FEDERAL DISTRICT ARCHIVE
District of Maryland
Press releases recorded for this federal judicial district.
Maryland State Senator Indicted on Additional Obstruction of Justice ChargeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury returned a superseding indictment today charging Maryland State Senator Nathaniel Thomas Oaks, age 71, of Baltimore, Maryland, with obstruction of justice. Oaks had agreed to cooperate with the FBI by recording his conversations with the target of a new investigation. The superseding indictment alleges that Oaks tipped off the target thus thwarting the FBI investigation and obstructing justice. The original indictment charged Oaks with wire fraud, honest services wire fraud, and violations of the Travel Act in a scheme for allegedly accepting illegal payments in exchange for using his official position or influence to benefit an individual on business-related matters. Oaks’ trial is currently scheduled for April 16, 2018.
The superseding indictment 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 ten-count superseding indictment, 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 new charge in the superseding indictment, on or about January 9, 2017, 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. Oaks knew and understood that in connection with the investigation of Person #1, he could be required to testify in a future official proceeding about his cooperation and his contacts with Person #1.
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.” The indictment charges that 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.
Person #1 understood from Oaks’ statements on March 17 and March 30, 2017, that Oaks was warning him not to engage in the activity because there was a criminal investigation underway.
The original indictment alleged that on September 21, 2015, a cooperating individual (the Cooperator) introduced Oaks to an FBI confidential human source (the CHS) who portrayed himself as an out-of-town businessperson interested in obtaining contracts in the City of Baltimore through a minority-owned business (the Company). The Company is a real business that is operated by a different cooperating defendant who is assisting the FBI with the investigation. The meeting took place at a restaurant in Pikesville, Maryland, and was consensually recorded by the Cooperator and the CHS. During the meeting, Oaks offered to assist the CHS with business development in Maryland.
During the months following the September 21, 2015 meeting between the CHS and Oaks, the CHS 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 the CHS in Maryland. One such opportunity was a United States Department of Housing and Urban Development (HUD) project (the Project) that the CHS told Oaks that he was interested in developing in the City. Oaks told the CHS that he wanted to help with the HUD project.
According to the original indictment, between the months of April 2016 and July 2016, Oaks issued two letters on his official House of Delegates letterhead to a person whom he believed to be a HUD official which contained materially false and fraudulent representations in order to assist the CHS in obtaining federal grant funds from HUD. The CHS paid Oaks $10,300 for his assistance.
Further, the original indictment alleges that on September 22, 2016, the CHS 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 the CHS 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 the CHS was supplied by the FBI and the meetings were recorded using audio/video recording equipment.
Oaks faces a maximum sentence of 20 years in prison for each count of wire fraud; 20 years in prison for honest services wire fraud; five years in prison for each count of the Travel Act and 20 years in prison for the obstruction of justice. An initial appearance has not yet been scheduled in U.S. District Court in Baltimore.
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 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.
Ninth Police Officer Indicted in Expanding Federal Corruption InvestigationRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Former Baltimore City Police Officer and current Philadelphia Police Officer Eric Troy Snell, age 33, of Philadelphia, Pennsylvania was arrested today for Conspiracy to Distribute and Possess with Intent to Distribute Heroin and Cocaine. The charges relate to the illegal activities of former members of the Baltimore Police Department’s Gun Trace Task Force (GTTF).
The indictment 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 court documents, Officer Snell attended the Baltimore City Police Department training academy and was a Baltimore police officer until March 2008. While he was in the academy, Snell met co-conspirator Detective Jemell Rayam. Snell became an officer in the Philadelphia Police Department in September of 2014 and at the time of the indictment, Snell was assigned to the 35th District in the Philadelphia Police Department.
According to the indictment, between October 2016 and June 2017, while Snell was with the Philadelphia Police Department and Rayam was with the Baltimore Police Department, Snell and Rayam discussed and planned with each other the sale of illegal narcotics, including cocaine and heroin that had been obtained or seized by members of the Gun Trace Task Force in Baltimore.
The indictment alleges that or about October 3, 2016, Sergeant Wayne Jenkins, Rayam and detectives in the GTTF, engaged in a high-speed police chase where the driver of the vehicle threw over 9 ounces of cocaine out of the window of his vehicle before crashing his vehicle near Mondawmin Mall in Baltimore, Maryland. Near the scene of the crash, the officers retrieved the cocaine and Jenkins told Rayam to sell most of the cocaine and give Jenkins proceeds of the sale, which Rayam agreed to do. On or about October 18, 2016, after learning from Rayam that he had cocaine, Snell asked Rayam to provide him with the stolen cocaine instead of submitting it as evidence to the Baltimore Police Department. Rayam agreed to do so.
Two days later, Rayam traveled to Philadelphia, and met with Snell at his residence. Rayam provided the cocaine to Snell and who arrangements to meet with his brother, who was going to sell the drugs. According to the indictment, Snell, his brother, and Rayam met and Snell provided his brother with the cocaine. The three men discussed the price at which the cocaine would be sold and the amount of money that Snell and Rayam would receive from the sales.
In addition to the cocaine, court documents allege that Snell also agreed to sell 80 grams of heroin that Rayam had received from Jenkins.
According to the indictment, Snell deposited thousands of dollars in cash in Rayam’s bank account from the sales of illegal drugs, including counter deposits on October 28, 2016 and November 9, 2016. Snell also paid Rayam cash from the sales of illegal drugs when he met him on November 11, 2016.
Following Rayam’s arrest, on June 26, 2017, Snell spoke with Rayam on the recorded jail phone system where Rayam was detained. Snell assured Rayam that his brother had not said anything about their illegal drug trafficking and instructed Rayam to “say less” on the recorded jail phones so that their illegal drug trafficking operation would not be detected by law enforcement. Snell told Rayam to “stand tall” and said he would “keep an eye” on Rayam’s kids, which Rayam perceived as a threat to harm Rayam’s children if Rayam told authorities about Snell’s illegal drug trafficking.
Snell was arrested this morning at his residence in Philadelphia and had his initial appearance today in federal district court in Baltimore. Snell will remain detained until his detention hearing on November 17, 2017 at 2:15 p.m.
Rayam has pleaded guilty to racketeering conspiracy and admitted to multiple robberies, drug trafficking, and overtime fraud. Jenkins has pleaded not guilty and is scheduled for trial beginning January 16, 2018. Snell faces a maximum sentence of 20 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 FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who are prosecuting these Organized Crime Drug Enforcement Task Force cases.
New Jersey Man Sentenced to 12 Months and 1 Day in Federal Prison in Kickback Scheme to Obtain Contracts to Transport Russian Nuclear Fuel to the U.S.Read the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Theodore D. Chuang sentenced Boris Rubizhevsky, age 67, of Closter, New Jersey to 12 months and one day in prison, followed by three years of supervised release, for Conspiracy to Commit Money Laundering in connection with his role in arranging corrupt payments to influence the awarding of contracts with the Russian state-owned nuclear energy corporation. Judge Chuang also ordered Rubizhevsky to forfeit $26,500.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Acting Inspector General April Stephenson of the Office of Inspector General at the U.S. Department of Energy; and Assistant Director in Charge Andrew G. Vale of the Federal Bureau of Investigation - Washington Field Office.
According to court documents, Rubizhevsky acted as an intermediary in connection with corrupt payments to co-conspirator Vadim Mikerin, the former director of the Pan American Department of JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide.
According to his plea agreement, between October 2011 and February 2013, Rubizhevsky and Mikerin agreed to conceal corrupt payments being made from the United States to overseas bank accounts for the benefit of Mikerin, including payment to a foreign bank account located in Latvia. Rubizhevsky admitted that the conspirators used sham consulting agreements to disguise the corrupt payments.
Mikerin previously admitted that he conspired with Rubizhevsky and others to transmit more than $2 million from Maryland, and elsewhere in the United States, to offshore shell company bank accounts located in Cyprus, Latvia and Switzerland with the intent to promote violations of the Foreign Corrupt Practices Act. Mikerin pleaded guilty to money laundering conspiracy in August 2015, and was sentenced in December 2015 to 48 months in prison for his role in the money laundering scheme.
Acting United States Attorney Stephen M. Schenning praised the DOE-OIG and FBI for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys David I. Salem and Michael T. Packard, Assistant Chiefs Chris Cestaro and Ephraim Wernick and Trial Attorney Derek Ettinger of the U.S. Department of Justice Fraud Section, who prosecuted the case.
Intermediary Who Facilitated Corrupt Payments to a Russian Nuclear Energy Official Sentenced for Money Laundering ConspiracyRead the Press Release
A New Jersey businessman was sentenced to a year and one day in prison for Conspiracy to Commit Money Laundering in connection with his role in arranging corrupt payments to influence the awarding of contracts with the Russian state-owned nuclear energy corporation.
The sentence was announced by Acting Assistant Attorney General Kenneth A. Blanco, Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Special Agent in Charge Angela Sigler of the U.S. Department of Energy Office of Inspector General (DOE-OIG); and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office.
Boris Rubizhevsky, 67, of Closter, New Jersey was sentenced by U.S. District Judge Theodore D. Chuang to 12 months and one day in prison, followed by three years of supervised release. The defendant was also ordered to forfeit $26,500. Rubizhevsky pleaded guilty on June 15, 2015, to conspiracy to commit money laundering.
According to court documents, Rubizhevsky acted as an intermediary in connection with corrupt payments to co-conspirator Vadim Mikerin, the former director of the Pan American Department of JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide.
According to court documents, between October 2011 and February 2013, Rubizhevsky and Mikerin agreed to conceal corrupt payments being made from the United States to overseas bank accounts for the benefit of Mikerin, including a payment to a foreign bank account located in Latvia. Rubizhevsky admitted that the conspirators used sham consulting agreements to disguise the corrupt payments.
Mikerin previously admitted that he conspired with Rubizhevsky and others to transmit more than $2 million from Maryland, and elsewhere in the United States, to offshore shell company bank accounts located in Cyprus, Latvia and Switzerland with the intent to promote violations of the Foreign Corrupt Practices Act. Mikerin pleaded guilty to money laundering conspiracy in August 2015, and was sentenced in December 2015 to 48 months in prison for his role in the money laundering scheme.
The DOE-OIG and FBI investigated the case. Assistant Chiefs Christopher Cestaro and Ephraim Wernick and Trial Attorney Derek Ettinger of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David I. Salem and Michael T. Packard of the District of Maryland prosecuted the case.
Former Army Official and Contractor Sentenced to 18 Months in Federal Prison for Bribery Scheme Involving Contracts at Aberdeen Proving GroundRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – On November 8, 2017 United States District Judge George L. Russell III sentenced Danielle N. Kays, age 41, of Bel Air, Maryland to 18 months in federal prison for conspiracy to defraud the United States and commit bribery related to contracting at the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland. Judge Russell also ordered Kays pay forfeiture of $250,700. Kays' husband John Kays, age 42, of Bel Air, Maryland and Matthew Barrow, age 42, of Toledo, Ohio were also charged in the scheme, have pled guilty and are awaiting sentencing.
The sentence 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.
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. John and Danielle Kays each had leadership positions related to this contract. From September 2006 through April 2011, a series of task orders for services pursuant to the contract were placed.
According to the court documents, Danielle Kays was a civilian employee who represented the Army on these types of multi-year contracts. From January 2011 until his resignation from government service in July 2014, John Kays held the position of Deputy Project Manager for Mission Command, in effect the number two position for Mission Command. From June 2009 through June 2012, Danielle Kays was the Deputy Director of the Technical Management Division, and from 2012 until her resignation from government employment in October 2015, Danielle Kays was the Product Director of Common Hardware Systems. Barrow was the President and owner of MJ-6, LLC, a company which he formed in Ohio in 2008 to obtain military subcontracts. From June 2008 through August 2010, Barrow was also employed as a procurement manager by a glass company in Ohio.
According to the plea agreements, from August 2008 to June 2014, John Kays agreed to take official actions favorable to Barrow and MJ-6 in return for Barrow paying them a total of approximately $800,000. Mrs. Kays has admitted using her official position to benefit Barrow and MJ-6 during the period 2011- 2014. Specifically, the Kays used their official positions to add MJ–6 as a subcontractor acceptable to the Army, to steer potential employees for government contractors to work for MJ-6, to approve MJ-6 employees to work on various Task Orders, and to approve the pay rates, status reports, and travel reimbursements for MJ-6 employees. The indictment alleges that the Kays steered subcontracts worth approximately $21 million to MJ-6.
In order to conceal their corrupt relationship Barrow caused the glass company he worked for to enter into contracts and make payments to Transportation Logistics Services, LLC, a company incorporated by John Kays; and later made payments to the Kays in cash, which Barrow withdrew from his personal accounts and from MJ-6 accounts To conceal the scheme, John and Danielle Kays made false statements on the government ethics forms that they were required to file by failing to disclose the cash payments received from Barrow. The Kays used the cash for their personal benefit, including purchasing two new vehicles; a power boat, jewelry, a pool party at their country club, and to pay credit card bills.
Barrow later agreed to pay the Kays their corrupt money from MJ-6 disguised as employment salary.
John Kays also pled guilty and is scheduled to be sentenced December 15, 2017 at 2 p.m. Matthew Barrow is scheduled to be sentenced January 12, 2018.
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 thanked the DCIS, Army Criminal Investigation Command, and FBI for their work in the investigation. Mr. Schenning praised Assistant U.S. Attorneys Joyce K. McDonald and Harry M. Gruber, who are prosecuting the case.
Baltimore Man Pleads Guilty to Robbery with Member of the Baltimore Police Gun Trace Task ForceRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – David Kendall Rahim, age 41, of Baltimore, Maryland, pleaded guilty today to one count of robbery and one count of brandishing a firearm in furtherance of a crime of violence stemming from a 2014 robbery of a Baltimore city couple.
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.
Rahim’s cousin, Detective Jemell Lamar Rayam, a member of the Gun Trace Task Force (GTTF,) a division of the Baltimore Police Department, and Thomas Robert Finnegan, age 38, of Easton, Pennsylvania, were also charged in the robbery.
According to his plea agreement, on June 27, 2014, police officers with the Gun Trace Task Force, including Detective Rayam, executed a search and seizure warrant at a store that sold birdseed. No illegal contraband or firearms were found at the location. The storeowners, a married couple, had $20,000 in cash at the store that they intended to use to pay off tax liabilities they owed on two homes.
After the search, Rayam told Rahim and Finnegan about the money and agreed to rob the couple at their residence later that evening. Using a law enforcement database, the GTTF detective located the home address of the victims. The defendants surveilled the house then Rahim and Finnegan were given tactical gear by Detective Rayam to impersonate the police when conducting the home invasion. Rayam remained outside in the vehicle so that he could intercept any police officers who responded to the home invasion by telling them that he was a BPD officer. Finnegan and Rahim entered the residence and robbed the victims at gunpoint of the $20,000. During the robbery, Finnegan pointed a gun at one of the victims and said to “sit still and be patient,” while Rahim looked on. Rahim, Finnegan, and Rayam split the proceeds.
Rayam has also pleaded guilty. Sentencing dates for both defendants have not yet been set.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Owner of Defense Contracting Firm Sentenced to 5 Years in Prison for Paying Bribes to Civilian Employee at Aberdeen Proving GroundRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On November 7, 2017, United States District Judge Richard D. Bennett sentenced Rainier Ramos, age 50, of Bel Air, Maryland, to two years in prison, including a 12-month period of home confinement, followed by three years of supervised release for bribery in connection with his duties at the U.S. Army Public Health Command at Aberdeen Proving Ground. Judge Bennett also ordered Ramos to pay a money judgment of at least $33,000, and pay restitution in the full amount of the victim’s losses, $2,215,779.
Co-conspirator Bhupesh Wadhawan, age 40, of Ashburn, Virginia, previously pleaded guilty and was sentenced to five years in prison for his role in the conspiracy. Judge Bennett also ordered Wadhawan to pay $2,215,779 in restitution.
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; 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 Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
Ramos was a civilian information technology professional at the U.S. Army Public Health Command at Aberdeen Proving Ground (APG). Co-conspirator Bhupesh Wadhawan was the owner and Chief Executive Officer (CEO) of Link Solutions, Inc. (“LSI”), an information technology company headquartered in McLean, Virginia.
Bhupesh Wadhawan, was the owner and Chief Executive Officer (CEO) of Link Solutions, Inc. (“LSI”) an information technology company headquartered in McLean, Virginia. The Defendant founded LSI in December 2006.
Beginning in September 2009, Ramos and Wadhawan engaged in a course of conduct that consisted of Wadhawan offering, promising and ultimately giving and Ramos soliciting and accepting a stream of benefits, worth approximately $33,000 in the form of meals and drinks, rounds of golf and tickets to sporting events, including courtside seats to Washington Wizards basketball games, football tickets and access to the LSI luxury suite for Washington Redskins football games at FedEx field, tickets to see the New Orleans Saints play at the Mercedes Benz Superdome in New Orleans, tickets to see the New Orleans Hornets basketball team in New Orleans, Louisiana, gift cards and other things of value in exchange for Ramos’s favorable treatment of Wadhawan’s business interests in contracting with the United States, as opportunities arose, in relation to contract number W81XWH-11-R-0348 in violation of Ramos’s lawful duty to the U.S. Army Public Health Command.
In early 2010, the Wadhawan expressed to Ramos his interest in a high value IT contract the award of which, as the Defendant knew, Ramos had the ability to influence. That contract, the Agency Information Technology Services Support (AITSS) contract, was held by CSC Corporation in Fall 2009 but was ultimately re-competed as contract number W81XWH-11-R-0348 (hereafter the “MEDCOM” contract) with a value of $10,000,000 in the base year and the option to extend for 4 more years, for a total value of more than $50,000,000.
In exchange for bribes from Wadhawan, Ramos sought contracting opportunities at APG in the spring and summer of 2010, that would allow LSI to develop a track record of performance, in order to increase the likelihood that the company would be awarded the MEDCOM contract when it was re-competed in 2011. Ramos admitted that he took the following actions in exchange for bribes: influenced the award of a contract to LSI to deploy and configure 70 desktop and laptop computers at APG; recommended that the MEDCOM contract be reserved for companies that were part of the U.S. Small Business Administration 8(a) program, - a significant benefit to LSI as a certified 8(a) business.
After the award of this contract, the Wadhawan advocated for and Ramos recommended that a portion of the AITSS contract that had previously been awarded to CSC Corporation be reserved for companies that were part of the U.S. Small Business Administration 8(a) program. LSI was a certified 8(a) company and, as a result, would be in an enhanced competitive position if the work that had previously been part of the CSC contract was restricted to 8(a) companies, which CSC was not. Ultimately, in exchange for things of value provided by Wadhawan, Ramos influenced the decision to restrict the MEDCOM contract to 8(a) companies, which was a significant benefit to LSI.
After the decision was made to restrict the former CSC contract to 8(a) entities. Ramos, in exchange for things of value provided by the Wadhawan, introduced Wadhawan to various potential teaming partners that Ramos and the Defendant believed would increase the likelihood that LSI would be awarded the MEDCOM contract.
Ramos also provided Wadhawan with the winning proposal of the previous contractor on the MEDCOM contract, including pricing data, which was sensitive, proprietary information; and helped write the Statement of Work for the MEDCOM contract to increase the likelihood that LSI would be awarded that contract.
Ramos also included in the Statement of Work for the MEDCOM contract two certifications that Ramos knew LSI had and, thus, increased the likelihood that LSI would be awarded the MEDCOM contract.
On or about November 2, 2010, a Manager of Client Services with the Washington Redskins sent another Redskins employee an email with the subject line, “Barry Kane will be in Bhupesh Wadhawan (Link Solution) suite for the Philadelphia game (see note).” The body of the email contained the following, “army-public health command….one of the customers which is $10 million a year annually to him the CIO is coming to the suite for the Philly game…” (emphasis added)
On May 20, 2010, in an email to Wadhawan, Ramos stated, “If there’s any way you can pull off a miracle and switch the 10 Eagles/Skins tickets you have already acquired for 10 Skins/Cowboys tickets, I’ll owe you some serious 8A business. . . . Thanks again for EVERYTHING.” (emphasis added)
In August 2011, the solicitation for the MEDCOM contract was issued, and Ramos was selected as the Chairman of the Source Selection Board. In early 2012, Ramos recommended that the contract be awarded to LSI.
After LSI was awarded the contract, Ramos approved invoices submitted by the Company under the contract. As of July 2016, LSI has been paid almost $37 million by the U.S. government for invoices submitted under the MEDCOM contract.
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, demonstrate 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 FBI, Army CID, and DCIS for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Leo J. Wise, who prosecuted the case.
Waldorf Man Exiled to 20 Years in Federal Prison for Distribution of CocaineRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On November 6, 2017 United States District Judge George J. Hazel sentenced Darryl Michael Franklin, a/k/a “D”, age 43, of Waldorf, Maryland, to 20 years in prison, followed by 5 years of supervised release for Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances, and 10 years in prison, followed by three years of supervised release, to run concurrent to that sentence, for Possession of a Firearm and Ammunition by a Convicted Felon.
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 Division Office; Sheriff Timothy K. Cameron, St. Mary’s County Sheriff’s Office; and Chief Henry P. Stawinski III, Prince George’s County Police Department.
According to his guilty plea, from February 2015 through December 2016, Franklin, along with his co-conspirators, Darryl Eugene Hill, Marvin Leon Young, Joseph Darren Brooks, Thomas Larvell Herbert, Brandon Darnell Bowman, Joseph Marlow Brooks, Jr., and Andre Antwon Montgomery, trafficked cocaine in the Prince George’s County and St. Mary’s County areas.
On December 15, 2016, law enforcement officers executed search warrants at a number of different locations that were part of the narcotics organization, including Hill’s, Young’s and Franklin’s residences. Law enforcement officers seized approximately 34 bricks of cocaine weighing around 33 kilograms, with an approximate street value of $1,566,168 from Hill’s residence. At Franklin’s residence, law enforcement officers located seven cans with false bottoms; $3,366 in U.S. currency from drug proceeds, a gun cleaning kit, .380 caliber shotgun shells, a loaded Bersa Firestorm .380 semi-automatic pistol bearing serial number 882491, and a loaded Mossberg Mod 88 12 gauge shotgun. In addition, two vehicles located at Franklin’s residence contained hidden compartments used to conduct the drug transactions.
On December 19, 2016, law enforcement officers executed a second search warrant on another vehicle belonging to Franklin. During the course of this search, law enforcement officers located 3,845 grams of cocaine in various bags; a digital scale containing cocaine residue; $57,625 in U.S. currency representing proceeds of drug transactions; a loaded black Beretta PX4 Storm 9mm handgun with an extended magazine, and fourteen 9mm bullets. These items were found within a locked safe in the hatchback area of the car.
According to his plea agreement, Franklin told law enforcement officers that he had been selling cocaine for about seven years, and admitted that he used the hidden compartments in his cars to store money and drugs. Franklin noted that he typically sold narcotics to “the Country Boys,” a reference to his coconspirators, Young and Brooks, who operated in the St. Mary’s County area.
Prior to his December 15, 2016 arrest, Franklin had sustained convictions in Prince George’s County for Possession with Intent to Distribute Cocaine in 2003, 2010 and 2013, which made him ineligible to possess firearms or ammunition.
Acting United States Attorney Stephen M. Schenning commended the Drug Enforcement Administration, the St. Mary’s County Sheriff’s Office, and the Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Erin Pulice, Leah Bressack, and Menaka Kalaskar who prosecuted this Organized Crime Drug Enforcement Task Force case.
Catonsville Man Pleads Guilty to Conspiracy in “Swatting” IncidentRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Zachary Lee, age 25, of Catonsville, Maryland, pleaded guilty today Conspiracy to Provide False Information and False Information and Hoax relating to a scheme to cause an emergency services response, a practice known as “swatting.”
The plea 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 Gary L. Gardner of the Howard County Police Department; and Howard County State’s Attorney Dario Broccolino.
According to Lee’s plea agreement, between February 17 and February 18, 2015, Lee, who resided in Ellicott City at the time, and co-conspirator Robert Walker-McDaid, age 19, of Coventry, England, United Kingdom, conspired to convey false information about a hostage situation that would cause armed law enforcement officers to be dispatched to the home of an acquaintance of Lee (the victim).
Specifically, on February 17, 2015, Lee messaged McDaid via an internet telephone service and stated, “I have someone I need sw@tted.” At McDaid’s request, Lee provided McDaid with the address of the victim and McDaid responded to Lee, “il do it when im up.” On February 18, 2015, a call from McDaid’s internet telephone account was made to the Maryland Coordination and Analysis Center’s (MCAC) Terrorism Hotline. Lee, McDaid, and another individual were participants in that call. The caller pretended to be the victim and stated that he had a loaded gun, several bags of plastic explosives, and three hostages. The caller demanded $15,000 in cash be delivered in a red bag to the victim’s address. The caller stated that he would start executing the hostages in 15 minutes if his demands were not met. Shortly after police arrived at the address, Lee allegedly posted on his Facebook account, “Love my team.”
At the time the call was made, authorities were not aware that the emergency call was false. A Howard County Police Department (HCPD) Tactical team went to the address provided by the callers, and ultimately shot the victim with rubber bullets in the chest and face. The victim suffered significant injuries to his face and chest, including bruised lungs, a fractured rib, and numerous broken bones to the left side of his face. He was transported to the hospital where he underwent approximately three facial reconstructive surgeries.
This “swatting” caused over 40 officers to respond to T.D.’s home and remain there for over 2.5 hours and cost the Howard County Police Department over $10,000. Investigators subsequently discovered that the victim was not in possession of loaded firearms or explosives, did not make the emergency call, and there were no hostages at the residence.
If the Court accepts the parties’ plea agreement, Lee will be sentenced to 2 years in prison.
Walker-McDaid has been arrested in the United Kingdom and is currently in extradition proceedings. United States District Judge Marvin J. Garbis has scheduled sentencing for January 18, 2018 at 11 a.m. Lee remains detained.
Acting United States Attorney Stephen M. Schenning commended the FBI, Howard County Police Department, and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Lauren E. Perry and Zachary A. Myers, who are prosecuting the case.
Baltimore BGF Member Pleads Guilty to 2013 Murder of WitnessRead the Press Release
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Baltimore, Maryland – Wesley Jamal Brown, a/k/a “Wes,” age 25, of Baltimore, Maryland, pleaded guilty today to conspiring to participate in a racketeering enterprise known as the Black Guerilla Family’s Greenmount Avenue Regime. As part of his plea agreement, Brown 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 guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel Board of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Field Office; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement and court documents, 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 a member of the BGF Greenmount Regime. On April 19, 2013, Malone identified the BGF member 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 his fellow BGF member in the pending state case.
According to his plea agreement, Brown further admitted that in the days following Malone’s murder, he requested assistance from another BGF member in disposing of the .22 caliber handgun that he had used to kill Malone. Brown told the other BGF member that the handgun was “dirty” because he had used it to shoot a witness (i.e., Malone) who had implicated a member of the BGF Greenmount Regime in a crime.
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.
United States District Judge Bredar has scheduled Brown’s sentencing for February 5, 2018. Brown remains detained pending sentencing.
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 are prosecuting the case.
Former Bail Bondsman Sentenced to 49 Months in Federal Prison for Conspiring with Drug Counselor to Obstruct Justice While on Supervised ReleaseRead the Press Release
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Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced, Anthony Evans Owings Seen, a/k/a “Tony”, age 31, of Glen Burnie, Maryland to 37 months in prison, followed by three of supervised release, for conspiring to obstruct of justice and obstruction of justice, in connection with concealing violations by both pretrial and supervised release defendants from United States Probation and Pretrial Services and Federal Judges. Seen was also sentenced to 12 months and a day for committing his crimes while on federal supervised release.
Co-conspirator Jennifer Hamersky, a/k/a Jennifer Maroney a/k/a Jennifer Hurt, age 33, of Severn, Maryland previously plead guilty and is scheduled to be sentenced on November 28, 2017 at 4:00 p.m.
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; William F. Henry, Chief, U.S. Probation and Pretrial Services Office, District of Maryland; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.
According to Seen’s plea agreement, at the time of the conspiracy to obstruct justice, Seen was on supervised release in an unrelated case in the United States District Court for the District of Maryland for Conspiracy to Distribute and Possess with Intent to Distribute more than 100 Kilograms of Marijuana. While on supervised release, Seen was under the supervision of the United States Probation and Pretrial Services (“USPO”). Seen’s conditions of supervised release included that he was not permitted to possess or use controlled substances as well as act as a bail bondsman or in the bail bond industry. Seen was previously a licensed bail bondsman by the state of Maryland’s Insurance Administration.
Co-conspirator Hamersky, a Clinical Professional Addictions Counselor, licensed by the State of Maryland’s Department of Health and Mental Hygiene, was also a contractor who provided services for USPO. Specifically, Hamersky worked with defendants in the United States District Court for the District of Maryland, including mental health and substance abuse counseling, and urinalysis testing.
Person A, who was on pretrial release under the supervision of USPO, met Hamersky in September 2015, when she conducted an initial substance abuse screening as part of his pretrial release supervision. Hamersky recommended, and USPO concurred, that Person A attend individual and group counseling sessions and submit to random urinalysis testing.
Person S, was a resident of Maryland, and on supervised release under the supervision of USPO for conspiracy to Distribute and Possess with Intent to Distribute 100 Kilograms or More of Marijuana. Person S, as part of his supervised release conditions, was ordered by a United States Judge for the United States District Court for the District of Maryland not to possess or use controlled substances.
Hamersky served as Person A’s pretrial release substance abuse and mental health counselor from September 2015 through February 2016, and again from August 2016 through February 2017, with a break due to Person A’s incarceration. Hamersky was responsible for communicating Person A’s compliance with pretrial release conditions regarding potential violations involving counseling and urinalysis testing to USPO. As part of her duties as a substance abuse counselor Hamersky also had access to Person S’s urinalysis testing schedule.
Plea documents show that Seen and Hamersky conspired to obstruction of justice in an effort to conceal from USPO officers and U.S. Magistrate and District Court Judges, Person A’s violations of his conditions of release. The violations include use of narcotic drugs or other controlled substances by both Person A and Person S; failure to appear for urinalysis testing by Person A; and failure to appear for counseling sessions by Person A.
From September 2016 through February 2017, Seen conspired with Hamersky to prevent the communication to a law enforcement officer and U.S. Magistrate and District Court Judges information relating to violations of Person A’s conditions of release. Seen and Hamersky also used cocaine, oxycodone and Methylenedioxy-Methamphetamine otherwise known as MDMA while Defendant Seen was on federal supervised release. Hamersky also used narcotic drugs, including using oxycodone, with Person A while Person A was on federal pretrial release.
For example, in November of 2016, Seen met with Person A at Seen’s bail bonds shop in Glen Burnie, Maryland so that Person A could sign his USPO November 2016 and December 2016 reports reflecting Person A’s attendance at urinalysis testing and counseling sessions. At the time Seen knew that Person A had not attended urinalysis testing and counseling sessions. Seen then provided Person A’s reports to Hamersky who submitted them to USPO. Following his meeting with Person A and in an effort to conceal Seen and Hamersky’s conspiracy, Seen sent a text message to Person A asking Person A to delete any text messages between Seen and Person A and any texts messages between Hamersky and Person A.
Also in November 2016, Person S asked Seen for information about his urinalysis testing schedule so that Person S could consume controlled substances and avoid detection by USPO. Seen then contacted Hamersky who informed Seen that Person S would not have an upcoming urinalysis test. Seen then provided this urinalysis testing information to Person S.
In December 2016, after learning that the Special Agents from the Federal Bureau of Investigation were investigating Seen and Hamersky’s conduct, Seen sent a text message to Hamersky stating, “I just want to be safe, I don’t want him telling the Feds I’m meeting him to get papers signed and get violated.” Seen then described Person A as a “rat” and Seen then told Hamersky to go onto a federal court website to see if Person A was meeting with law enforcement representatives.
Finally, in January 2017, Person A missed a urinalysis test and contacted Seen for help in covering-up the missed test. Seen then contacted Hamersky and stated, “[h]e wants u to fix (sic) a drug test I told him 500$, nah I’m kidding he said he give u 500$, I said I’ll ask her but s-it I mean it’s up to you.” While discussing whether to help Person A, Hamersky texted Seen and explained that in, “[r]eality is it’s no big deal [f]or me to call and do it. It’s just after all the other stuff. But he knows I can do it.” Seen then replied, “Well I’ll tell (sic) him when money in my hand u do it.” Hamersky replied “[o]k” and then left a voicemail message for Person A’s USPO agent stating, “I’ve got no missed urines for [Person A], or anything like that, and all his urines have come through as negative so he has been compliant and everything been going ok.” Hamersky then told Seen that she left a voicemail message for Person A’s USPO officer stating that Person A had not missed his urinalysis test. After Person A learned that Hamersky had covered-up his missed urinalysis test he sent her a text message stating, “[t]hank you so much. If u want that money let me know I was being serious u saved my a-- today.” Hamersky then forwarded this text message to Seen who replied to Hamersky, “I’m call him and tell him I want that money tomorrow.”
Acting United States Attorney Stephen M. Schenning commended the FBI, USPO, and DEA for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Phil Selden and Rachel Yasser, who prosecuted the case.
Waldorf Man Indicted for Production of Child PornographyRead the Press Release
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Greenbelt, Maryland – A federal grand jury returned a ten-count indictment on October 30, 2017, charging the Carlos DeAngelo Bell, 30, of Waldorf, Maryland with Sexual Exploitation of Minors for the Purpose of Producing Child Pornography.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Charles County State’s Attorney Anthony B. Covington, Sr.; Sheriff Troy D. Berry of the Charles County Sheriff’s Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Baltimore.
According to the indictment, from the period of January 1, 2014 to December 22, 2016, Bell did knowingly employ, use, persuade, entice, and coerce a minor to engage in any sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and the visual depiction was produced using materials that had been mailed, shipped, and transported in and affecting interstate and foreign commerce by any means, including by computer. Bell is charged with committing this offense against ten minors.
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. An initial appearance and arraignment are scheduled in United States District Court for November 7, 2017 at 2:15 p.m.
Acting United States Attorney Stephen M. Schenning thanked the Charles County State’s Attorney’s Office, the Charles County Sheriff’s Office, the Maryland State Police, and HSI. 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 are prosecuting this case.
Member of the “Felony Lane Gang” Sentenced in $1 Million Bank Fraud ConspiracyRead the Press Release
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Baltimore, Maryland – On November 2, 2017, United States District Judge Marvin J. Garbis sentenced Tara Kathleen Whyte, age 30, of Hollywood, Florida, and Gambrills, Maryland to 54 months in federal prison followed by 3 years supervised release for bank fraud conspiracy and aggravated identity theft stemming from a banking scheme involving over $1 million in losses. Judge Garbis also ordered Whyte pay restitution in the amount of $77,422.06.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Christopher Caruso of the United States Secret Service - Baltimore Field Office; Chief Antonio DeVaul of the Maryland National Capital Park Police, Montgomery County Division; Acting Chief Stanley Johnson of the Maryland National Capital Park Police, Prince George’s County Division; Chief Gary L. Gardner of the Howard County Police Department; Chief Terrance B. Sheridan of the Baltimore County Police Department; and Anne Arundel County Police Chief Tim Altomare.
Whyte was one of 13 members of a nationwide group of fraudsters known as the “Felony Lane Gang.” These individuals traveled from Florida to Maryland and other states, broke into vehicles parked at recreation areas, sports fields, gyms, fitness centers, and other locations, and stole wallets, purses and other items left in the vehicles. The defendants then used the victims’ stolen checks, credit cards and identifications to conduct fraudulent financial transactions. Traveling groups generally consisted of two to four managers and one to six “faces” (sometimes called “sliders” or “workers”) or persons who passed the fraudulent and stolen checks. They traveled in rental cars and stayed in hotels sometimes using victims’ identities and credit cards.
Eight other defendants have pleaded guilty and have been sentenced as follows.
Courtney B. Walker, age 29, of Ft. Lauderdale, Florida – sentenced to 54 months;
James J. Blakey, age 30, of Ft. Lauderdale – sentenced to 57 months;
Vincent Lee Sands, age 27, of Lauderhill – sentenced to 42 months;
Tracy Lee Whyte, age 36, also of Hollywood, and Gambrills– sentenced 54 months;
Shannon Elise Isley, age 31, of Sunrise, Florida – sentenced to 48 months;
Lauren Anne Bole, age 30, of Miramar, Florida – sentenced to 26 months;
Felicia Kaye Waybright, age 28, of Daytona Beach, Florida – sentenced to 31months; and
Amie Nicole Carter, age 33, of Casselberry, Florida – sentenced to time served (7 months).
The remaining defendants pled guilty but have not yet been sentenced.
According to the 27-count indictment, from September 2012 through July 2015, the defendants used the checks, credit cards, identifications, and other items they stole from breaking into unattended vehicles to pose as the victims or to access the financial accounts of the victims. The defendants recruited prostitutes, drug addicts, and other vulnerable individuals to travel with them to conduct financial transactions using the stolen checks, driver’s licenses, and other materials, and paid them with drugs, food, and small amounts of cash amounting to a fraction of the total value of the checks they cashed. The conspirators often wore wigs and glasses to more closely resemble the victims whose stolen driver’s licenses they used to conduct the transactions.
Over the course of the scheme the defendants fraudulently obtained and attempted to obtain over $1 million from more than a dozen financial institutions using the identification of hundreds of individual victims.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Acting United States Attorney Stephen M. Schenning commended the U.S. Secret Service, Maryland National Capital Park Police - Montgomery and Prince George’s County Divisions, and the Howard County, Baltimore County and Anne Arundel County Police Departments for their work in the Maryland portion of this multi-state, multi-agency investigation. Mr. Schenning thanked Assistant U.S. Attorney Tamera L. Fine and Ayn B. Ducao, who prosecuted the case.
ECI Correctional Officer Sentenced to 46 Months in Federal Prison for Racketeering ConspiracyRead the Press Release
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Baltimore, Maryland – United States District James K. Bredar has sentenced Xavier Holden, age 28, of Salisbury, Maryland to 46 months in prison followed by 3 years of supervised release for his role in a racketeering conspiracy. Holden is one 80 defendants who were charged in two separate indictments for a racketeering conspiracy operating at the Eastern Correctional Institution in Westover, Maryland. The indictments charge 18 correctional officers (COs), 35 inmates and 27 outside “facilitators,” for their roles in the conspiracy, which involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison.
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; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
As of today’s sentencing, 66 of the 80 defendants originally indicted have pled guilty, including 12 of the 18 correctional officers who were charged. Chief Judge Bredar has sentenced all defendants who have appeared before him to date to a term of imprisonment, including the following inmates and facilitators. Today’s sentencing is the first sentencing of a correctional officer:
Inmates:
Shawn Benbow: 46 months
Joseph Branch: 42 months
Jamar Hutt: 41 months
Samuel Johnson: 29 months
Mark Lance: 27 months
Michael Page: 46 months
Kevin Stanley: 27 months
Kevin Thompson: 57 months
Ramel Chase: 33 months
Stewart Gough: 50 months
Deven Matos: 41 months
Facilitators:
Reggie Fosque: 24 months
Markayla Reynolds: 1 year + 1 day
Keisha Barksdale: 1 year + 1 day
Antoine Gray: 24 months
Elvia Hall: 21 months
Marcus Lisbon: 65 months
Rose Thomas: 21 months
Holden joined the Maryland Department of Public Safety and Correctional Services on October 22, 2012 and was assigned to Housing Unit 1.
COs have a duty to further the legitimate purposes of ECI by ensuring that inmates follow the rules enacted for their health and safety and the health and safety of prison employees and the larger community, including, most importantly, the prohibition of criminal activity while incarcerated. The Defendant abused his position of trust as sworn officer of DPSCS by engaging in illegal activities for the purposes of enriching himself.
As a CO, Holden received annual training in ethics and professionalism. COs were taught that: Inappropriate relationships with inmates can include bribery, conflicts of interest, solicitation and acceptance of gifts, the offering of gifts, favors and services to inmates, ex-inmates, relatives of inmates, improper contact or failure to report contact with inmates, ex-inmates, relatives or friends and the appearance of inappropriate relationships.
According to the Correctional Officer’s Handbook: “The illegal possession and/or use of any controlled substance and/or controlled paraphernalia while on or off duty is strictly prohibited. . . . An employee may not possess or convey contraband into an institution or onto institutional property.”
Holden smuggled contraband into ECI in exchange for bribes from inmates. Holden delivered tobacco and K2 two times a week between August 2014 and June 2015 to co-defendant Samuel Johnson and another inmate associated with Johnson. Holden also smuggled contraband into ECI in exchange for bribes from inmate and co-defendant Ramel Chase.
Acting United States Attorney Stephen M. Schenning commended the FBI, U.S. Postal Inspection Service, Department of Public Safety and Correctional Services, the Baltimore Police Department and Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise, Robert R. Harding, and Daniel C. Gardner, who prosecuted the case.
Three Ghanian Defendants Convicted of A $1.4 Million Conspiracy to Commit Bank and Wire FraudRead the Press Release
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Baltimore, Maryland – A federal jury has convicted Mohammed “Kofi” Kwaning, age 36, of Laurel, Mark Dennis, age 30, of Laurel, and Charles Mensah, age 30, of the Bronx, New York, of conspiracy to commit bank and wire fraud, as well as bank and wire fraud, and aggravated identity theft for a scheme to defraud in 2014 which attempted to steal nearly $1.4 million in funds from the personal, retirement, and business accounts of various victims. All three are lawful permanent residents of the United States and citizens of Ghana.
The verdict 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 - Homeland Security Investigations, Baltimore Office; and Police Chief Terrence B. Sheridan of the Baltimore County Police.
According to evidence at presented at the 10 day trial, in 2014, Mohammed Kwaning acquired account information from the individual victims, to include the investment account management firms listed in the Superseding Indictment, as well as forged checks containing bank account information of both individual and corporate victims from across the United States.
Issah Mohammed then recruited individuals, to include Mark Dennis, Charles Mensah, Sandra Badu, Abayomi Davies, and Francis “Pino” Fosu, who registered corporate shell entities with the state of Maryland. The individuals Issah Mohammed recruited then set up bank accounts at multiple banking institutions in the names of these shell entities. Mohammed Kwaning then either directed that the funds from the compromised accounts be wired into those bank accounts or provided altered or fabricated checks from compromised accounts to Issah Mohammed, who then provided the checks to Mark Dennis, Charles Mensah, Sandra Badu, Abayomi Davies, and Francis “Pino” Fosu, to be deposited into those bank accounts. After doing so, those same individuals would attempt to withdraw as much of the stolen funds before the banks discovered that the source of the funds were compromised accounts.
Some of the accounts were compromised by individuals who called into investment firms pretending to be the actual account holders, and then eventually providing enough correct answers in order to reset the password for the account. Individuals also hacked the emails of victims and, posing as the account holders, requested funds be wired from their retirement accounts to the bank accounts of the shell corporations controlled by the conspirators. The loss attempted over the course of nine months was over $1.3 million; the conspirators were able to withdraw over $229,000 of stolen funds, which they then split amongst themselves.
Sentencing for Kwaning is set for February 16, 2018. Sentencing for Mensah and Dennis is set for January 19, 2018. All three defendants are detained pending sentencing. Issah Mohammed, Sandra Badu, Abayomi Davies, and Francis “Pino” Fosu had all previously pled guilty. Their sentencing hearings are to be scheduled.
Acting United States Attorney Stephen M. Schenning commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Paul E. Budlow and Judson T. Mihok, who prosecuted this case.
Four MS-13 Members Indicted on Charges of Attempted MurderRead the Press Release
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Baltimore, Maryland – A federal grand jury has indicted four MS-13 members today on charges in connection with their MS-13 gang activities, including 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 United States Attorney for the District of Maryland Stephen M. Schenning; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Special Agent in Charge Daniel L. Board of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Office; Police Chief Tim Altomare of the Anne Arundel Police Department; States Attorney Wes Adams of the Anne Arundel State’s Attorney Office; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
Charged in the three-count indictment is Fermin Gomez-Jimenez, 20; Manuel Martinez-Aguilar, aka “El Lunatic” and “Zomb,” 19; Moises Alexis Reyes-Canales, aka “Sicopita,” 19; and Marlon Cruz-Flores, 22, 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 indictment, on October 23, 2016 for the purpose of gaining entrance to and maintaining and increasing position in MS-13 the defendants conspired to and attempted to murder two victims in Annapolis, Maryland.
All of the defendants are currently detained on related state criminal charges.
The defendants face a maximum sentence of life in prison. Initial appearances have 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.
Acting U.S. Attorney Schenning and Acting Assistant Attorney General Blanco commended HSI Baltimore, ATF Baltimore, Anne Arundel Police Department, Anne Arundel State’s Attorney Office and the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Seema Mittal, Trial Attorney Matthew Hoff of the Organized Crime and Gang Section, as well as Special Assistant U.S. Attorney Samantha Mildenberg are prosecuting this case.
Five Defendants Convicted of Operating Heroin Trafficking Ring Protected by Corrupt Former Baltimore City Police Department DetectiveRead the Press Release
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Baltimore, Maryland – A federal jury has convicted Antonio Shropshire, a/k/a Brill, B, and Tony, age 34, of Baltimore, Omari Thomas, a/k/a Lil’ Bril, Lil B, and Chewy, age 25, of Middle River, Antoine Washington, a/k/a Twan, age 27, of Baltimore, Alexander Campbell, a/k/a Munch, age 29, of Baltimore, and Glen Kyle Wells, a/k/a Lou, and Kyle, age 31, of Baltimore, on conspiracy to distribute and possession with intent to distribute heroin and cocaine relating to a drug trafficking organization in North Baltimore. Washington was additionally convicted of distribution of heroin resulting in death.
The verdict 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; Sheriff Jeffrey R. Gahler of the Harford County Sheriff’s Office; Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to evidence at presented at trial, from 2010 until the dates of their arrests, Shropshire 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.
Shropshire used residences within Baltimore, Maryland to process, cut, repackage and prepare heroin for distribution to customers, routinely carried firearms in furtherance of the conspiracy and conducted counter-surveillance of law enforcement in an attempt to prevent law enforcement from detecting the illegal activities carried out by the Shropshire DTO.
In order to shield himself from law enforcement, Shropshire utilized various street dealers to distribute his heroin. One of those street dealers was Defendant Thomas, who Shropshire instructed about the quality and price of heroin that Thomas should sell for Shropshire. Shropshire also arranged for the sale of heroin with customers, but had street dealers distribute the heroin to the customers so Shropshire could avoid law enforcement surveillance.
Fourteen 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 Momodu Bondeva Kenton Gondo, a former member of the Baltimore Police Gun Trace Task Force (GTTF), provided sensitive law enforcement information to Shropshire and his co-conspirators in order to help the DTO. According to his plea agreement, Gondo admitted to providing protection, information and tips to Shropshire about how to avoid being arrested. For example, on March 31, 2016, Gondo alerted Shropshire that the Drug Enforcement Administration had installed a GPS tracking device on his vehicle. Shropshire, under Gondo’s instruction, then removed the GPS device and placed it on another vehicle.
During the course of the conspiracy, Defendant Washington proposed robbing and killing a rival drug dealer to Defendant Wells. Defendant Wells agreed and recruited Gondo, who in turn recruited another former GTTF member, Jemell Rayam, who has pleaded guilty to racketeering in a separate case to place a GPS tracking device on the rival drug dealer’s car and rob him when he was away from his apartment. On the day of the home invasion, Wells and Rayam broke into the apartment, and Rayam, upon discovering that the drug dealer’s girlfriend was asleep in bed, threatened to kill her if she did not tell him where her boyfriend kept his money. Wells and Rayam ultimately stole 800 grams of heroin, which Wells sold, sharing the proceeds with Washington, Gondo and Rayam, $12,000, which they shared, a gun, which former GTTF members Gondo and Rayam gave to Wells, a known drug dealer, and a Rolex watch and other jewelry.
Shropshire, Washington, and Campbell each face a mandatory minimum of 10 years and up to life in prison for conspiracy to distribute at least one kilogram of heroin. Gondo, Wells and Thomas each face a mandatory five years and up to 40 years in prison for conspiracy to distribute at least 100 grams of heroin. Washington faces a mandatory minimum sentence of 20 years in prison for distribution of heroin resulting in death. Shropshire, Gondo, and Campbell also face a maximum penalty of 20 years in prison for possession with intent to distribute heroin and cocaine.
Sentencing is set for Shropshire on February 16, 2018, at 11 a.m., Washington on February 9, 2018, at 2 p.m., Campbell on February 16, 2018, at 9:30 a.m., Thomas, on February 15, 2018, at 9:15 am, and Wells on February 22, 2018, at 9:15 a.m. in U.S. District Court in Baltimore. All defendants were detained pending sentencing.
Acting United States Attorney Stephen M. Schenning commended the DEA, 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.
Pain Management Physician Convicted on Charges of Accepting Kickbacks and Submitting Fraudulent Bills for Anesthesia ServicesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – On October 27, 2017, following a thirteen-day trial, a federal jury convicted Atif Babar Malik, age 48, of Germantown, Maryland, on 26 felony counts arising from two criminal schemes that involved referring patients’ urine toxicology specimens to a New Jersey diagnostic testing lab in return for $1.376 million in kickbacks and fraudulently billing for anesthesia services provided in connection with spinal nerve block injections. Malik was convicted on one count of conspiracy to violate the federal Anti-Kickback Act and the Travel Act; 12 counts of violating the Anti-Kickback Act; three counts of violating the Travel Act; six counts of health care fraud; and three counts of making false entries in patients’ medical records.
Malik’s convictions were 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, Baltimore Field Office; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Drew Grimm of the Office of Personnel Management – Office of Inspector General.
Malik was one of six defendants who were charged in connection with the kickback or fraudulent billing schemes. His practice co-owner and co-defendant Sandeep Sherlekar, age 52, of Germantown, Maryland, was also charged with participating in the referrals-for-kickbacks conspiracy and the fraudulent anesthesia billing scheme, as well as with making false entries in patients’ medical records. Following the return of the original indictment in late June 2016, Sherlekar committed suicide shortly before his scheduled initial appearance and arraignment in early October 2016.
Konstantin Bas, age 41, of Brooklyn, New York, the former owner and Chief Executive Officer of a Linden, New Jersey-based diagnostic testing lab known as Accu Reference; Mubtagha Shah Syed, age 50, of Jersey City, New Jersey, who worked as a marketer for Accu Reference; and Vic Wadhwa, 39, of Frederick, Maryland, the Chief Financial Officer (CFO) of Malik’s and Sherlekar’s medical practice, all previously pled guilty to charges of conspiring to violate the Anti-Kickback Act or to an individual charge of violating the Anti-Kickback Act, and are currently awaiting sentencing. Muhammad Ahmad Khan, age 44, the Chief Administrative Officer of Drs. Malik’s and Sherlekar’s practice, who was also charged in connection with the kickbacks and Travel Act conspiracy, is a fugitive and is believed to be in Pakistan.
Dr. Malik is a physician trained in pain management and Dr. Sherlekar was trained in both pain management and in anesthesiology. The two merged their pain management practices in February 2009 to create Advanced Pain Management Services, LLC (APMS), which initially had three offices in Maryland and one in New Jersey, but that later expanded to as many as ten offices. In August 2010, APMS began doing business under the name of American Spine Center, LLC (APMS/ASC). Khan was the CEO of APMS/ASC and co-conspirator Vic Wadhwa was its CFO.
APMS/ASC physicians periodically required patients who were prescribed controlled substances as pain relief medications to submit urine specimens for testing as means of monitoring the levels of pain medication or other narcotics in their bodies. According to evidence presented at trial, in the late winter of 2011, Accu Reference’s marketing agent Mubtagha Syed proposed to Khan and Wadhwa that APMS/ASC discontinue using its current testing lab and start referring its patients’ urine toxicology specimens to Accu Reference in return for the payment of kickbacks. After Drs. Malik and Sherlekar approved the plan, which also came to include back braces from another Bas-controlled company, APMS/ASC began submitting all of its patients’ urine specimens to Accu Reference in April 2011.
Starting in the late spring of 2011 and continuing through the end of July 2012, APMS/ASC each month referred between 700 to as many as 1,300 patient urine specimens to Accu Reference for testing in return for the payment of kickbacks. Accu Reference submitted claims for performing diagnostic tests on these specimens to Medicare and various private insurers for reimbursement, receiving in return approximately $4.4 million in payments. After deducting its overhead expenses on the testing, Accu Reference split its profits 50/50 with Khan, Wadhwa, Sherlekar, and Malik. (Syed also received a share of Accu Reference’s profits.) From the time the kickback payments commenced in June 2011 until the end of the scheme in August 2012, Bas caused his companies to pay kickbacks totaling $1.376 million to Sherlekar, Malik, Khan and Wadhwa. Khan and Wadhwa deceived Drs. Sherlekar and Malik about the full amount of the kickback payments Accu Reference was paying, however, and thus were able to retain more than 60% of the kickback payments for themselves. Drs. Sherlekar and Malik each received approximately $240,000 in kickback funds before the scheme came to an end in the late summer of 2012.
Among the services APMS/ASC provided to its patients were diagnostic or therapeutic nerve blocks and injections in connection with spinal conditions, which were often provided in conjunction with anesthesia. If two physicians were present during a surgical procedure, with one performing the surgical procedure and the other administering the anesthesia, then the anesthesiologist could bill separately for the anesthesia service. However, if a single surgeon or anesthesiologist was alone in the procedure room and administered the anesthesia while also performing the surgical procedure, then the anesthesia service could not be billed as a separate charge, but was instead treated as included within the fee established for the surgical procedure.
According to evidence presented by the government at trial, during the period from January 2010 through the summer of 2012, it was relatively common for only one physician at APMS/ASC to both perform the spinal injection and administer the anesthesia. In a number of these cases, APMS/ASC then submitted bills to Medicare and private insurers using a billing code that represented that two separate physicians had respectively provided the nerve block and the anesthesia, and as a result received a higher level of reimbursement. For example, evidence presented by prosecutors demonstrated that on January 3, 2012, a date when Dr. Sherlekar alone provided both spinal injections and anesthesia to a large number of patients at APMS/ASC’s Frederick office, he advised Dr. Malik by text that “I am using your name today as surgeon as we have 34 procedures here [in Frederick] and 20 in Waldorf,” to which Malik responded “ok,” although he was seeing patients at his office in Hackettstown, New Jersey that day, more than 200 miles from Frederick.
In addition to the kickback-related and health care fraud and false medical records charges that were at issue in this trial, the Court has severed out for a separate trial another count of the indictment that charged Drs. Malik and Sherlekar with conspiring to defraud the IRS by not reporting as income cash payments received by APMS/ASC, and by filing false corporate tax returns that overstated the practice’s expenses and understated its revenues. This count is currently scheduled to go to trial in February 2018.
Malik faces potential maximum sentences of 10 years in prison for each of his six health care fraud convictions; five years in prison for conspiring to violate the Anti-Kickback Act and the Travel Act; five years in prison for each of the three Travel Act convictions and for the three counts of making false statements on patients’ medical records; and two years in prison for each of his 12 convictions on charges of soliciting and receiving health-care related kickbacks. His actual sentencing range will be calculated using the Federal Sentencing Guidelines, however, and the Court will have a wide range of discretion in imposing sentence.
Acting United States Attorney Stephen M. Schenning commended the FBI; the Department of Health and Human Services – Office of the Inspector General (HHS-OIG); the IRS - Criminal Investigation Division; and the Defense Criminal Investigative Service and the Office of Personnel Management – Office of the Inspector General (OPM-OIG) for their work on the investigation. Mr. Schenning also thanked Assistant U.S. Attorneys Jefferson M. Gray and Sean R. Delaney, who led the investigation and tried the case against Dr. Malik.
Baltimore Man Sentenced to 18 Months in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Greenbelt, Maryland – United States District Judge George J. Hazel sentenced Dennis Morgan, age 52, of Baltimore, Maryland, to 18 months in prison, 6 months of which are to be served in a halfway house, followed by 5 years of supervised release, for Failure to Register as a Convicted Sex Offender.
The sentence was announced by Acting United States Attorney Stephen M. Schenning; Marshal Johnny Hughes of the United States Marshals Service and Chief James A. Cervera of the Virginia State Police.
Morgan is required to register as sex offender by reason of a 1996 conviction for Attempted Sexual Battery in Florida. Between August 2016 and November 2016, he both resided and worked within the district of Maryland. Throughout that time period, he knowingly failed register as a sex offender in the state of Maryland.
Acting United States Attorney Stephen M. Schenning commended the United States Marshals Service and Virginia State Police for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Nadia Prinz and Joseph Baldwin, who prosecuted this case.
Five Army National Guardsmen Sentenced in Fraud SchemeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABTH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On October 24, 2017, United States District Judge George J. Hazel sentenced Vincent A. Grant, age 28, of Laurel, Maryland, to 58 months in prison after a jury found him guilty of conspiracy to commit access device fraud and one count of aggravated identity theft. Judge Hazel earlier ordered the following sentences for Grant’s co-defendants -
James C. Stewart, III to 66 months in prison;
Derrick K. Shelton, II to 49 months in prison;
Jamal A. Moody to 48 months in prison; and
Quentin T. Stewart to 40 months in prison.
Each of the defendants’ sentences included a 2-year consecutive mandatory minimum sentence for committing aggravated identity theft.
The sentences were 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 (DCIS); and Special Agent in Charge Jeffrey Thorpe of the DCIS - Cyber Field Office.
The defendants were found guilty of conduct occurring from July 2014 to May 2015, during which time the defendants used Bitcoin, a form of digital currency to purchase stolen credit and debit card numbers of individuals and businesses from foreign internet websites. The defendants selected and purchased stolen credit and debit card numbers of individuals and businesses holding federal credit union accounts, and those with billing addresses in or near Maryland. They bought magnetic strip card-encoding devices and software to re-encode credit, debit, and other cards with the stolen credit and debit card numbers. The defendants then used the cards they fraudulently re-encoded to buy merchandise, including gift cards, electronic items, and luxury goods, from Army and Air Force Exchange Service stores on U.S. military bases, also known as PX stores, and other locations in Maryland and elsewhere. They used the merchandise themselves or resold the merchandise to individuals they knew or through Craigslist postings.
James Stewart was convicted after trial on June 1, 2017, of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Vincent Grant was convicted of conspiracy to commit access device fraud and aggravated identity theft. Derrick Shelton and Quentin Stewart pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. Jamal Moody pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft.
Moody, Shelton, James Stewart, and Grant were specialists, and Quentin Stewart was a former sergeant, all in the District of Columbia Army National Guard.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Acting United States Attorney Stephen M. Schenning commended the DCIS for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Bryan E. Foreman and Thomas P. Windom; Special Assistant U.S. Attorney Gustav William Eyler, of the U.S. Justice Department, Criminal Division - Fraud Section; and Trial Attorney Jessee Alexander-Hoeppner, of the U.S. Justice Department, Criminal Division - Fraud Section, who prosecuted the case.
Baltimore Man Convicted of Carjacking, Conspiracy and Destruction of Property Resulting in Breach at the National Security AgencyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – On October 25, 2017, a federal jury convicted Dontae Small, age 43, of Baltimore, Maryland on conspiracy, carjacking, and destruction of government property, after he rammed a stolen car into a security gate at the National Security Agency in Ft. Meade, Maryland.
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; Commissioner Kevin Davis of the Baltimore Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; Anne Arundel County Police Chief Tim Altomare, the National Security Agency Police and the Ft. George G. Meade Police Services Division.
According to evidence at presented at trial, on October 4, 2015, Small and his co-conspirators were riding in a white minivan in the Federal Hill neighborhood of Baltimore, looking for victims to rob. At approximately 10:09 p.m. Small texted a male co-conspirator the following message: “Get the dude cpming down da st.I parked on smoking a pipe” [sic].
Three masked co-conspirators assaulted Victim 1 on Grindall Street in the Federal Hill neighborhood of Baltimore. The carjackers pointed a silver handgun at the victim and robbed him of the keys to his car, a 2008 Acura TSX. The conspirators then took the car. On that same night, two of the conspirators approached Victims 2 and 3 a block away on Riverside Avenue, and brandished a silver handgun. The robbers obtained an iPhone phone that had fallen from Victim 3’s pocket before fleeing.
On October 7, 2015, Small drove the stolen Acura to Arundel Mills Mall in Anne Arundel County, Maryland. The Anne Arundel Police identified the car as stolen and set up surveillance. When Small returned to the vehicle and unlocked it using Victim 1’s keys, the police attempted to arrest him. Instead, Small took off over a curb in the parking lot, narrowly missing pedestrians and drove without his lights out of the Mall at a high rate of speed. The police followed and Small engaged him in a high-speed pursuit, eventually turning into Ft. Meade and then crashing the car into a security gate protecting the National Security Agency. Small then fled and hid in a nearby sewer for hours as security personnel and police attempted to find him. The NSA was closed to essential personnel for a day while the search continued. When Small emerged from the sewer the next morning, the police were able to arrest him after a brief foot chase and struggle.
Small faces a sentence of 15 years in prison for carjacking; a maximum of 10 years in prison for destruction of government property; and a maximum of five years in prison for conspiracy. Sentencing is set for 11:00 a.m. on February 6, 2018 in U.S. District Court in Baltimore.
Acting United States Attorney Stephen M. Schenning commended FBI, the Baltimore City Police Department, Baltimore City State’s Attorney’s Office, Anne Arundel County Police Department, National Security Agency Associate Directorate for Security and Counterintelligence (Office of General Counsel) and Ft. George G. Meade Police Services Division for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Paul Riley and Sandra Wilkinson, who are prosecuting the case and NSA attorney Hillary Hellmann for her assistance in the prosecution.
Thirteen Alleged Baltimore Drug Dealers Indicted on Federal Drug Trafficking ChargesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland –A federal grand jury has returned a superseding indictment charging thirteen defendants with conspiring to distribute controlled substances. The superseding indictment, which was unsealed today, charges the defendants with distribution of heroin and cocaine. One defendant is also charged with possession of a firearm by a felon. One defendant is further charged with possession of a firearm in furtherance of a drug trafficking crime.
The indictment 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 Commissioner Kevin Davis of the Baltimore Police Department.
According to the three-count indictment, in November of 2016, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Baltimore Police Department initiated an investigation into the McRae and Bagley drug trafficking organization. Between January 2012 and October 18, 2017, the organization was allegedly responsible for distributing large quantities of heroin and cocaine at an open-air drug "shop" operating near 1100 North Montford Avenue in Baltimore, Maryland.
The following defendants are charged in the indictment unsealed today:
Rodney Addison, a.k.a. “Black,” a.k.a. “Freddy,” age 39, of Baltimore, Maryland;
Deandre Anderson, a.k.a. “Meatball,” age 22, of Baltimore, Maryland;
Kurt Atkins, age 55, of Baltimore, Maryland;
Jackie Bagley, a.k.a. “Bruce,” a.k.a. “Juice,” a.k.a. “Juicy,” age 38, of Baltimore, Maryland;
Vernon Bartee, age 51, of Baltimore, Maryland;
Johntae Brown, a.k.a. “Tipp,” age 19, of Baltimore, Maryland;
Dominic Durham, a.k.a. “Nick,” age 18, of Baltimore, Maryland;
Wilbur Forrester, a.k.a. “Man Man,” a.k.a. “Dreads,” age 38; of Joppa, Maryland;
Keith Johnson, a.k.a. “Tree,” age 46, of Baltimore, Maryland;
Antonio Jones, a.k.a. “Dre,” age 23, of Baltimore, Maryland;
Andrew Manuel, a.k.a. “Low Low, age 21, of Baltimore, Maryland;
Stancil McNair, a.k.a. “Deandre,” a.k.a. “Do-do,” age 20, of Baltimore, Maryland;
Ernest McRae, a.k.a. “Rat,” a.k.a. “Man Man,” age 37, of Baltimore, Maryland.
All of the defendants face a maximum of life in prison for the drug conspiracy charge with the exception of Manuel and Durham who face a maximum of 20 years in prison. McRae faces 15 to life on the felon in possession of a firearm charge. McNair faces a minimum of 5 years in prison to run consecutive with a maximum sentence of life for the possession of a firearm in furtherance of a drug trafficking crime.
Ten defendants have been detained. The whereabouts of Wilbur Forrester, Antonio Jones, and Dominic Durham are unknown.
Anyone who may have information on the whereabouts of Forrester, Jones or Durham is asked to contact the ATF- Baltimore Field office at 1(888) ATF-TIPS.
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 ATF and Baltimore City Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Matthew DellaBetta and Mike Hanlon who are prosecuting the case.
Baltimore City Department of Transportation Supervisor Charged with Taking Thousands in BribesRead 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 has charged Daryl Christopher Wade, age 50, of Rosedale, Maryland, today on charges 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 Acting Inspector General Stephen J. Lesniewski Jr. of the Baltimore City Office of Inspector General.
Wade has been a City of Baltimore employee since 1988 and is currently employed by 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 complaint, 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 affidavit in support of the criminal complaint, Wade accepted multiple cash payments, from a confidential human source (“CHS2”) in exchange for claiming that he could erasing his 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 a fine is assessed by DOT at $50 per day for each street cut not repaired past the expiration date.
In March 2016, the criminal complaint alleges that an individual with the initials J.S., an owner of a Maryland construction and utilities company, was involved in attempting to broker bribe payments to Wade from the Vice President of a Virginia based construction company (“CHS1”). CHS1’s company required street cuts within the City of Baltimore. CHS1’s company provides all phases of underground utility construction and sewer rehabilitation throughout the east coast of United States. At the time of J.S. and Wade’s attempt to broker bribe payments from CHS1’s company it had approximately $55 million in contracts with the City of Baltimore to restore and/or replace water and sewage lines throughout the City. In November 2015 and February 2016, the Virginia company was also awarded approximately $36 million in contracts with the City of Baltimore to conduct sewer and waterline overhauls, including street cuts. In order to complete those contracts, CHS1’s company conducted street cuts to reach water and sewer lines.
In January 2016, J.S. told CHS1 that CHS1’s company would be receiving $1.3 million in street cut fines from DOT in the near future. J.S. then said he had a connection that could reduce the $1.3 million in fines by 80% to $260,000, if CHS1 paid 20%, ($52,000) to J.S.’s connection. This offer was rejected by the Virginia based company.
The complaint also alleges that a second confidential human source (“CHS2”), who runs a plumbing and drain construction business in Baltimore, Maryland was previously fined approximately $17,000 for street cuts in Baltimore City. In March 2016, CHS2 attended a Baltimore City street cut appeal hearing regarding the fine. In attendance at the hearing were CHS2 and Baltimore City employees including Wade. During the hearing, CHS2 explained to the attendees, that he was not responsible for acquiring permits for the work site and therefore should not be held liable for the fines. Wade stopped the hearing, stating that he had heard enough and that the fines determination was on hold pending further review. Wade then requested to speak with CHS2 outside the hearing. Once outside the hearing, Wade explained to CHS2 that if CHS2 helped Wade that he would help CHS2.
On or about September 19, 2016, at the direction of law enforcement, CHS2 participated in a recorded telephone conversation with Wade, where CHS2 explained that he did not have money to pay the $17,000 fine. Following this call, Wade met in-person with CHS2 and asked CHS2 “what is it worth to you?” CHS2 understood that this meant that if he (CHS2) paid Wade, Wade would void the $17,000 fine. CHS2 stated, it would be worth $5,000 for him to pay Wade to remove the fine. Wade explained that he had to also pay a female at the office to push the fine reduction paperwork through but accepted the $5,000 offer. Wade told CHS2 that after making the $5,000 payment, CHS2 would not have to worry about any future fines.
On September 22, 2016, CHS2 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, CHS2 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 CHS2, “we in cahoots now . . . . ”
On or about September 28, 2016, CHS2 paid Wade the remaining $2,000 in cash, and that same day a $17,000 journal entry was posted to the Baltimore City Dynamics accounting system voiding the $17,000 in street cut fines for CHS2’s construction site. The entry was made by a female Baltimore City employee and Baltimore City records indicate that the female employee is an accountant working at the Baltimore Bureau of Accounting and Payroll Services.
A complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Wade’s initial appearance is scheduled for today at 2:30 p.m. in United States District Court in Baltimore, Maryland in courtroom 3A.
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.
Germantown Woman Sentenced to 27 Months in Federal Prison for Defrauding Her Employer of More Than $1 MillonRead the Press Release
FOR IMMEDIATE RELEASE Contact BAILEY DRUMM
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – Sobeida Maria Laboy, age 47, of Germantown, Maryland was sentenced today by United States District Judge Peter J. Messitte to 27 months in prison, followed by three years of supervised release for bank fraud arising from a scheme to defraud the financial institution for which she worked of more than $1 million. Laboy was also ordered to pay restitution in the full amount of the loss to the victims.
The sentence 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.
According to her plea agreement, Laboy worked in the Chevy Chase branch office of a financial institution that offered online banking services to its customers and had affiliates that offered homes loans and other financial services. Laboy admitted that from December 2007 through June 19, 2014, she created fraudulent invoices, which she submitted, along with check requests, for payment by her employer. The invoices purported to be for services provided by a specific vendor. Laboy submitted the fraudulent invoices along with a check request form, stating that the check should be sent to her at her office in Chevy Chase. Laboy forged the signature of another employee in the “approval” section of the form. Instead of sending the checks for payment to the vendor, Laboy endorsed the checks with her own signature and deposited them into her personal bank accounts.
Over the course of the scheme, Laboy deposited at least 60 checks issued by her employer and made payable to the vendor. Laboy deposited at least six additional checks either issued by her employer and made payable to other vendors, or issued by other vendors and made payable to her employer. As a result of the scheme, Laboy fraudulently obtained at least $1,020,576.28
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Lindsay Eyler Kaplan and Nicolas A. Mitchell, who prosecuted the case.
St. Mary's County Man Sentenced to 23 Years in Federal Prison for Committing Multiple RobberiesRead the Press Release
October 18, 2017
FOR IMMEDIATE RELEASE Contact Bailey Drumm
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland –Quantaz Lamar Shields, age 30, of Leonardtown, Maryland, was sentenced today by the United States District Judge Paul W. Grimm to 23 years of imprisonment for committing four armed robberies in St. Mary’s County, and brandishing a firearm during and in relation to those robberies.
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, and Sheriff Tim Cameron of St. Mary’s County Sherriff’s Office.
According to the guilty plea and accompanying factual stipulation, between October 20, 2015 and October 28, 2015, the defendant entered multiple locations while brandishing a firearm and stole business proceeds and other items. On November 5, 2015, law enforcement executed a search warrant at a location associated with Shields and located a 9mm Beretta handgun with a magazine containing six 9mm live rounds that Shields had used during each of the armed robberies. Law enforcement also located a Samsung flip phone that was used to communicate with the codefendant, Trevone Butler, during one of the robberies. During another search warrant executed at Shields’s sister’s residence, law enforcement seized over $2,000 in U.S. currency hidden throughout the house. Prior to the warrant, law enforcement obtained a recorded conversation between Shields (who was incarcerated) and his sister, where Shields directed his sister to deposit money into his commissary account from money hidden in her shed.
Butler was previously sentenced on December 2, 2016 to 57 months imprisonment for his role in the robberies.
Acting United States Attorney Stephen M. Schenning commended the FBI and St. Mary’s County Sherriff’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Kelly O. Hayes, who prosecuted the case.
Prince George's County Liquor Board Official Pleads Guilty to Conspiracy, Bribery, and Obstruction of JusticeRead the Press Release
Sent to Baltimore and Washington media.
October 18, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On October 17, 2017, Prince George’s County Liquor Board official David Dae Sok Son, age 41, of Bowie, Maryland, pleaded guilty to an Information charging him with conspiracy, bribery, and obstruction of justice, in a scheme involving alcoholic beverage licenses in Prince George’s County, Maryland.
The guilty plea 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 Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Henry Stawinski III of the Prince George’s County Police Department.
Son was a Commissioner on the Prince George’s County Board of License Commissioners (“Liquor Board”) from 2005 through 2014. During the 2015 Maryland legislative session, Son served as a liaison for the Prince George’s County Senate delegation. He returned to the Liquor Board later in 2015, as its Director.
As described in the affidavit filed in support of the criminal complaint and in the plea agreement, Son solicited and facilitated bribes, from lobbyists and business owners, including co-conspirators Young Jung Paig and Shin Ja Lee. The bribe recipients were elected state officials, including then-County Councilman William Alberto Campos-Escobar (a/k/a “Will Campos”) and then-Delegate Michael Vaughn.
For example, during a meeting on April 4, 2014, Son informed an FBI Confidential Human Source (“CHS”) that Campos needed $10,000 to pay an expense related to Campos’s campaign for Maryland State Delegate. Son told the CHS that Son had spoken with Campos about the CHS giving cash to Campos in exchange for Campos arranging for another grant to be awarded to a non-profit organization selected by the CHS.
On or about April 9, 2014, Son met the CHS at a coffee shop in Lanham, Maryland. Son told the CHS that Son had told Campos to “hook [the CHS] up” with the developer of a new business in the County, so that the developer would retain the CHS’s business services. Son explained to the CHS that the business owed Campos, because Campos obtained a tax benefit for the business. Son and the CHS then walked to the coffee shop’s parking lot, where the CHS’s vehicle was located. The CHS then retrieved $3,000 in U.S. currency from the CHS’s vehicle.
On or about April 9, 2014, Son gave Campos the $3,000 in U.S. currency that Son had received from the CHS. Later on April 9, 2014, Campos sent a text message to the CHS that stated, “I owe you big time my man.”
Beginning in 2015, Son solicited and facilitated bribe payments from lobbyists and business owners who were interested in the “Sunday Sales Bill,” which established up to 100 Sunday liquor sales permits in Prince George’s County. The bribes were intended to influence public officials in the performance of their official duties. For example, in 2015, Son had asked Campos to assist in passing the Sunday Sales bill by talking to one of his colleagues about the bill; both subsequently voted in favor of the bill. On April 22, 2015, after the passage of the bill, Son arranged a lunch between Campos, Paig, and Lee. A lobbyist and attorney, Matthew Gorman, also attended. During the lunch, Son told Campos to meet Paig in the men’s bathroom, saying that Paig was “… going to hook you up.” In the men’s bathroom, Paig handed Campos an envelope containing a total of $4,000 cash, which constituted a bribe from Son, Paig, Lee, and Gorman. In addition, on October 19, 2015, Son received a $4,000 bribe payment from a lobbyist for his assistance in ensuring that the lobbyist’s clients received Sunday Sales licenses.
Lee and Paig subsequently talked to Son about getting beneficial legislation introduced related to the Sunday Sales bill and indicated that they would be willing to pay $50,000 to make that happen. Son spoke with Delegate Vaughn, who agreed to introduce legislation. On November 10, 2015, Son arranged for Paig and Lee to meet with Vaughn so they could make a “down payment.” After the meeting, law enforcement observed Paig and Vaughn get into Vaughn’s car, while Lee and Son waited in the parking lot. Shortly after Paig got out of the car, Vaughn drove directly to a bank in the same shopping center. Bank surveillance video shows Vaughn pulling a stack of cash out of his right pocket and handing it to the teller, and then doing the same from his left pocket. Bank records show that Vaughn deposited a total of $4,000.
On December 17, 2016, after Son had been questioned by the FBI, he hand-wrote a letter to another subject of the FBI’s investigation informing the subject that Son had been “taken” by the “Feds” and was “wired” when he last visited the subject. In the letter, Son also listed names of individuals who had “flipped,” or cooperated with the FBI. Son further described devices used by the FBI for body wires and told the subject that the subject should assume meetings with Son were being recorded. Son also laid out means by which the subject and Son could communicate secretly.
If convicted, Son faces a maximum sentence of five years in prison for the conspiracy, ten years in prison for bribery, and 20 years in prison for obstruction of justice. U.S. District Court Judge Paula Xinis has scheduled sentencing for January 22, 2018 at 10 a.m. in U.S. District Court in Greenbelt.
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, Menaka Kalaskar, Arun G. Rao, and James A. Crowell IV, who prosecuted the case.
Government Contractor Sentenced to One Month in Federal Prison for Making False ClaimsRead the Press Release
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Baltimore, Maryland –United States District Judge Marvin J. Garbis sentenced Shawn Penn, age 42, of Pasadena, Maryland, to one month in prison, followed by five months of home confinement and three years of supervised release for causing more than $40,000 in false claims to be submitted to the government. Penn falsely represented to her employer that she was working as a security guard at a government facility, when she was actually elsewhere. In addition, Judge Garbis ordered Penn pay restitution in the amount of $30,000.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
According to the plea agreement, Penn worked full-time, during regular business hours, as an active duty U.S. Army Intelligence Officer at Fort Meade, Maryland. In addition, Penn worked as a contract employee performing security guard services for the U.S. Department of Defense in Anne Arundel County, Maryland.
Penn performed her security guard services for a sensitive compartmented information facility (SCIF), which required that she hold a Top Secret-Sensitive Compartmented Information security clearance, possess a gun permit, and carry a government issued duty cell phone while on duty. Penn’s work locations had surveillance cameras that monitored her workstation area, and areas inside and outside the building. Penn’s duties included reviewing computer monitors with live video from security cameras, checking for alarms, monitoring the temperature in the facility and performing exterior security sweeps.
According to court documents, from September 2015 to August 2016, Penn regularly abandoned her workstation and falsely represented to her employer that she had been working as a security guard when she was actually elsewhere. According to the statement of facts supporting the plea agreement, Penn’s false claims regarding her security work hours caused the government to pay more than $40,000 to her employers to which they and Penn were not entitled.
In addition, on October 6, 2016, Penn falsely stated to investigators from the Defense Criminal Investigative Service that she had not abandoned her security guard duties until January 2016, when in fact, she had been abandoning her duties since at least September 2015. Penn falsely claimed that she “sat in her car,” was “across the street,” or “drove around the parking lot,” during her guard shifts, when Penn knew she was elsewhere during those shifts.
Acting United States Attorney Stephen M. Schenning commended the DCIS for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the case.
Washington D.C. Man Sentenced to 14 Years in Federal Prison for Sex Trafficking of A MinorRead the Press Release
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Greenbelt, Maryland – On October 13, 2017, United States District Judge Roger W. Titus sentenced Charleston Harris a/k/a “Giovanni,” a/k/a “Leon Baye,” age 38, of Maryland to 14 years in prison followed by a lifetime of supervised release for conspiracy to engage in sex trafficking of a minor.
In addition, as part of the terms of his plea agreement, Harris has agreed to a judicial order of removal to Liberia at the time of his release.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andrew W. Vale of the Federal Bureau of Investigation – Washington office, Chief Henry P. Stawinksi III of the Prince George’s County Police Department, and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to court documents, beginning in or about April 2012, and continuing through in or about June 2015, in the District of Maryland and elsewhere, Harris managed and directed a large-scale prostitution business. Harris, with the assistance of co-conspirator, Phoebe Omwega and others, managed as many as eighteen prostitutes at a time and directed prostitution activities in Maryland, Virginia, Georgia, and Florida.
In 2012, Harris recruited a 17-year-old female to engage in prostitution under his direction. Between at least October and December 2012, the underage victim engaged in commercial sex acts in Maryland, Florida, and elsewhere. As part of their prostitution business, Harris, Omwega, and others utilized the social networking website "backpage.com" to advertise prostitution services for each of the women Harris employed. Harris also used several email accounts to communicate and direct the women who worked for him.
At the direction of Harris, women working for Harris, including the underage victim, typically charged between $100 and $200 for sexual services. Harris collected the prostitution proceeds, managed day-to-day activities by informing the women of when and where to meet "clients," instructed the women which city to travel to in order to engage in prostitution, and made hotel arrangements for the women. Harris did not allow the women to retain any of the proceeds. The women were allowed to purchase food, clothing, and make other similar expenditures using their proceeds, and occasionally were required to track their spending and report it to Omwega.
Harris often recruited women to work for his organization by falsely stating that he and Omwega managed a modeling business in Atlanta, Georgia. Harris would confiscate the women’s clothes, cellphones, devices, keys to their vehicles, and identification documents, and would arrange for the women who worked for him to obtain false identification documents.
Harris indoctrinated new recruits into the organization by advising them of his rules. Principal among the rules was that the women were not allowed to speak with family members or law enforcement, often referred to as being "out of pocket." Harris also required the women to make a minimum of $1,000 per day and forced the women to continue to work if they failed to meet this quota. Harris enforced violations of the rules by threatening physical violence and, on occasion, physically assaulting the women who worked for him.
Acting United States Attorney Stephen M. Schenning commended the FBI, Prince George’s County Police Department, and the Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Erin B. Pulice, Ray D. McKenzie, and Daniel Gardner, who prosecuted the case.
Member of Cherry Hill’s Hillside Drug Distribution Conspiracy Sentenced to 25 Years in Federal PrisonRead the Press Release
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Baltimore, Maryland – On October 13, 2017, United States District Judge George L. Russell, III sentenced Leonard Chase a/k/a “Nard”, age 23, of Baltimore, Maryland, to 25 years in prison followed by five years of supervised release for conspiracy to participate in a racketeering enterprise including, but not limited to, the murder of Freddie King. Chase admitted that he was a member of Hillside, a drug trafficking organization that operated for 14 years in the Cherry Hill section of Baltimore.
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; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from at least 2002, a group known as Hillside distributed powder and crack cocaine, heroin, oxycodone, and marijuana, primarily at the Cherry Hill Shopping Center and other locations throughout Cherry Hill. Members of Hillside used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization. Hillside members used residences in and around Cherry Hill to cut and package drugs for distribution. Only trusted members of Hillside, such as Chase, were admitted to these locations while the drugs were being prepared for sale. In an effort to distinguish their narcotics, Chase and other Hillside members used colored topped vials or colored the drugs with food coloring.
Chase admitted that they distributed heroin, marijuana, cocaine, and other narcotics.
During Chase’s involvement in the Hillside drug conspiracy, it was reasonably foreseeable to him that the conspiracy involved between one and three kilograms of heroin, between 280 and 840 grams of crack cocaine, between five and 15 kilograms of powder cocaine, as well as marijuana and oxycodone.
Members of Hillside, including Chase, also committed acts of violence in order to fund their narcotics activities and intimidate others who would interfere with their narcotics trafficking. For example, on September 8, 2012, Chase, and other members of Hillside shot and killed Freddie King.
Since 2013, federal prosecutors have convicted at least 35 members of three other rival drug-dealing organizations that operated in Cherry Hill: “Up da Hill,” “Little Spelman,” and “Coppin Court.”
Acting United States Attorney Stephen M. Schenning praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Schenning thanked Assistant United States Attorneys Seema Mittal and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Hyattsville, Maryland Woman Sentenced to 30 Months in Federal Prison for Mail and Wire FraudRead the Press Release
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www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland –On October 12, 2017, United States District Judge Roger W. Titus sentenced Ana Maritza Gomez, age 45, of Hyattsville, Maryland, to 30 months in prison followed by 3 years of supervised release for conspiracy to commit mail and wire fraud arising from a scheme to defraud victims through a foreclosure rescue scam. Judge Titus also ordered Gomez to pay $205,280.25 in restitution.
Two co-defendants, Rene De Jesus De Leon, age 49, and Pedrina Rodriguez Bonilla, age 39, both of Silver Spring, Maryland, have also pleaded guilty to conspiracy to commit mail and wire fraud for their involvement in the same scheme.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG); Chief Henry P. Stawinski III of the Prince George’s County Police Department; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to evidence presented at the six-day trial, from at least late 2011 to August 2015, Gomez and her co-conspirators claimed that they could help homeowners who wanted to modify their mortgage loans and prevent foreclosure of their homes. The conspirators sold the victims on a “principal reduction” program that included an upfront fee, typically between $3,000 and monthly payments for 10 to 15 years. Gomez and her co-conspirators told the victims to make monthly payments to the conspirators and to companies they controlled, in lieu of to the homeowners’ lenders. The companies controlled by Gomez’s co-conspirators were named Marketing Multiservices LLC and Innovative Solutions Services LLC.
According to the indictment and court documents, the conspirators mailed monthly invoices to the homeowner victims that falsely indicated that the “principal balance” was being paid down. Some of the victims paid Gomez in person each month at her residence; or some of the victims deposited their payments directly into bank accounts controlled by Gomez’s co-conspirators. The conspirators told the victims not to open any mail from their lenders and instead provide it to the conspirators. The conspirators did not, however, negotiate with lenders of behalf of the homeowners. Many of the victims lost their homes.
Sentencing for Rene De Leon is scheduled for December 14, 2017 at 10 a.m. and Pedrina Bonilla is scheduled for sentencing on December 13, 2017 at 9:00 a.m.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Acting United States Attorney Stephen M. Schenning commended the FHFA-OIG, HUD-OIG, U.S. Postal Inspection Service, Prince George’s County and Montgomery County Police Departments, and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Kristi N. O’Malley and Special Assistant United States Attorney Jolie F. Zimmerman, who prosecuted the case.
Maryland Real Estate Flipper Sentenced to Prison for Obstructing IRS and Failing to File Tax ReturnsRead the Press Release
A Maryland man who bought, improved and sold residential real estate was sentenced to 36 months in prison announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Stephen M. Schenning for the District of Maryland.
According to the indictment and evidence presented for sentencing, David J. Simard, 58, purchased and sold real estate in Maryland and the Washington, D.C. metropolitan area since the mid-1980s. In January 2008, Simard received notice that the Internal Revenue Service (IRS), in connection with an audit of his personal income taxes, had requested documents and information from third parties regarding his real estate transactions. Less than one month after receiving this notice, Simard created Pegasus Home Corporation and began buying and selling properties in its name instead of his own. From 2009 through 2010, Simard purchased and sold 96 properties in the name of Pegasus. Simard attempted to conceal his ownership and control of Pegasus by falsely representing that his relative was the owner. Simard had the same relative apply with the IRS for an employer identification number for Pegasus and used that number when buying and selling properties. This caused the IRS to receive information falsely indicating that the relative owned Pegasus. Simard also instructed the relative to open a bank account for Pegasus. Simard did not file timely personal tax returns for tax years 2009 and 2010, despite earning income requiring him to file. He also did not file timely corporate tax returns for Pegasus for the same years despite having an obligation to do so. Simard last filed a timely personal income tax return in 1995. The court found that Simard caused a tax loss of $1.5 million.
In addition to the term of prison imposed, U.S. District Judge Roger W. Titus ordered Simard to serve one year of supervised release and to pay a $10,000 fine. Simard previously pleaded guilty on July 10 to obstructing the lawful functions of the IRS and failing to file personal and corporate income tax returns.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schenning thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael C. Vasiliadis and Kenneth C. Vert of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Chicago Man Sentenced to 30 Months in Federal Prison for Wire FraudRead the Press Release
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Baltimore, Maryland – On October 12, 2017, United States District Judge George L. Russell III sentenced David T. Odom, age 53, of Chicago, Illinois to 30 months in prison, followed by three years of supervised release for a wire fraud conspiracy arising from a scheme to defraud lenders in order to obtain bridge financing for a movie. Judge Russell also ordered Odom to forfeit up to $821,000 after the sale of the property and pay $700,000 in restitution.
Co-conspirator Darryl Wesley Clements, age 50, of Detroit, Michigan, previously pleaded guilty to wire fraud conspiracy. Rodney Patrick Dunn, age 40, of Elkridge, Maryland, pleaded guilty in a related case to receipt of a bribe by a bank official.
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; Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and Eric M. Thorson, Inspector General for the Department of the Treasury.
David Odom owned CityScope Productions, LLC, and was seeking financing to produce the movie “Season Tickets.” Odom met Darryl Clements through an attorney in New York. Clements created documents falsely stating that CityScope had permanent financing of $13 million for the movie from Bridge Capital and The Shah Group, and that the funds were held in escrow at a bank in Baltimore, where Dunn worked as a bank officer. Dunn had agreed with Clements that when prospective lenders attempted to verify the existence of the escrow accounts, Dunn would text or telephone Clements with the caller’s information and permit Clements to return the telephone call posing as “Rodney Dunn, bank officer.” Dunn believed he would obtain from Clements valuable contacts with professional athletes that would catapult his career change into sports agency. Clements also promised to pay Dunn for his assistance.
In order to carry out the fraud scheme, Clements also created email accounts which appeared to belong to Dunn and The Shah Group, but which Clements actually controlled. In February 2011, Dunn purchased five cashiers’ checks from his employer bank, each for $20 and made payable to Clements. Clements then altered the checks so that they totaled $4 million, the payees were individuals and entities affiliated with the movie, and “The Shah Group,” was the remitter. Clements provided the altered checks to Odom/CityScope. Odom knew that the checks were fraudulent since in fact, no one had been paid. Clements also fraudulently placed Dunn’s forged signature on escrow agreements and proof of funds statements, which Clements emailed to Odom, so that Odom could furnish those fraudulent documents to prospective lenders.
Odom sought financing from multiple lenders including an unsuccessful attempt thwarted by the prospective lender’s local counsel in Baltimore. Among other things, Clements created a fictitious bank statement for a purported escrow account, which Odom admitted he sent to a prospective lender.
In a telephone call on May 9, 2011, Clements posed as Dunn and fraudulently verified the account numbers and balances of the phony escrow accounts to an official of a California company which specialized in providing bridge financing for movies (California finance company). On the same day, the California finance company loaned $2.5 million to CityScope and transmitted the funds by wire, specifying that the funds were to be used solely for movie expenses.
In early 2011, Odom’s house was sold in a foreclosure proceeding to the mortgage lender, and Odom was faced with moving or eviction. Odom admitted that he used the bridge loan funds to spend $821,000 to purchase his home back from the lender, approximately $60,000 to buy two cars, approximately $6,000 to take his family on the "Exotic Western Caribbean Cruise" by Carnival Cruise, approximately $90,000 in transfers to family members, and another approximately $75,000 in personal expenses. Odom also paid some pre-production movie expenses. Clements received $200,000 from the bridge loan proceeds. Dunn received only the promise of money.
Odom did not repay the bridge loan. The California finance company prepared to have the bank repay the loan from the purported escrow account, leaving messages for Dunn at the bank, which he then passed on to Clements. Clements, posing as Dunn, falsely told the company that the loan repayment had been sent to CityScope, and Odom said that CityScope had not received the funds and sent a demand letter to the Baltimore bank. When the California finance company was not repaid the loan, it sued Odom and others to recover its loan. Because of the allegations contained in the civil suit, Odom believed that criminal charges would be brought against Clements, and he told Clements his fears. Clements was engaged in another loan fraud and received proceeds of $4 million. In August 2011, Clements transferred $2 million to CityScope, which Odom used to partially repay the California finance company.
On April 28, 2017, Clements was sentenced to 18 months in the custody of the Bureau of Prisons, and on September 8, 2017, Dunn was sentenced to 30 weekends of incarceration and a fine of $2,000.
Today’s announcement is part of the efforts undertaken in connection with the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Acting United States Attorney Stephen M. Schenning commended the FBI, SIGTARP, and the Treasury Inspector General for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Joyce K. McDonald and Rachel M. Yasser, who prosecuted the case.
Baltimore CFO Pleads Guilty to Wire FraudRead the Press Release
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Baltimore, Maryland – Jay Edward Wilkins, age 47, of Stoney Beach, Maryland, pleaded guilty today to wire fraud and aggravated identity theft stemming from a scheme to defraud his employer of more than $700,000.
The 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 guilty plea and accompanying factual stipulation, Wilkins was the Chief Financial Officer (CFO) of Revolution, a Baltimore business. Beginning in 2014, Wilkins started improperly diverting corporate funds for his own personal use. As the CFO, Wilkins had access to the personal identifying information, including names, dates of birth, social security numbers, and addresses, of current and former Revolution employees. Over a three-year fraud, Wilkins repeatedly logged into the Revolution payroll account, and changed the direct deposit information for multiple employees, causing the payroll company to send more than $700,000 in fraudulent payroll payments to himself.
In addition, Wilkins failed to report a significant portion of the money he obtained from the fraud on his annual tax returns filed with the IRS for the 2014, 2015, and 2016 calendar years. Wilkins faces a maximum sentence of 20 years in prison for the count of wire fraud and 2 years in prison for the count of aggravated identity theft. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January 23, 2018.
Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney’s Harry Gruber and Paul Riley, who are prosecuting the case.
Fourth Baltimore City Police Detective Pleads Guilty to Racketeering and Heroin Distribution ConspiracyRead the Press Release
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Baltimore, Maryland – Detective Momodu Bondeva Kenton Gondo, age 34, of Owings Mills, Maryland, pleaded guilty today to one count of racketeering conspiracy and one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of a mixture or substance containing heroin.
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.
Gondo joined the Baltimore Police Department on November 29, 2005 and was later assigned to the Gun Trace Task Force (GTTF), a division of the Baltimore Police Department. According to the plea agreement, Gondo schemed to steal money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, Gondo prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents. The false reports concealed the fact that Gondo and his co-conspirators had stolen money, property, and narcotics from individuals.
According to his plea agreement, beginning in 2015, Gondo robbed civilians he detained and in some cases arrested and stole money and drugs from them. Gondo shared the proceeds with co-defendants Jemell Rayam, Wayne Jenkins, Daniel Hersl, Marcus Taylor, and others, and on other occasions, he kept all of the proceeds for himself.
Gondo participated in eight robberies from March 2015 through July 2016. Gondo admitted that he was armed with his BPD service firearm during the robberies, that individual victims of the robberies were physically restrained to facilitate the commission of the offense, and that he authored false and fraudulent incident reports and other official documents in some cases in order to conceal his criminal conduct and otherwise obstruct justice.
On October 5, 2015, Gondo and his co-conspirators robbed a drug dealer after Gondo and Rayam placed a tracking device on the victim’s car without court authorization so that they could rob his apartment when he was not home. Gondo acted as a look out while Rayam and Glen Kyle Wells entered the victim’s apartment. Rayam and Wells stole a Rolex watch, a firearm, $12,000 to $14,000 in cash, and at least 800 grams of heroin. After the robbery, Gondo and his co-conspirators split the money they had stolen. Wells took the Rolex, the gun, and the drugs and sold some of the drugs. Rayam also sold some of the drugs and shared proceeds with Gondo.
Gondo admitted to committing multiple robberies with Sergeant Thomas Allers. For example, on March 11, 2015, Gondo, Rayam, and Allers searched a residence and discovered a large quantity of cash. Rayam, Gondo and Allers each took some of the cash. Gondo took between $8,000 and $10,000.
Gondo admitted that he sold a seized gun and marijuana to a drug dealer. In June 2016, Gondo, Rayam and Jenkins conducted a car stop and then went to the driver’s residence, without a warrant, and seized a 9mm handgun and a pound of marijuana. After Jenkins directed the sale of the gun and marijuana in order to repay a debt Rayam owed Jenkins for drugs, Gondo arranged for an associate of his, a drug dealer, to buy the marijuana and handgun.
On July 8, 2016, Gondo and his co-defendants Hersl and Rayam detained two victims after a car stop. Gondo stole money from one of the victims. At Jenkins’s direction, Hersl, Rayam, and Gondo transported the two victims to a BPD office to interrogate them. Jenkins told his co-conspirators to treat him like he was the U.S. Attorney. After speaking with one of the individuals, Jenkins, Hersl, Gondo, and Rayam then transported both of the victims to their home and robbed them of $20,000. Jenkins, Hersl, Rayam, and Gondo divided the $20,000.
In a separate seven-count indictment, Gondo and five co-defendants were charged with conspiracy to distribute and possess with intent to distribute heroin as part of the Shropshire drug trafficking organization (DTO). According to the indictment, the conspirators primarily distributed heroin near the Alameda Shopping Center in Baltimore. A jury trial against the five co-defendants, Antonio Shropshire, Antoine Washington, Glen Wells, Alexander Campbell, and Omari Thomas, is scheduled to begin October 16, 2017 in courtroom 1A.
Gondo provided sensitive law enforcement information to other conspirators in order to help the DTO and protect his co-conspirators. According to his plea agreement, Gondo admitted to providing protection, information and tips to his co-conspirator and co-defendant Antonio Shropshire about how to avoid being arrested. For example, on March 31, 2016, Gondo alerted Shropshire, an alleged drug dealer, that the Drug Enforcement Administration had installed a GPS tracking device on his vehicle. Shropshire, under Gondo’s instruction, then removed the GPS device and placed it on another vehicle.
According to the plea agreement, Gondo also admitted that he routinely submitted false and fraudulent individual overtime reports defrauding the Baltimore Police Department and the citizens of the State of Maryland. On these reports, Gondo falsely certified that he worked his entire regularly assigned shifts, when he did not, and that he worked additional hours for which he received overtime pay, when he had not worked all and in some cases any of those overtime hours. Gondo also admitted that he submitted false and fraudulent overtime reports on behalf of his co-defendants.
Lastly, Gondo admitted to obstructing law enforcement by alerting his co-defendants about potential investigations of their criminal conduct, coaching each other to give false testimony to investigators from the Internal Investigations Division of the BPD, and turning off his body cameras to avoid recording encounters with civilians.
Gondo faces a maximum sentence of 40 years in prison for the narcotics conspiracy conviction, with a minimum mandatory of 5 years in prison.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Eight Alleged MS-13 Members Charged in Violent Racketeering ConspiracyRead 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 a second superseding indictment on September 27, 2017 and it was unsealed today. The second superseding indictment charges the following defendants in connection with a conspiracy to participate in a racketeering enterprise known as the La Mara Salvatrucha, or MS-13:
Carlos Roberto Tejada Cruz, a/k/a “Krusty,” age 20, of Beltsville, Maryland;
Kevin Alexis Hernandez-Guevara, a/k/a “Stop,” age 20, of Landover Hills, Maryland;
Rolando Aristides Juarez-Vasquez, a/k/a “Virus,” a/k/a “Daffy,” age 22, of Hyattsville, Maryland;
Jeffry Rodriguez, a/k/a “Hyper,” age 21, of Beltsville, Maryland;
Junior Noe Alvarado-Requeno, a/k/a “Insolente,” a/k/a “Trankilo,” age 20, of Landover, Maryland;
Michael Eduardo Contreras, a/k/a “Katra,” a/k/a “Insoportable,” age 22, of Silver Spring, Maryland;
Luis Fernando Orellana-Estrada, a/k/a “Pinguino,” age 18, of Hyattsville, Maryland; and
Donald Roberto Mendez-Lopez, a/k/a “Chuckie,” age 18, of Hyattsville, Maryland.
All of the defendants are in custody.
The second superseding indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Acting Assistant Attorney General Kenneth A. Blanco; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Assistant Director in Charge Andrew W. Vale of FBI Washington Field Office; Special Agent in Charge of DEA Karl C. Colder; Chief Henry P. Stawinksi 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.
According to the indictment, MS-13 is a national and international gang composed primarily of immigrants or descendants of immigrants 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. The defendants were allegedly members of the Sailors Clique of MS-13. The four count superseding indictment alleges that from at least 2015 through September 2017, the defendants were members and associates of MS-13 who planned and committed murders, drug and gun trafficking, and extortions.
For a period of time beginning at least in 2015 through September 2017, the Sailors Clique is 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, members of the Sailors Clique allegedly trafficked narcotics, including marijuana and cocaine in Langley Park, Maryland, with the proceeds benefiting the gang.
More specifically, the superseding indictment alleges that on June 16, 2016, Alvarado-Requeno, planned with and directed other MS-13 members and associates to murder an individual who was thought to be a member of the rival 18th Street gang in Gaithersburg, Maryland.
On July 29, 2016, Tejada-Cruz, Hernandez-Guevara and other members and associates of MS-13 planned another murder. After luring the victim to a secluded location, Tejada-Cruz attempted to shoot the victim, and Tejada-Cruz and others stabbed the victim to death.
On March 27, 2017, Contreras arranged for members of the Sailors Clique to travel from Maryland to Lynchburg, Virginia where they murdered a victim in Bedford County.
The indictment further alleges that on August 9, 2016, Tejada-Cruz, Hernandez-Guevara and Rodriguez planned a drug deal to purchase marijuana. Hernandez-Guevara and Rodriguez attempted to steal the marijuana by brandishing a gun and knife, and in the course of the robbery shot and stabbed two individuals.
According to the indictment, on June 1, 2017, Juarez-Vasquez and other members and associates of MS-13 exchanged words with an individual in the Adelphi area of Maryland, and threw MS-13 gang signs. Juarez-Vasquez shot the victim in the head, killing him.
Alvarado-Requino, Tejada-Cruz, Hernandez-Guevara, and Juarez-Vasquez face a maximum sentence of life in prison. Rodriguez, Contreras, Orellana-Estrada and Mendez-Lopez face a maximum sentence of twenty years in prison for conspiring to participate in a racketeering enterprise. Tejada-Cruz and Hernandez-Guevara also face a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering. Orellana-Estrada and Mendez-Lopez also face a maximum of twenty years in prison for conspiring to interfere with interstate commerce by extortion.
Contreras is also charged with conspiracy to distribute and possession with intent to distribute controlled substances, which carries a penalty of up to 20 years in prison. Orellana-Estrada and Mendez-Lopez have been charged with conspiracy to interfere with interstate commerce by extortion, which carries a possible sentence of 20 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 thanked the FBI Washington Field Office, HSI, DEA, the Prince George’s County Police Department, the Hyattsville Police Department, the Montgomery County Police Department, the State’s Attorney’s Office of Prince George’s County, and the State’s Attorney’s Office of Montgomery County. Mr. Schenning also commended Assistant United States Attorneys William D. Moomau and Daniel C. Gardner of the United States Attorney’s Office for the District of Maryland and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
Third Baltimore City Police Detective Pleads Guilty to Racketeering ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Detective Jemell Lamar Rayam, age 37, of Owings Mills, Maryland, pleaded guilty today to one count of racketeering conspiracy including multiple robberies, and overtime 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.
Rayam joined the Baltimore Police Department on July 12, 2005 and was later assigned to the Gun Trace Task Force (GTTF,) a division of the Baltimore Police Department. According to the plea agreement, Rayam schemed to steal money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, Rayam prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents. The false reports concealed the fact that Rayam and his co-conspirators had stolen money, property, and narcotics from individuals.
According to his plea agreement, beginning in 2009, Rayam robbed civilians he detained and in some cases arrested and stole money and drugs from them. Rayam shared the proceeds with co-defendants Momodu Gondo, Wayne Jenkins, Daniel Hersl, Marcus Taylor, and others, and on other occasions, he kept all of the proceeds for himself. Rayam also sold, through associates of his, drugs that Jenkins stole from detainees and arrestees, gave them to Rayam, and split the proceeds of those sales with his co-defendant.
Rayam participated in 15 robberies from June 2014 through October 2016. Rayam admitted that he was armed with his BPD service firearm during the robberies, that individual victims of the robberies were physically restrained to facilitate the commission of the offense, and that he authored false and fraudulent incident reports and other official documents in some cases in order to conceal his criminal conduct and otherwise obstruct justice.
Rayam also robbed detainees and arrestees with another police officer, who was not a member of the GTTF. Rayam and this other police officer would falsely represent that they had a search warrant, when they did not, in order to gain access to someone’s home and would then steal money and other things of value. In addition, Rayam had an associate who would inform him when a drug dealer had a significant amount of cash in his home and when the associate knew that the drug dealer would not be in the home. Rayam would then rob the drug dealer’s home with the assistance of other associates of his who were not police officers.
On October 5, 2016, Rayam and his co-conspirators robbed a drug dealer after he and Gondo placed a tracking device on the victim’s car without court authorization so that they could rob his apartment when he was not home. Rayam and Glen Kyle Wells entered the victim’s apartment. Rayam was wearing a ski mask and was armed with a BPD-issued firearm. Rayam and Wells stole a Rolex watch, a firearm, $12,000 to $14,000 in cash, and at least 800 grams of heroin. After the robbery, Rayam and his co-conspirators split the money they had stolen. Wells took the drugs and money, and Wells sold some of the drugs and gave Rayam a portion of the proceeds. Wells then gave Rayam a quantity of drugs that he had been unable to sell, which Rayam in turn sold through an associate.
On June 27, 2014, Rayam and his co-defendants executed a search and seizure warrant at a store that sold birdseed. No illegal contraband or firearms were found at the location. The storeowners, a married couple, had $20,000 in cash at the store that they intended to use to pay off tax liabilities they owed on two homes. Rayam later contacted two associates and agreed to rob the home of the storeowners. The associates presented themselves as police officers and stole $20,000, while Rayam remained in the car so he could intercept the police officers that responded to the incident by pretending to respond to the incident himself. Rayam split the proceeds with his associates.
On March 11, 2015, Rayam, Gondo and Sergeant A, as well as Sergeant A’s son, who was not a police officer, searched a residence and discovered a large quantity of cash. Rayam, Gondo and a BPD Sergeant each took some of the cash. Rayam took between $8,000 and $10,000. Sergeant Thomas Allers has been charged in a separate indictment with Racketeering Conspiracy and Racketeering. Allers is detained pending trial.
On July 8, 2016, Rayam and his co-defendants Hersl and Gondo detained two victims after a car stop. Rayam stole money from one of the victims. At Jenkins’s direction, Hersl, Rayam, and Gondo transported the two victims to a BPD office to interrogate them. Jenkins told his co-conspirators to treat him like he was the U.S. Attorney. After speaking with one of the individuals, Jenkins, Hersl, Gondo, and Rayam then transported both of the victims to their home and robbed them of $20,000. Jenkins, Hersl, Rayam, and Gondo divided the $20,000. Rayam authored a false incident report to conceal the stolen money, which Jenkins approved.
In the fall of 2016, Jenkins approached Rayam and asked him to sell drugs that Jenkins had stolen from detainees. Rayam agreed and sold the drugs Jenkins gave him and shared the proceeds with Jenkins. Jenkins maintained that Rayam owed him money for drugs that Jenkins had given him. After seizing a firearm and marijuana, Jenkins told Rayam to sell the firearm and marijuana in order to pay Jenkins for money that Jenkins believed Rayam owed him. Gondo subsequently arranged for an associate of his, who was a drug dealer, to buy the firearm and marijuana. That associate of Gondo’s gave Rayam money for the sale of the firearm and marijuana.
According to the plea agreement, Rayam also admitted that he routinely submitted false and fraudulent individual overtime reports defrauding the Baltimore Police Department and the citizens of the State of Maryland. On these reports, Rayam falsely certified that he worked his entire regularly assigned shifts, when he did not, and that he worked additional hours for which he received overtime pay, when he had not worked all and in some cases any of those overtime hours. Rayam also admitted that he submitted false and fraudulent overtime reports on behalf of his co-defendants.
Lastly, Rayam admitted to obstructing law enforcement by alerting his co-defendants about potential investigations of their criminal conduct, coaching each another to give false testimony to investigators from the Internal Investigations Division of the BPD, and turning off his body cameras to avoid recording encounters with civilians.
Rayam faces a maximum sentence of 20 years in prison.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Prince George’s County Man Charged Federally 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 – Jayron Khalil Foster, age 21, of Riverdale, Maryland, was charged by federal criminal complaint on April 26, 2017 with production of child pornography. The complaint was unsealed today.
The complaint 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); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Henry P. Stawinksi III of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to the affidavit filed in support of the complaint, between at least August 2016 through January 2017, Foster allegedly engaged in sexually explicit conduct with a 7-year-old female, in order to produce visual depictions documenting the abuse. In April 2017, Maryland State Police (MSP) began investigating ten Cyber tips that were sent to the MSP Internet Crimes Against Children (ICAC) task force from the National Center for Missing and Exploited Children in reference to possible child pornography. On April 25, 2017, investigators executed a search warrant at Foster’s residence and seized a hard drive, which contained numerous images and videos depicting Foster engaged in sexually explicit conduct with the minor victim.
If convicted, Foster faces a mandatory minimum of 15 years in prison and up to 30 years in prison for each count of production of child pornography. Foster is currently detained in Prince George’s County on related state charges.
A complaint is not a finding of guilt. An individual charged by complaint 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 HSI, Maryland State Police, Prince George’s County Police Department, and Prince George’s County Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Kelly O’Connell Hayes, who is prosecuting the federal case.
Governor’s Office of Crime Control and Prevention Receives Grant to Combat Gun CrimeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Today, Attorney General Jeff Sessions announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.
As part of the Project Safe Neighborhood initiative, the Governor’s Office of Crime Control and Prevention has received a $478,013 grant to implement a gun crime reduction plan in Prince George’s County. The County’s Project Safe Neighborhood program strategically develops a plan of action to provide clear direction for apprehension, prosecution, and intervention of gun offenders as well as the prevention and suppression of gun crime.
Prince George’s County Project Safe Neighborhood program involves partners from the State Attorney’s Office for Prince George’s County, Maryland Parole and Probation, Prince George’s County Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the University of Maryland's Institute for Governmental Service and Research to effectively address gun crime at every level of the criminal and judicial system. The County’s Project Safe Neighborhood approach works with established strategies of crime control and prevention such as Project EXILE, Violent Repeat Offenders list, Maryland Gun Center initiative and the Gun Offender Registry to name a few.
In a statement on the program, the Attorney General said:
"According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action. Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work. Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy. Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer."
The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:
-Additional Assistant United States Attorney Positions to Focus on Violent Crime – The Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.
-More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.
-Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.
-Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others. To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources.
-Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts. These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO.
-Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year. Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.
Annapolis Man Pleads Guilty to Two Counts of Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Brian Arthur McCormick, age 57, of Annapolis, Maryland, pleaded guilty today to two counts of wire fraud stemming from a scheme to defraud victims through an advanced fee system.
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 his plea agreement, McCormick provided forged bank statements to potential investors showing that one of his companies, Triton Structure Finance Group, LLC, (“Triton”) had an excess of $402 million. McCormick asked various investor victims to fund projects in exchange for a majority ownership of the project. He falsely promised that the victims would be compensated or would be fully refunded. However, McCormick stole their investment monies and used the funds on personal expenses.
In summer 2015, McCormick represented that Brittingham, a company incorporated in Louisiana, had been successfully trading medium term bank notes in Hong Kong since 2001 and had a number of bank guarantees and standby letters of credit totaling approximately $40 billion. Brittingham signed agreements with investors agreeing to split the profits 50-50 with the investors. The investors signed an agreement with McCormick to split profits with McCormick with 20% for the Defendant and 80% for the investor.
McCormick persuaded victims to invest through misrepresentations that he had personally invested his own funds with Brittingham. In September 2015, one victim invested one million euros. Brittingham has not repaid any investor and has not paid out any profits.
McCormick faces a maximum sentence of 40 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for December 7, 2017 at 2 p.m.
Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Joyce McDonald and Sean Delaney who are prosecuting the case.
Maryland Man Pleads Guilty to Production of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On October 3, 2017, Eric Nathaniel Sammons, age 25, of Trappe, Maryland, pleaded guilty to two counts of production of child pornography.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Superintendent of the Maryland State Police William M. Pallozzi and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office.
According to his plea agreement, between 2014 and 2016, Sammons sexually exploited four minors and produced images of the minors engaged in sexually explicit conduct. Additionally, Sammons maintained a collection of child pornography on his digital devices.
Prior to May 25, 2016, Sammons set up a hidden camera in the bathroom of a twelve-year-old male victim and recorded a series of 47 videos.
On approximately October 6, 2015, Sammons took a series of 32 photographs of Jane Doe 1, including images that depicted the child partially naked and in various poses.
From approximately May 26, 2016 through September 2016, Sammons was living in the detached garage to a residence in Caroline County. During this time he snuck into the bedroom of two female victims, ages 3 and 5, and produced 11 pornographic images of Jane Doe 2 and Jane Doe 3 engaged in sexually explicit conduct while they slept.
Sammons’ digital devices were forensically examined. Investigators found images and videos of child pornography on the devices, and determined that his mobile phone, the digital camera and the video camera were used to produce the child pornography. The devices contained the images Sammons produced of the victims as well as an additional 6 videos and over 3000 images of child pornography.
Sammons faces a maximum sentence of 40 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for January 11, 2018 at 3 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Stephen M. Schenning commended Homeland Security Investigations, the Talbot County Narcotics Task Force, Maryland State Police, and the States Attorney’s Office and Child Protective Service of Caroline and Talbot Counties for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Paul Budlow, who is prosecuting the case.
Former Government Employee Sentenced to 2 Years in Federal Prison for Theft of Government PropertyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge George J. Hazel sentenced Rodney Nelson, age 30, of Dunkirk, Maryland today to two years in prison, followed by three years of supervised release, for theft of government property. Judge Hazel deferred issuing a final order concerning restitution, but the parties’ plea agreement establishes that Nelson will have to pay back at least $311,874.84 to the Government.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Kim R. Lampkins of the Veterans Affairs Office of Inspector General, and Special Agent/Commander Adanto D’Amore of the Air Force Office of Inspector General.
According to his plea agreement, from October 2008 November 2013, Nelson worked as a civilian government pay technician with the 11th Comptroller Squadron at Joint Base Andrews. In this position, he was entrusted with access to civilian employees’ personally identifiable information, including social security numbers, dates of birth, and banking information. In November 2013, Nelson left his job at Joint Base Andrews (“Andrews”) and took a similar position at the Veterans Affairs Medical Center (“VAMC”).
While employed at both Andrews and the VAMC, Nelson abused his positions within the Government to access payroll records and alter personally identifiable information associated with certain current and former government employees, all in an illegal and covert scheme through which he diverted U.S. Government money into his personal bank accounts. Nelson attempted to make it appear as if the money in question was paid to those current and former government employees. During the scheme, Nelson stole approximately $311,874.84 through manipulating payroll records of at least 14 individuals.
For example, Nelson accessed one former Government employee’s banking information and replaced the existing bank account with one of his personal bank accounts. Nelson then improperly added over 2,000 hours of time to that victim’s payroll records (for work the victim never performed), resulting in the Government making substantial direct deposit payments into Nelson’s personal bank account.
Acting United States Attorney Stephen M. Schenning praised the Veterans Affairs Office of Inspector General and Air Force Office of Inspector General for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Michael Packard and David Salem who prosecuted the case.
Maryland Pimp Sentenced to 20 Years in Prison for Illegal Firearms Possession and Enticing and Coercing Women to Travel to Engage in ProstitutionRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge George L. Russell III sentenced Jason David Young, a/k/a Bird, J Bird, and Chris, age 34, of New Carrollton, Maryland, to 20 years in prison, followed by five years of supervised release for illegal possession of firearms and for enticing and coercing women to travel across state lines to engage in prostitution.
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); Chief Gary Gardner of the Howard County Police Department; Chief Henry P. Stawinksi III of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Howard County State’s Attorney Dario Broccolino; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, from September 2013 through October 2015, Young was a pimp and used physical, mental and emotional abuse and threats in order to cause women to engage in commercial sex acts for his financial benefit. Young admitted that he transported the women across state lines to engage in prostitution. In January 2015, Young drove two women to Tennessee to engage in commercial sex acts. Young rented hotel rooms and posted several online advertisements to recruit customers. Both women were arrested for prostitution following an undercover operation executed by the Knox County Sheriff’s Office.
On at least two occasions in 2014, Young was stopped by police and a gun was found in the car. On each occasion, the woman traveling with Young claimed that the gun was hers. One of the women later admitted to police that Young had given her the firearm, and that he routinely possessed firearms. She stated that Young had the women take responsibility for the firearms if discovered by police. One of the guns, a 9mm handgun recovered on December 15, 2014, was stolen.
On February 12, 2015, the Prince George’s County Police Department arrested Young for a parole violation. Young was outside of a local business that was owned by a friend. The owner consented to a search of the business and officers recovered a bag belonging to Young. The owner also told police that he had seen Young with firearms, and when the owner saw police outside the shop, he hid the firearms above the ceiling tiles so Young would not get in trouble. Investigators recovered the two .45 caliber handguns from the ceiling. Both handguns had been stolen.
Investigation showed that all three of the stolen handguns had been taken from a prostitution customer, a gun collector who kept a gun safe on the same floor of his house as the master bedroom. Young had gone to the house once with two of the women he trafficked, and the gun safe was not fully locked and closed. Women who worked for Young twice stole firearms from the customer and provided them to Young. A total of five firearms were stolen from the customer’s home.
Young took photos of the five firearms using his cell phone and sent them to other individuals. The photos of the guns were taken inside the apartment Young provided to the women. He controlled all of the women’s money and movements and threatened to beat them if they did not comply with his instructions. Young’s cell phone contained images of the injuries resulting from a severe beating he inflicted on one of the women. In addition, Young provided the women with narcotics and withheld narcotics from addicted women in order to exert control over them.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
Acting United States Attorney Stephen M. Schenning commended HSI-Baltimore, Howard County, Prince George’s County, and Montgomery County Police Departments, and the Howard County and Prince George’s County State’s Attorney’s Offices for their work in the investigation. Mr. Schenning recognized the U.S. Marshals Service, Knox County (TN) Sheriff’s Office, and Prince William County (VA) Police Department for their assistance, and thanked Assistant U.S. Attorneys Zachary A. Myers and Patricia C. McLane, who prosecuted the case.
Randallstown Woman Sentenced to 2 Years in Prison for Injecting Non-Medical Grade Silicone into the Bodies of Victim CustomersRead 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 Kendra Westmoreland, age 55, of Randallstown, Maryland, to two years in prison, followed by one year of supervised release for receiving and delivering an adulterated or misbranded device, in connection with her receipt and use of polydimethylsiloxane, which she misrepresented to customers as medical grade silicone. Judge Hollander also ordered Westmoreland pay a fine of $2,500.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to her plea agreement, from October 2000 through October 4, 2015, Westmoreland received polydimethylsiloxane, a silicon-based organic polymer that she injected directly into the bodies of victim customers for money or some other payment. Westmoreland intentionally defrauded and misled individuals by representing polydimethylsiloxane as “medical grade” silicone and approved for injecting directly into the human body. Westmoreland also indicated that she was medically licensed to perform the procedure. In fact, Westmoreland was never a licensed medical practitioner and silicone is not approved by the FDA for this purpose.
As a result of her representations, victim customers came to her residence, or to hotel rooms, to have polydimethylsiloxane injected directly into their buttocks and other places on their bodies, for larger and fuller buttocks or to shape other areas of their bodies. Westmoreland also traveled to other locations for the same purpose. Westmoreland typically charged customers $250 to $500 per session, and estimated that she had injected thousands of customers, who she claimed found her through word of mouth, or through her business website. On October 4, 2015, a search warrant was executed at Westmoreland’s residence. A room of her home was set up to resemble an operating room, including medical equipment and collages of photographs of individuals exposing their buttocks, representing a sampling of those who Westmoreland had injected with silicone. A forensic search of Westmoreland’s cellular phone revealed 126 individuals listed in her contacts as clients. A financial audit of Westmoreland’s finances for the period from December 2011 to October 2015 revealed cash deposits of $227,994.01, and additional deposits of $48,801.06, for a total of $276,795.07. The audit indicated no tax payments and no tax returns filed during that period.
Westmoreland admitted that she stored the polydimethylsiloxone in a plastic container that was not properly labeled for medical use. When injected into humans, liquid silicone is a medical device subject to the regulation of the Food and Drug Administration (FDA). Polydimethylsiloxane is not approved, exclusively or as a component, for body-contouring. Polydimethylsiloxane is used in the manufacture of shampoos (to make hair shiny and slippery), food (as an antifoaming agent), caulking, lubricants, kinetic sand, and heat-resistant tiles.
Acting United States Attorney Stephen M. Schenning commended the FDA Office of Criminal Investigations and Baltimore County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Judson T. Mihok, who prosecuted the case.
Former Bank President Indicted for Stealing from His Own BankRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On September 26, 2017, a federal grand jury indicted David Harris Lavine, age 58, of Rockville, Maryland, on charges of theft of bank funds by a bank officer and bank fraud and Lavine and Charles L. Tobias, age 56, Potomac, Maryland for conspiracy to defraud the Internal Revenue Service and tax evasion.
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; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service-Criminal Investigation; Assistant Inspector General Gerald Maye of the Federal Reserve Board Office of Inspector General and Special Agent in Charge Michael McGill of the Social Security Administration, Office of Inspector General.
From March 2010 until January 2011, David Harris Lavine was the Acting President of CFG Community Bank. From January 2011 until August 2011, Lavine was president of the bank affiliate, Capital Financial Ventures, LLC. According to the indictment, Lavine, while acting President, diverted $100,000 of bank funds to his own benefit. The indictment also charges that while president of the bank affiliate, Lavine devised a scheme to defraud CFG Community Bank, a state member bank supervised by the Federal Reserve Board, through the re-finance of bank-owned mortgage loans and the diversion of loan proceeds to his personal benefit and the benefit of a friend.
According to court documents, Lavine used his position at Capital Financial Ventures to pose as the CEO/President of CFG Community Bank. For example, Lavine invited the borrowers of two loans with balances totaling over $7.5 million, to refinance those loans with other financial institutions for a lower mortgage and pay off CFG Community Bank. At Lavine's direction, the settlement company sent the mortgage loan payoff not to CFG Community Bank but to another company so that Lavine could divert in excess of $775,000. Lavine created false correspondence with the loan borrowers to provide to CFG Community Bank to conceal the diversion from CFG Community Bank.
According to the indictment, Lavine and Tobias owned Capital T Partners Brookfield, LLC, a Maryland limited liability corporation. In the fall 2011, Lavine and Tobias decided to realize a profit from a group of non-performing mortgages by fraudulently "donating" some of the mortgages to a charity as an in-kind donation and thereby receiving a valuable tax deduction for Capital T Partners Brookfield which would pass through to their personal income tax returns. Lavine is also charged with tax evasion for two years for failing to report the monies he received through the bank offenses and using the fraudulent charitable contribution as a deduction. Tobias is charged with tax evasion for failing to report income and also using the fraudulent charitable deduction.
The maximum possible penalties for the bank offenses are thirty years in prison and/or a $1 million fine per count and 5 years in prison and /or $250,000 per count for the tax charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the IRS, FBI, the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau and SSA-IG for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Joyce K. McDonald who is prosecuting the case.
Department of Justice Awards A $750,000 Grant to Baltimore Police Department Community Collaboration DivisionRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Baltimore, Maryland –The Department of Justice has awarded a $750,000 grant to the Baltimore Police Department Community Collaboration Division to improve supervision strategies that will reduce recidivism rates in Baltimore City announced Acting United States Attorney Stephen M. Schenning.
The objectives of the Smart Supervision Program are to improve supervision strategies that will reduce recidivism, promote and increase collaboration among agencies and officials who work in probation, parole, pretrial, law enforcement, treatment, reentry, and related community corrections fields and to develop and implement strategies for the identification, supervision, and treatment of “high-risk/high-needs” supervisees.
Since 2015, The Baltimore Police Department Community Collaboration Division (BPD-CCD) Reentry Program has created partnerships with service providers, local, state, and federal agencies. The mission of the BPD-CCD Reentry Program is to reduce recidivism rates in Baltimore City by providing case management and connecting offenders to service providers.
The Smart Supervision Program seeks to improve the capacity and effectiveness of community supervision agencies to increase parole and probation success rates and reduce the number of crimes committed by those under supervision, which would in turn reduce admissions to prisons and jails and save taxpayer dollars.
The Baltimore Police Department Community Collaboration Division was one of seven awardees across various jurisdictions in the United States. The Community Collaboration Division partnered with the Department of Public Safety and Correctional Services, Division of Parole and Probation and local service providers to expand evidence-based practices and principles to improve the delivery of probation and parole supervision strategies and practices.
“I’m excited that we received this grant based on the work of the Community Collaboration Division,” said Baltimore Police Commissioner Kevin Davis. “We have an obligation to focus on those rejoining our community to ensure resources are in place and available in order to put people on the right path for success.”Former Maryland Cabinet Secretary Indicted for Bribery ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury indicted Isabel FitzGerald, age 47, of Annapolis, Maryland, Kenneth Coffland, age 62, of Riva, Maryland, Steven Maudlin, age 59, of Indianapolis, Indiana, and James Pangallo, age 57, of Greenwood, Indiana, on charges related to a bribery conspiracy involving information technology contracts with the State of Maryland Department of Human Services, formerly known as the Department of Human Resources.
The indictment 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 six-count indictment, from February 2007 through December 2014, FitzGerald held several offices in the State of Maryland government, including Department of Human Resources (DHR), Chief Information Officer (CIO), Executive Consultant to the DHR Secretary, DHR Deputy Secretary of Operations, and the Secretary of the Department of Information Technology. In January of 2011, while serving as DHR CIO, FitzGerald incorporated Aeon Consulting and Technical Services Inc. (Aeon) in Maryland. In February 2012, she incorporated Aeon in Indiana. Between 2009 and 2013, Kenneth Coffland held various positions on DHR contracts including with a contractor identified in the indictment as Company #1. Coffland incorporated Blue Northern Consulting, LLC (“Blue Northern”) in November 2012.
Steven Maudlin was the CEO and majority shareholder of The Consultants Consortium Inc. (TCC), a small Indiana company that provided IT consulting services as a subcontractor. James Pangallo was the Chief Financial Officer, Principal, and shareholder in TCC.
In 2008, DHR awarded Company #1 two contracts through a competitive bidding process known as a Request for Proposal. One contract was a five-year, eight-month hosting contract that was worth up to approximately $129 million. The second contract was a five-year, six-month applications contract that was worth up to approximately $229 million.
According to the indictment, FitzGerald and Coffland received and agreed to receive a stream of financial benefits from Maudlin and Pangallo in exchange for FitzGerald’s performance of official acts for TCC’s benefit.
Benefits to FitzGerald and Coffland
The indictment alleges that FitzGerald and Coffland solicited and demanded that, at various different times, Maudlin and Pangallo pay Coffland and FitzGerald one-third of TCC’s profits on specified subcontracts with Company #1. The defendants agreed that, in order to conceal the nature of these payments, TCC would pay FitzGerald under the guise of consulting work performed by Aeon, and Coffland under the guise of consulting work performed by Blue Northern.
While FitzGerald served as a consultant to the Secretary of DHR, in order to conceal the nature of payments from TCC to FitzGerald, TCC agreed to pay Aeon for purportedly providing and supervising the work of two workers identified in the indictment as Person #1 and Person #2. However, both people had already been working under TCC’s supervision on that contract, and continued to be supervised by TCC employees, not by FitzGerald.
In November 2012, shortly before FitzGerald began work as DHR Deputy Secretary of Operations, she directed Maudlin to transfer the Aeon contract covering the work of Person #1 to Coffland via Blue Northern. In December 2012, TCC agreed to pay Blue Northern $20 per hour worked by Person #1. However, Coffland did not supervise Person #1, who continued to be supervised by TCC employees.
On February 25, 2013, Pangallo directed TCC to issue a $10,000 check to Blue Northern, and ordered a TCC employee to book the payment internally at TCC as consulting work.
Official Actions Taken By FitzGerald
The indictment alleges between October and December of 2011, FitzGerald and Mauldin negotiated an agreement whereby FitzGerald was compensated for using her influence to convince another Company #1 subcontractor on a $27.6 million DHR project (CARES Modernization) to further subcontract work under that project to TCC.
Between December 2011 and August 2013, FitzGerald allegedly caused Company #1 to issue a task order to TCC that had no specified work obligations in the approximate amount of $253,000 by threatening to use her influence to cause the DHR Secretary and Acting DHR CIO to withhold funding approval of the CARES Modernization project if Company #1 did not comply. She also caused Company #1 to give a fixed price subcontract to TCC worth approximately $23.72 million over six years by threatening to use her influence to cause DHR not to renew Company #1’s prime hosting contract if Company #1 did not comply. In addition, FitzGerald directed a Company #1 executive to hire Coffland as the Hosting Director on the hosting contract at an annual salary, including bonuses, of approximately $500,000.
FitzGerald concealed her and Coffland’s financial agreements with TCC from high-ranking personnel in the government of the State of Maryland and DHR with whom she worked, including the DHR Secretary and the Acting DHR CIO.
The maximum possible penalty for conspiracy is 5 years imprisonment, a $250,000 fine, and 3 years supervised release; for Bribery Involving Agent of Program Receiving Federal Funds, the maximum penalty is 10 years imprisonment, $250,000 fine, and 3 years supervised release; for false statements, the maximum penalty is 5 years imprisonment, $250,000 fine, and 3 years supervised release.
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 for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Sean R. Delaney and Jefferson M. Gray, who are prosecuting the case.
Former Johns Hopkins Physician Sentenced to One Year in Federal Prison for Fraud SchemeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Dr. Jean-Francois Geschwind, age 53, of Westport, Connecticut, to one year and one day in federal prison, followed by three years supervised released for four counts of mail fraud arising from a multi-year scheme to unlawfully obtain travel expense reimbursements from his former employer, the Johns Hopkins University School of Medicine. Judge Motz also ordered restitution of $583,484.31, which Geschwind paid in full. Geschwind was employed as a physician in the Division of Vascular and Interventional Radiology between 1998 and 2015.
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; and Marilyn J. Mosby, the State’s Attorney for Baltimore City.
According to his plea agreement, between 2007 and July 2015, Geschwind made material misrepresentations and omissions in travel expense statements that he submitted or caused to be submitted to the JHU-SOM, for the purpose of obtaining travel expense reimbursements to which he was not entitled. During this time period, Geschwind submitted multiple travel expense statements for purported business expenses, when he knew that the claimed expenses were personal, such as family vacations and meals. For example, during the summer of 2013, Geschwind obtained reimbursement from the JHU-SOM for a 13-day vacation to the United Kingdom and France by falsely representing that the he traveled to those locations to give lectures in connection with his work for the JHU-SOM. As a result of Geschwind’s material misrepresentations, the JHU-SOM issued three separate checks that included reimbursements for his family vacation.
Geschwind also obtained reimbursement from the JHU-SOM for expenses that he knew had already been paid, or would later be paid, by a second (and in some cases a third) entity. In seeking reimbursement for such expenses, Geschwind did not disclose to the JHU-SOM that he was seeking two (and in some cases three) reimbursements for the same expense.
For example, between July 1 and July 5, 2015, Geschwind traveled to Japan to attend the Asia Pacific Primary Liver Cancer Expert (APPLE) meeting. By the time he attended the APPLE meeting, Geschwind had joined the Yale School of Medicine faculty as Chair of the Department of Diagnostic Radiology. Prior to his departure for the APPLE meeting, Geschwind arranged for reimbursement of his round-trip airfare to Japan by Company No. 1, a life-sciences company based in France. Notwithstanding this arrangement, on May 8, 2015, Geschwind sought reimbursement for the same expense from the JHU-SOM but did not disclose that he had already sought reimbursement for his round-trip airfare from Company No. 1. As a result of this material omission, the JHU-SOM issued a check to Geschwind that included reimbursement for his round-trip airfare to and from Japan.
On or about June 22, 2015, Geschwind sought reimbursement from the Yale School of Medicine for the above-referenced round-trip airfare to Japan. Geschwind did not disclose to Yale that he had already arranged for payment of the same expense by Company No. 1, or that he had in fact been reimbursed for that expense by the JHU-SOM. On or about July 21, 2015, as a result of Geschwind’s material omissions, Yale University issued a check to Geschwind for the cost of the round-trip airline ticket.
In July of 2015, Company No. 1 initiated a wire transfer to Geschwind’s Bank of America checking account that included reimbursement for his round-trip airline ticket to Japan. Accordingly, as a result of the material omissions, Geschwind obtained three separate payments, from three separate entities, for the round-trip airfare to Japan in July of 2015.
Through the various methods identified above, Geschwind obtained money with an aggregate value of hundreds of thousands of dollars, in the form of travel expense reimbursements by the JHU-SOM.
Johns Hopkins investigators in the Office of Hopkins Internal Audit (OHIA) conducted an extensive audit of Geschwind’s reimbursement requests and upon discovering he had requested and received significant sums of inappropriate payments, they referred the case to law enforcement. Hopkins investigators worked closely with authorities to assist with their investigation.
Geschwind is scheduled to self-surrender on December 4, 2017.
Acting United States Attorney Stephen M. Schenning commended the FBI and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Peter J. Martinez and Special Assistant United States Attorney Alexander Huggins, who prosecuted the case.
Baltimore Man Convicted of Murdering A Witness in Exchange for Money and DrugsRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – Baltimore, Maryland – On September 26, 2017, a jury convicted Troy Allen Lucas a/k/a “Troy Madron,” age 49, of Southwest Baltimore, Maryland of charges relating to the murder-for-hire of Robert Long, who was a cooperating witness in a case pending in the Circuit Court for Baltimore City.
The conviction was announced by the Acting United States Attorney for the District of Maryland Steven M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
“This investigation is the final chapter in an extended federal investigation resulting in several convictions and the exoneration of an innocent man who was wrongly convicted and sentenced to life in state prison,” said Acting United States Attorney Stephen M. Schenning.
According to evidence presented at the two-week trial, Lucas was a member of "Dead Man Inc." (DMI), a criminal street and prison gang. Lucas symbolized his allegiance to DMI while in prison in 2007 by having a large tattoo of a hangman’s noose around his neck and on his chest.
Jose Morales solicited Lucas and his now deceased brother to kill Morales’s employee, Robert Long, in order to retaliate for Long’s cooperation with the police and to prevent Long from testifying against Morales. Morales paid Lucas in cash and cocaine to kill Long. The federal case focused on the use of cellular telephones with the intent to have Long murdered and the evidence showed that Lucas and Morales used cell phones to contact one another regarding Long’s cooperation and Long’s whereabouts. Minutes after the murder, Lucas called Morales to advise that the “job” was done.
Long was shot twice in the head on March 24, 2008, in an open area behind Traci Atkins Park in southwest Baltimore known as the “Lumber Yard.” The evidence presented at trial showed that Long was shot with a .25 caliber handgun at close range and that Lucas used, carried, and discharged the gun that caused Long’s death.
Judge Roger W. Titus scheduled sentencing for January 3, 2018, and Lucas faces a mandatory minimum sentence of life in prison for murder-for-hire conspiracy and use of interstate commerce facilities in the commission of murder-for-hire. Lucas also faces a maximum life sentence for discharging the firearm during a crime of violence resulting in death.
Jose Joaquin Morales, age 40, of Baltimore, Maryland, was convicted at trial by a federal jury for using a cell phone to arrange the murder-for-hire of Robert Long, and was sentenced to life in prison on December 9, 2013.
Stanley Needleman, age 75, of Baltimore, Maryland was convicted by guilty plea of underreporting $1.2 million in cash on his income tax returns and for failing to file federal forms disclosing the receipt of $10,000 in more or in cash from clients. Needleman testified at both trials reference Morales’s confession to him about the DMI hit.
The prosecution of Morales resulted in the exoneration of Demetrius Smith, who was serving life in state prison for the murder -- a crime he did not commit.
Acting United States Attorney Stephen M. Schenning commended the DEA, Maryland Transportation Authority Police and Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Sandra Wilkinson and Martin Clarke, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Three Baltimore Area Residents Sentenced in Arson and Wire Fraud Scheme, Obstruction, and Witness TamperingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge George L. Russell, III sentenced Greg Ramsey, age 55, of Baltimore, Maryland, to 355 months in prison, followed by five years of supervised release, for use of fire to commit wire fraud, malicious destruction of property by fire, and attempted witness tampering. Ramsey also was ordered to pay restitution in the amount of $1,081,606.90. Judge Russell also sentenced Tyesha Roberts, age 29, of Baltimore, to five years of probation, for attempted obstruction of an official proceeding. Roberts also was ordered to pay restitution of $1,000. Judge Russell previously sentenced Ramsey’s co-conspirator Julia Teryaeva-Reed, age 33, a citizen of Ukraine, to 162 months for wire fraud, use of fire to commit a federal felony, and malicious destruction of real property by fire.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Daniel L. Board Jr., Baltimore City Police Commissioner Kevin Davis, Baltimore City Fire Chief Niles R. Ford, PhD, Maryland State Police Superintendent Colonel William M. Pallozzi, Maryland State Fire Marshal Brian Geraci, United States Secret Service Special Agent in Charge Christopher Caruso, and Department of Homeland Security Special Agent in Charge Andre Watson.
According to Ramsey’s plea agreement, Ramsey and Teryaeva-Reed set fire to three separate residences between October 2012 and August 2013, two in Baltimore, and one in Weatherly, Pennsylvania. One fire spread to adjoining residences and did substantial damage. Two of the residences were occupied at the time. In addition, the pair set two vehicles on fire in August of 2013 in the area of Walbrook Ave. and N. Dukeland Street, which spread to a nearby church. The fires were set in an effort to obtain money from insurance companies for the claims related to the fire damage.
Teryaeva-Reed was initially charged by the Baltimore City State’s Attorney’s Office and arrested at JFK airport as she was about to board a flight to Ukraine in 2013. In 2015, Ramsey planned to have a relative, co-defendant Tyesha Roberts, testify falsely for Teyaeva-Reed at trial for $2,000. Ramsey also plotted to assist in the murder of another witness. In November 2015, Ramsey produced a loaded .357 Ruger revolver, which was to be used for the murder, and he was arrested.
Acting United States Attorney Stephen M. Schenning commended the ATF for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Matthew J. Maddox, Judson T. Mihok, and Zachary Myers, who prosecuted the case.
Takoma Park Man Pleads Guilty to BriberyRead the Press Release
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Greenbelt, Maryland –Matthew Gorman, age 43, of Takoma Park, Maryland, pleaded guilty to an Information charging him with bribery involving an agent of a program receiving federal funds.
The guilty plea 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 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.
According to court documents, Gorman was an attorney and lobbyist, who represented clients in front of the Prince George’s County Board of License Commissioners (“Liquor Board”). In 2013, Gorman paid then-Prince George’s County Council Member William Alberto Campos-Escobar, a/k/a “Will Campos,” a $2,000 bribe payment in exchange for Campos writing a letter to the Liquor Board recommending that Business A receive a liquor license. In 2015, Gorman paid Campos a bribe in exchange for Campos placing a phone call to the Liquor Board on behalf of Business A.
By early 2015, Campos no longer was on the County Council and instead had been sworn in as a member of the Maryland House of Delegates. According to court documents, Gorman, in conjunction with David Dae Sok Son, Shin Ja Lee, and Young Jung Paig, all of Maryland, paid a $4,000 bribe to Campos in exchange for Campos’s assistance in passing legislation that authorized the Liquor Board to issue certain liquor licenses permitting establishments to sell liquor on Sundays. Lee and Paig owned liquor stores that stood to benefit from the Sunday liquor sales licenses.
Also in 2015, Gorman paid a $5,000 bribe to Campos in exchange for certain actions by Campos, including Campos testifying on behalf of Business B before the Montgomery County Board of License Commissioners.
Gorman faces a maximum sentence of up to ten years in prison.
As part of the related investigation, other individuals, including those below, have pleaded guilty to related federal criminal offenses:
- On January 6, 2017, Will Campos pleaded guilty to conspiracy and bribery.
- On April 20, 2017, Young Paig pleaded guilty to bribery.
- On May 17, 2017, Shin Lee pleaded guilty to bribery.
Additionally, on January 4, 2017, David Son was charged by criminal complaint with conspiracy and bribery.
Gorman’s sentencing currently is scheduled for 10:00 a.m. on December 20, 2017, before Judge Paula Xinis in Greenbelt, Maryland.
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, Menaka S. Kalaskar, Arun G. Rao, and James A. Crowell IV, who are prosecuting the case.