions conducted by public servants who use their position to enrich themselves.”
“Today’s action brings the number of officers, inmates and citizen accomplices indicted for Maryland prison corruption to close to 200 since Gov. Hogan made it a priority when taking office in 2015,” said Acting Secretary Michael Ziegler of the Maryland Department of Public Safety and Correctional Services. “And we are far from finished in arresting those who cannot live up to their oath to protect the public, our staff and those in our custody.”
According to the indictment, MCIJ was a medium-security prison that housed approximately 1,100 male inmates, with 262 custody staff or Correctional Officers (COs) and 52 non-custody staff, including case management, medical, and administrative staff.
The 11-count indictment alleges that from in or about 2014, until the present, the COs, employees and contractors conspired with the inmates and outside facilitators to smuggle contraband into MCIJ, including narcotics, cell phones, unauthorized flash drives, and tobacco. According to the indictment, inmates and facilitators paid COs, employees, and contractors for smuggled contraband in cash, money orders, Green Dot cards, and using PayPal and other electronic forms of payment. Inmates were able to use contraband cell phones to pay COs, employees, and contractors directly using PayPal from within MCIJ. Inmates also received payments from other inmates for contraband through PayPal and Green Dot, often with the assistance of facilitators.
Specifically, the indictment alleges that the defendants conspired to smuggle and traffic in narcotics within MCIJ, including heroin, fentanyl, cocaine, MDMA (commonly referred to as “molly” or ecstasy), buprenorphine (commonly referred to as “Suboxone,” a prescription opioid used to treat heroin addiction), marijuana and synthetic cannabinoids (otherwise known as “K2”), and other contraband, including cell phones, unauthorized flash drives, and tobacco, in order to expand their criminal operations. The profits made by the inmates by selling contraband in the prison far exceeded the profits that could be made by selling similar items on the street. For example, defendant inmates could purchase Suboxone strips for $10 each and sell them inside MCIJ for $50 each, a profit of more than 1,000 percent.
According to the indictment, although COs and other MCIJ employees were required to pass through security screening at the entrance to MCIJ, the COs, employees, and contractors were able to hide contraband on their persons. Further, the COs, employees, and contractors took breaks during their shifts and returned to their cars to retrieve contraband. Once the COs had the smuggled contraband inside the facility, they delivered it to inmates in their cells; at the medical facility; in the kitchens during routine deliveries; in private offices where inmates and staff interacted; and at pre-arranged “stash” locations, like the library, among other locations. The indictment alleges that defendant inmates who had jobs that allowed them to move throughout the housing unit and elsewhere in the prison, commonly referred to as “working men,” took orders for contraband from inmates, provided orders to corrupt COs, employees, and contractors, and delivered contraband to inmates.
The indictment alleges that defendant COs had sexual relationships with inmates and exchanged sex for contraband. In addition, these sexual relationships allegedly facilitated smuggling and trafficking relationships between COs and inmates.
Finally, the indictment alleges that between 2005 and 2017, CO Owen Nesmith deprived three inmates of their civil rights by sexually assaulting the inmates. In two cases, the indictment alleges that Nesmith threatened the inmates. Specifically, the indictment alleges that Nesmith threatened that Inmate 1 would be subjected to death and serious bodily injury, and threatened to ensure that Inmate 3 would not receive parole because he would falsely allege that Inmate 3 had assaulted Nesmith. When questioned by law enforcement, the indictment alleges that Nesmith falsely stated that he had never brought drugs into the prison, sold drugs, or had any inappropriate relationships or sexual contact with any inmates while he was at MCIJ.
If convicted, nineteen defendants face a maximum sentence of 20 years in prison for racketeering. Nine defendants face up to 20 years in prison for conspiracy to distribute and possess with intent to distribute drugs; and three defendants up to 20 years in prison for possession with intent to distribute controlled substances. In addition, Nesmith faces a maximum of life in prison for deprivation of rights under color of law for threatening death or serious bodily injury, and one year in prison for the other two counts; and a maximum of five years in prison for making false statements.
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 proceeding. The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the MCIJ investigation and have been full partners in this investigation.
United States Attorney Robert K. Hur commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Lauren E. Perry and Sean R. Delaney, who are prosecuting this case.
MCIJ Indictment Defendants
Correctional Officers/Employees:
Owen Nesmith, Correctional Officer Lieutenant, age 50, of Baltimore;
Patricia McDaniel, Correctional Dietary Officer, age 26, of Baltimore;
Janel Griffin, Correctional Officer, age 40, of Baltimore;
Robert Doggett, Case Manager Employee, age 53, of Baltimore;
Ricky McNeely, Contract Exterminator, age 39 of Baltimore; and
Joseph Nwancha, Contract Nurse, age 39, of Baltimore.Inmates:
Corey Alston, a/k/a C, age 29;
Jerrard Bazemore, a/k/a Tic, age 34;
Irving Hernandez, a/k/a Irvin, age 25;
Todd Holloway, a/k/a J, age 34;
Schvel Mack, a/k/a Weezy, and L Weezy, age 29;
Larnell Megginson, a/k/a Julio, age 38; and
Tavon Price, a/k/a Tay, age 35.Facilitators:
Aldon Alston, age 55, of Baltimore;
Ashley Alston, age 28, of Baltimore;
Tyirisha Johnson, age 23, of Baltimore;
Jamia Lawson, a/k/a Mia, age 27, of Baltimore;
Jerrell McNeill, a/k/a Rell, age 35, of Baltimore;
India Parker, age 33, of Parkville, Maryland; and
Lekeah Pendleton, a/k/a Keah, age 40, of Catonsville, Maryland.# # #
Maryland Man Sentenced to Nine Years in Federal Prison for Distribution of Child PornographyRead the Press Release
A Laurel, Maryland, man was sentenced to nine years in prison today, to be followed by 25 years of supervised release for distribution of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Robert K. Hur of the District of Maryland.
Charles Bertsch, 60, a former security guard at a local university, pleaded guilty to one count of distribution of child pornography before U.S. District Court Judge Paul W. Grimm on July 23, 2018.
According to admissions made as part of his guilty plea, FBI Task force agents in Maryland began an investigation into Bertsch after various law enforcement agencies downloaded child pornography via a peer-to-peer network from IP addresses, which led back to the defendant. In an interview with law enforcement, Bertsch acknowledged that by connecting his computer and downloading such images, he was simultaneously enabling others to download child pornography from his hard drive. A forensic examination of Bertsch’s electronic devices, seized pursuant to a search warrant, revealed over 99,000 image files and over 2,000 video files of child pornography.
The investigation was conducted by the FBI’s Baltimore Field Office with assistance from the Baltimore County Police Department, Washington County Sheriff's Office and Worcester County Sheriff's Office. This case is being prosecuted by Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Joseph Baldwin of the District of Maryland.
This case was brought as 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<http://www.justice.gov/psc.
Laurel Man Sentenced to Nine Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm today sentenced Charles Bertsch, age 60, of Laurel, Maryland, to nine years in federal prison, followed by 25 years of supervised release, for distribution of child pornography. Judge Grimm also ordered that, upon his release from prison, Bertsch must register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; Washington County Sheriff Douglas W. Mullendore; and Worcester County Sheriff Matthew Crisafulli.
According to Bertsch’s plea agreement, FBI Task Force agents in Maryland began an investigation into Bertsch after various law enforcement agencies downloaded child pornography via a file-sharing network from IP addresses that led back to Bertsch. In a subsequent interview with law enforcement, Bertsch acknowledged that by connecting his computer and downloading such images, he was simultaneously enabling others to download child pornography from his hard drive. A forensic examination of Bertsch’s electronic devices, seized pursuant to a search warrant, revealed more than 99,000 image files and more than 2,000 video files of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Baltimore County Police Department, the Washington County Sheriff's Office, and the Worcester County Sheriff’s Office for their work in the investigation. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorney Joseph Baldwin and Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), who prosecuted the federal case.
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Cardiac Associates, P.C. Agrees to Pay the United States over $399,000 to Settle False Claims Act Allegations Relating to Improper Billing PracticesRead the Press Release
Baltimore, Maryland – Cardiac Associates, P.C. has agreed to pay $399,230.35 to settle claims that they submitted false claims to the United States for services not rendered. Cardiac Associates, P.C. is a medical practice with offices located in Rockville, Olney, Laurel and Germantown, Maryland.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur and Maureen Dixon, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services.
According to the settlement agreement, the United States contends that from January 1, 2012 through December 21, 2016, Cardiac Associates billed for two similar procedures on the same date for the same patient, when only one of the procedures was actually performed.
Specifically, Cardiac Associates, P.C. administered tests to patients to assess the venous sufficiency in the lower extremities. As part of this process, they performed a venous Doppler duplex examination to determine if there were blood flow issues, including deep vein thromboses, in the patient’s legs. They billed Medicare under CPT 93970 for this work.
Billing records showed that Cardiac Associates, P.C. billed for an additional test using CPT 93965, which references an older, different technology, one that has generally been replaced by the CPT 93970 technology. The United States contends that billing both CPT codes 93965 and 93970 was improper and led to the submission of false claims to the Medicare and Medicaid programs.
The claims resolved by this settlement are allegations only. The settlement is not an admission of liability by Cardiac Associates, P.C., nor a concession by the United States that its claims are not well founded.
U.S. Attorney Robert K. Hur thanked Assistant United States Attorney Allen Loucks and Investigator Steve Capobianco, who handled the case.
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