District of Maryland
Press releases recorded for this federal judicial district.
Military Employee Charged with Child Pornography OffensesRead the Press Release
A military employee who resided in Maryland before moving to Japan in November 2017 has been arrested and indicted for the production, transportation, and possession of child pornography.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephen M. Schenning of the District of Maryland and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office made the announcement.
Spencer E. Steckman, 34, who lived in Silver Spring, Maryland at the time the alleged conduct began, was charged in an indictment on March 26, with one count of production of child pornography, one count of transportation of child pornography, and one count of possession of child pornography. Steckman had his initial court appearance earlier today and was remanded into the custody of the U.S. Marshals Service.
According to the indictment, between Aug. 17, 2017, and Sept. 22, 2017, while in Maryland, Steckman enticed a minor to engage in sexually explicit conduct for the purpose of producing child pornography. In mid-November 2017, Steckman moved to Japan to work with Commander Navy Region Japan. In Japan, Steckman transported and possessed child pornography.
Steckman was detained by the Naval Criminal Investigative Service (NCIS) in Japan on March 27, and transported back to Maryland by the U.S. Marshals Service on April 1, to appear before the U.S. District Court for the District of Maryland.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Baltimore Field Division and the Maricopa County, Arizona, Sheriff’s Office are investigating the case, with substantial assistance from NCIS. Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Joseph Baldwin of the District of Maryland are prosecuting the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Military Employee Charged with Child Pornography OffensesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Spencer E. Steckman, 34, of Silver Spring, Maryland for the production, transportation, and possession of child pornography. The indictment was returned on March 26, 2018, and unsealed upon the arrest of the Steckman.
The indictment was announced by Acting United States Attorney Stephen M. Schenning of the District of Maryland; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Special Agent in Charge Gordon B. Johnson of the FBI - Baltimore Field Office.
Steckman was charged with one count of production of child pornography, one count of transportation of child pornography, and one count of possession of child pornography. Steckman had his initial court appearance earlier today and was remanded into the custody of the U.S. Marshals Service.
According to the indictment, between August 17, 2017, and September 22, 2017, Steckman, while in Maryland, enticed a minor to engage in sexually explicit conduct for the purpose of producing child pornography. In mid-November 2017, Steckman moved to Japan to work with Commander Navy Region Japan. In Japan, Steckman transported and possessed child pornography.
Steckman was detained by the Naval Criminal Investigative Service (NCIS) in Japan on March 27, 2018, and transported back to Maryland by the United States Marshals Service on April 1, 2018, to appear before the U.S. District Court for the District of Maryland.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the FBI, NCIS and the Maricopa County, Arizona, Sheriff’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Joseph Baldwin and Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), who are prosecuting the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Six Annapolis MS-13 Members Indicted on Charges Ranging from Racketeering Conspiracy, Murder, and Attempted MurderRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On March 29, 2018, a federal grand jury indicted six MS-13 members on charges in connection with their MS-13 gang activities, including racketeering conspiracy; murder in aid of racketeering; violent crimes in aid of racketeering; use, carry and possession of a firearm during and in relation to a crime of violence; and conspiracy to commit murder in aid of racketeering.
The indictment was announced by Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Baltimore Field Division; Police Chief Timothy J. Altomare of the Anne Arundel Police Department; and State Attorney Wes Adams of the Anne Arundel State’s Attorney Office.
Charged in the nine-count indictment are Moises Alexis Reyes-Canales, a/k/a “Sicopata”, age 19; Marlon Cruz-Flores, a/k/a “Little S”, age 22; Fermin Gomez-Jimenez, age 20; Manuel Martinez-Aguilar, a/k/a “El Lunatic” and “Zomb”, age 19; Juan Carlos Sandoval-Rodriguez, a/k/a “Picaro”, “El Pastor”, and “Gasper”, age 20; and David Diaz-Alvarado, age 20; all of Annapolis, Maryland.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Anne Arundel County, Prince George’s County, Montgomery County and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to the indictment, prior to 2015, and continuing through 2017, Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery, and drug trafficking.
According to the indictment, MS-13 members and associates conspired to murder a rival gang member. On or about March 11, 2016, Sandoval-Rodriguez lured the victim to a park in Annapolis, Maryland with the intent to murder the victim. On or about that same date, Cruz-Flores, Gomez-Jimenez, Sandoval-Rodriguez, and Diaz-Alvarado, and other members and associates of MS-13 murdered the victim in Annapolis, for the purpose of gaining entrance to, maintaining, and increasing position in MS-13.
According to the indictment, on October 23, 2016, Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar conspired to and attempted to murder two victims in Annapolis, for the purpose of gaining entrance to, maintaining, and increasing position in MS-13. Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar, and other members and associates of MS-13 attempted to kill one of the victims by stabbing the victim multiple times and attempted to kill a second victim by shooting and stabbing the victim multiple times.
All of the defendants are currently detained on related federal or state criminal charges. Initial appearances have not yet been scheduled.
An indictment is not a finding of guilt. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Acting United States Attorney Stephen M. Schenning commended HSI, ATF, Anne Arundel Police Department, and Anne Arundel State’s Attorney Office. Schenning thanked Assistant U.S. Attorney Seema Mittal, Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section, as well as Special Assistant U.S. Attorney Samantha Mildenberg, who are prosecuting this case.
Maryland Man Sentenced to 20 Years in Prison for Providing Material Support to ISIS and Terrorism FinancingRead the Press Release
Mohamed Elshinawy, 32, of Edgewood, Maryland, was sentenced today to 20 years in prison, to be followed by 15 years of supervised release, for conspiracy to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization; providing and attempting to provide material support to ISIS; terrorism financing; and making false statements in connection with a terrorism matter.
Assistant Attorney General for National Security John C. Demers, Acting U.S. Attorney Stephen M. Schenning of the District of Maryland and Special Agent in Charge Gordon Johnson of the FBI’s Baltimore Office announced the sentence issued by U.S. District Judge Ellen L. Hollander.
According to the plea agreement, Elshinawy conspired with others to knowingly provide material support and resources to ISIS, knowing that ISIS was a designated Foreign Terrorist Organization. From February 2015 through about Dec. 11, 2015, in Maryland and elsewhere, Elshinawy conspired with others to provide material support and resources, including personnel, services (including means and methods of communication), and financial services, to ISIS. Elshinawy and his co-conspirators utilized various methods of secret communication in order to conceal their criminal association and activities from law enforcement.
As a part of the conspiracy, Elshinawy expressed his support for an Islamic caliphate and his belief in the legitimacy of ISIS. In addition, he expressed his hope that ISIS would be victorious and its enemies defeated, and discussed his readiness to travel to live in the Islamic State. In various other conversations, Elshinawy pledged his allegiance to ISIS, described himself as its soldier, committed to making violent jihad, and asked that others convey his message of loyalty to ISIS leadership.
Elshinawy also received payments from a foreign company totaling $8,700 to be used to fund a terrorist attack in the U.S.
In interviews with FBI agents in July 2015, in an effort to conceal and minimize his criminal involvement with ISIS, Elshinawy provided false information regarding the total amount of money he had received from ISIS operatives and claimed his intent was to defraud ISIS of funds. Throughout his interviews, Elshinawy mischaracterized the true nature and extent of his association with ISIS operatives and the support he had provided to ISIS.
Assistant Attorney General Demers and Acting U.S. Attorney Schenning commended the FBI for its work in the investigation, and thanked Assistant U.S. Attorneys Christine Manuelian and Kenneth Clark, who prosecuted the case, and the National Security Division’s Counterterrorism Section for its assistance with the prosecution.
Maryland Man Sentenced to 20 Years in Federal Prison for Providing Material Support to Isis and Terrorism FinancingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Ellen L. Hollander sentenced Mohamed Elshinawy, age 33, of Edgewood, Maryland, to 20 years in prison, followed by 15 years of supervised release, for conspiracy to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization; providing and attempting to provide material support to ISIS; terrorism financing; and making false statements in connection with a terrorism matter.
The sentence was announced by Acting United States Attorney of the District of Maryland Stephen M. Schenning; Assistant Attorney General for National Security John C. Demers; and Special Agent in Charge Gordon Johnson of the FBI’s Baltimore Office.
According to the plea agreement, Elshinawy conspired with others to knowingly provide material support and resources to ISIS, knowing that ISIS was a designated Foreign Terrorist Organization. From February 2015 through about December 11, 2015, in Maryland and elsewhere, Elshinawy conspired with others to provide material support and resources, including personnel, services (including means and methods of communication), and financial services, to ISIS. Elshinawy and his co-conspirators utilized various methods of secret communication in order to conceal their criminal association and activities from law enforcement.
As a part of the conspiracy, Elshinawy expressed his support for an Islamic caliphate and his belief in the legitimacy of ISIS. In addition, he expressed his hope that ISIS would be victorious and its enemies defeated, and discussed his readiness to travel to live in the Islamic State. In various other conversations, Elshinawy pledged his allegiance to ISIS, described himself as its soldier, committed to making violent jihad, and asked that others convey his message of loyalty to ISIS leadership.
Elshinawy also received payments from a foreign company based in the United Kingdom. The payments, which totaled approximately $8,700, were to be used by Elshinawy to fund a terrorist attack in the United States.
In interviews with FBI agents in July 2015, in an effort to conceal and minimize his criminal involvement with ISIS, Elshinawy provided false information regarding the total amount of money he had received from ISIS operatives and claimed his intent was to defraud ISIS of funds. Throughout his interviews, Elshinawy mischaracterized the true nature and extent of his association with ISIS operatives and the support he had provided to ISIS.
Acting United States Attorney Schenning and Assistant Attorney General Demers commended the FBI for its work in the investigation, and thanked Assistant U.S. Attorneys Christine Manuelian and Kenneth Clark, who prosecuted the case, and the National Security Division’s Counterterrorism Section for its assistance with the prosecution.
Six MS-13 Members Born in El Salvador Indicted in Maryland on Charges Ranging from Racketeering Conspiracy, Murder, and Attempted MurderRead the Press Release
A federal grand jury has indicted today six MS-13 members, five of whom were unlawfully in the United States, on charges in connection with their MS-13 gang activities, including racketeering conspiracy; murder in aid of racketeering; violent crimes in aid of racketeering; use, carry and possession of a firearm during and in relation to a crime of violence; and conspiracy to commit murder in aid of racketeering.
The indictment was announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Baltimore Field Division; Police Chief Timothy J. Altomare of the Anne Arundel Police Department and State Attorney Wes Adams of the Anne Arundel State’s Attorney Office.
Charged in the nine-count indictment are alleged MS-13 members and associates Moises Alexis Reyes-Canales aka Sicopata, 19; Marlon Cruz-Flores, aka Little S, 22; Fermin Gomez-Jimenez, 20; Manuel Martinez-Aguilar, aka El Lunatic and Zomb, 19; Juan Carlos Sandoval-Rodriguez, aka Picaro, El Pastor, and Gasper, 20; and David Diaz-Alvarado, 20. All the defendants except Cruz Flores, of Annapolis, Maryland, were illegally residing in Annapolis.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Anne Arundel County, Prince George’s County, Montgomery County and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to the indictment, at least prior to in or about 2015, and continuing through at least in or about 2017, Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar, participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery, and drug trafficking.
According to the indictment, MS-13 members and associates conspired to murder a rival gang member. On or about March 11, 2016, Sandoval-Rodriguez lured the victim to a park in Annapolis, Maryland with the intent to murder the victim. On or about that same date, Cruz-Flores, Gomez-Jimenez, Sandoval-Rodriguez, and Diaz-Alvarado, and other members and associates of MS-13 murdered the victim in Annapolis, for the purpose of gaining entrance to, maintaining, and increasing position in MS-13.
According to the indictment, on Oct. 23, 2016, Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar conspired to and attempted to murder two victims in Annapolis, for the purpose of gaining entrance to, maintaining, and increasing position in MS-13. Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar, and other members and associates of MS-13 attempted to kill one of the victims by stabbing the victim multiple times and attempted to kill a second victim by shooting and stabbing the victim multiple times.
All of the defendants are currently detained on related federal or state criminal charges. Initial appearances have not yet been scheduled.
An indictment is not a finding of guilt. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by HSI Baltimore, ATF Baltimore, Anne Arundel Police Department and Anne Arundel State’s Attorney Office. Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Seema Mittal, as well as Special Assistant U.S. Attorney Samantha Mildenberg of the District of Maryland are prosecuting this case.
Maryland State Senator Pleads Guilty to Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland –Maryland State Senator Nathaniel Thomas Oaks, age 71, of Baltimore, Maryland, pleaded guilty today to one count of wire fraud and one count of honest services wire fraud.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the plea agreement, Oaks was a Maryland State Delegate representing District 41 (Baltimore City) from 1994 until being appointed to the Maryland Senate in February 2017, representing the same District.
According to the statement of facts in support of the plea agreement, on September 21, 2015, a cooperating individual introduced Oaks to an FBI confidential human source, “Mike Henley,” who portrayed himself as an out-of-town businessperson interested in obtaining contracts in the City of Baltimore. The meeting took place at a restaurant in Pikesville, Maryland, and was consensually recorded by Henley. During the meeting, Oaks offered to assist Henley with business development in Maryland.
During the months following the September 21, 2015 meeting between Henley and Oaks, Henley consensually recorded numerous telephone and in-person conversations with Oaks during which they discussed possible development and business-related opportunities that may be available to Henley in Maryland. One such opportunity was a United States Department of Housing and Urban Development (HUD) project (the Project) that Henley told Oaks that he was interested in developing in the City. Oaks told Henley that he wanted to help with the HUD project.
According to the plea agreement, between the months of April 2016 and July 2016, Oaks issued two letters on his official House of Delegates letterhead which contained materially false and fraudulent representations to a person whom he believed to be a HUD official in order to assist Henley in obtaining federal grant funds from HUD. Henley paid Oaks $10,300 for his assistance.
According to the statement of facts in support of the plea agreement, on September 22, 2016, Henley paid Oaks $5,000 in exchange for Oaks’ agreement to file a bond bill request with the Maryland Department of Legislative Services (DLS) seeking $250,000 in state funds for the Project. Oaks filed the bill request with DLS later that day. On November 21, 2016, Oaks forwarded an email to Henley that had been sent to him by DLS. The email attached the draft of the bill to establish a $250,000 bond to be used for the Project.
All the money paid to Oaks by Henley was supplied by the FBI and the meetings were recorded using audio/video recording equipment.
On or about January 9, 2017, Oaks confessed to two FBI agents that he has accepted the first two payments from Henley in exchange for issuing two letters to HUD on his official House of Delegates letterhead and that he knew the letters contained materially false statements in an effort to assist Henley with his housing project. Oaks further confessed to the agents that he had accepted the third payment from Henley in exchange for filing a request for DLS to draft the Bond Bill Legislation.
Oaks agreed to cooperate with the FBI in an investigation of Person #1 for possible violations of federal criminal laws. As part of that cooperation, and at the direction of the FBI, Oaks covertly recorded his telephone conversations and in-person meetings with Person #1 beginning on January 9, 2017 and continuing until March 30, 2017.
According to the plea agreement, on or about March 17, 2017, without recording or disclosing the existence of the conversation to the FBI, Oaks approached Person #1 at a bar in Annapolis and told him “what we talked about, just say no.” On March 30, 2017, Oaks again approached Person #1 in the hallway of a State government building in Annapolis and said “I’m going to ask you for something, just say no.” These statements were intended to dissuade Person #1 from engaging in the activity that was the subject of the criminal investigation and which activity Oaks and Person #1 had discussed in a recorded conversation earlier that day.
As a result of Oaks’ deliberate and intentional conduct in tipping off Person #1, the covert investigation of Person #1 and possibly other politicians was no longer viable.
Oaks faces a maximum sentence of 20 years in prison for the wire fraud count and 20 years in prison for the honest services wire fraud count. Oaks is scheduled to be sentenced July 17, 2018 at 11 a.m. in U.S. District Court in Baltimore.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Kathleen O. Gavin and Leo J. Wise, who are prosecuting the case.
German Citizen Indicted for Major Fraud in Connection with A State Department GrantRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Katrin Verclas, age 50, a native and citizen of Germany residing in Washington, D.C., on a charge related to a scheme to defraud the U.S. Department of State of $1.231 million. The indictment was returned on March 26, 2018, and was unsealed upon the arrest of Verclas.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Steve A. Linick, Inspector General for the U.S. Department of State.
According to the indictment, Verclas, as director of MobileActive Corp, obtained a grant from the U.S. Department of State intended to support and promote U.S. global internet freedom efforts. Verclas represented to the U.S. Department of State that MobileActive was a non-profit organization pursuant to 26 U.S.C. § 501(c)(3) with the legal authority to apply for a grant, and that MobileActive had the financial capability to ensure proper planning, management, and completion of the grant project.
MobileActive was not a 501(c)(3) non-profit organization, and thus, did not have the legal authority to apply for the grant. Verclas spent much of the money from the U.S. Department of State on personal expenses and expenses unrelated to the grant. Verclas caused the U.S. Department of State to transfer $1.222 million into her control.
Verclas faces a maximum sentence of 10 years in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the U.S. Department of State, Office of Inspector General, for its work in the investigation. Mr. Schenning thanked Special Assistant U.S. Attorney Dominique Juliet Park and Assistant U.S. Attorney Bryan E. Foreman, who are prosecuting the case. Assistant U.S. Attorney Katharine A. Wagner with the U.S. Attorney’s Office, District of Massachusetts, provided substantial assistance.
Frederick Man Arrested for Human SmugglingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885Baltimore, Maryland –A federal grand jury indicted Martir Jandres a/k/a “Tono”, age 42, of Frederick, Maryland, on a charge of conspiracy to commit human smuggling related to a years long operation to smuggle illegal aliens into the United States through Texas and then transport them throughout the country. The indictment was returned on March 16, 2018, and unsealed today upon the arrest of Jandres and the execution of a search warrant at his residence.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Special Agent in Charge Andre R. Watson of Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI) and Sheriff Charles A. Jenkins of the Frederick County Sheriff’s Office.
According to the one-count indictment, between October 2016 and February 2017, Jandres allegedly conspired with numerous people in Central America, Mexico and the United States to facilitate illegal aliens entry to the United States without inspection by bypassing United States Border Patrol checkpoints. Once in the country, the aliens were placed in stash houses until transportation could be arranged with local “load drivers” to enable the aliens to leave the border area and travel to their interior destinations. On two occasions, undercover HSI agents posed as “load drivers” to transport aliens smuggled by Jandres.
Jandres faces a maximum sentence of 10 years in prison for the conspiracy.
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.
Acting United States Attorney Stephen M. Schenning commended HSI for their work in the investigation along with the Frederick County Sheriff’s Office and the Internal Revenue Service. Mr. Schenning thanked Special Assistant U.S. Attorney Brian M. Fish and Assistant U.S. Attorney Judson T. Mihok, who are prosecuting the case.
Baltimore Man Sentenced to 11 Years in Prison for Bank RobberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced Tyrone Kevin Gregg, age 49, of Baltimore, Maryland, to eleven years in prison, followed by three years of supervised release for bank robbery while on supervised release for a prior federal conviction. Gregg previously pleaded guilty to one count of bank robbery and specifically admitted to robbing or attempting to rob eight other banks in Maryland and Virginia from December 2016 through June 2017. Gregg will be required to pay restitution to the victim banks.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; Chief Tim Altomare of the Anne Arundel County Police Department; Chief J. Thomas Manger of Montgomery County Police Department; and Chief Edwin C. Roessler Jr. of the Fairfax County Police Department.
According to his plea agreement, on February 2, 2017 at approximately 10:50 am, Gregg entered a bank in Olney, Maryland where he approached the teller and said, “Give me all the money or I’ll blow your head off.” The teller complied, handing over cash from the till, and Gregg fled.
Gregg was indicted for committing nine bank robberies in Maryland and Virginia. In pleading guilty to the February 2017 robbery, Gregg acknowledged he committed the other eight bank robberies listed in the indictment—several of which also involved threats of violence as well as Gregg’s statements that he had a gun.
At the time of the robberies, Gregg was under conditions of supervised release following a 54-month prison sentence imposed by the Honorable Catherine C. Blake in the U.S. District Court for the District of Maryland as a result of convictions for Conspiracy to Commit Bank Fraud and Aggravated Identity Theft. The 11-year sentence imposed by the Court also reflects Gregg’s punishment for violating the condition of supervised release requiring him not to commit and federal, state, and local crimes.
Acting United States Attorney Stephen M. Schenning commended the FBI, Baltimore County Police Department, Anne Arundel County Police, Montgomery County Police and Fairfax County Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Paul Riley and Tamera Fine who are prosecuting the case.
Waldorf Man Sentenced to 105 Years in Prison for Production of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Carlos DeAngelo Bell, 30, of Waldorf, Maryland was sentenced to 105 years in prison, followed by a lifetime period of supervised release for 10 counts of Sexual Exploitation of Minors for the Purpose of Producing Child Pornography. Judge Grimm ordered that, should he complete the term of his imprisonment, Bell must register as a sex offender in the place 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 Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Baltimore; Charles County State’s Attorney Anthony B. Covington, Sr.; Sheriff Troy D. Berry of the Charles County Sheriff’s Office and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to the plea agreement, from the period of January 1, 2014 to December 22, 2016, Bell used and coerced minors to engage in sexually explicit conduct for the purpose of producing child pornography. Bell was charged with committing this offense against ten minors. During the relevant period, Bell was employed as an Instructional Assistant in Charles County Public Schools, and a track and field coach at a Charles County Public High School.
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.
Acting United States Attorney Stephen M. Schenning thanked HSI, the Charles County State’s Attorney’s Office, the Charles County Sheriff’s Office, and the Maryland State Police. Mr. Schenning also commended Assistant United States Attorneys Timothy F. Hagan and Joseph R. Baldwin of the United States Attorney’s Office for the District of Maryland, who prosecuted this case.
Baltimore BGF Member Sentenced to 31 and A Half Years in Prison for 2013 Murder of WitnessRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge James K. Bredar sentenced Wesley Jamal Brown, a/k/a “Wes,” age 25, of Baltimore, Maryland, to 31 and a half years in prison, followed by five years of supervised released for conspiring to participate in a racketeering enterprise known as the Black Guerilla Family’s Greenmount Avenue Regime. Brown had admitted that on May 2, 2013, he murdered a witness to prevent him from testifying against a fellow BGF member in a pending state case.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr., of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Darryl DeSousa; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, Brown was a member of the BGF Greenmount Regime, formerly known as the Young Guerilla Family, or YGF. Between 2005 and September 2017, Brown agreed with other BGF members to engage in crimes to further the interest of the gang, including drug distribution, murder, robbery, witness tampering, and witness retaliation. Brown admitted that he personally engaged in drug trafficking and murder in furtherance of BGF.
Specifically, Brown admitted that on or about April 26, 2013, he possessed with intent to distribute cocaine and heroin. Brown further admitted that on or about June 20, 2013, he possessed 51 grams of heroin and a quantity of cocaine that he planned to sell.
Brown further admitted that on or about May 2, 2013, in the 600 block of Cokesbury Avenue, he shot and killed Moses Malone with a .22 caliber handgun. In the weeks before his death, Malone had been the victim of a robbery and shooting committed by Norman Handy, Brown’s half-brother and fellow member of the BGF Greenmount Regime. On April 19, 2013, Malone identified Handy as the person who robbed and shot him during an interview with Baltimore Police officers. Brown admitted that he shot and killed Malone to prevent him from testifying against Handy in the pending state case.
According to his plea agreement, Brown was a member of the BGF Greenmount Regime, formerly known as the Young Guerilla Family, or YGF. Between 2005 and September 2017, Brown agreed with other BGF members to engage in crimes to further the interests of the gang, including drug distribution, murder, robbery, witness tampering, and witness retaliation. Brown admitted that he personally engaged in drug trafficking and murder in furtherance of BGF.
Brown admitted that on or about May 12, 2013, he exchanged text messages with a BGF associate, in which he agreed to sell the .22 caliber handgun that he had used to kill Malone for $250.
Acting United States Attorney Schenning commended ATF Baltimore, FBI Baltimore, the Baltimore City Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Peter J. Martinez and Christina A. Hoffman, who prosecuted the case.
Ninth Defendant Sentenced to 5 Years in Prison for Drug TraffickingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Ellen L. Hollander sentenced Luis Lopez, age 40, of North East, Maryland today to five years in prison, followed by four years of supervised release, for Conspiracy To Distribute And Possess With Intent to Distribute Cocaine.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service – Washington Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, law enforcement began an investigation in 2015 into a drug conspiracy involving the importation and distribution of cocaine into the northeast Maryland and southern Delaware areas from Puerto Rico. Lopez and his co-defendants conspired with others known and unknown to possess and distribute cocaine.
According to the plea agreement, the investigation revealed a number of suspicious parcels were being sent through the U.S. Postal Service from Puerto Rico to fictitious addressees in Maryland and Delaware. For example, on February 20, 2015, investigators observed a U.S. Postal Service Priority Mail Express parcel was sent from Puerto Rico to an address in North East, Maryland, and that neither occupant at either address was associated to the sending or receiving addressee. Postal Inspectors obtained a search warrant for the parcel and found that it contained approximately 250 grams of cocaine.
Similarly, on May 2, 2015, investigators became aware of a U.S. Postal Service Priority Mail Express parcel that was accepted by a male, who was later identified as Leroy Fuentes, Jr. A traffic stop was conducted on Mr. Fuentes shortly after he left the post office with the parcel. After a K-9 unit gave a positive alert to his vehicle, the vehicle and its contents were searched. A search of the parcel revealed that the parcel contained approximately 135 grams of cocaine. In each instance, these parcels were packaged in a similar fashion.
On September 3, 2016, law enforcement conducted a lawful traffic stop of Luis Lopez. Lopez was searched and found to have a quantity of cocaine with him. Law enforcement subsequently seized and obtained a search warrant for Lopez’s phone. The search warrant revealed photographs sent to him via text message of a parcel similar to those that had been seized. The phone also contained tracking information for a parcel sent to a P.O. Box in Bear, Delaware. In addition to these photos, Lopez’s phone contained text messages between Lopez and his co-conspirators discussing the price of cocaine.
Finally, on September 22, 2016, law enforcement executed a search warrant at the residence of Lopez and found numerous loose pills in plastic baggies and $11,806 in U.S. Currency.
Lopez’s co-conspirators have all pleaded guilty to the conspiracy and been sentenced as follows:
Troy Baker, age 28, of North East, Maryland was sentenced to 38 months;
Leroy Fuentes, age 30, of North East, Maryland was sentenced to 30 months;
Roy Fuentes, Jr., age 26, of Newark, Delaware was sentenced to 24 months
Dahan Lopez, age 37, of Elkton, Maryland was sentenced to 60 months;
Angel Padilla, age 29, of Elkton, Maryland was sentenced to 42 months;
Eileen Perez, age 39, of New Castle, Delaware was sentenced to 18 months;
Fernando Lopez, age 40, of New Castle, Delaware was sentenced to 60 months; and
Nadja Velez, age 31, of Elkton, Maryland was sentenced to 12 months and 1 day.
Acting United States Attorney Stephen M. Schenning praised the FBI, the United States Postal Inspection Service and the Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Jason D. Medinger who prosecuted this Organized Crime Drug Enforcement Task Force case.
Alere to Pay U.S. $33.2 Million to Settle False Claims Act Allegations Relating to Unreliable Diagnostic Testing DevicesRead the Press Release
Massachusetts-based medical device manufacturer Alere Inc. and its subsidiary Alere San Diego (Alere) have agreed to pay the United States $33.2 million to resolve allegations that Alere caused hospitals to submit false claims to Medicare, Medicaid, and other federal healthcare programs by knowingly selling materially unreliable point-of-care diagnostic testing devices, the Justice Department announced today.
“The United States is fortunate that innovative healthcare companies regularly develop medical devices that improve patients’ lives, often in remarkable ways,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “But the Department will hold medical device manufacturers accountable if they knowingly sell defective products that waste taxpayer dollars and adversely impact patient care.”
The United States alleged that between January 2006 and March 2012, Alere knowingly sold materially unreliable rapid point-of-care testing devices marketed under the trade name Triage®. The Triage® devices aided in the diagnosis of acute coronary syndromes, heart failure, drug overdose, and other serious conditions, and the devices were frequently used in emergency departments where timely decisions are critical to ensuring proper patient care. According to the government’s allegations, Alere received customer complaints that put it on notice that certain devices it sold produced erroneous results that had the potential to create false positives and false negatives that adversely affected clinical decision-making. Nonetheless, the company failed to take appropriate corrective actions until FDA inspections prompted a nationwide product recall in 2012. Of the $33.2 million to be paid by Alere, $28,378,893 will be returned to the federal government and a total of $4,860,779 will be returned to individual states, which jointly funded claims for Triage devices submitted to state Medicaid programs.
“Physicians who work to treat patients with suspected myocardial infarctions rely upon devices such as Alere’s Triage Cardiac products for quick and accurate readings," said Stephen M. Schenning, Acting United States Attorney for the District of Maryland. "When manufacturers such as Alere make changes to the specifications that affect the product’s reliability without informing physicians or the FDA, patient care is put at substantial risk.”
“Congress passed the False Claims Act on March 2, 1863 to protect taxpayer dollars from fraud and abuse and to allow private citizens to join the effort,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General in Philadelphia. “We will continue to work with concerned citizens, the Department of Justice and our investigative partners to ensure the federal government only pays for honest, high quality, health care products and services.”
The settlement with Alere resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed by Amanda Wu, who formerly worked for Alere as a senior quality control analyst. As part of today’s resolution, Ms. Wu will receive approximately $5.6 million.
The settlement with Alere was the result of a coordinated effort among the U.S. Attorney’s Office for the District of Maryland, the Commercial Litigation Branch of the Justice Department’s Civil Division, and the National Association of Medicaid Fraud Control Units, with assistance from the FDA’s Office of Chief Counsel, and HHS’ Office of Counsel to the Inspector General. The investigation was conducted by HHS-OIG, FDA’s Office of Criminal Investigations, and the Department of Defense Criminal Investigative Services.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit is captioned United States ex rel. Amanda Wu v. Alere San Diego, et al., No. GLR-11-CV-1808.
Alere to Pay U.S. $33.2 Million to Settle False Claims Act Allegations Relating to Unreliable Diagnostic Testing DevicesRead the Press Release
FOR IMMEDIATE RELEASE CONTACT ELIZABETH MORSE
www.justice.gov/usao/md (410) 209-4885
Baltimore, Maryland – Massachusetts-based medical device manufacturer Alere Inc. and its subsidiary Alere San Diego (Alere) have agreed to pay the United States $33.2 million to resolve allegations that Alere caused hospitals to submit false claims to Medicare and other federal healthcare programs relating to the use of materially unreliable point-of-care diagnostic testing devices.
The settlement agreement was announced today by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Maureen Dixon, Special Agent in Charge for the Office of Inspector General for the Department of Health and Human Services, Robert Craig, Special Agent in Charge for the Defense Criminal Investigative Services, Mid-Atlantic Division and Mark McCormack, Special Agent in Charge for the Office of Criminal Investigations, Food and Drug Administration, Washington Field Division.
“Physicians who work to treat patients with suspected myocardial infarctions rely upon devices such as Alere’s Triage Cardiac products for quick and accurate readings," said Stephen M. Schenning, Acting United States Attorney for the District of Maryland. "When manufacturers such as Alere make changes to the specifications that affect the product’s reliability without informing physicians or the FDA, patient care is put at substantial risk.”
The United States alleged that between January 2006 and March 2012, Alere knowingly sold materially unreliable rapid point-of-care testing devices marketed under the trade name Triage®. The Triage® devices aid in the diagnosis of acute coronary syndromes, heart failure, drug overdose, and other serious conditions, and the devices are frequently used in emergency departments where timely decisions are critical to ensuring proper patient care. According to the government’s allegations, Alere knew that certain devices it sold produced unreliable results that had the potential to create false positives and false negatives that adversely affected clinical decision-making. The United States alleged that Alere personnel were aware of customer complaints regarding erroneous test results and that the decreased precision of its testing devices put the company at considerable regulatory and financial risk, yet the company failed to take appropriate corrective actions until FDA inspections prompted a nationwide product recall in 2012.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government's recovery. The civil lawsuit was filed in the District of Maryland and is captioned United States ex rel. Wu v. Alere, Inc., et al., GLR 11-1808. As part of today’s resolution, Ms. Wu will receive approximately $5,675,778 from the settlement.
The federal share of the civil settlement is $28,378,893, and the state Medicaid share of the civil settlement is $4,860,779. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Acting U.S. Attorney Stephen M. Schenning commended the HHS Office of Inspector General, Food and Drug Administration’s Office of Criminal Investigations and the Department of Defense’s Criminal Investigative Services for their work in the investigation. Assistance also was provided by the National Association of Medicaid Fraud Control Units and offices of various state Attorneys General. The case was handled by Assistant United States Attorney Thomas Corcoran and Assistant Director Colin Huntley of the Department of Justice Civil Fraud Section.
United States Reaches Settlement with Four Facilities and Two Medical Companies to Resolve Allegations of Fraudulent Billing in Skilled Nursing FacilitiesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – The United States Attorney’s Office announced today that it reached an agreement with four skilled nursing facilities and two consulting companies with which they contracted to resolve allegations of fraudulent billing of Medicare for the provision of skilled therapy to Medicare and Tricare beneficiaries. The four skilled nursing facilities and the two consulting companies have agreed to pay a total of $6 million in order to resolve the allegations. Caring Heart Rehabilitation and Nursing Center agreed to pay the United States $1,272,891.00. GNH, LLC agreed to pay $811,153.36. OPOP, LLC agreed to pay $608,365.02. Riverview SNF, LLC agreed to pay $1,206,590.62. Global Healthcare Services Group, LLC agreed to pay $190,000. GHC Clinical Consultants, LLC agreed to pay $1,810,000.00The settlement agreement was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Maureen Dixon, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services.
The civil settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government's recovery. The civil lawsuit was filed in the District of Maryland and is captioned United States ex rel. Tober v. Global Empire, LLC, et al., Civil No. RDB-12-2567. As part of the resolution, Mr. Tober will receive $990,000.
The United States alleged that during the period January 1, 2010 through January 31, 2014 the defendants billed Medicare for skilled therapy services that were either not delivered or that were medically unnecessary. Medicare provides a skilled nursing benefit that pays for rehabilitative skilled nursing services for a period of 100 days following a qualifying hospitalization. Medicare pays skilled nursing facilities (SNF) a set rate that depends on a number of factors such as the acuity of the patient and the level and amount of skilled therapy provided. The amount of skilled therapy is counted in minutes of therapy provided, and the United States alleged that the four SNFs and the two consulting companies falsely reported the number of minutes of skilled therapy that was delivered or that was medically necessary. Increasing the number of minutes in many instances brought the patient into a category that resulted in higher compensation for the SNF. The United States alleged that the consulting companies and the SNFs put systems in place to maximize Medicare and Tricare reimbursement and that caused the submission of claims for therapy services that were either not provided or that were unnecessary.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. Caring Heart Rehabilitation and Nursing Center, GNH, LLC, OPOP, LLC, Riverview SNF, LLC, Global Healthcare Services Group, LLC and GHC Clinical Consultants, LLC have denied the allegations.
Acting U.S. Attorney Stephen M. Schenning thanked Assistant United States Attorney Allen Loucks and Investigator Steven Capobianco, who handled this case.
Baltimore Man Indicted for Distribution of Controlled Substances Resulting in DeathRead the Press Release
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www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Coron Demon Johnson a/k/a “Savage,” age 23, of Baltimore, Maryland, on Distribution of a Controlled Substance with Death Resulting. The indictment was returned on February 21, 2018 and unsealed upon the arrest of Johnson.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration – Washington Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to the indictment, on August 11, 2017, Johnson distributed heroin to an individual, which resulted in an overdose death in Prince George’s County, Maryland.
Johnson faces mandatory minimum sentence of 20 years with a maximum sentence of life in prison if found guilty. Johnson had his initial appearance in front of United States Magistrate Judge Timothy Sullivan in U.S. District Court in Greenbelt on March 19, 2018.
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.
Acting United States Attorney Stephen M. Schenning commended the DEA, Prince George’s County Police and the City of Bowie for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Erin Pulice and Kelly Hayes, who are prosecuting the case.
Baltimore Felon Exiled to 7 Years in Prison for Possessing A Gun and CocaineRead the Press Release
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Baltimore, Maryland – United States District Judge Richard D. Bennett sentenced Darius Junior, age 26, of Baltimore, Maryland, today to seven years in prison followed by three years of supervised release for possessing a firearm after a felony conviction and possessing cocaine with the intent to distribute.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the FBI- Baltimore Field Office; State’s Attorney Marilyn Mosby of the Baltimore City State’s Attorney’s Office and Commissioner Darryl DeSousa of the Baltimore Police Department.
According to the plea agreement, on February 12, 2016, Baltimore City police made a vehicle stop of a Toyota in the 3300 block of McCulloh Street, just south of Gwynn Falls Parkway. Upon approach, the police could readily detect the odor of marijuana emanating from the Toyota. Junior was in the front passenger seat of the car. During the investigation that ensued, the police observed and seized a .32 caliber revolver tucked in Junior’s waistband area. A search of Junior’s person yielded distributable amounts of cocaine, cash and a .32 caliber bullet. At the time of his arrest, Junior had sustained three felony convictions punishable by a term of imprisonment exceeding one year, including a separate handgun violation and two armed robbery convictions in Baltimore City.
Acting United States Attorney Stephen M. Schenning commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Sandra Wilkinson, who prosecuted the case.
Adelphi Man Sentenced to 71 Months in Prison for Drug and Gun ChargesRead the Press Release
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Greenbelt, Maryland – United States District Judge Peter J. Messitte sentenced Jose Hernandez a/k/a “Plumhead,” a/k/a “David Hernandez,” a/k/a “Fathead,” age 27, of Adelphi, Maryland today to 71 months in prison, followed by five years of supervised release, for distribution of 28 grams or more of crack and being a felon in possession of a firearm and ammunition.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives – Baltimore Division; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to his plea agreement, between December 23, 2015 and January 12, 2017, at the direction of law enforcement, a confidential informant contacted Hernandez to arrange six controlled purchases of crack and heroin.
On December 16, 2016, ATF agents executed a search warrant at Hernandez’s residence and recovered a 12-gauge pump action shotgun, and a single round ammunition. Prior to December 16, 2016, Hernandez had been convicted of crimes punishable by more than one year in prison, which made him ineligible to possess a firearm and ammunition. His civil rights had not been restored.
At the time of the Defendant's arrest on January 12, 2017, ATF agents recovered approximately $5,572 from Hernandez's wallet, five cellular telephones, and two knotted baggies in the center console of the vehicle which contained approximately one gram of crack and approximately one gram of heroin.
Acting United States Attorney Stephen M. Schenning praised the ATF and Prince George’s County Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Jennifer Sykes and Michael Packard who prosecuted the case.
Randallstown Man Pleads Guilty to Conspiracy to Distribute Heroin and FentanylRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
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Baltimore, Maryland – Anthony Renard Wynn, age 47, of Randallstown, Maryland, pleaded guilty today to conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre Watson of the ICE Homeland Security Investigations; Colonel Woodrow Jones of the Maryland Transportation Authority Police; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to his plea agreement, in connection with an investigation into drug trafficking and the laundering of drug proceeds through Maryland-based casinos, HSI investigators discovered that Wynn had placed into and cashed out in excess of one million dollars at those casinos from 2016 to 2017, although he only earned $30,000 in 2016.
HSI investigators were able to identify the places where Wynn received, transported, and stored drugs and other contraband. Specifically, Wynn received packages containing drugs from an animal hospital in Pikesville, Maryland and transported the drugs to the Southeast region of Washington, D.C. Wynn stored the drugs in a storage unit in Windsor Mill, his home in Randallstown, and in a Pikesville barbershop. Wynn also shipped several packages to a co-conspirator in California, one of which contained $244,040 in drug proceeds.
On June 9, 2017, an HSI investigator observed Wynn talking on a cell phone while driving and informed a Baltimore County patrol officer who conducted a traffic stop of Wynn’s vehicle. During that traffic stop, a Maryland Transportation Authority Police officer conducted a canine scan of Wynn’s vehicle and recovered a one-kilogram heroin brick and $11,620 in cash that was separated by rubber-banded bundles. The search of Wynn’s person incident to arrest revealed a digital scale and two $500 casino chips.
HSI investigators obtained search warrants for Wynn’s residence and storage unit and recovered approximately 1 kilogram of fentanyl, 3 kilograms of heroin, and an electronic money counter. Numerous gift cards totaling $5,575, $16,602 in cash that was bundled in small denominations, and an “owe sheet” were among the items that the HSI investigators recovered from Wynn’s residence.
Wynn faces a maximum sentence of life, in prison, with a minimum mandatory term of 10 years. U.S. District Judge Richard D. Bennett has scheduled sentencing for July 16, 2018 at 11 a.m.
Acting United States Attorney Stephen M. Schenning commended HSI, MTA police, Baltimore County Police Department. Mr. Schenning thanked Assistant U.S. Attorneys Samika N. Boyd and Christopher J. Romano who are prosecuting the case.
Baltimore Man Sentenced to 10 Years in Prison for Forcible Assault on Federal EmployeeRead the Press Release
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www.justice.gov/usao/md at (410) 209-4885Baltimore, Maryland –United States District Judge Richard D. Bennett sentenced Idialyon Helm, age 21, of Baltimore, Maryland, to 10 years in prison, followed by three years of supervised release for forcible assault on a United States Postal Service (USPS) letter carrier, and brandishing a firearm in connection with a crime of violence. Helm also admitted to one additional armed robbery, as well as an attempted armed robbery.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division; and Commissioner Darryl De Sousa of the Baltimore Police Department.
“While protecting postal employees is of paramount importance to Postal Inspectors, we are pleased that the results of this investigation have improved the safety of the entire community,” stated Inspector in Charge Wemyss.
According to his plea agreement, on December 29, 2016, at between 10:00 and 10:15 AM, Helm robbed a USPS letter carrier at gunpoint while the letter carrier was on his route in the 3100 block of Chesterfield Avenue in Baltimore City, taking the victim’s wallet and smart watch, among other things.
Helm was indicted for forcible assault on a federal employee and brandishing a firearm in connection with a crime of violence. In pleading guilty to those charges, Helm also acknowledged that he committed two other robberies/attempted robberies just days before the robbery of the letter carrier. According to his plea agreement, on December 25, 2016, at approximately 1:30 in the afternoon, Helm approached a male victim outside of a convenience store on Caton Avenue in Baltimore, pointed a silver handgun at him, and stole his shoes—a pair of Ugg Boots. Later that afternoon, Helm also attempted to rob a female victim at an M&T Bank ATM on Belair Road in Baltimore. He approached her, pointed a silver handgun at her, and said “Give me what you got.” In response, she fled and observed Helm get into a silver Infiniti SUV and drive away.
Acting United States Attorney Stephen M. Schenning commended the United States Postal Inspection Service and the Baltimore City Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Paul Riley and Judson Mihok who prosecuted the case.
United States Reaches Settlement with Maryland Healthcare Providers to Settle False Claims Act Allegations Relating to in Office TestingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – The United States Attorney’s Office announced today that it has in recent weeks reached settlements with four health care providers to settle claims that they submitted false claims to the United States for services not rendered.
St. Agnes Healthcare, Inc., which owns and operates St Agnes hospital in Baltimore, has agreed to pay $69,906.90. Horizon Vascular Specialists, a medical practice with offices in Frederick, Germantown, Olney and Rockville, has agreed to pay $518,479.50. Riverside Medical Associates, a medical practice located in Riverdale, Maryland, has agreed to pay $176,511.17. Maryland Specialty Group, a medical practice in Glenn Dale, Maryland, has agreed to pay $87,393.89. Itsuro Uchino, M.D., a physician in Hagerstown, has agreed to pay $91,476.02.
The settlement agreements were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Maureen Dixon, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services.
In their practices, each of these providers had occasion to administer tests to patients to assess the venous sufficiency in the lower extremities. As part of this process, they performed a venous Doppler duplex examination. The purpose of this examination was 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 each billed for an additional test using CPT 93965. CPT 93965 references an older, different technology, one that has generally been replaced by the CPT 93970 technology. Upon inquiry by the U.S. Attorney’s Office and the HHS Office of Inspector General, each agreed that the billing of CPT 93965 was incorrect.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. Maryland Specialty Group, St Agnes Healthcare, Riverside Medical Associates, Dr. Uchino, and Horizon Vascular Specialists have denied the allegations.
Acting U.S. Attorney Stephen M. Schenning thanked Assistant United States Attorney Allen Loucks and Investigator Steven Capobianco who handled these cases.
Laurel Man Indicted for Mail FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Adrian Brown, age 33, of Laurel, Maryland, today on mail fraud charges related to a scheme to defraud an automobile insurance company. The indictment was returned on March 14, 2018, and unsealed today upon the arrest of Brown.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Henry P. Stawinksi III of the Prince George’s County Police Department.
According to the two-count indictment, between September 2014 and January 2015, Brown allegedly made false statements to the insurance company claiming he owned a Chevrolet Caprice and that it had been stolen from an apartment complex in Maryland. However, Brown never owned the vehicle. Brown then filed an incident report with the Prince George’s County Police documenting the purported theft. During the course of the insurance investigation, Brown made several false statements about the purchasing and theft of the vehicle.
Brown faces a maximum sentence of 20 years in prison for the conspiracy.
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.
Acting United States Attorney Stephen M. Schenning commended the FBI and Prince George’s Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Menaka S. Kalaskar and Ray D. McKenzie, who are prosecuting the case.
Former Baltimore City Department of Transportation Supervisor Pleads Guilty to Taking Thousands in BribesRead the Press Release
March 16, 2018
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Daryl Christopher Wade, age 50, of Rosedale, Maryland, pleaded guilty today to Extortion Under Color of Official Right related to an extortion scheme.
The charges were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Inspector General Isabel M. Cumming of the Baltimore City Office of Inspector General.
Wade was a City of Baltimore employee between 1988 through 2017, most recently with the Baltimore City Department of Transportation (“DOT”) as a Construction Project Supervisor II within the DOT’s Street Cut Unit. The DOT Street Cut Unit helps to monitor and administer fines associated with street cuts and street cut permits. According to the criminal information and the plea agreement, Wade used his official position at City of Baltimore’s Department of Transportation to claim that he could void street cut fines in return for payments.
According to the plea agreement, Wade accepted multiple cash payments, in exchange for claiming that he could erase Baltimore DOT street cut fines. Baltimore City street cut permits are required for companies who need to impede into a public street, alley, sidewalk, or other right-of-way for purposes of construction. The street cut permits are valid for 120 days before they expire, and DOT will assess a fine of $50 per day for each street cut not repaired past the expiration date.
Also according to the plea agreement, Wade and co-defendant Jerome Walter Stephens, the owner of a Baltimore construction and utilities company, either attempted to or actually extorted other business owners throughout Baltimore. In one such instance, Person A was the Vice President of a Virginia based company that provided all phases of underground utility construction and sewer rehabilitation throughout the east coast and had approximately $55 million in contracts with the City of Baltimore to restore and/or replace water and sewer lines throughout the City. Person A’s efforts to restore and/or replace water and sewer lines throughout Baltimore was in accordance with the City of Baltimore’s consent decree agreement with the Environmental Protection Agency (Civil Action No. JFM-02-1524). The purpose of the consent decree was to take all measures possible to enable Baltimore to comply with the Clean Water Act including addressing the City’s sewer lines discharging untreated sewage into the Back River, Patapsco River and the Chesapeake Bay. In order to complete those contracts, Person A's company conducted street cuts to reach water and sewer lines to restore and/or replace these water and sewer lines.
In January 2016, Person A met with Stephens at one of Person A’s offices, located in Prince George’s County, Maryland. Stephens told Person A that Person A’s company would be receiving $1.3 million in street cut fines from the street cuts unit in the near future. This was the first that Person A had learned of the $1.3 million in perspective fines. Stephens then said he had a connection in the street cuts unit that could reduce the $1.3 million in fines by 80% to $260,000, if Person A paid 20%, a $52,000 bribe, to Stephens’s connection. Stephens also stated something to the effect of: if you want to play, you got to pay. Person A made clear that he was not interested in paying the $52,000 bribe and would sue the City of Baltimore over the fines if necessary.
Also according to the plea agreement in February 2016, Person B, a local Baltimore business owner, began renovations on a restaurant in Baltimore, Maryland. Person B hired Stephens to overhaul the water lines into Person B’s business. In July 2016, Stephens informed Person B that he (Stephens) would have to cut into the road. Stephens informed Person B that the complete repaving, from curb to curb, had an estimated additional cost to Person B of between approximately $10,000 to approximately $12,000 but said he had a connection "downtown" in the City of Baltimore who could save Person B on the costs associated with completely repaving if Person B was willing to pay a bribe. Due to Person B's limited budget, and the fact that the street had already been cut, Person B agreed to pay Wade a $2,200 to repave the smaller sections of the road. Stephens and Wade next discussed how much Wade would accept and Wade agreed to a $2,200 bribe Person B gave Stephens $2,200 in cash which Stephens then gave Wade.
Finally, according to the plea agreement, Person C, who ran a plumbing and drain construction business in Baltimore, Maryland, was previously fined approximately $17,000 for street cuts in Baltimore City. In March 2016, Person C attended a Baltimore City street cut appeal hearing regarding the fine. Wade stopped the hearing and requested to speak with Person C outside the hearing. Once outside the hearing, Wade explained to Person C that if Person C helped Wade that he would help Person C.
In early September 2016, Wade met in-person with Person C and agreed to accept $5,000 to remove the offer. On September 22, 2016, Person C paid Wade the first $3,000 in cash. Wade arrived at the meeting driving a Baltimore City issued government vehicle. At the direction of Wade, Person C threw the $3,000 into Wade’s Baltimore City government vehicle. After the money was in his Baltimore City government vehicle, Wade stated “you good for life with me. . . .” and later laughed and further stated to Person C, “we in cahoots now. . . .”
Wade faces a maximum sentence of 20 years in prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for August 10, 2018 at 9:30 a.m.
Acting United States Attorney Stephen M. Schenning commended the FBI and Baltimore City Office of Inspector General for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Leo Wise, who are prosecuting the case.
Baltimore Man Sentenced to 14 Years in Prison for Carjackings and ShootingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Ellen L. Hollander sentenced Jerome Pittman, age 23, of Baltimore, Maryland today to 14 years in prison, followed by five years of supervised release, for conspiracy to commit carjacking, carjacking resulting in serious bodily injury, and discharging a firearm during and in relation to a crime of violence.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr., of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Darryl DeSousa of the Baltimore Police Department.
According to his plea agreement, on May 15, 2016, Pittman and a second male caught an unlicensed taxi in Baltimore, Maryland. The unidentified male entered the front passenger seat of the car and Pittman entered the rear passenger seat. The males then asked the driver to take them to a nearby treatment facility.
Upon arriving at the treatment facility, Pittman got out of the car, purportedly to retrieve some papers. The unidentified male then asked the driver to take him to the far, darker side of the lot so that the unidentified male could urinate.
A few moments later, the unidentified male opened the driver-side door, pointed a firearm at the driver, and ordered him out of the car. The driver got out of the car and ran around to the passenger side where he unexpectedly met Pittman, who shot him at close range in the thigh. The two men then drove off in the stolen vehicle leaving the injured driver in the parking lot.
Three days later, on May 19, 2016, Pittman and two co-conspirators were in a 2012 Mercedes Benz, which had been reported stolen. The men crashed the Mercedes Benz into another car and then fled the scene of the accident. They then walked to a nearby gas station, again in Baltimore, Maryland, where they brandished a firearm at a driver stopped at a traffic light, pressed the firearm into the driver’s stomach, and carjacked the vehicle.
The following day, the three men were together in the stolen vehicle and took a “selfie” with the victim’s cell phone.
Pittman’s co-defendants, Ti’Quan Dinkins and Rashad Harris, previously pleaded guilty to the carjacking on May 19, 2016, and related charges. Dinkins was sentenced to eight and a half years in prison, followed by three years of supervised release. Harris has not yet been sentenced.
Acting United States Attorney Stephen M. Schenning praised the ATF and Baltimore Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Dana Brusca and Patty McLane who prosecuted the case.
Alleged MS-13 Member Charged in Violent Racketeering Conspiracy Including Drug Trafficking and ExtortionRead the Press Release
A federal grand jury returned an indictment yesterday charging an alleged MS-13 member residing in Arlington, Virginia with conspiracy to participate in a racketeering enterprise, conspiracy to distribute controlled substances, and conspiracy to interfere with interstate commerce by extortion.
The indictment was announced by Acting Assistant Attorney General John P. Cronan; Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Special Agent in Charge Andre Watson of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Director in Charge Andrew W. Vale of the FBI Washington Field Office; Special Agent in Charge Karl C. Colder of the U.S. Drug Enforcement Agency (DEA); Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
Luis Arnoldo Flores-Reyes, aka Maloso and Lobo, 37, is charged in a four-count superseding indictment that alleges that from at least 2015 through January 2018, he was a member and associate of the Sailors Clique of MS-13 and that he engaged in a racketeering conspiracy that included extortion, drug trafficking, murder and a conspiracy to commit murder. The defendant is also charged with drug trafficking conspiracy and conspiracy to interfere with interstate commerce by extortion. Flores-Reyes is in custody.
According to the indictment, MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. Eleven other individuals were previously charged in this case with racketeering conspiracy, conspiracy to commit murder in aid of racketeering, drug trafficking conspiracy and conspiracy to interfere with interstate commerce by extortion.
For a period of time beginning at least in 2015 through in or about 2017, members of the Sailors Clique, including Flores-Reyes, are alleged to have extorted owners of illegal businesses in the Langley Park and Wheaton areas of Maryland, with the extortion proceeds being sent to El Salvador to benefit MS-13. In addition, between 2015 and 2018, members of the Sailors clique, including Flores-Reyes, are alleged to have trafficked narcotics, including marijuana and cocaine in Langley Park, Maryland, with the proceeds benefiting the gang.
More specifically, in January 2018, Flores-Reyes gave directions to members of MS-13 in Houston, Texas that they should purchase a gun and shoot rival gang members who were believed to have killed a member of MS-13. On or about Jan. 28, 2018, members of MS-13 in Houston, Texas shot at and attempted to kill suspected rival gang members while Flores-Reyes and other MS-13 members, including MS-13 members in El Salvador, monitored the shooting by phone.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent until proven guilty at some later criminal proceedings.
Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Daniel C. Gardner of the U.S. Attorney’s Office for the District of Maryland are prosecuting this case.
Alleged MS-13 Member Charged in Violent Racketeering Conspiracy Including Drug Trafficking and ExtortionRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury returned an indictment yesterday charging an alleged MS-13 member residing in Arlington, Virginia with conspiracy to participate in a racketeering enterprise, conspiracy to distribute controlled substances, and conspiracy to interfere with interstate commerce by extortion.
The indictment was announced by Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Acting Assistant Attorney General John P. Cronan; Special Agent in Charge Andre Watson of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Director in Charge Andrew W. Vale of the FBI Washington Field Office; Special Agent in Charge Karl C. Colder of the U.S. Drug Enforcement Agency (DEA); Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
Luis Arnoldo Flores-Reyes, a/k/a “Maloso” and “Lobo”, 37, is charged in a four-count superseding indictment that alleges that from at least 2015 through January 2018, he was a member and associate of the Sailors Clique of MS-13 and that he engaged in a racketeering conspiracy that included extortion, drug trafficking, murder and a conspiracy to commit murder. The defendant is also charged with drug trafficking conspiracy and conspiracy to interfere with interstate commerce by extortion. Flores-Reyes is in custody.
According to the indictment, MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. Eleven other individuals were previously charged in this case with racketeering conspiracy, conspiracy to commit murder in aid of racketeering, drug trafficking conspiracy and conspiracy to interfere with interstate commerce by extortion.
For a period of time beginning at least in 2015 through in or about 2017, members of the Sailors Clique, including Flores-Reyes, are alleged to have extorted owners of illegal businesses in the Langley Park and Wheaton areas of Maryland, with the extortion proceeds being sent to El Salvador to benefit MS-13. In addition, between 2015 and 2018, members of the Sailors clique, including Flores-Reyes, are alleged to have trafficked narcotics, including marijuana and cocaine in Langley Park, Maryland, with the proceeds benefiting the gang.
More specifically, in January 2018, Flores-Reyes gave directions to members of MS-13 in Houston, Texas that they should purchase a gun and shoot rival gang members who were believed to have killed a member of MS-13. On or about Jan. 28, 2018, members of MS-13 in Houston, Texas shot at and attempted to kill suspected rival gang members while Flores-Reyes and other MS-13 members, including MS-13 members in El Salvador, monitored the shooting by phone.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the HSI, FBI, DEA and Prince George’s County, Hyattsville, and Montgomery County Police Departments for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys William D. Moomau and Daniel C. Gardner and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Transport Logistics International Inc. Agrees to Pay $2 Million Penalty to Resolve Foreign Bribery CaseRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland - Transport Logistics International Inc. (TLI), a Maryland-based company that provides services for the transportation of nuclear materials to customers in the United States and abroad, agreed to resolve criminal charges in connection with a scheme that involved the bribery of an official at a subsidiary of Russia’s State Atomic Energy Corporation and to pay a $2 million criminal penalty. Three individuals have been charged for their alleged roles in the bribery scheme.
Acting U.S. Attorney Stephen M. Schenning of the District of Maryland, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Principal Deputy Inspector General April G. Stephenson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG) and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington, D.C. Field Office made the announcement.
TLI entered into a deferred prosecution agreement (DPA) with the Department in connection with a criminal information filed in the District of Maryland charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA). In the DPA, TLI and the Department agreed that, because of the company’s financial inability to pay the penalty calculated under the U.S. Sentencing Guidelines, the appropriate criminal penalty is $2 million. As part of the agreement, TLI also committed to cooperate fully with the Department’s ongoing investigation, and to continue to implement a compliance and ethics program designed to prevent and detect violations of the FCPA and other anti-corruption laws throughout its operations. In reaching the resolution with the Department, TLI received full credit for its substantial cooperation with the Department’s investigation and for engaging in remedial measures, including terminating the employment of all employees engaged in the misconduct.
“Bribery of foreign officials not only distorts markets and undermines democratic institutions; it can also pervert the incentives of those who are in a position to safeguard the public, as it did in this case involving the transportation of nuclear material,” said Acting Assistant Attorney General Cronan. “Today’s resolution, along with the related charges against the corporate executives and the Russian official in this matter, underscore the Department’s continued commitment to holding both companies and individuals accountable for their roles in corruption-related crimes and for breaching the public’s trust.”
“The Department of Energy remains committed to ensuring the integrity of our contractors and subcontractors, as well as providing the nation transparency, accountability, and security when it comes to safe and reliable transport of sensitive materials,” said Principal Deputy Inspector General Stephenson. “We appreciate the efforts of the FBI, the Justice Department’s FCPA Unit and the U.S. Attorney’s Office in pursuing this matter and will continue to work collaboratively with them to aggressively investigate those who seek to defraud Department programs.”
“Today’s charges reflect the determination and ability of the FBI to investigate and prosecute companies that engage in foreign corrupt business practices, regardless of how sophisticated or far-flung the scheme may be,” said Assistant Director in Charge Vale. “No entity is above the law and those that try to perpetrate a similar scheme will be pursued by the FBI.”
According to admissions and court documents, beginning in at least 2004 and continuing until at least 2014, TLI conspired with others to corruptly pay more than $1.7 million to offshore bank accounts associated with shell companies, at the direction of, and for the benefit of, Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation. The bribe payments were made to help TLI secure improper business advantages and obtain and retain business with TENEX. In order to effectuate and conceal the bribe payments, TLI executives and others caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided. TLI then wired payments for those purported services to shell companies in Latvia, Cyprus and Switzerland to further the bribery scheme.
On June 17, 2015, TLI co-president Daren Condrey pleaded guilty to conspiracy to violate the FCPA and commit wire fraud. On Aug. 31, 2015, Mikerin pleaded guilty to conspiracy to commit money laundering involving violations of the FCPA, and Mikerin was sentenced to 48 months in prison on Dec. 15, 2015. On Jan. 12, an 11-count indictment was unsealed against TLI co-president Mark Lambert, which charged Lambert with one count of conspiracy to violate the FCPA and to commit wire fraud, seven counts of violating the FCPA, two counts of wire fraud and one count of international promotion money laundering. The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The cases against TLI and Lambert are assigned to U.S. District Court Judge Theodore D. Chuang of the District of Maryland.
The case is being investigated by DOE-OIG and the FBI. Assistant Chiefs Ephraim Wernick and Christopher J. Cestaro and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorneys David I. Salem and Michael T. Packard of the District of Maryland, are prosecuting the case.
The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Department also thanks its law enforcement colleagues in Switzerland, Latvia and Cyprus for providing valuable assistance with the investigation and prosecution of the case.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Maryland MS-13 Member Convicted in Federal Racketeering Conspiracy Including MurderRead the Press Release
A federal jury today convicted Raul Ernesto Landaverde-Giron, aka Humilde and Decente, of Silver Spring, Maryland of conspiracy to participate in a racketeering enterprise in connection with his gang activity as a member of La Mara Salvatrucha, or MS-13. Landaverde-Giron was also found guilty of murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; discharging a firearm during a crime of violence and murder resulting from the discharging of a firearm during a crime of violence.
The conviction was announced by Attorney General Jeff Sessions; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Henry P. Stawinski III of the Prince George’s County, Maryland, Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville City Police Department; Chief Edward Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“With more than 10,000 members across 40 U.S. states, MS-13 is one of the deadliest gangs in America,” said Attorney General Sessions. “That’s why the Trump administration and this Department of Justice have worked aggressively to dismantle this vicious gang and take its members off of our streets. Maryland in particular has suffered terribly because of MS-13’s campaign of rape, murder, and extortion. Today’s conviction is another victory for the American people against this uniquely barbaric gang, and I want to thank everyone who played a role in making it possible, especially Homeland Security Investigations, Prince George’s and Montgomery County police, Hyattsville police, and the Assistant U.S. Attorneys and Department of Justice Trial Attorneys who prosecuted the case. MS-13 thinks that they are targeting us—but we are targeting them.”
According to the indictment, MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. MS-13 imposes “greenlights,” or orders to be killed, on members or associates who betray the gang by cooperating with law enforcement or violating significant gang rules.According to evidence presented at the three-week trial, from at least 2012 through at least 2016, MS-13 members planned and committed numerous crimes, including murders and attempted murders in Prince George’s County and Frederick County. Gang members also extorted owners of illegal businesses, among other crimes. Landaverde-Giron was a member of the MS-13 Normandie Locos Salvatrucha Clique.
Trial evidence showed that on Nov. 30, 2013, Landaverde-Giron, along with two other Normandie Clique members, murdered an individual in Frederick, Maryland, who had fled El Salvador to escape a greenlight imposed by MS-13 members in El Salvador. After a co-conspirator recognized the victim in Frederick, Normandie Clique members called an MS-13 leader in prison in El Salvador to confirm the greenlight was still in effect. A co-conspirator then lured the victim to a wooded area in Frederick, where he shot the victim in the head and Landaverde-Giron and another co-conspirator stabbed the victim in the face and neck. Landaverde-Giron was promoted within the Normandie Clique for his participation in this murder.
Landaverde-Giron faces a mandatory sentence of life in prison for murder in aid of racketeering. U.S. District Judge Peter J. Messitte has scheduled sentencing for June 13. Landaverde-Giron remains detained.
In addition to this conviction, five of the seven defendants charged in this case have previously pleaded guilty to their roles in the racketeering conspiracy.
HSI Baltimore, Frederick Police Department, Prince George’s County Police Department, Hyattsville City Police Department, Montgomery County Police Department, and the Prince George’s County State’s Attorney’s Office assisted in the investigation and prosecution. The case was prosecuted by Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland.
Maryland MS-13 Member Convicted in Federal Racketeering Conspiracy Including MurderRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal jury today convicted Raul Ernesto Landaverde-Giron, a/k/a “Humilde,” a/k/a “Decente,” of Silver Spring, Maryland of conspiracy to participate in a racketeering enterprise in connection with his gang activity as a member of La Mara Salvatrucha, or MS-13. Landaverde-Giron was also found guilty of murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; using, carrying and discharging a firearm during a crime of violence; and murder resulting from the use, carrying and discharging of a firearm during a crime of violence.
The conviction was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Attorney General Jeff Sessions; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Henry P. Stawinski III of the Prince George’s County, Maryland, Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville City Police Department; Chief Edward Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“With more than 10,000 members across 40 U.S. states, MS-13 is one of the deadliest gangs in America,” said Attorney General Sessions. “That’s why the Trump administration and this Department of Justice have worked aggressively to dismantle this vicious gang and take its members off of our streets. Maryland in particular has suffered terribly because of MS-13’s campaign of rape, murder, and extortion. Today’s conviction is another victory for the American people against this uniquely barbaric gang, and I want to thank everyone who played a role in making it possible, especially Homeland Security Investigations, Prince George’s and Montgomery County police, Hyattsville police, and the Assistant U.S. Attorneys and Department of Justice Trial Attorneys who prosecuted the case. MS-13 thinks that they are targeting us—but we are targeting them.”
According to the indictment, MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. MS-13 imposes “greenlights,” or orders to be killed, on members or associates who betray the gang by cooperating with law enforcement or violating significant gang rules.
According to evidence presented at the three-week trial, from at least 2012 through at least 2016, MS-13 members planned and committed numerous crimes, including murders and attempted murders in Prince George’s County and Frederick County. Gang members also extorted owners of illegal businesses, among other crimes. Landaverde-Giron was a member of the MS-13 Normandie Locos Salvatrucha Clique.
Trial evidence showed that on November 30, 2013, Landaverde-Giron, along with two other Normandie Clique members, murdered an individual in Frederick, Maryland, who had fled El Salvador to escape a greenlight imposed by MS-13 members in El Salvador. After a co-conspirator recognized the victim in Frederick, Normandie Clique members called an MS-13 leader in prison in El Salvador to confirm the greenlight was still in effect. A co-conspirator then lured the victim to a wooded area in Frederick, where he shot the victim in the head and Landaverde-Giron and another co-conspirator stabbed the victim in the face and neck. Landaverde-Giron was promoted within the Normandie Clique for his participation in this murder.
Landaverde-Giron faces a mandatory sentence of life in prison for murder in aid of racketeering. U.S. District Judge Peter J. Messitte has scheduled sentencing for June 13, 2018, at 9:30 am. Landaverde-Giron remains detained.
In addition to this conviction, five of the seven defendants charged in this case have previously pleaded guilty to their roles in the racketeering conspiracy.
Acting United States Attorney Stephen M. Schenning commended HSI Baltimore, Frederick Police Department, Prince George’s County Police Department, Hyattsville City Police Department, and Montgomery County Police Department, and the Prince George’s County State’s Attorney’s Office, for their work in the investigation and prosecution. Mr. Schenning thanked Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan, and Trial Attorney Francesca Liquori with the Justice Department’s Organized Crime and Gang Section, who are prosecuting the case.
“Pill Mill” Distributor Sentenced to Five Years in Prison for Conspiracy to Distribute OxycodoneRead the Press Release
FOR IMMEDIATE RELEASE CONTACT ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States Marvin J. Garbis sentenced Donald Russell, age 53, of Waldorf, Maryland today to five years in prison, followed by three years of supervised release for his participation in a drug conspiracy in connection with the operation of purported pain management clinics that were actually “pill mills.” Eleven co-conspirators previously pleaded guilty to the same charge.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Chief Gary Gardner of the Howard County Police Department; Charles County Sheriff Troy Berry; St. Mary’s County Sheriff Tim Cameron; Chief Hank Stawinski of the Prince George’s County Police Department; Calvert County Sheriff Mike Evans; Chief Peter Newsham of the Washington DC Metropolitan Police Department; Commissioner Darryl DeSousa of the Baltimore Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Colonel Gary T. Settle, Superintendent of the Virginia State Police.
According to court documents, “pill mills” routinely engage in the practice of prescribing and dispensing controlled substances - primarily oxycodone - outside the scope of professional practice and without a legitimate medical purpose. The owners kept the profits from the pill mill operations and from the sales of oxycodone in cash. According to the indictments, the owners recruited “distributors” and “runners” to visit their clinics so that they would profit from the cash fees charged for an office visit. Runners are recruited - usually by a distributor - to enter pill mill clinics with fictitious complaints of pain in order to obtain prescriptions for oxycodone and other controlled substances. Typically, runners filled the prescription and gave the oxycodone tablets they received to the distributor. Runners were typically paid in either cash or oxycodone tablets for their services. The distributors then generally sold the pills for a profit.
According to the plea agreement, from February 2014 through May 2015, Russell and co-defendant Bruce Kevin Lewis, age 52, of Deale, Maryland, owned and operated PG Wellness Center, LLC (PG Wellness), and A Plus Pain Clinic, LLC (A Plus Pain), purported pain management clinics located in Oxon Hill, Maryland and Washington, D.C., respectively. PG Wellness and A Plus Pain were actually pill mills.
Russell was captured on numerous wiretap calls buying and selling oxycodone pills, or prescriptions for oxycodone pills, from persons who regularly visited the clinics and/or arranged for others to do so. For example, on September 28, 2014, Russell and co-defendant Walter Moffett had a series of calls about Mr. Moffett bringing two patients to the clinic.
Russell worked with at least 62 different individuals who visited the clinics to obtain illicit oxycodone prescriptions. These included codefendants Melissa Catlett, Terrell Downing, John Fields, Ronald Kans, Robert Long, Walter Moffett, Ronald Rust, Danielle Silberstein, Peter Snyder, and Ronald Tennyson.
According to the plea agreement, on or about October 31, 2014, Russell and Lewis discussed the profits reaped that month from their clinics: $4,400 - 4,500 from A Plus Pain and $48,000-50,000 from PG Wellness. They talked about hiding the money and discussed methods that regulatory authorities had used when examining other pill mill clinics.
Over the course of the conspiracy, Russell distributed at least 2,307,000 milligrams (2,307 grams) of oxycodone.
The following 11 individuals have pleaded guilty to the conspiracy:
Bruce Kevin Lewis, age 55, of Deale, Maryland; Danielle Silberstein, age 34, of Waldorf; Robert Long, age 37, of Mechanicsville, Maryland; Jamie Davis, age 31, of LaPlata, Maryland; Ronald Tennyson, age 35, of Mechanicsville; Terrell Downing, age 28, of New Carrollton, Maryland; John Fields, age 65, of Temple Hills, Maryland; Ronald Rust, age 47, of Alexandria, Virginia; Walter Moffett, age 54, of Chestertown, Maryland; Ronald Kans, age 44, of LaPlata, Maryland; and Peter Snyder, age 37, of Ocean City, Maryland.Acting United States Attorney Stephen M. Schenning praised the DEA Tactical Diversion Squads from Baltimore and Washington DC, HHS-Office of Inspector General, Howard County Police Department, Charles County Sheriff’s Office, St. Mary’s County Sheriff’s Office, Prince George’s County Police Department, Calvert County Sheriff’s Office, Metropolitan Police Department, Baltimore County Police Department, Baltimore City Police Department, and Virginia State Police for their work in this pharmaceutical investigation. Mr. Schenning thanked Assistant United States Attorney Kenneth S. Clark who is prosecuting this Organized Crime Drug Enforcement Task Force case.
“Murdaland Mafia Piru” Bloods Gang Member Pleads Guilty to Racketeering and Drug Trafficking ConspiracyRead the Press Release
March 13, 2018
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Takuma Tate, a/k/a “Oop,” a/k/a “Ook,” age 39, of Baltimore pleaded guilty today to conspiracy to participate in a racketeering enterprise known as Murdaland Mafia Piru (MMP) and conspiracy to distribute controlled substances.
Tate was one of 26 alleged MMP gang members and associates charged in this case. Thirteen of the 26 defendants indicted have pleaded guilty to their participation in the racketeering conspiracy.
The plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives—Baltimore Field Division; Commissioner Darryl DeSousa of the Baltimore Police Department; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to court documents, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that for many years controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County. MMP was modeled after the Italian Mafia. Members and associates of MMP operated street-level drug distribution “shops” in various locations in Baltimore City and distributed heroin, cocaine, crack cocaine, fentanyl, and marijuana, among other controlled substances. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70 and frequently attracted drug customers driving from western Maryland and neighboring states. MMP members were required to pay dues to the gang consisting of a portion of the proceeds of their criminal activities, and they were subject to reprisal—and sometimes murder—for failing to do so. Non-members who wished to sell drugs in MMP’s territories were forced to pay a “tax” or were targeted for violence by MMP members. MMP members enhance their status within the gang by carrying out acts of violence against rivals; for instance, members can earn a “lightning bolt” tattoo for “killing for the Mob.”
The 32-count second superseding indictment alleges that from at least 2011 through 2017, the defendants were members and associates of MMP who engaged in criminal activities in furtherance of the gang, including five murders, six attempted murders, assaults, abduction, witness tampering, and drug distribution resulting in nonfatal overdoses. Tate admitted that he agreed with members of MMP to conduct and participate in the gang’s affairs through a pattern of racketeering activity that included offenses involving drug distribution. He also agreed that it was reasonably foreseeable to him that between one and three kilograms of heroin and between 280 and 840 grams of cocaine base would be distributed by members of the conspiracy.
The following 13 defendants were charged in the superseding indictment unsealed on September 27, 2016, and charges remain pending against them in the second superseding indictment:
Dante Bailey, a/k/a “Gutta,” “Almighty,” and “Wolf,” age 37, of Windsor Mill, Maryland; Dontray Johnson, a/k/a “Gambino,” “Bino,” and “Tray,” age 31, of Windsor Mill; Adrian Jamal Spence, a/k/a “Spittle,” “SP,” and “AJ,” age 29, of Baltimore; Randy Banks, a/k/a “Dirt,” age 38, of Baltimore;Ayinde Deleon, a/k/a “Murda,” and “Yin,” age 31, of Baltimore; Jamal Lockley, a/k/a “T-Roy,” and “Droid,” age 37, of Baltimore; Jacob Bowling, a/k/a “Jakey,” “Ghost,” and “Fred,” age 30, of Gwynn Oak, Maryland; Corloyd Anderson, a/k/a “Bo,” age 33, of Owings Mills, Maryland; Devon Dent, a/k/a “Tech,” age 26, of Gwynn Oak; Tiffany Bailey, a/k/a “Tiff,” age 31, of Windsor Mill; Shakeen Davis, a/k/a “Creams,” age 22, of Baltimore; Sydni Frazier, a/k/a “Sid,” a/k/a “Perry,” age 26, of Baltimore; and Malcolm Lashley, a/k/a “Spook,” age 27, of Baltimore.
An indictment is not a finding of guilt. Individuals charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
In addition to Tate, the following 12 defendants have pleaded guilty to their participation in the racketeering conspiracy:
William Banks, a/k/a “Trouble,” age 27, of Baltimore; Dominick Wedlock, a/k/a “Rage,” and “Nick,” age 29, of Baltimore; Dwight Jenkins, a/k/a “Huggie,” and “Unc,” age 48, of Baltimore; Melvin Lashley, a/k/a “Menace,” age 26, of Baltimore; Maurice Pollock, a/k/a “Reese,” age 22, of Baltimore; Delante Lee, a/k/a “Tay Tay,” age 21, of Baltimore; William Jones, a/k/a “Bill,” and “Smalls,” age 27, of Baltimore; Jarmal Harrid, a/k/a “J-Rock,” and “PJ,” age 27, of Gwynn Oak; Jamal Smith, a/k/a “Mal,” and “Lil Mal,” age 25, of Gwynn Oak; Charles Blackwell, a/k/a “Ci-Bo,” and “Lil Charlie,” age 21, of Woodlawn; Kenneth Torry, a/k/a “Kenny,” age 39, of Owings Mills; Jay Greer, a/k/a “Champagne,” “Montana Gold,” and “Slick,” age 24, of Baltimore.
Tate and the government have agreed that if the Court accepts the plea agreement Tate will be sentenced to 10 years in prison followed by five years of supervised release. U.S. District Judge Catherine C. Blake has scheduled sentencing for June 19, 2018 at 9:15a.m.
Acting United States Attorney Stephen M. Schenning commended the ATF, 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. Schenning thanked Assistant United States Attorneys Christina A. Hoffman and Lauren E. Perry, who prosecuted the case.
Transport Logistics International Inc. Agrees to Pay $2 Million Penalty to Resolve Foreign Bribery CaseRead the Press Release
Transport Logistics International Inc. (TLI), a Maryland-based company that provides services for the transportation of nuclear materials to customers in the United States and abroad, agreed to resolve criminal charges in connection with a scheme that involved the bribery of an official at a subsidiary of Russia’s State Atomic Energy Corporation and to pay a $2 million criminal penalty. Three individuals have been charged for their alleged roles in the bribery scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephen M. Schenning of the District of Maryland, Principal Deputy Inspector General April G. Stephenson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG) and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington, D.C. Field Office made the announcement.
TLI entered into a deferred prosecution agreement (DPA) with the Department in connection with a criminal information filed in the District of Maryland charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA). In the DPA, TLI and the Department agreed that, because of the company’s financial inability to pay the penalty calculated under the U.S. Sentencing Guidelines, the appropriate criminal penalty is $2 million. As part of the agreement, TLI also committed to cooperate fully with the Department’s ongoing investigation, and to continue to implement a compliance and ethics program designed to prevent and detect violations of the FCPA and other anti-corruption laws throughout its operations. In reaching the resolution with the Department, TLI received full credit for its substantial cooperation with the Department’s investigation and for engaging in remedial measures, including terminating the employment of all employees engaged in the misconduct.
“Bribery of foreign officials not only distorts markets and undermines democratic institutions; it can also pervert the incentives of those who are in a position to safeguard the public, as it did in this case involving the transportation of nuclear material,” said Acting Assistant Attorney General Cronan. “Today’s resolution, along with the related charges against the corporate executives and the Russian official in this matter, underscore the Department’s continued commitment to holding both companies and individuals accountable for their roles in corruption-related crimes and for breaching the public’s trust.”
“The Department of Energy remains committed to ensuring the integrity of our contractors and subcontractors, as well as providing the nation transparency, accountability, and security when it comes to safe and reliable transport of sensitive materials,” said Principal Deputy Inspector General Stephenson. “We appreciate the efforts of the FBI, the Justice Department’s FCPA Unit and the U.S. Attorney’s Office in pursuing this matter and will continue to work collaboratively with them to aggressively investigate those who seek to defraud Department programs.”
“Today’s charges reflect the determination and ability of the FBI to investigate and prosecute companies that engage in foreign corrupt business practices, regardless of how sophisticated or far-flung the scheme may be,” said Assistant Director in Charge Vale. “No entity is above the law and those that try to perpetrate a similar scheme will be pursued by the FBI.”
According to admissions and court documents, beginning in at least 2004 and continuing until at least 2014, TLI conspired with others to corruptly pay more than $1.7 million to offshore bank accounts associated with shell companies, at the direction of, and for the benefit of, Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation. The bribe payments were made to help TLI secure improper business advantages and obtain and retain business with TENEX. In order to effectuate and conceal the bribe payments, TLI executives and others caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided. TLI then wired payments for those purported services to shell companies in Latvia, Cyprus and Switzerland to further the bribery scheme.
On June 17, 2015, TLI co-president Daren Condrey pleaded guilty to conspiracy to violate the FCPA and commit wire fraud. On Aug. 31, 2015, Mikerin pleaded guilty to conspiracy to commit money laundering involving violations of the FCPA, and Mikerin was sentenced to 48 months in prison on Dec. 15, 2015. On Jan. 12, an 11-count indictment was unsealed against TLI co-president Mark Lambert, which charged Lambert with one count of conspiracy to violate the FCPA and to commit wire fraud, seven counts of violating the FCPA, two counts of wire fraud and one count of international promotion money laundering. The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The cases against TLI and Lambert are assigned to U.S. District Court Judge Theodore D. Chuang of the District of Maryland.
The case is being investigated by DOE-OIG and the FBI. Assistant Chiefs Ephraim Wernick and Christopher J. Cestaro and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorneys David I. Salem and Michael T. Packard of the District of Maryland, are prosecuting the case.
The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Department also thanks its law enforcement colleagues in Switzerland, Latvia and Cyprus for providing valuable assistance with the investigation and prosecution of the case.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Baltimore Man Indicted for Ten RobberiesRead the Press Release
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Baltimore, Maryland – A federal grand jury has indicted Antonio Johnson, age 49, of Baltimore, Maryland, today on ten counts of Hobbs Act robbery.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Darryl DeSousa of the Baltimore Police Department.
According to the 10-count indictment, between January 23, 2018 and February 12, 2018, Johnson robbed ten Baltimore restaurants at gunpoint. Johnson is currently detained.
Johnson faces a maximum sentence of 20 years in prison for the robberies.
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.
Acting United States Attorney Stephen M. Schenning commended the FBI and the Baltimore City Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Matthew DellaBetta who is prosecuting the case.
Reisterstown Man Pleads Guilty to Money Laundering Drug ProceedsRead the Press Release
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Baltimore, Maryland – On March 8, 2018, Stewart Sachs, age 66, of Reisterstown, Maryland, pleaded guilty to money laundering drug proceeds.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore Division; and Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation.
According to his plea agreement, between November 2011 and February 2013, Sachs agreed to accept a total of $425,000 of narcotics trafficking proceeds. Mr. Sachs acknowledged that the money was tainted but agreed to sell his real estate, as a front for laundering the drug proceeds.
On four separate occasions, Sachs met with undercover agents and agreed to transfer real estate owned by Limited Liability Companies (LLCs) to the undercover agents or anyone else that the undercover agents wanted and no one would know that the undercover agent owned the properties, in exchange for cash.
The male undercover agent had represented himself to be a narcotics officer on numerous occasions. However, Sachs executed the documents to transfer ownership of the LLC to one of the undercover agents. Sachs had one of his employees prepare four checks payable to the undercover agent for $25,000 each. These checks represented the $100,000 overpayment, which the undercover agent said he needed to appear to be legitimate income. During the meeting, special agents from the DEA and IRS arrested Mr. Sachs and recovered the $425,000.
Sachs faces a maximum sentence of twenty in prison. U.S. District Judge Marvin J. Garbis has scheduled sentencing for June 25, 2018 at 2:15 p.m.
Acting United States Attorney Stephen M. Schenning commended the DEA and IRS-CI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys James Warwick and Cassie Mathias, who are prosecuting the case.
Nottingham Man Convicted of Conspiracy to Distribute CocaineRead the Press Release
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Baltimore, Maryland – On March 8, 2018, a federal jury convicted Corey Hammond, age 30, of Nottingham, Maryland of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.
The conviction was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore Field Office; Commissioner Darryl DeSousa of the Baltimore Police Department; and Chief Terrence B. Sheridan of the Baltimore County Police.
Evidence presented at the four-day trial included intercepted coded cellular telephone calls in which Hammond discussed with another co-conspirator “2 Peyton Mannings,” which an expert Task Force Officer with the Drug Enforcement Administration (DEA) interpreted to mean a kilogram of cocaine. Peyton Manning’s jersey was 18. 18 ounces of cocaine equals 504 grams or one-half a kilogram. The jury also saw an intercepted text message from yet another co-conspirator which read: “256000 total at 32000.” Evidence at trial established the price of each kilogram of cocaine was valued at $32,000. The text message, according to the sender of the text and who testified at trial, represented 8 kilograms: 256,000 divided by 32,000 equals 8. Upon receiving the text, Hammond sent a text of his own, which read “Don’t Text. We already agreed. We’re on the same page.”
During the course of the trial, the jury also saw evidence of a seizure of almost 15 kilograms of cocaine, along with more than $520,000 in cash seized from Hammond’s co-conspirators.
Hammond, who previously had been convicted of a narcotics related offense in Baton Rouge, Louisiana, is facing a minimum mandatory sentence of 20 years, without parole.
Acting United States Attorney Stephen M. Schenning commended the DEA, the Baltimore City and Baltimore County Police Departments for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Christopher J. Romano and Special Assistant United States Attorney Jeffrey Hann, who prosecuted the case.
Former PA Police Officer Sentenced to One Year in Prison for Mail FraudRead the Press Release
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Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced Marco DeCamillo, age 41, of Reading, Pennsylvania today to 12 months in prison, followed by three years of supervised release, for mail fraud stemming from the sales of misbranded body armor. Judge Blake also ordered DeCamillo to pay $124,000 in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Special Agent in Charge Marlon V. Miller of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Philadelphia and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, De Camillo was a former police officer in West Reading, PA. During his tenure as a police officer, DeCamillo also owned and operated a business called Mad Dragon Tactical (MDT). MDT sold law enforcement tactical gear, including body armor rifle plates, primarily on auction and shopping websites. DeCamillo, through MDT, sold approximately $169,000 worth of body armor that was falsely classified as certified by the National Institute of Justice (NIJ). The NIJ conducts ballistic testing on body armor.
DeCamillo falsely claimed that certain MDT body armor shields would protect against armor piercing rounds, and that certain products were made with the more robust HY80 and A4600 Steel. DeCamillo used his status as a police officer to sell the misbranded body armor rifle plates, understanding that several of his buyers were in law enforcement and/or military or defense and were relying on DeCamillo’s representations regarding the quality and safety of his products.
According to the plea agreement, on December 17, 2015, a defense contractor and NIJ accredited laboratory (“victim lab”) contacted the FBI with a complaint regarding the misuse of one of their ballistic data test sheets by MDT. The FBI verified that DeCamillo, through MDT, had advertised online a set of body armor plates with an altered ballistic test sheet from the victim lab that had been completed in 2013. The original 2013 test sheet provided the results of ballistic testing on a ballistic test shield, not steel body armor plates as advertised by MDT. FBI agents viewed several MDT listings online and observed photographs of altered ballistic test sheets uploaded to each listing.
In January and February 2016, the FBI in Maryland set up controlled purchases of the body armor online from MDT through an undercover identity. All three shipments purchased listed DeCamillo’s home address in West Reading, PA as the return address and were delivered from Pennsylvania to Maryland via US Mail. Inside each package was a hard copy of the altered ballistic test sheet (originating from the victim lab). The HY80 altered ballistic test sheet included an additional hand-written note in the bottom margin stating, “Note-During testing Armor plate stopped (2) .308 Armor piercing Black Tip AP and (3) 7.62x39 Chinese Steel Core Armor Piercing AP rounds.”
Numerous ballistics sheets that had been fraudulently altered with “white out” or other redactions were recovered from DeCamillo’s residence during the execution of a search warrant by HSI.
DeCamillo was interviewed by HSI and the FBI and admitted that he knew that his MDT body armor was not NIJ certified.
Acting United States Attorney Stephen M. Schenning commended HSI and the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Rachel M. Yasser who is prosecuting the case.
Fugitive in Bank Fraud Scheme ApprehendedRead the Press Release
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Baltimore, Maryland – Loren Park, a/k/a “Loren Yong Park,” age 50, formerly of Falls Church, Virginia was arrested on February 22, 2018 in South Korea and extradited to Maryland to face charges relating to bank fraud.
In 2011, a federal grand jury indicted Park and his brother Yong Park, of Falls Church, Virginia and Nick Park, of McLean, Virginia on charges of conspiring to commit bank fraud in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration, with resulting losses of over $100 million.
The arrest was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation; U.S. Marshal for the District of Maryland Johnny Hughes; and Small Business Administration Acting Inspector General Hannibal “Mike” Ware.
According to the 2011 superseding indictment, the Park brothers owned Jade Capital & Investments, LLC. Jade Capital was a loan brokerage company operated by Joon and Loren Park and specializing in securing loans for individuals interested in purchasing or refinancing small businesses in the Mid-Atlantic area. According to the 2011 indictment, Joon, Loren and Nick Park 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% - 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.
The indictment alleges that from February 2005 until October 2011, Joon, Loren, and Nick Park submitted SBA loan applications and supporting documentation to loan originators and underwriters on behalf of their clients. The indictment alleges that the packages contained fraudulent personal financial statements and/or monthly bank statements which overstated the net worth and equity injection of the borrowers and falsely enhanced the creditworthiness of the borrowers and their businesses.
The indictment alleges that Joon and Loren Park altered copies of the borrowers’ monthly bank statements to fraudulently reflect more money than was actually in the accounts; created false bank statements for accounts that did not exist; and provided some of the financial institutions with misleading summaries of the borrowers’ business experience in order to falsely enhance the borrowers’ ability to manage the business and make the required loan payment.
The indictment further alleges that Joon, Loren and Nick Park and Jade Capital supplied some financial institutions with fraudulent gift letters falsely representing the source of the borrowers’ down payments and equity injections. Also according to the indictment, Joon Park, Loren Park and Jade Capital submitted financial documentation to lenders that misrepresented the equity injection of the principal owners of 51 businesses that had applied for SBA-guaranteed loans. In addition, the defendants 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 indictment alleges that Joon Park submitted fraudulent documentation, including a personal financial statement and monthly bank statements in connection with an SBA loan application for a car wash business in which he was the principal owner.
Parks co-conspirators all pleaded guilty and were sentenced to the following:
Joon Park was sentenced to 188 months in prison; Nick Park was sentenced to 33 months in prison; Joo Hyuk “John” Lee was sentenced to three years in prison; Sang Hyun Kim was sentenced to three years in prison; In Jung Ham was sentenced to a year and a day in prison; and Seung E. Oh, a/k/a Sandy Oh was sentenced to 51 months in prison.
Park faces a maximum sentence of 30 years in prison for the conspiracy. Park remains detained.
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.
Acting United States Attorney Stephen M. Schenning commended the FBI, U.S. Marshals and SBA for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Marty Clarke and Leo Wise, who are prosecuting the case.
Former Maryland State Delegate and Deputy Majority Whip of the Maryland House of Delegates Convicted of Bribery and ConspiracyRead the Press Release
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Greenbelt, Maryland – A federal jury has convicted former Maryland State Delegate Michael Lynn Vaughn, age 60, of Bowie, Maryland, of bribery and conspiracy in connection with a scheme in which he accepted bribes in exchange for influencing the performance of his official duties.
The conviction was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
Vaughn was a Maryland State Delegate from January 2003 until January 2017, representing District 24, which covered portions of Prince George’s County, Maryland, and was the Deputy Majority Whip and a senior member of the Economic Matters Committee.
According to evidence presented at trial, from January 2015 through April 2016, then-Delegate Vaughn conspired with former Prince George’s County Liquor Board Commissioner and later, Chief Liquor Inspector, David Dae Sok Son, liquor store owners Young Jung Paig, Shin Ja Lee, and others to advance and vote for favorable legislation in exchange for cash payments.
According to evidence presented at trial, Vaughn took over $15,000 in cash bribes from Paig, Lee, and others, in exchange for influencing and voting for the 2015 Sunday Sales Bill and the related 2016 Additional Sunday Permits Bill, both of which became Maryland laws. The 2015 Sunday Sales Bill established up to 100 Sunday liquor sales permits in Prince George’s County for certain license holders. The 2016 Additional Sunday Permits Bill raised the limit of Sunday liquor sales permits in Prince George’s County from 100 to 105. On at least six occasions, then-Delegate Vaughn voted in favor of the bills in the Prince George’s County Delegation meetings, in the Economic Matters Committee, and on the floor of the Maryland House of Delegates.
Vaughn faces a maximum sentence of 10 years in prison for each of four counts of bribery and five years in prison for the conspiracy count. No sentencing date has been scheduled.
Acting United States Attorney Stephen M. Schenning commended the FBI, IRS-CI, and Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Thomas P. Windom and Phil Selden, who prosecuted the case, and Menaka S. Kalaskar, who assisted in the prosecution.
Baltimore Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
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Baltimore, Maryland – Roger Spears, age 36, of Baltimore, Maryland, pleaded guilty today to brandishing a firearm in furtherance of the conspiracy to possess with intent to distribute controlled substances.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore Field Office; and Commissioner Darryl DeSousa of the Baltimore Police Department.
According to his plea agreement, on June 21, 2016, Spears carried out an armed home invasion in Anne Arundel County where he encountered one of the victims and pistol-whipped him in the face. Spears then took the victim to the upstairs bedroom where two other victims slept. He held all the victims at gunpoint and demanded their property. Spears stole jewelry, heroin, Xanax (alprazolam), money, and a.40 caliber handgun. According to the plea agreement, Spears sold the heroin that he stole during the robbery and kept the handgun.
On July 25, 2016, at around 9:20 p.m., Spears was engaged in drug trafficking and had hidden a stash of 18 bags of cocaine in a bag on the porch. At around that time, Spears left the location, but left the bag hidden on the porch. He later returned in a minivan as a passenger to retrieve the narcotics. As the minivan drove away from the location, a Baltimore City Police Department patrol vehicle attempted to stop the vehicle. The minivan fled from the patrol car and the Spears threw the bag with the gun and cocaine out of a window. The minivan subsequently crashed into a curb and Spears fled on foot. Spears was arrested by officers a short distance away.
Spears and the government have agreed that if the Court accepts the plea agreement, he will be sentenced to fifteen years in prison followed by a lifetime of supervised release. U.S. District Judge Richard D. Bennett has scheduled sentencing for May 29, 2018 at 2 p.m.
Acting United States Attorney Stephen M. Schenning commended the DEA and the Baltimore City Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Matthew DellaBetta, who is prosecuting the case.
Crofton Man Pleads Guilty to Coercion and Enticement of A MinorRead the Press Release
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Baltimore, Maryland – Piere Ceradoy, age 37, of Crofton, Maryland, pleaded guilty today to coercion and enticement of a minor.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to his plea agreement, between February 2016 and April 2017, Ceradoy repeatedly enticed a minor female to take photographs and stream live videos of herself engaging in sexually explicit conduct and send those images and videos to Ceradoy using a mobile phone and the internet. During the course of the exploitation of the victim, Ceradoy frequently threatened to expose the victim by disseminating the explicit files, and regularly threatened to kill the victim and her family. Ceradoy also sent images and videos of himself engaged in sexually explicit conduct to the victim. The victim was 13 years old.
Ceradoy engaged in this conduct after two convictions in 2014 relating to aggravated sexual abuse, sexual abuse, and abusive sexual conduct involving a minor. During this time, he was on parole for a sex offense conviction in the state of Washington, and was registered as a sex offender.
Ceradoy and the government have agreed that if the Court accepts the parties’ plea agreement Ceradoy will be sentenced to 25 years in prison and will be placed on supervised release for life. United States District Judge Marvin J. Garbis has scheduled sentencing for May 25, 2018 at 2:00 p.m. Ceradoy remains detained pending sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States 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.
Acting United States Attorney Stephen M. Schenning praised HSI Baltimore, the Maryland State Police and the Franklinton, North Carolina Police Department, for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the case.
Owings Mills Man Sentenced to 30 Months in Federal Prison for Mail FraudRead the Press Release
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Baltimore, Maryland – On February 27, 2017, U.S. District Judge Marvin J. Garbis sentenced Saleh Stevens, age 45, of Owings Mills, Maryland, to 30 months in prison, followed by 3 years of supervised release. Judge Garbis also ordered that Stevens pay over $3.4 million in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation; and U.S. Trustee Gerard R. Vetter of the Baltimore office of the United States Trustee Program.
In August 2014, Stevens pleaded guilty to stealing over $3,000,000 from his employer, Hanover Insurance. According to his plea agreement. Stevens was an attorney licensed to practice in Maryland and worked as a senior claims adjustor and bond claim attorney in the bond department of The Hanover Insurance Company regional office in Towson, Maryland. In this position, Stevens was responsible for reviewing and managing claims related to surety bonds. These bonds were generally for construction projects to assist with claims processing. Hanover employed CPA firm accountants and engineers to assist Hanover manage and resolve claims.
Beginning in December 2011, Stevens began to embezzle funds from Hanover’s special surety workout accounts. These accounts were established and funded with Hanover’s reserve funds. Using his position as a bond claim attorney, Stevens directed the outside CPA firms to issue checks from these Hanover special reserve accounts to the bank accounts of third-party entities that Stevens either controlled, or were controlled by his friends.
For example, Stevens approached his high school friend and offered to pay him $40,000 in exchange for opening a nominee company with a bank account. His friend then opened Lundy Lighting Supply, LLC, a fictional corporate entity, that did not have a physical location, conduct any business, have any employees, nor any customers. Stevens sent embezzled funds to this fictitious company and accounts.
In some instances, Stevens directed the owners of these third-party entities to issue checks to him for his personal benefit or directed Hanover CPAs to issue checks made payable to entities that he controlled. Stevens used these funds to purchase luxury automobiles, (including a 2008 Maserati and a 2009 Mercedes), and a fifty-foot yacht. Stevens also spent approximately $1,900,000 to fund for a NASCAR racing team.
In total, Stevens embezzled $3,119,129.22 from The Hanover Insurance Company.
Co-conspirator, Eric Myles Gordon, age 50, of Baltimore County, Maryland, was previously convicted of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, and falsification of records in bankruptcy, and was sentenced to 36 months in prison.
Acting United States Attorney Stephen M. Schenning commended the FBI, and the United States Trustee’s Baltimore Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Judson T. Mihok and P. Michael Cunningham, who prosecuted the case.
Landover Man Sentenced to 10 Years in Prison for Firearm PossessionRead the Press Release
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Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Michael Wayne Brown, age 40, of Landover, Maryland, today to 10 years in prison followed by three years of supervised release for firearm possession and firearm possession in a school zone.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement on July 14, 2016, members of the Prince George’s Police Department executed a search warrant at Brown’s home in Landover. The residence was located near two difference school zones – the William Paca Elementary School and the Pentecostal Evangelical Church. During the course of the search, law enforcement officers recovered five grams of marijuana $5,200 and a loaded .40 caliber handgun.
Brown knowingly possessed the handgun, which was manufactured outside of Maryland, and he was not licensed to deal, import, manufacture or collect firearms. He also knowingly possessed the firearm on the grounds or within 1,000 feet of a school zone.
Acting United States Attorney Stephen M. Schenning commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Jennifer Sykes and Trial Attorney Sarah Edwards of the Criminal Division’s Fraud Section, who prosecuted the case.
Former Army Contractor Indicted for "No Show" Job Involving Contract at Aberdeen Proving GroundRead the Press Release
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Baltimore, Maryland –A federal grand jury has indicted Eric D. Price, age 58, of Fayetteville, North Carolina for conspiracy to defraud the United States and wire fraud charges related to payments to him for a "no show" job on a sub-contract under contracts awarded by the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the seven-count indictment, in March 2006, the U.S. Army Contracting Command at APG awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. Task Orders 11, 77 and 115 were placed against this contract. John Kays had a leadership position as a civilian employee of the Army related to these task orders.
Matthew Barrow was the President and owner of MJ-6, LLC, a company which he and his wife formed in Ohio in 2008 to obtain military subcontracts. John Kays steered business on Task Orders 77, 11, and 115 to MJ-6.
According to the indictment, Kays and Barrow agreed that Price would be added to the MJ-6 payroll. Price's job was purportedly to directly support Kays. Price purportedly worked remotely at Fayetteville, North Carolina while Kays worked at APG. From February 2010 thru February 2012, Price allegedly fraudulently received more than $100,000 in salary payments for a "no show" job at MJ-6 for which MJ-6 billed over $400,000 to the prime contractor, which was passed through to the United States Army. Kays certified and approved MJ-6's work, including Price's "no show" job. To facilitate the “no show” job, Price allegedly submitted false and fictitious status reports and invoices through MJ-6 to the prime contractor.
Price faces a maximum sentence of 5 years in prison for the conspiracy; and 20 years in prison for each wire fraud count. An initial appearance has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
In connection with a larger bribery scheme involving John Kays and Barrow, Barrow pleaded guilty to paying John Kays and his wife Danielle Kays, also a government official, bribes of approximately $800,000, including $500,000 in cash. John Kays pleaded guilty to receiving bribes of approximately $800,000 from Barrow. John Kays' sentencing proceeding is scheduled for April 3, 2018, at 9 am before Judge Catherine C. Blake. Barrow's sentencing is set for April 20, 2018, at 2 pm before Judge George L. Russell, III. Danielle Kays is presently serving an 18 month sentence; she pleaded guilty to conspiracy to defraud the United States and bribery. John Kays, Danielle Kays, and Matthew Barrow all graduated from West Point where they were classmates.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
Acting United States Attorney Stephen M. Schenning commended the DCIS, Army Criminal Investigation Command, and FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Joyce K. McDonald and Harry M. Gruber, who are prosecuting the case.
Baltimore Man Convicted of Armed Bank RobberyRead the Press Release
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Baltimore, Maryland – On February 26, 2018, a federal jury convicted Timothy Allen McNeal, age 31, of Baltimore, Maryland, on charges of armed robbery, conspiracy, and brandishing a firearm during a crime of violence.
The verdict was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Division; and Chief Gary L. Gardner of the Howard County Police.
According to evidence presented at trial, on August 4, 2016, McNeal and his brother, Markus Fields, age 28, of Baltimore, robbed the Howard County Education Federal Credit Union (HCEFCU) in Ellicott City, Maryland at gun point. Surveillance video captured the robbery, during which both Fields and McNeal entered the credit union wearing ski masks to cover their faces. Fields entered first carrying a black backpack. McNeal entered after, carrying a rifle-style long gun with a large magazine visible on the top. McNeal pointed the gun at a bank teller and a customer, while Fields walked to another room. McNeal forced the victims to the ground at gunpoint and moved behind the counter. Fields opened the teller drawer and began rifling through it. McNeal, after closing the bank door, walked back to a supervisor’s office down a short hallway.
McNeal pointed the gun toward the supervisor’s office, forcing the employee to exit the office and, ultimately, open the safe in the lobby. After opening the safe, she was ordered to the ground where she remained while the Fields and McNeal removed cash from the safe.
McNeal then reached into the backpack Fields was carrying, removed zip ties, and zip tied the supervisor and customer. Fields used the zip ties to restrain the teller’s hands behind her back. McNeal and Fields then left the HCEFCU by climbing out of a window.
McNeal, Fields and their mother, an employee of the Howard County School District, were all account holders at the HCEFCU. On August 4, 2016, a few hours after the robbery, McNeal and Fields went to Wal-Mart and purchased two large televisions, paying over $350 in cash for each. On August 6, 2016, two days after the robbery, Fields purchased a maroon Lexus and paid $4,620 in cash. On August 8, 2016, McNeal posted a photograph of a maroon Lexus with the caption “we working.” On August 17, 2016, over $2,600 in overdue rent was paid on Fields and McNeal’s residence.
During execution of a search warrant, law enforcement recovered black ski masks, clothing matching the clothing worn by McNeal during the bank robbery, banded cash, and cell phones from Fields and McNeal’s residence
Co-defendant Fields pleaded guilty to Armed Bank Robbery on February 9, 2018 and is scheduled for sentencing on May 8, 2018. Judge Catherine C. Blake has set sentencing for May 30, 2018 for McNeal.
Acting United States Attorney Stephen M. Schenning commended the FBI, ATF, Howard County Police and the Howard County State’s Attorney’s office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Lauren Perry and Burden Walker who prosecuted the case.
Aberdeen Man Sentenced to Five Years in Prison for Distribution of Child PornographyRead the Press Release
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Baltimore, Maryland – United States District Judge Marvin J. Garbis sentenced Brian Kenneth McCort, age 41, of Aberdeen, Maryland today to five years in prison, followed by 25 years of supervised release, for distribution of child pornography. Judge Garbis ordered that, upon his release from prison, McCort must register as a sex offender in the place 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 Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service – Mid Atlantic; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, on three occasions between June and July 2015, using a peer-to-peer (“P2P”) file-sharing program connected to the internet, an investigator with the Maryland State Police (MSP) downloaded numerous files of child pornography from the McCort’s computer.
On September 2, 2015, a federal search warrant was executed at McCort’s residence and investigators seized McCort’s laptop that contained at least 26 images and 213 videos depicting minors engaging in sexually explicit conduct. Additional digital storage devices were recovered including a flash drive containing at least 152 images and 17 videos depicting minors engaging in sexually explicit conduct. Some of the victims were as young as 2 years old.
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.
Acting United States Attorney Stephen M. Schenning praised HSI Baltimore, DCIS, and the Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Paul Budlow and Daniel Gardner who prosecuted the case.
Carroll County Public School Teacher Indicted for Attempted Enticement of A Minor to Engage in Illegal Sexual ActivityRead the Press Release
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Baltimore, Maryland – A federal grand jury indicted Kenneth Brian Fischer, age 39, of Westminster, Maryland yesterday for using a facility of interstate commerce to attempt to entice a minor to engage in sexual activity.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Sheriff James T. DeWees of the Carroll County Sheriff’s Office; Colonel Edwin C. Roessler Jr. of the Fairfax County, Virginia Police; and the Fairfax County Commonwealth's Attorney’s Office.
According to the single count indictment, between August 31, 2017 and September 5, 2017, Fischer used electronic mail and text messaging to attempt to coerce a minor to meet him for sex. Fischer faces a mandatory minimum of ten years in prison and a maximum of life.
Fischer was previously arrested in Westminster, Maryland on related charges and has been in custody since September 13, 2017. His initial appearance in federal court is not yet scheduled. The case has been assigned to the Honorable Richard D. Bennett.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States 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.
Acting United States Attorney Stephen M. Schenning commended the FBI, MSP, the Carroll County Sherriff’s Office, the Fairfax County Police, and the Fairfax County Commonwealth's Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Ayn M. Ducao who is prosecuting the case.
Two Delaware Men Indicted for Sex Trafficking of A Child by Force, Fraud, and CoercionRead the Press Release
February 22, 2018
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury has indicted Steven M. Williams a/k/a “Brother Ray,” a/k/a “Ray”, age 38, and Harry E. Rivers a/k/a “Hakeem,” a/k/a “Pots,” age 28, both of Delaware, for sex trafficking of a child and by force, fraud, and coercion. The indictment was returned on February 21, 2018.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Matthew Donnelly of the Elkton Police Department.
According to the indictment, Williams and Rivers were pimps, engaged in the business of recruiting, enticing, harboring, transporting, providing, obtaining, advertising, and maintaining by any means girls and women to engage in commercial sex acts. In July 2017, a female child, “Girl 1,” was a victim of these crimes. “Girl 1” was a resident of Delaware, had recently completed the eighth grade, and was 15 years old.
Williams and Rivers both face a maximum sentence of life in prison. An initial appearance has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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.
Acting United States Attorney Stephen M. Schenning 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. Schenning thanked Assistant U.S. Attorneys Patricia McLane and Zachary A. Myers, who are prosecuting the case.
Baltimore Man Sentenced to 188 Months for Participating in Heroin Trafficking Ring Protected by Corrupt Former Baltimore City Police Department DetectiveRead the Press Release
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Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced Glen Kyle Wells, a/k/a Lou, and Kyle, age 31, of Baltimore to 188 months in prison followed by five years of supervised release for conspiracy to distribute and possession with intent to distribute heroin relating to a drug trafficking organization in North Baltimore.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration; Special Agent in Charge Gordon Johnson of the FBI, Baltimore Field Office; Sheriff Jeffrey R. Gahler of the Harford County Sheriff’s Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to evidence presented at trial, from 2010 until the dates of their arrests, Wells and his co-conspirators distributed multiple kilograms of heroin to customers throughout the Baltimore area. Members of the conspiracy, known to law enforcement as the Shropshire Drug Trafficking Organization (DTO), distributed narcotics in Northern Baltimore, primarily near the Alameda Shopping Center. The Shropshire DTO distribution of heroin caused overdoses, including fatal overdoses. For example, on December 27, 2011, J.L. died as a result of the use of narcotics that were distributed by the DTO.
The evidence presented at trial showed that Wells received protection from corrupt former detective Momodu Gondo. Gondo provided information about the location of law enforcement so that Wells could avoid being targeted by the police and could continue his drug distribution.
Additional evidence presented at trial showed that Wells, Gondo, and former detective Jemell Rayam committed an armed home invasion of a rival drug dealer of the Shropshire DTO. Wells and Rayam entered the drug dealer’s residence and a woman was inside the residence. Rayam pointed a gun at the woman and demanded money. Wells and Rayam stole 800 grams of heroin, a firearm, a watch, and $12,000 in cash. Wells sold the gun and heroin. Wells, Rayam, and Gondo split cash proceeds from the items that were taken during the armed home invasion.
Fourteen former heroin customers of the defendants testified at trial, many of whom became addicted to heroin after having been prescribed or taken prescription opioids, including a customer who suffered from multiple sclerosis, a customer who had injured herself in a high school gymnastics accident, and a customer who was prescribed opioid painkillers after surgery. Together, these customers purchased more than 17 kilograms of heroin from the defendants over the course of the seven-year conspiracy.
Co-defendant Antonio Shropshire, a/k/a Brill, B, and Tony, age 34, has been sentenced to 25 years in prison. Omari Thomas, a/k/a Lil’ Bril, Lil B, and Chewy, age 25, of Middle River, Maryland, has been sentenced to 6 years in prison. Alexander Campbell, a/k/a Munch, age 29, of Baltimore has been sentenced to 15 years and 8 months in prison followed by 5 years of supervised release. Antoine Washington, a/k/a Twan, age 27, of Baltimore was also convicted at trial and awaits sentencing.
Acting United States Attorney Stephen M. Schenning commended the DEA, FBI, Harford County Sherriff’s Office and the Baltimore County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Catonsville Man Convicted for Food Stamp FraudRead the Press Release
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Baltimore, Maryland – A federal jury has convicted Mahmood Hussain Shah, age 58, of Catonsville, Maryland, on charges of wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash.
Shah and his co-defendant Muhammad Rafiq, age 33, of Reisterstown, Maryland, operated Corner Groceries, on Darley Avenue in Baltimore, and from October 2010 through August 2016, obtained more than $1,610,556 in payments for food sales that never occurred.
The verdict was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture Office of Inspector General, Northeast Region.
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers must bill the government only in return for providing approved food items.
When Shah exchanged EBT benefits for cash, he typically paid the SNAP recipient half the value of the EBT benefits and kept the other half for himself. To avoid detection, Shah often debited the funds from the card in multiple transactions over a period of hours or days, or called a different store where the transaction was processed manually.
Shah faces a maximum sentence of 20 years in prison for the conspiracy. His sentencing date has been set for May 29, 2018.
Acting United States Attorney Stephen M. Schenning commended the FBI and USDA Office of Inspector General for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Sean R. Delaney and Paul E. Budlow, who prosecuted the case.