District of Maryland
Press releases recorded for this federal judicial district.
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) 209-4885Baltimore, 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) 209-4885Baltimore, 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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www.justice.gov/usao/md at (410) 209-4885
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.
Two Men Sentenced for Laundering Money from Victims of Internet Dating ScamRead the Press Release
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Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Olusola Olla, age 50, of Browns Summit, North Carolina, to four years in prison, followed by three years of supervised release, for conspiracy to commit money laundering and structuring arising from a scheme to defraud elderly victims of millions of dollars. Olla also was ordered to forfeit and pay restitution in the amount of $349,095. Judge Grimm also sentenced Adeyinka Awolaja, age 35, of Chicago, Illinois, formerly of New Carrollton, Maryland, to three years of probation, including two years of home confinement, for conspiracy to commit money laundering arising from the same scheme to defraud. Awolaja also was ordered to forfeit and pay restitution of $145,045.75.
The sentences were 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 evidence presented at Olla’s 11-day trial, from January 2011, to May 18, 2015, members of the conspiracy searched online dating websites to initiate romantic relationships with vulnerable male and female individuals. They phoned, emailed, texted, and used internet chat messenger services to form romantic relationships with the victims, who lived in Maryland and around the country.
Witnesses testified that members of the conspiracy used false stories and promises to convince the victims to give them money, including fake hospital bills, plane trips to visit the victims, and problems with overseas businesses. Olla and co-conspirators opened bank accounts, called “drop accounts,” that received millions of dollars from the victims. Testimony at trial showed that victims provided money to Olla and Awolaja as a result of the false stories and promises, either by depositing money directly into drop accounts controlled by the defendants, or by sending checks to them. Payments from victims ranged from $1,720 to $50,000.
Olla, Awolaja, and the co-conspirators dispersed money received from the victims by transferring funds to other accounts they controlled, by obtaining cashier’s checks, and by writing checks to individuals or entities, all done to conceal the nature, source, and control of those assets. Relatedly, many of the currency transactions were “structured,” or designed to avoid the filing of currency transaction reports, which financial institutions are required to file with the Internal Revenue Service for currency transactions exceeding $10,000.
The following co-defendants were previously convicted at trial or pleaded guilty:
Gbenga Benson Ogundele, a/k/a “Benson Ogundele,” age 58, of Laurel, Maryland;
Victor Oyewumi Oloyede, age 42, of Laurel, Maryland;
Olusegun Charles Ogunseye, a/k/a “Charles O. Ogunseye,” age 58, of Laurel, Maryland;
Babatunde Emmanuel Popoola, a/k/a “Emmanuel Popoola” a/k/a “Tunde Popoola, age 34, of Bowie, Maryland;
Mojisola Tinuola Popoola, a/k/a “Mojisola Oluwakemi Tin Popoola” and “Moji T. Popoola,” age 42, of Laurel, Maryland; and
Olufemi Wilfred Williams, a/k/a “Wilfred Olufemi Williams” and “Femi Williams,” age 26, of Owings Mills, Maryland.
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 United States 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 and thanked Assistant United States Attorneys Thomas P. Windom, Ray D. McKenzie, and Leah Jo Bressack, who prosecuted the case.
Montgomery County Man Sentenced to 39 Months in Federal Prison for Fraud Schemes with Victim Losses Totaling over $490,000Read the Press Release
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Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Se Chang Moon, a/k/a Warren Moon, age 50, formerly of Montgomery County, Maryland, to 39 months in prison, followed by five years of supervised release, for bank fraud and aggravated identity theft, arising from schemes in which the defendant told victims that he would help them to refinance loans on their respective homes.
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); and Chief J. Thomas Manger of the Montgomery County Police Department.
According to court documents, Moon represented to victims that he was a loan officer and that he would help them obtain financing on their respective homes. Moon requested and obtained over 30 different payments from Victim A totaling over $300,000 for this purpose. Victim A transferred money to Moon believing that Moon was using the money to refinance the loan on Victim A’s home. Moon provided Victim A with phony documents relating to the purported refinance, including fraudulent “pre-approval letters.” Instead, Moon kept the money that Victim A paid to Moon for Moon’s personal use.
With respect to Victims B, C and E, after obtaining the victims’ personal information, purportedly to obtain refinancing, Moon used the victims’ personal information without their knowledge or permission, to obtain loans in their names. Moon then directed the loan proceeds into bank accounts controlled by Moon.
United States District Judge Paul W. Grimm also ordered Moon to pay restitution in the amount of $652,542.07 and entered an order of forfeiture in the amount of $499,937.07.
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 United States 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 and the Montgomery County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Erin Pulice, who prosecuted the case.
Texas Man Sentenced to 2 Years in Federal Prison for Running Ponzi SchemeRead the Press Release
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www.justice.gov/usao/md at (410) 209-4885Greenbelt, Maryland – On September 13, 2017, U.S. District Judge Paula Xinis sentenced Sidney J. Charles, Jr., age 50, of Levelland, Texas, to two years in prison followed by three years of supervised release for wire fraud. The District Court also entered orders of forfeiture and restitution in the amount of $249,706.30.
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, Baltimore Field Office.
According to the plea agreement, starting in or around August 2009, Charles founded The Borrowing Station, LLC (“The Borrowing Station”), a Nevada limited liability company with its principal place of business in Bowie, Maryland. From at least October 2009 through at least July 2011, Charles served as the president and chief executive officer of The Borrowing Station. Charles marketed The Borrowing Station as an established investment firm that offered significant returns on investments.
From at least October 2009 through at least July 2011, The Borrowing Station, acting through its officers, employees, and agents, including Charles, orchestrated and operated a scheme to solicit investors with false promises of high rates of guaranteed return on their investments. Charles, did not generate any material revenue for the investors, used funds from later investors to make payments to earlier investors, and used investor funds to enrich himself.
Between at least October 2009 through at least July 2011, in the District of Maryland and elsewhere, The Borrowing Station, through Charles and others, solicited and accepted more than $250,000 from at least 17 individuals and entities for the purpose of participating in a pooled investment vehicle that traded off-exchange leveraged or margined foreign currency contracts (“forex” or “foreign currency”). As part of the scheme to defraud, Charles solicited and accepted these monies for the ostensible purpose of participating in a pooled investment vehicle that traded off-exchange leveraged or margined forex. The subsequent loss of those funds resulted in substantial financial hardship to at least one of the investors.
Charles falsely advertised The Borrowing Station as an established, successful, and safe investment firm. The Borrowing Station website stated, for example, that The Borrowing Station “is an established company in the United States, specializing in Retirement and Education Savings.”
In addition, Charles solicited investors directly and through a website, www.earn25percent.com, a The Borrowing Station website, with false promises that investors could earn substantial investment returns such as 25% per year or 10% per month. Charles also falsely claimed that pool participant funds were guaranteed against trading losses.
The Borrowing Station did not make these returns or guarantee against trading losses, as Charles had falsely represented. Rather, Charles paid pool participants with other pool participants’ funds rather than from any funds generated by trading forex, and deposited only a portion of pool participant funds into actual trading accounts. Charles also hid trading losses from pool participants, including substantial losses resulting from unsuccessful forex trades. Charles used pool participant funds to pay for personal expenses, to make purported profit or commission payments to other pool participants, and to fund Borrowing Station’s operations.
In order to lull the participants, Charles and at least one other individual, both of whom were signatories on The Borrowing Station’s bank account, issued checks drawn on behalf of The Borrowing Station to pool participants that represented purported monthly returns or returns on investment. The amount of the funds that each check paid typically approximated the return of 10% per month that Charles, directly and through others, had promised pool participants. Charles issued these false profit checks and other materially false communications to pool participants in order to conceal the trading losses, the misappropriation of pool participant funds, and the fraudulent scheme.
Charles and others failed to disclose to pool participants and prospective pool participants that their claims of experience and success in trading forex were false and that there was no basis for their representations that pool participants could earn investment returns of 25% per year or 10% per month. Charles failed to disclose that he and others traded only a portion of pool participant funds. Charles failed to disclose to pool participants that Charles used pool participant funds for his personal expenses. In execution of the scheme to defraud, Charles used or caused to be used wire communications in interstate commerce.
Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Thomas M. Sullivan and Sujit Raman, who prosecuted the case.
Temple Hills Man Sentenced to 21 Months in Federal Prison for Stolen Identity Refund FraudRead the Press Release
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Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Timothy West, age 43, of Temple Hills, Maryland to 21 months in prison for mail fraud in connection with a stolen identity refund fraud scheme.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, from approximately November 2011 through March 2013, Timothy West, along with others, engaged in a scheme to file fraudulent tax returns with the Internal Revenue Service (IRS) claiming refunds to which they were not entitled. On two separate occasions, West hired a tax return preparer in Temple Hills, Maryland, to prepare fraudulent returns falsely claiming, among other things, that two individuals were his dependents. As part of the scheme, West and others then used these false tax returns as templates to prepare and file hundreds of additional fraudulent tax returns with the IRS seeking more than $413,000 in refunds. West caused a tax loss of approximately $284,706 as a result of his actions as part of the scheme.
In addition to the term of prison imposed, U.S. District Judge Paul W. Grimm ordered West to serve three years of supervised release and to pay $284,706 in restitution to the IRS.
Acting U.S. Attorney Schenning and Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation and Treasury Office of Inspector General, who conducted the investigation, and Assistant U.S. Attorney Erin Pulice and Trial Attorneys William Guappone and Thomas F. Koelbl of the Tax Division, who prosecuted the case.
Man Sentenced to Prison in Maryland for Stolen Identity Refund FraudRead the Press Release
A 43-year-old man was sentenced in the District of Maryland to 21 months in prison for mail fraud in connection with a stolen identity refund fraud scheme, 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 documents filed with the court, from approximately November 2011 through March 2013, Timothy West, along with others, engaged in a scheme to file fraudulent tax returns with the Internal Revenue Service (IRS) claiming refunds to which they were not entitled. On two separate occasions, West hired a tax return preparer in Temple Hills, Maryland, to prepare fraudulent returns falsely claiming, among other things, that two individuals were his dependents. As part of the scheme, West and others then used these false tax returns as templates to prepare and file hundreds of additional fraudulent tax returns with the IRS seeking more than $413,000 in refunds. West caused a tax loss of approximately $284,706 as a result of his actions as part of the scheme.
In addition to the term of prison imposed, U.S. District Judge Paul W. Grimm ordered West to serve three years of supervised release and to pay $284,706 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schenning thanked special agents of IRS Criminal Investigation and Treasury Office of Inspector General, who conducted the investigation, and Assistant U.S. Attorney Erin Pulice and Trial Attorneys William Guappone and Thomas F. Koelbl of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Damascus Man Sentenced to 18 Months in Federal Prison for Conspiracy to Bribe A Public OfficialRead the Press Release
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Greenbelt, Maryland – On September 15, 2017, U.S. District Judge Theodore D. Chuang sentenced Grigory Trosman, age 78, of Damascus, Maryland to 18 months in prison, followed by six months of home-confinement and three years of supervised release, for conspiracy to bribe a public official. Judge Chuang also ordered Trosman to pay a $75,000 fine and restitution in the amount of $469,287.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Director in Charge Andrew Vale of the Federal Bureau of Investigation, Washington Field Office, Criminal Division; and Deputy Inspector General for Investigations John Dupuy of the Department of Energy, Office of Inspector of General.
According to his plea agreement, Trosman was an employee of the United States Department of Energy (DOE), working as a Program Manager at the DOE Germantown, Maryland facility. In his position as Program Manager, Trosman had specific duties and influence related to DOE programs and funding on international nuclear safety programs-including programs related to United States financial and technological support for nuclear reactors in Ukraine.
From 2004 through 2014, Trosman, sought, received, and accepted monies in various forms in return for being influenced in the performance of his official duties. These monies included wire transfers, cash and checks, as well as sponsorship for a visa for Trosman’s wife, allowing her to travel to, and work in, the United States and to attempt to obtain residence in the United States. During this time, Trosman accepted at least $469,287 in bribes in exchange for official acts performed as a public official at the DOE.
From approximately 2002 through March 2014, Trosman used his official position in various capacities to assist co-conspirators and various companies to obtain access to federal research funding and contract work in Lithuania, Russia, and Ukraine. Trosman also used his official government-funded foreign travel to Ukraine to promote his co-conspirators’ companies’ technology and capabilities and to obtain financial backing for the company's foreign operations.
Two other defendants, Anatoly Samgorodsky, age 65, of Sarasota, Florida, and Anatoly Fedorovsky, age 57, of Fair Lawn, New Jersey, have pleaded guilty and both have been sentenced. Samgorodsky was sentenced to 12 months, 1 day in federal prison followed by one years of supervised release and Fedorovsky was sentenced to 18 months in federal prison followed by one year of supervised release. Samgorodsky was also ordered to pay a $25,000 fine and $70,000 in restitution; Fedorovsky was ordered to pay a $15,000 fine and was ordered to forfeit $7,000.
Acting United States Attorney Stephen M. Schenning commended the FBI and the DOE Office of Inspector General for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney David I. Salem, who prosecuted the case.
Baltimore Man Pleads Guilty to Racketeering and Drug Trafficking Conspiracies Related to Involvement in “Murdaland Mafia Piru” Bloods GangRead the Press Release
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www.justice.gov/usao/md at (410) 209-4811Baltimore, Maryland –Delante Lee, a/k/a “Tay Tay,” age 22, of Baltimore, Maryland, pleaded guilty today in federal court to his participation in a racketeering conspiracy and drug trafficking conspiracy related to his involvement in the street gang Murdaland Mafia Piru, or MMP.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives—Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
MMP, also known as the “Mob” or “Mobsters,” was a violent subset of the Bloods gang that operated in Maryland and elsewhere beginning in or about 2011. It was modeled after the Italian Mafia, and was organized hierarchically with a “Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath. For many years, MMP controlled the drug trade in large swaths of Northwest Baltimore City. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from western Maryland and neighboring states. MMP’s members used violence and threats of violence—including murder—to intimidate or retaliate against witnesses, protect the gang’s territories, enforce debts, and eliminate rivals.
According to the plea agreement, Lee was an associate of MMP who agreed with members to conduct and participate in the gang’s affairs through a pattern of racketeering activity that included conspiracy to commit murder and offenses involving drug distribution.
Lee admitted that on April 14 and April 21, 2016, he distributed crack cocaine to a confidential informant working for law enforcement near the intersection of Liberty Heights Avenue and Gwynn Oak Avenue. In a recorded conversation on April 21, 2016, Lee said he was going to purchase “four and a half ounces” of cocaine for $4,200 later that day. Lee also said he had raw heroin for sale at $90 per gram.
According to the plea agreement, on January 8, 2017, while a fugitive from justice in the case, Lee attempted to murder an individual because he lingered on MMP’s drug turf after being asked to leave. Lee chased the victim into oncoming traffic, firing multiple shots at him and striking him once in the arm. Shortly afterward, Lee shot himself as he was attempting to put away the gun. When medical personnel and law enforcement officers arrived on the scene, Lee refused to provide his name. In a search of his person, officers recovered a yellow-top vial of crack cocaine.
Lee faces a maximum sentence of life in prison on Counts One and Two and a mandatory minimum sentence of ten years in prison on Count Two. The Honorable Catherine C. Blake has scheduled sentencing for November 2, 2017 at 9:15 a.m.
The following eleven co-defendants previously pleaded guilty in the case:
William Banks, a/k/a “Trouble,” age 27, of Baltimore;
Dominick Wedlock, a/k/a “Rage,” a/k/a “Nick,” age 29, of Baltimore;
Dwight Jenkins, a/k/a “Huggie,” a/k/a “Unc,” age 48, of Baltimore;
Melvin Lashley, a/k/a “Menace,” age 26, of Baltimore;
William Jones, a/k/a “Bill,” a/k/a “Smalls,” age 27, of Baltimore;
Jarmal Harrid, a/k/a “J-Rock,” a/k/a “PJ,” age 27, of Gwynn Oak;
Jamal Smith, a/k/a “Mal,” a/k/a “Lil Mal,” age 25, of Gwynn Oak;
Maurice Pollock, a/k/a “Reese,” age 22, of Baltimore;
Charles Blackwell, a/k/a “Ci-Bo,” a/k/a “Lil Charlie,” age 21, of Woodlawn, Maryland;
Kenneth Torry, a/k/a “Kenny,” age 39, of Owings Mills; and
Jay Greer, a/k/a “Champagne,” a/k/a “Montana Gold,” age 24, of Baltimore.
Acting United States Attorney Stephen M. Schenning commended the ATF, Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Schenning thanked Assistant United States Attorney’s Christina Hoffman, Lauren E. Perry, and Jason D. Medinger, who are prosecuting the case.
Annapolis Brothers Indicted on Federal Drug Conspiracy ChargesRead the Press Release
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Baltimore, Maryland – A federal grand jury has indicted Calum Thomas, age 20, and Christian Thomas, age 21, both of Annapolis, Maryland, on charges related to a scheme to Distribute and Possess with Intent to Distribute Controlled Substances and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. The indictment was returned on September 7, 2017, and was unsealed on September 14, 2017.
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; Chief Timothy J. Altomare of the Anne Arundel County Police; and Anne Arundel County State’s Attorney Wes Adams.
According to the three-count indictment, the defendants allegedly distributed heroin, cocaine, and marijuana in and around Annapolis, Maryland. In addition, it is alleged that they robbed and attempted to rob other drug traffickers and their customers of drugs and drug proceeds, as well as burglarized residences to steal drugs.
The federal charge include overt acts to further the drug trafficking operation, to include the homicide of a 55-year-old man that occurred on January 2, 2017 in Annapolis, Maryland. The defendants allegedly utilized a Hermann Weihrauch, .357 caliber Magnum, model EA/R, six-shot revolver. The victim had no ties to illegal activity.
The defendants face a maximum sentence of 20 years in prison for the conspiracy. Christian Thomas faces a mandatory minimum sentence of seven years imprisonment, up to life, for possessing and brandishing a firearm in furtherance of a drug trafficking crime. Calum Thomas faces a mandatory minimum sentence of five years imprisonment, up to life, for possessing a firearm in furtherance of a drug trafficking crime. Detention hearings will be held today at 2 p.m. in U.S. District Court in Baltimore. Both defendants remain detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the ATF, Anne Arundel County Police and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Daniel C. Gardner and Special Assistant U.S. Attorney Christine Goo who are prosecuting the case.
Member of PCP Distribution Conspiracy Sentenced to Seven Years in Federal PrisonRead the Press Release
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Greenbelt, Maryland – On September 12, 2017, U.S. District Judge Paula Xinis sentenced Reginald Cecil Duckett, age 49, of Washington, D.C., to seven years in federal prison, followed by three years of supervised release, for conspiracy to distribute phencyclidine (PCP).
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Director in Charge Andrew W. Vale of Federal Bureau of Investigation, Washington Field Office; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County Sheriff Melvin C. High; and Chief Peter Newsham of the District of Columbia Metropolitan Police Department.
According to his plea agreement, Duckett purchased PCP from co-conspirators and then redistributed the PCP to others. Duckett discussed particular transactions via telephone, including the distribution of multiple ounces of PCP. Duckett’s telephone calls were intercepted pursuant to a court order.
Duckett is one of nine co-conspirators charged in the case. Four co-defendants have so far pleaded guilty and will be sentenced later: Alexander Patton, Jr., Mitchell Brooks, Jermaine Washington, and Robert Beasley.
Acting United States Attorney Stephen M. Schenning commended the FBI, the Prince George’s County Police Department, the Prince George’s County Sheriff’s Office, and the Metropolitan Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Joseph Baldwin who is prosecuting the case.
14 Defendants Face Additional Federal Charges in Alleged Racketeering Conspiracy at Maryland’s Eastern Correctional InstitutionRead 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 two superseding indictments charging 14 defendants with racketeering at the Eastern Correctional Institution in Westover, Maryland. The superseding indictments charged 6 correctional officers (COs), 4 inmates and 4 outside “facilitators,” for their roles in the conspiracy, which allegedly involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison. The indictments were returned on September 12, 2017, and made public today.
The superseding indictments 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 Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services.
According to the superseding indictments, the Eastern Correctional Institution (ECI) is the largest state prison in Maryland, operating since 1987 near Westover, in Somerset County, on Maryland’s Eastern Shore. ECI is a medium-security prison for men built as two identical compounds (East and West) on 620 acres, and housing more than 3,300 inmates. The East and West Compounds are further divided into Housing Units, 1 through 4 in the West and 5 through 8 in the East.
The first superseding indictment covers the West Compound at ECI and charges 6 defendants, including 2 COs, 1 ECI inmate, and 3 outside suppliers or “facilitators.” The second indictment covers the East Compound at ECI and charges 8 defendants, including 4 COs, 2 ECI inmates and 2 facilitators.
The superseding indictments allege that from in or about 2014, until in or about October 5, 2016, the COs smuggled contraband into ECI, including narcotics, cell phones, pornographic DVDs, and tobacco. These items were distributed by inmates, and the COs managed the proceeds of the sales. The “going rate” for a CO to smuggle contraband into ECI was $500 per package, although some COs charged more and some COs charged less. According to the superseding indictments, inmates and facilitators paid COs for smuggled contraband in cash, money orders, and through PayPal. Inmates were able to use contraband cell phones to pay COs directly using PayPal from within ECI. Inmates also received payments from other inmates for contraband through PayPal, often with the assistance of facilitators.
The superseding indictments allege that the defendants conspired to smuggle and traffic in narcotics within ECI, including marijuana and synthetic cannabinoids (otherwise known as “K2”), buprenorphine, commonly referred to as “Suboxone, and other contraband, including cell phones, pornographic videos, and tobacco, in order to expand their criminal operations. Inmates acted as both wholesalers and retailers of contraband and in the process made profits that far exceeded the profits that could be made by selling similar drugs on the street. For example, defendant inmates could purchase Suboxone strips for $3 each and sell them inside ECI for $50 each, or for a profit of more than 1000 percent.
According to the superseding indictments, although COs and other ECI employees were required to pass through security screening at the entrance to ECI, defendant COs were able to hide contraband on their persons. Further, COs took breaks during their shifts and returned to their cars to retrieve contraband. Once the COs had the smuggled contraband inside the facility, they delivered it to: inmates in their cells; clerks’ offices, which were private offices within each housing unit where an inmate clerk worked; the officers’ dining room where officers could interact with inmate servers and kitchen workers; and pre-arranged “stash” locations like staff bathrooms, storage closets, laundry rooms, and other places where contraband could be hidden and then later retrieved by inmates.
According to the superseding indictments, the defendants who were members of gangs sought and received contraband and payment from inmates who were not members of gangs in order to receive protection for their contraband trafficking activities.
Each defendant faces a maximum sentence of 20 years in prison for the racketeering conspiracy, and for conspiracy to distribute and possess with intent to distribute drugs.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Acting U.S. Attorney expressed appreciation to Secretary Moyer whose staff initiated the ECI investigation and who has made the full resources of the DPSCS available to assist the three-year investigation.
United States Attorney 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 are prosecuting this Organized Crime Drug Enforcement Task Force case.
West Compound Indictment
Correctional Officers:
Rozlyn Bratten, age 32, of Snow Hill, Maryland; and
Kimberly Rayfield, age 38, of Crisfield, Maryland.
Inmates:
Ternell Lucas, age 43; and
Demario King, age 38.
Facilitators:
Leondrus Higgins, age 30, of Salisbury, Maryland; and
Chavia Savage, age 24, of Salisbury and Baltimore.
East Compound Indictment
Correctional Officers:
Sherima Bell, age 38, of Pocomoke, Maryland;
Jocelyn Byrd, age 40, of Salisbury;
Jessica Vennie, age 28, of Crowley, Texas; and
Robert Waters, age 33, of Salisbury.
Inmates:
Sean Smith, age 26; and
Alvin Williams, age 36.
Facilitators:
Eugene Bowen, age 52, of Salisbury, Maryland; and
Dameshia Vennie, age 35, of West Palm Beach, Florida.
Temple Hills Resident Pleads Guilty to Illegal Transportation of A FirearmRead the Press Release
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Greenbelt, Maryland –On September 11, 2017, Khyre Deangelo Wilson, age 24, of Temple Hills, Maryland, pleaded guilty in federal court to transport and receipt of firearms purchased outside his state of residency.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Acting Special Agent in Charge Arron J. Graves of the Bureau of Alcohol, Tobacco, Firearms and Explosives – Washington Field Division; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to Wilson’s plea agreement, on April 3, 2016, Wilson attempted to purchase three firearms from a federal firearm licensee (FFL) at a gun show in Fayetteville, North Carolina. The FFL refused to sell the firearms to Wilson when an employee noticed that Wilson indicated on an ATF Form 4473 that he was not purchasing the firearms for himself. The employee noticed that Wilson went to two other FFLs at the gun show to purchase firearms.
Two other FFLs at the Fayetteville, North Carolina gun show each sold Wilson two firearms. The firearms included a .45 caliber pistol, a 9mm pistol, a .40 caliber pistol, and a Zastava 7.62mm pistol. Wilson provided a North Carolina address on the ATF Form 4473 in connection with his purchases. The ATF investigated and determined that Wilson did not reside at the address he provided.
Wilson then transported the firearms he had purchased to the state of Maryland. Wilson was not, and never has been, a licensed importer, manufacturer, dealer, or collector of firearms. Wilson was aware that it was illegal to use a false address to purchase the firearms and to transport them to the state of Maryland.
Wilson faces a maximum sentence of five years in prison. Sentencing is scheduled for November 13, 2017 at 2:00 p.m.
Acting United States Attorney Stephen M. Schenning commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Joseph Baldwin, who is prosecuting this case.
Allegany County Man Sentenced to 23 Years in Prison for Production of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
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Baltimore, Maryland – On September 11, 2017, U.S. District Judge Richard D. Bennett sentenced Jason Wayne Hines, age 37, of Cumberland, Maryland, to 23 years in prison, followed by a lifetime of supervised release, for the production of child pornography. Judge Bennett ordered Hines to pay restitution of $10,400, as well as special assessments totaling $5,100.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Baltimore; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Allegany County State’s Attorney Michael O. Twigg.
According to his plea agreement, on January 29 and February 1, 2016, during an undercover investigation, Maryland State Police officers downloaded two videos of minors engaged in sexually explicit conduct from Hines’ computer, which he was sharing over the internet. On May 3, 2016, a search warrant was executed at Hines’ residence. An on-scene forensic analysis of Hines’ laptop computer recovered images and videos depicting minors engaged in sexually explicit conduct. Hines was arrested on state criminal charges for distribution and possession of child pornography.
Forensic examination of Hines’ computers, storage media, and cell phone seized during the search revealed over 1,000 images and over 50 videos of child pornography. Hines’ internet search history also showed an interest in sexual activity with minors. Investigators recovered 23 images created between October 3, 2015 and February 28, 2016, and five videos from Hines’ smartphone. The five videos did not have create dates, but depicted Hines sexually abusing a prepubescent female as she was sleeping. The images recovered from the phone also document Hines’ sexual abuse of the child.
As part of his plea agreement, Hines must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
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-Baltimore, Maryland State Police, and Allegany County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Judson T. Mihok and Sandra Wilkinson, who prosecuted the federal case.
Pikesville Man Pleads Guilty in Federal Court to 2009 MurderRead the Press Release
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Baltimore, Maryland – On September 8, 2017, Stanislav “Steven” Yelizarov, age 27, of Pikesville, Maryland, pleaded guilty in U.S. District Court to one count of Use, Carry and Discharge of a Firearm During and in Relation to a Crime of Violence Causing the Death of Another. The victim of the 2009 murder was Wayne Ruder.
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; Commissioner Kevin Davis of the Baltimore City Police Department; and Chief Terrence B. Sheridan of the Baltimore County Police.
A summary of the facts that the government would prove beyond a reasonable doubt at trial noted that Yelizarov was a serial burglar of homes in Baltimore County. The victim, Wayne Ruder, owned a jewelry store on Reisterstown Road in Baltimore City. Ruder’s business bought and sold precious metals and stones, and engaged in business throughout Maryland, Washington D.C., Virginia and Pennsylvania. In March 2009, Yelizarov burglarized the home of an acquaintance and during the course of that burglary, stole a large diamond engagement ring, valued at more than $22,000. Yelizarov sold the diamond to Ruder for approximately $9,000 cash. Yelizarov later came to believe that the diamond was worth significantly more and that Ruder had cheated him.
In April 2009, Yelizarov burglarized the home of another acquaintance, and stole a number of firearms and accessories, including a Llama handgun that was equipped with a suppressor and had been converted to fire .22 caliber ammunition. Following the burglary, Yelizarov searched for and purchased .22 subsonic ammunition.
In addition, the government was prepared to prove that in early December 2009, Yelizarov told Ruder that he had people from New York who were looking to sell a large amount of gold. Yelizarov and Ruder communicated frequently over the next days and weeks regarding the transaction, which Ruder reported was going to involve over $30,000 worth of gold. On December 25, 2009, Ruder agreed to meet Yelizarov at his store the following day. On December 26, 2009, after a number of phone calls between Yelizarov and Ruder, Yelizarov drove to the store and went in the front door. Using the stolen Llama equipped with a suppressor and loaded with .22-caliber subsonic ammunition, Yelizarov shot Ruder at the store entrance, and then continued to shoot him as he fled to the back of the store. In total, Yelizarov shot Ruder 15 times, including 3 shots to his back and 10 shots to his head. After killing Ruder, Yelizarov took Ruder’s bank bag, which typically contained between $15,000 and $30,000 of cash.
Subsequent to the robbery and murder, Yelizarov dismantled and disposed of the Llama handgun in a quarry near Yelizarov’s residence.
Yelizarov faces a maximum sentence of life in prison. U.S. District Judge Marvin J. Garbis has scheduled sentencing for December 21, 2017 at 10 a.m.
Acting United States Attorney Stephen M. Schenning commended the FBI, Baltimore City Police and Baltimore County Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Aaron Zelinsky who assisted the investigation and U.S. Attorneys Paul Budlow and Daniel Gardner who are prosecuting the case.
Hyattsville Man Sentenced to 11 and A Half Months in Prison for Immigration FraudRead the Press Release
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Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Jose Ortiz Morales, age 55, of Hyattsville, Maryland today to 11 and a half months in prison for attempted unlawful procurement of naturalization charges.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Accordingy to his plea agreement, in 1980, Morales joined the Guatemalan Army and became a member of a Special Forces military unit known as the Kaibiles. The Kaibiles were involved in serious human rights offenses during the time period in which Morales was a member. The military unit of approximately 20 Special Forces soldiers is alleged to have participated in the massacre of over 200 unarmed villagers in the small hamlet of Dos Erres, Guatemala. The massacre occurred on December 6, 1982, when the soldiers indiscriminately killed innocent men, women and over 100 children. Many of the women were raped by the soldiers before they were forced to walk at gun point to a well in the center of the village, where they were bludgeoned in the head with a hammer, and their bodies thrown into the well. Those villagers who did not die of the blow to their head were killed when a soldier fired a weapon and threw a grenade into the well. Morales is under indictment in Guatemala for his alleged participation in these war crimes.
In August 1988, Morales entered the United States by crossing the international border from Mexico into Texas illegally. He travelled to the Maryland, Virginia, and District of Columbia area, where he resided and legally worked for many years. He applied for and was granted Lawful Permanent Resident (LPR) status in 1990.
On July 13, 2006, Morales sought U.S. citizenship by submitting the N-400 naturalization application to the U.S. Citizenship and Naturalization Services (CIS). On the N-400 and during a CIS official interview, Morales falsely claimed under oath that he was not a part of any group reportable to CIS, when, in fact, he was a member of the Kaibiles and sought to conceal his involvement with that military unit. This false representation was material to the immigration authorities who were deciding Morales’ application for United States citizenship.
Morales pleaded guilty on May 25, 2017.
Acting United States Attorney Stephen M. Schenning commended HSI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case, and trial attorney Christine Duey, of the Department of Justice’s Human Rights and Special Prosecutions Section.
Leader of Bank Fraud Conspiracy Sentenced to Ten Years in Federal PrisonRead the Press Release
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Baltimore, Maryland – On September 6, 2017, U.S. District Judge Paula Xinis sentenced Brian Diggs, age 45, of Brandywine, Maryland, to ten years in federal prison followed by five years of supervised release for conspiracy to commit bank fraud and aggravated identity theft. Judge Xinis ordered forfeiture of $393,702. A restitution amount will be determined at a later hearing. The scheme to defraud involved applications for over $1,500,000 in car loans.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre Watson of Homeland Security Investigations, Baltimore Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to his plea agreement, Diggs and eight co-conspirators defrauded numerous federal credit unions by applying for vehicle loans using false personal and financial information. Often Diggs and his co-conspirators identified cars for purchase that they had no intention of obtaining. On certain occasions, Diggs and his co-conspirators applied for and obtained vehicle loans on the same vehicle at different credit unions. Diggs and his co-conspirators nominally agreed to sell vehicles, obtained money from vehicle sales, and then did not provide the vehicles to buyers. Diggs and his co-conspirators failed to make payments toward vehicle loans, thereby often resulting in the vehicles being repossessed by credit unions and other lending institutions. In at least one instance, Diggs and co-conspirator Derrick Byas, Jr., used the name of a living victim on a fake driver’s license to obtain a loan from a credit union.
The fraud scheme affected more than ten financial institutions and employed sophisticated means, including fake documents, fake addresses, and false Social Security numbers. Diggs was the leader and organizer of the scheme.
Acting United States Attorney Stephen M. Schenning thanked HSI and the Prince George’s County Police Department for their work on the investigation. Mr. Schenning commended Assistant U.S. Attorneys Joseph Baldwin, Erin Pulice, and Thomas Windom who are prosecuting the case.
Founder of $50 Million Mail Fraud Scheme Arrested in FloridaRead the Press Release
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Baltimore, Maryland – Eric Epstein, age 57, of Pompano Beach, Florida (previously of Owings Mills, Maryland) was arrested today on charges of mail fraud and conspiracy to defraud the Internal Revenue Service. Epstein was indicted on August 24, 2017 and charged with committing mail fraud to obtain more than $50 million in money and property from various businesses through the fraudulent sale of light bulbs and cleaning supplies.
The arrest was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service, Criminal Division; and Inspector in Charge Robert B. Wemyss of the United States Postal Inspection Service, Washington Division.
According to the indictment, in or about 2003, Epstein co-founded a telemarketing business, Midway Industries, based in Maryland that sold lightbulbs and cleaning supplies to businesses, schools, churches, non-profit organizations, and government offices. Epstein obtained money from thousands of victim businesses by convincing them to pay for light bulbs and cleaning supplies that they never ordered, and deceived the businesses about the amounts Midway would bill for products.
Epstein sold a majority financial interest in Midway in 2012 for $15 million, however he retained an ownership stake, received a regular paycheck, and continued to advise and supervise Midway employees. From 2003 through 2014, Midway employees would cold call businesses stating that the business had an existing business relationship with Midway, make false representations, send unwanted orders, and inflate the price of products. The inflated prices were regularly 900% greater than the prices Midway paid for the supplies. At times, invoices were more than 8000% higher than the true amount due.
Employees at Midway worked on commission, the amount of which was often determined by Epstein. Epstein offered financial incentives to employees based on customer payments, and employees were rewarded with gift cards in order to induce them to place initial orders.
Epstein caused victims’ checks payable to Midway corporate entities to be cashed at money remitters, while Epstein personally kept and used the money. Epstein and others at Midway used Midway credit cards for lavish personal expenditures, such as luxury furniture and vehicles.
If convicted, Epstein faces a maximum sentence of 20 years in prison for mail fraud conspiracy and 5 years in prison for conspiracy to defraud the Internal Revenue Service. Epstein is scheduled to have an initial appearance in U.S. District Court in Baltimore on September 15, 2017.
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, IRS and USPS for their work on the investigation. Mr. Schenning commended Assistant U.S. Attorneys Sean R. Delaney and Harry M. Gruber who are prosecuting the case.
Former National Institutes of Health Employee Sentenced to 12 Months for Stealing Government PropertyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
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Greenbelt, Maryland – On September 5, 2017, U.S. District Judge Paul W. Grimm sentenced Christopher Dame, age 51, of Gaithersburg, Maryland, to six months in federal prison, six months home confinement, and three years of supervised release for theft of government property. Dame, a former Visual Information Specialist for the National Institutes of Health’s (NIH) Medical Arts Division, which is located in Bethesda, Maryland, previously pled guilty to stealing NIH property and selling it online without authorization.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Nicholas DiGiulio of the Department of Health and Human Services Office of the Inspector General; and Special Agent in Charge Paul L. Bowman of the U.S. Postal Service Office of Inspector General.
According to admissions made in connection with his guilty plea, Dame was responsible for designing, printing, and displaying decorative and informational materials in NIH buildings, as well as directing his colleagues to place purchase orders of printing ink for the Medical Arts Division. At no point did Dame have authority to remove NIH property from the main campus or sell NIH property.
Dame admitted that from January 3, 2013, through January 12, 2017, he regularly stole medical research equipment, photography equipment, and printing supplies belonging to NIH, and sold such items through an e-commerce corporation. Dame also deceived his colleagues into purchasing surplus ink for NIH, with the intent to ultimately steal the ink which he then sold online for his own benefit. Between 2013 and 2017, Dame stole over 400 items belonging to NIH. As part of his plea agreement, Dame will be required to pay restitution in the full amount of the loss, which is $75,613.14.
Acting United States Attorney Stephen M. Schenning commended the Department of Health and Human Services Office of Inspector General, the United States Postal Service Office of Inspector General, the United States Postal Inspection Service, and the NIH Division of Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Michael T. Packard and Trial Attorney Simon J. Cataldo from the Department of Justice, Public Integrity Section, who are prosecuting the case.
Eighth Baltimore City Police Officer Arrested for Abusing Power in Federal Racketeering ConspiracyRead the Press Release
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Baltimore, Maryland – Sergeant Thomas Allers, age 49, of Linthicum Heights, Maryland was arrested today for a racketeering conspiracy and racketeering offenses, including robbery and extortion. The indictment was returned on August 24, 2017 and unsealed today.
The indictment was announced by Acting U.S. 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.
The racketeering indictment alleges that Allers stole money from victims, some of whom had not committed crimes, swore out false affidavits and submitted false official incident reports. Sergeant Allers joined the Baltimore Police Department on July 22, 1996. He became the officer-in-charge of the Gun Trace Task Force (GTTF), a specialized unit created to investigate firearms crimes, on or about July 25, 2013.
The racketeering conspiracy alleges robbery and extortion violations committed by Allers in 2014, 2015 and 2016 when he was the officer-in-charge of the GTTF. Allers was reassigned out of the GTTF on June 14, 2016.
In some cases, there was no evidence of criminal conduct by the victims; Allers stole money that had been earned lawfully. The amounts stolen ranged from $700 to $66,000.
For example, on or about April 3, 2015, Allers and coconspirators executed a search warrant at a residence in Baltimore City and discovered approximately $6,000 in the home. This money was a combination of money that the homeowners had made buying and selling used cars and a tax refund the wife had received. Allers and his coconspirators took approximately $5,700 of the $6,000, and then filed a false incident report stating that only $233 had been seized.
In another incident, on or about March 2, 2016, Allers and his co-conspirators executed a search warrant at a residence in Baltimore City. The resident of the home had $200 in her purse, which her daughter had received the previous day during her birthday party, $900 to pay her rent for that month, $300 to pay down the amount of money she owed Baltimore Gas & Electric for utilities and $8,000 which was the proceeds of drug sales. Allers approved the false report that stated that only $1,624 had been seized from home, when in fact, he had stolen more than $7,000.
In another incident, on or about April 28, 2016, Allers and coconspirators robbed a residence after arresting an individual who resided at the residence. Allers and his coconspirators robbed the occupants of the residence of over $10,000. Allers approved a false incident report which failed to report that any money had been taken from the residence, when in fact he and his coconspirators stole more than $10,000. Following this robbery, one of the residents was shot and killed because he could not repay a drug-related debt.
According to the indictment, Allers allegedly 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 the officers had stolen money from individuals. In addition, the indictment alleges that Allers obstructed law enforcement by alerting other members of the GTTF about potential investigations of their criminal conduct.
Allers has been charged with nine counts of Robbery and Extortion and the indictment alleges that he stole over $90,000.00.
Allers faces a maximum sentence of 20 years in prison for the conspiracy, the robberies and for racketeering. Allers is scheduled to have his initial appearance in U.S. District Court in Baltimore today at 3:00 p.m. in Courtroom 7D.
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. Acting U.S. Attorney Schenning also thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Nine Baltimore Felons Arrested for Handgun Possession Under Federal Gun StatutesRead the Press Release
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Baltimore, Maryland – Nine felons have been arrested for possession of handguns in Baltimore City. The arrests were announced today by Acting United States Attorney Stephen M. Schenning and Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.
The United States Attorney’s Office continues in its efforts to address the gun violence plaguing the Baltimore area by using Federal Statutes prohibiting felons from possessing firearms.
Nine defendants, listed below, were arrested in nine separate cases and will appear in United States District Court this week.
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Reginald Allen, age 33, of Baltimore, Maryland;
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Michael Awosika, age 39, of Baltimore, Maryland;
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Richard Bailey, age 27, of Baltimore, Maryland;
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Ikeyba Brown, age 32, of Baltimore, Maryland;
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Michael Corprew, age 31, of Baltimore, Maryland;
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Vatrone Foote, age 26, of Baltimore, Maryland;
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Samuel Joyce, age 28, of Baltimore, Maryland;
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Morranda Phimpisane, age 30, of Baltimore, Maryland;
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Terrell Wormley, age 31, of Baltimore, Maryland.
Acting United States Attorney Stephen M. Schenning noted that the United States Attorney’s Office, through its Exile Program, will continue to pursue felons with guns who constitute a clear and present danger to the safety and welfare of the citizens of Baltimore. These arrests reflect the ongoing commitment of the United States Attorney’s Office to address violent crime in the City of Baltimore and the District of Maryland.
Initial court appearances for the defendants begin today. All nine defendants continue to be detained.
Acting United States Attorney Stephen M. Schenning commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Patricia McLane, Robert Perkins and Samika Boyd who are prosecuting these cases.
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Former Financial Advisor Charged with Fraud in an Alleged Ponzi SchemeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
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Greenbelt, Maryland – On August 25, 2017, Dawn J. Bennett, age 55, of Chevy Chase, Maryland, was arrested in Santa Fe, New Mexico. In addition to a previously filed Securities and Exchange Commission (SEC) complaint, Bennett has also been charged in a criminal complaint with wire fraud, bank fraud, and false statements in relation to loan and credit applications.
The arrest 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 criminal complaint, Bennett is the owner and operator of DJB Holding, LLC, d/b/a DJBennett.com. DJBennett.com is an internet retail website for luxury sportswear.
The criminal complaint alleges account activity consistent with a Ponzi scheme and misappropriation of investor funds. A Ponzi scheme is a fraudulent investment scheme where the operator of the scheme solicits investors by promising high rates of return with little risk. The scheme operator then funds payments to the older investors through funds obtained through new investors. Typically, the operator of the scheme will use investment funds for purposes other than what was conveyed to the investors.
According to the criminal complaint, Bennett solicited individuals to invest money into her internet clothing business, offering an annual interest rate of 15% via convertible or promissory notes. For instance, between December 17, 2014 and October 29, 2015, 28 individuals made deposits of over $5 million into the DJBennett.com operating account. The complaint alleges that Bennett would repay investors with funds she received from new investors and used funds sourced from individual investors to fund her personal legal expenses, among other things.
The criminal complaint further alleges that in May 2015, DJB Holdings, LLC obtained a $750,000 line of credit secured by the inventory of DJB Holdings LLC/DJBennett.com. In support of this line of credit, one of Bennett’s employees provided the lender a brokerage statement in Bennett’s name that listed a net portfolio value of over $4 million. In reality, Bennett’s net portfolio value for that same account was only $35. In February 2016, the lender declared the loan in default. Bennett responded to the lender that she was unaware of the default and claimed she had been in China for the preceding eight months. A search of FBI databases was unable to firm any international travel for Bennett during the time in which she claimed to be in China, and her personal American Express card showed numerous transactions in the Chevy Chase, Maryland and Washington, D.C. area.
On August 25, 2017, the SEC filed a related action against Dawn J. Bennet and DJB Holdings, LLC d/b/a/ DJBennett and DJBennett.com alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Acting United States Attorney Stephen M. Schenning thanked the SEC and the FBI. Mr. Schenning praised Assistant U.S. Attorneys Erin Pulice and Thomas Windom who are prosecuting the case.
Prince George’s Man Sentenced to 11 Years in Federal Prison for Assault with A Dangerous WeaponRead the Press Release
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www.justice.gov/usao/md at (410) 209-4811Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Joseph Axzavis Stewart, Sr. age 58, of Upper Marlboro, Maryland, to 11 years in prison followed by 3 years of supervised release for assault with a dangerous weapon, and possession of a dangerous weapon with intent to injure.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Chief Robert D. MacLean of the U.S. Park Police.
According to Stewart’s plea agreement, on July 31, 2016, at approximately 9:00 p.m., Stewart stabbed an individual who was seated in the passenger seat of a friend’s truck at a construction site near the Baltimore-Washington Parkway, where the friend worked. Stewart, who worked for the same construction company, previously had a brief romantic relationship with the individual’s friend. After other employees from the construction company intervened, Stewart fled the scene in a gray truck. The victim was transported to the hospital, suffering from stab wounds to the arm and back. As a result of the stabbing, the victim underwent several surgeries, and lost partial feeling in both arms. Law enforcement executed a search warrant and recovered the knife Stewart used to stab the victim from Stewart’s gray truck.
Acting United States Attorney Stephen M. Schenning commended the U.S. Park Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Hollis R. Weisman and Thomas M. Sullivan, who prosecuted the case.
Baltimore Man Exiled to 126 Months in Federal Prison for Conspiracy to Distribute HeroinRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Baltimore, Maryland – On August 24, 2017, U.S. District Judge James K. Bredar sentenced Tavon Holmes, age 29, of Baltimore, Maryland, to 10 years and 6 months in prison followed by 3 years of supervised release for conspiracy to distribute and possess with the intent to distribute heroin.
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; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement on January 4, 2016, Baltimore City Police Department officers attempted to conduct a traffic stop, when Holmes ran from the car and into an adjacent alley. Holmes appeared to remove an item from his waistband area and then jumped onto the top of an unhinged basement door. When officers apprehended Holmes, they found, within close proximity, a black semi-automatic Cobra .380 caliber pistol with one round of .380 caliber ammunition in the chamber and a magazine with an additional five rounds of .380 caliber ammunition.
Prior to January 4, 2016, Holmes had been convicted in a court of the state of Maryland of a crime punishable by a term of imprisonment exceeding one year, and his civil rights had not been restored.
Following his arrest, the government obtained a search warrant for Holmes’ cell phone. Within that cell phone were multiple text messages in or about December 2015 where Holmes and at least one other individual conspired to distribute heroin.
On February 8, 2016, and still while incarcerated on his firearms related charges, Defendant Holmes called an individual and asked that individual to move the location of a “jimmy mac.” The government would have proved that a “jimmy mac” is often a code word for a firearm or narcotics.
Acting United States Attorney Stephen M. Schenning commended the ATF, the Baltimore City Police Department and the DEA for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Phil Selden, Aaron Zelinsky, David Metcalf and Mike Hanlon, who prosecuted the case.
Assisted Living Facility Manager Sentenced to 52 Months in Federal Prison for Identity TheftRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Baltimore, Maryland – Salah Eldean Sood, age 35, of Lutherville, Maryland was sentenced to 52 months in prison followed by three years of supervised release by U.S. District Judge J. Frederick Motz. Sood pleaded guilty to bank fraud and aggravated identity theft in a scheme where he stole personally identifiable information from elderly persons who were in his care at Holland Manor Eldercare, an assisted living facility in Towson, Maryland.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS); Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Special Agent in Charge Michael McGill of the Social Security Administration Office of Inspector General, Philadelphia Field Division (SSA).
According to court documents, Sood managed Holland Manor Eldercare in Towson, Maryland. In June 2015, P.J., a resident of Holland Manor, was transported to a local hospital. Baltimore County Fire Department personnel noted that conditions in the facility were unsanitary and that P.J.’s injuries were potentially indicative of a lack of proper care. P.J. died two days later. The State of Maryland Department of Health and Mental Hygiene revoked Holland Manor’s license to operate on September 25, 2015. On December 3, 2015, Baltimore County Fire Department and Baltimore County Police Department personnel responded to a fire alarm at Holland Manor and located two residents inside the facility without any staff present. An 80 year-old male resident, W.C., informed responders that no caretaker was generally present at the facility overnight. The second resident was restrained in a bed in a second floor bedroom, comatose, and unable to communicate. Responders were initially unable to reach Sood on his cell phone. Sood eventually responded to their calls, but refused to provide to his whereabouts.
Further investigation revealed that from July 2014 to January 2016, Sood opened credit card accounts using the names, dates of birth, and Social Security numbers of three elderly persons who resided at Holland Manor, including P.J. and W.C. Sood submitted the applications electronically, using Holland Manor as the home address. Sood obtained six credit cards in residents’ names, added himself as an authorized user on those accounts, and made over $74,000 in purchases using the accounts.
On August 3, 2016, Sood pleaded guilty in state court to abuse and neglect of a vulnerable victim and operation of an assisted living facility without a license.
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.
Acting United States Attorney Stephen M. Schenning commended SSA OIG, HHS OIG, the Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Lauren E. Perry and Roann Nichols, who prosecuted the case.
St. Agnes Healthcare Agrees to Resolve False Claims Act Allegations of Overbilling MedicareRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – St. Agnes Healthcare has agreed to pay the United States $122,928 to resolve claims under the False Claims Act alleging that St. Agnes submitted false claims to Medicare by billing for evaluation and management (E&M) services at a higher reimbursement rate than the Federal health care programs allowed.
The settlement agreement was announced today by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Nick DiGuilio of the Office of Inspector General for the Department of Health and Human Services.
In June 2011, St. Agnes acquired a medical practice consisting of twelve cardiologists who were formerly members of MidAtlantic Cardiovascular Associates. The twelve cardiologists became employees of St. Agnes and continued to provide services to their patients through Maryland Cardiovascular Specialists, a specialty practice affiliated with St. Agnes. Medicare permits a higher rate of reimbursement for E&M services provided to new patients as opposed to E&M services provided to established patients. A new patient is defined as a patient who has not received any professional services from the physician or physician group practice within the previous three years.
According to the settlement agreement, the United States contends that for E&M services rendered from June 3, 2011 through June 3, 2014 by the twelve cardiologists who became St. Agnes’ employees, St. Agnes improperly submitted or caused to be submitted claims to Medicare using CPT codes 99201-99205 (new patient E&M codes) when CPT codes 99211-99215 (existing patient E&M codes) should have been used. By using the new patient codes as opposed to the existing patient codes, St. Agnes improperly received more reimbursement than it was entitled to under Medicare.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act by Jonathan Safren, a former cardiologist employed by St. Agnes (United States ex rel Jonathan Safren v. St. Agnes Healthcare., Case No. ELH-16-2537 (D. Md.)). The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. As part of today’s resolution, Dr. Safren will receive $20,000. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Acting United States Attorney Stephen M. Schenning commended the Inspector General of the Department of Health and Human Services and thanked Assistant U.S. Attorneys Thomas Corcoran and Jane Andersen who handled the case.
Former Aide at Prince George’s County Elementary School Sentenced to 75 Years in Federal Prison for Production of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – US District Judge Deborah K. Chasanow sentenced Deonte Carraway, age 23, of Glenarden, Maryland, to 75 years in federal prison followed by a lifetime of supervised release for 15 counts of sexual exploitation of a minor to produce child pornography, involving 12 minor victims ranging in age from nine to 13 years old. According to court documents, Carraway was an assistant at Judge Sylvania Woods Elementary School in Prince George’s County.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Henry P. Stawinski III of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to the 15-count superseding indictment, from October 11, 2015 through February 1, 2016, Carraway coerced and persuaded multiple children to engage in sexually explicit conduct in order to produce videos of that conduct. According to the plea agreement, the videos produced include Carraway engaging in sexual activity with victims, as well as the victims engaging in sexually explicit conduct at Carraway’s direction.
According to court documents, Carraway met several of the victims at the school where he worked, and other victims reported that Carraway recruited them from his choir group. Prince George’s County Police arrested Carraway on February 4, 2016, and he has been detained since his arrest.
This case was investigated by the FBI Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat sex crimes involving children. The task force consists of members from ten state and federal law enforcement agencies.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended the FBI, the Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Kristi N. O’Malley and Daniel C. Gardner who prosecuted the case.
Harford County Man Sentenced to 10 Years in Prison for Using a Computer to Attempt to Coerce a Minor to Engage in SexRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On August 16, 2017, U.S. District Judge George L. Russell III sentenced William Ray Wagner, age 34, a resident of Harford County, Maryland, to 10 years in prison followed by a lifetime of supervised release for the use of interstate facilities to coerce a minor to engage in sex.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation; Harford County Sheriff Jeffrey R. Gahler; and Harford County State’s Attorney Joseph I. Cassilly.
According to his plea agreement, in the fall of 2014, Wagner was communicating on Facebook with an individual he believed was a 14-year-old girl who lived with her parents. The individual was actually an undercover Harford County detective.
In early October 2014, Wagner attempted to meet the individual to engage in sex, and used his computer to initiate graphic discussions about sex. He ultimately arranged to meet the individual at a restaurant in Bel Air on October 13, and then walk to a nearby trail to engage in sex. On that date, Wagner arrived at the agreed upon meeting location with a blanket and two condoms. He was arrested.
Wagner had previously been convicted of unlawful contact with a minor in 2009 and as a result, was required to register as a sex offender in Maryland. In April 2014, Wagner was arrested in Harford County and charged with failure to register as a sex offender.
As part of his plea agreement, Wagner must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended the FBI, Harford County Sheriff‘s Office and Harford County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Former Bail Bondsman Pleads Guilty in Federal Court to Conspiring to Obstruct JusticeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Former Bail Bondsman conspired with Licensed Drug Counselor to conceal violations of federal defendants from United States Probation and Pretrial Services and Federal Judges
Baltimore, Maryland –Anthony Evans Owings Seen, a/k/a “Tony”, age 31, of Glen Burnie, Maryland, pleaded guilty today in federal court to 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.
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; 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.
Co-conspirator Jennifer Hamersky, a/k/a Jennifer Maroney a/k/a Jennifer Hurt, age 33, of Severn, Maryland previously pled guilty and is scheduled to be sentenced on November 14, 2017 at 9:15 a.m.
According to Seen’s plea agreement, at the time of the conspiracy 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 was on pretrial release under the supervision of USPO with conditions which included attending individual and group counseling sessions and submitting to random urinalysis testing. Person S was on supervised release under the supervision of USPO with conditions that included not possessing or using 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. 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.
According to court documents, 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 and Person S’s violations of their conditions of release including the use of narcotic drugs, failure to appear for urinalysis testing, and failure to appear for counseling sessions.
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 and Person S’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.
In November 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.
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 Special Agents from the Federal Bureau of Investigation were investigating, Seen then told Hamersky to go onto a federal court website to determine if Person A was meeting with law enforcement representatives.
In January 2017, Person A missed a urinalysis test and contacted Seen for help in covering-up the missed test. Hamersky and Seen then discussed whether to help Person A and Hamersky then left a voicemail message for Person A’s USPO agent stating that Person A was in compliance when both Hamersky and Seen knew that Person A had missed his urinalysis test.
Seen faces a maximum sentence of five years in prison for the conspiracy count and twenty years in prison for the obstruction of justice count. Seen remains detained pending sentencing, which is scheduled for November 15, 2017 at 9:30 a.m.
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.
Baltimore Man Sentenced to 15 Years in Prison in Violent Crack Cocaine and Heroin ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – On August 15, 2017, U.S. District Judge James K. Bredar sentenced Theodore Smith (AKA Money), age 41, of Baltimore, Maryland, to 180 months in prison followed by 5 years of supervised release for conspiracy to possess with the intent to distribute crack cocaine.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration (DEA) Baltimore District Office; Baltimore Police Commissioner Kevin Davis and Chief James W. Johnson of the Baltimore County Police Department.
Smith was a member of a drug trafficking conspiracy, which, according to his plea agreement, operated an open-air drug market near the 600 block of Glenwood Avenue in the Woodbourne-McCabe neighborhood of Baltimore. Smith and his co-conspirators oversaw the distribution of the organization's signature orange-top vials of crack cocaine throughout various locations in Baltimore. Members of the conspiracy purchased cocaine and converted it to crack by cooking it in their stash houses. Smith and his co-conspirators used residences in and around North Baltimore to cut, package, and store the narcotics.
According to the plea agreement, Smith was in charge of overseeing and managing the distribution of crack cocaine on the streets, collecting proceeds from sales, making sure the organization had a sufficient supply of cocaine, and cooking cocaine into crack cocaine.
On June 16, 2016, law enforcement seized over 1100 orange-top vials of crack cocaine from a stash house used by the organization.
Some members of the conspiracy committed acts of violence in furtherance of the organization's activities and routinely carried firearms. In an attempt to avoid detection, Smith and his co-conspirators frequently changed phones and conducted counter surveillance of law enforcement. The proceeds from the sale of the narcotics were used to expand the drug operation and to pay for legal counsel for other members who were arrested for trafficking narcotics.
The other members of the conspiracy included
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Darryl Scott, age 32, of Baltimore, Maryland
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Sentenced to 135 months in prison, followed by 5 years of supervised release
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Anthony Hart, age 34, of Baltimore, Maryland
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Sentenced to 168 months in prison, followed by 5 years of supervised release
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Tarik Brooks, age 42, of Baltimore, Maryland
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Sentenced to 151 months in prison, followed by 5 years of supervised release
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Jermaine Epps, age 42, of Baltimore County, Maryland
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Sentenced to 108 months in prison, followed by 4 years of supervised release
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Darren Farmer, age 27, of Baltimore, Maryland
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Sentenced to 120 months in prison, followed by 4 years of supervised release
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Terry Downs, age 24, of Baltimore, Maryland
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Sentenced to 60 months in prison, followed by 4 years of supervised release
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Asante Leroy Marshall, age 23, of Baltimore, Maryland
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Sentenced to 50 months in prison, followed by 4 years of supervised release
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Eddie Lewis, age 25, of Baltimore, Maryland
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Sentenced to 106 months in prison, followed by 4 years of supervised release
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Charles Gilliam, Jr, age 49, of Baltimore County, Maryland
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Has pled guilty, awaits sentencing
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Leon Koger, age 46, of Baltimore, Maryland
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Has pled guilty, awaits sentencing
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Akia Owens, age 31, of Baltimore, Maryland
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Has pled guilty, awaits sentencing
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Gilliam, Koger and Owens remain detained while they await sentencing.
Acting United States Attorney Stephen M. Schenning commended the DEA, the Baltimore City Police and the Baltimore County Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Derek Hines and Leo Wise, who prosecuted the case.
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Rachel Yasser to Lead the District of Maryland’s Opioid-Related Healthcare Fraud UnitRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland –Acting United States Attorney for the District of Maryland Stephen M. Schenning announces the appointment of Rachel Yasser to lead the District’s project targeting opioid-related health care fraud. Yasser, 38, graduated from Columbia University in 2001 and Northwestern School of Law in 2004. She has been an Assistant U.S. Attorney in Maryland since 2008.
On August 2, 2017, Attorney General Jeff Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a new Department of Justice pilot program to attack the opioid crisis that has ravaged communities across the country and has led to an epidemic of fatal overdoses. The unit will use data on the manufacture, delivery and sale of prescription medications to identify persons, including doctors, medical professionals and pharmacists, who further the opioid epidemic for financial gain. These individuals will be targeted for healthcare fraud and other federal charges.
As part of the program, the Department of Justice is funding twelve experienced prosecutors nation-wide who will focus exclusively on investigating and prosecuting healthcare fraud related to prescription opioids, including pill mill schemes and pharmacies that unlawfully divert or dispense prescription opioids. Maryland was one of twelve federal Districts selected to participate in the program.
In 2010, Maryland public health officials reported that 504 people had died from heroin or opioid overdoses. By 2015, that number had more than doubled, with 1089 people dead from heroin and/or opioid overdoses. These 1089 lost lives do not represent the totality of the problem, as many more persons suffer non-fatal overdoses. Additionally, for every life lost to heroin or opioid abuse, the families and communities of those lost are also impacted. The heroin/opioid problem is among the greatest, and most rapidly increasing, public health and criminal justice problems facing Maryland today.
As head of the Maryland program, Yasser will coordinate with investigators from the FBI, DEA and HHS, as well as state and local agencies, to analyze data that discloses which physicians are prescribing, and which pharmacies are dispensing, unusually large quantities of opioids. The data can also be analyzed to disclose other patterns, such as the number of physicians’ patients that have died within 60 days of an opioid prescription, the average age of patients receiving opioid prescriptions, and the geographical distribution of patients’ residences. The costs for these opioids are often charged to insurance companies or federally funded health insurance programs, charges that are fraudulent if the prescriptions lack medical justification.
The opioid epidemic encompasses not only prescription drug abuse but also increased use of drugs that were never in the legitimate medical supply system, such as heroin and imported fentanyl. According to data from the DEA, the explosion in the of use of heroin and fentanyl is closely related to the prescription drug abuse problem. The DEA reports that 80% of heroin addiction starts with prescription drug addiction. People addicted to prescription opioids such as Percocet or OxyContin often move on to heroin and fentanyl, which are less expensive and more potent. Doctor-run “pill mills” and pharmacies that are unlawfully diverting and dispensing prescription opioids manufacture the next generation of heroin and fentanyl users.
By focusing on opioid-related healthcare fraud, Yasser and her team of investigators and prosecutors will attack the root cause of the opioid epidemic in the District of Maryland.
Maryland Man Pleads Guilty for Conspiring to Provide and for Providing Material Support to ISISRead the Press Release
Mohamed Elshinawy, 32, of Edgewood, Md., pleaded guilty in federal court to conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization; providing and attempting to provide material support to ISIS terrorism financing; and making false statements in connection with a terrorism matter.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney of the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon Johnson of the FBI’s Baltimore Office.
According to the plea agreement, Elshinawy conspired with others to knowingly provide material support and resources to ISIS, knowing that ISIS was a designated Foreign Terrorist Organization. From February 2015 through about Dec. 11, 2015, in Maryland and elsewhere, Elshinawy conspired with others to provide material support and resources, including personnel, services (including means and methods of communication), and financial services, to ISIS. Elshinawy and his co-conspirators utilized various methods of secret communication in order to conceal their criminal association and activities from law enforcement.
As a part of the conspiracy, Elshinawy expressed his support for an Islamic caliphate and his belief in the legitimacy of ISIS. In addition, he expressed his hope that ISIS would be victorious and its enemies defeated, and discussed his readiness to travel to live in the Islamic State. In various other conversations, Elshinawy pledged his allegiance to ISIS, described himself as its soldier, committed to making violent jihad, and asked that others convey his message of loyalty to ISIS leadership.
Elshinawy also received payments from a foreign company totaling $8,700 to be used to fund a terrorist attack in the U.S.
In an interview with FBI agents on July 17, 2015, in an effort to conceal and minimize his criminal involvement with ISIS, Elshinawy provided false information regarding the total amount of money he had received from ISIS operatives and claimed his intent was to defraud ISIS of funds. Throughout his interviews, Elshinawy mischaracterized the true nature and extent of his association with ISIS operatives and the support he had provided to ISIS.
The maximum sentence for conspiracy to provide and for providing material support to a designated foreign terrorist organization is 20 years in prison; the maximum sentence for collection of terrorism financing is 20 years in prison; and the maximum sentence for making false statements in a terrorism matter is eight years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Elshinawy’s sentence will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. Elshinawy has been detained since his arrest on Dec. 11, 2015, on related charges.
Acting Assistant Attorney General for National Security Dana J. Boente and Acting U.S. Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Assistant U.S. Attorneys Christine Manuelian and Kenneth Clark and the National Security Division’s Counterterrorism Section are prosecuting the case.
Maryland Man Pleads Guilty for Conspiring to Provide and for Providing Material Support to ISISRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Mohamed Elshinawy, age 32, of Edgewood, Maryland, pleaded guilty in federal court to conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization; providing and attempting to provide material support to ISIS terrorism financing; and making false statements in connection with a terrorism matter.
The plea was announced by Acting U.S. Attorney of the District of Maryland Stephen M. Schenning; Acting Assistant Attorney General for National Security Dana J. Boente; and Special Agent in Charge Gordon Johnson of the FBI’s Baltimore Office.
According to the plea agreement, Elshinawy conspired with others to knowingly provide material support and resources to ISIS, knowing that ISIS was a designated Foreign Terrorist Organization. From February 2015 through about December 11, 2015, in Maryland and elsewhere, Elshinawy conspired with others to provide material support and resources, including personnel, services (including means and methods of communication), and financial services, to ISIS. Elshinawy and his co-conspirators utilized various methods of secret communication in order to conceal their criminal association and activities from law enforcement.
As a part of the conspiracy, Elshinawy expressed his support for an Islamic caliphate and his belief in the legitimacy of ISIS. In addition, he expressed his hope that ISIS would be victorious and its enemies defeated, and discussed his readiness to travel to live in the Islamic State. In various other conversations, Elshinawy pledged his allegiance to ISIS, described himself as its soldier, committed to making violent jihad, and asked that others convey his message of loyalty to ISIS leadership.
Elshinawy also received payments from a foreign company totaling $8,700 to be used to fund a terrorist attack in the United States.
In an interview with FBI agents on July 17, 2015, in an effort to conceal and minimize his criminal involvement with ISIS, Elshinawy provided false information regarding the total amount of money he had received from ISIS operatives and claimed his intent was to defraud ISIS of funds. Throughout his interviews, Elshinawy mischaracterized the true nature and extent of his association with ISIS operatives and the support he had provided to ISIS.
The maximum sentence for conspiracy to provide and for providing material support to a designated foreign terrorist organization is 20 years in prison; the maximum sentence for collection of terrorism financing is 20 years in prison; and the maximum sentence for making false statements in a terrorism matter is eight years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Elshinawy’s sentence will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. Elshinawy has been detained since his arrest on Dec. 11, 2015, on related charges.
Acting United States Attorney Stephen M. Schenning and Acting Assistant Attorney General for National Security Dana J. Boente commended the FBI for its work in the investigation, and thanked Assistant U.S. Attorneys Christine Manuelian and Kenneth Clark and the National Security Division’s Counterterrorism Section who are prosecuting the case.
Owings Mills Man Sentenced to Four Years in Federal Prison for Laundering Money from Victims of Internet Dating ScamRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
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Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Olufemi Wilfred Williams, of Owings Mills, Maryland, to four years in prison, followed by three years of supervised release, for conspiracy to commit money laundering arising from a scheme to defraud vulnerable victims of millions of dollars. Judge Grimm also ordered Williams to forfeit and pay restitution of more than $375,000. Williams previously pleaded guilty to the charge on February 21, 2017.
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 court documents, from January 2011 to May 18, 2015, Williams searched online dating websites to initiate romantic relationships with vulnerable male and female individuals. He phoned, emailed, texted, and used internet chat messenger services to form romantic relationships with the victims, who lived in Maryland and around the country. Williams then used false stories and promises to convince the victims to provide money to the conspirators, including fake hospital bills, plane trips to visit the victims, problems with overseas businesses, and foreign taxes.
Williams and other conspirators opened bank accounts, called “drop accounts,” in order to receive millions of dollars from the victims. The victims provided money to Williams and others as a result of the false stories and promises, either depositing money directly into drop accounts controlled by the defendant, or by wire transfers sent to the conspirators. Williams and his co-conspirators dispersed money received from the victims by transferring funds to other accounts controlled by the conspirators, by obtaining cashier’s checks, and by writing checks to individuals or entities, in order to conceal the nature, source, and control of those assets.
The following co-defendants were previously convicted at trial or pleaded guilty:
Gbenga Benson Ogundele, a/k/a “Benson Ogundele,” age 58, of Laurel, Maryland;
Victor Oyewumi Oloyede, age 42, of Laurel;
Olusegun Charles Ogunseye, a/k/a “Charles O. Ogunseye,” age 58, of Laurel;
Babtunde Emmanuel Popoola, a/k/a “Emmanuel Popoola” and his sister, “Tunde Popoola, age 34, of Bowie, Maryland;
Mojisola Tinuola Popoola, a/k/a “Mojisola Oluwakemi Tin Popoola” and “Moji T. Popoola,” age 42, of Laurel;
Adeyinka Olubunmi Awolaja, Jr., a/k/a “Yinka O. Awolaja, Jr.,” age 34, formerly of New Carrolltown, Maryland; and
Olusola Olla, age 50, of Greensboro, North Carolina.
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 FBI for its work in the investigation and thanked Assistant U.S. Attorneys Thomas P. Windom, Ray D. McKenzie, and Leah Jo Bressack, who are prosecuting the case.
CEO Indicted for Wire Fraud and Aggravated Identity TheftRead the Press Release
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www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Zheng Geng, a/k/a “Jason Geng”, age 59, of Vienna, Virginia, on charges related to a scheme to defraud the United States. The indictment was returned on August 9, 2017, and unsealed today upon the arrest of Geng. Geng is the Chief Executive Officer of Xigen LLC (Xigen), which has offices in Maryland and Virginia.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Inspector General Paul Martin of the National Aeronautics and Space Administration Office of Inspector General; Inspector General Allison Lerner of the National Science Foundation Office of Inspector General; Special Agent in Charge Nick DiGiulio of the Health and Human Services Office of Inspector General; Special Agent in Charge Gordon Thompson of the U.S. Postal Service Office of Inspector General; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the six-count indictment, Geng devised a scheme between 2005 to 2016 to defraud the United States by submitting false and fraudulent grant applications under the Small Business Innovation Research (SBIR) Program. The SBIR program aims to stimulate United States technological innovation. A further aim is to foster and encourage participation in technical innovation by socially and economically disadvantaged small businesses that in some instances are at least 51-percent owned and controlled by women. Geng prepared materially fraudulent proposals for awards, subsequent reports, and related communications under the programs.
To support the applications, Geng submitted endorsements for his grant applications using the identities of people without their permission, or misrepresenting their positions within Xigen. In addition, he submitted endorsements that misrepresented active affiliations with various universities including, Harvard University Medical School and Johns Hopkins University School of Medicine, and budgeted funds for subcontractors without their knowledge and without providing them with budgeted funds. With this false information, the United States government approved SBIR program awards and grants through the Department of Health and Human Service’s National Institutes of Health and the National Aeronautics and Space Administration. The awards totaled over $1.8 million.
According to court documents, Geng used the rewarded funds for his own personal use and the use of his family members and associates.
“The NASA Office of Inspector General will continue to aggressively investigate those who undermine and defraud NASA programs and operations,” said Inspector General Martin. “The NASA OIG appreciates the efforts of the entire investigative and prosecution team during this multi-year investigation, and we look forward to continued cooperation with our law enforcement partners in this and related matters.”
Allison Lerner, Inspector General for the National Science Foundation said, “The SBIR program is a valuable tool for advancing promising new technologies. My office will continue to vigorously pursue attempts to defraud scarce research dollars intended to promote economic growth through innovative SBIR investments.”
“The United States Department of Health and Human services provides research grant funds to qualified small businesses; we cannot tolerate the theft of taxpayer funds meant for honest research projects” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the US Department of Health and Human Services.
Geng faces a maximum sentence of 20 years in prison and a $250,000 fine for wire fraud and a 2-year mandatory minimum consecutive sentence for each of the aggravated identity theft 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 NASA Office of Inspector General, the National Science Foundation Office of Inspector General, the HHS Office of Inspector General, U.S. Postal Service Office of Inspector General and the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Jennifer Sykes, who are prosecuting the case and Assistant U.S. Attorney David Salem who also helped investigate this case.
Prince George’s County Liquor Board Official Indicted for Federal BriberyRead the Press Release
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Greenbelt, Maryland – On August 7, 2017, a federal grand jury indicted Anuj Sud, age 39, of Hyattsville, Maryland, on charges related to a bribery conspiracy. Sud allegedly solicited and accepted bribes in the performance of his official duties in Prince George’s County.
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 Thomas Jankowski 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.
Sud was a Liquor Board Commissioner and has been a licensed attorney in Maryland since 2005, with offices in College Park. According to court documents, in September 2015, Sud solicited bribes from a lobbyist in exchange for Sud’s assistance with liquor board matters. At a subsequent meeting, Sud and the lobbyist discussed Sud voting favorably in two upcoming hearings concerning the lobbyist’s clients, in exchange for money. The lobbyist advised that the hearings would take place on December 2 and December 15, 2015. At each of the hearings, Sud took favorable action on behalf of the lobbyist’s client. Following each hearing, the lobbyist met with Sud and gave Sud $1,000 cash for Sud’s assistance. Similarly, on November 30, 2016, Sud received a $1,000 bribe payment in exchange for taking favorable action on behalf of the lobbyist’s client.
Sud was charged with two counts of bribery, for each of which he faces a maximum sentence of ten 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, 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, and Arun G. Rao, who are prosecuting the case.
Former Metropolitan Police Officer Indicted on Charges of Sex Trafficking of Minors and Enticement of Minors to Engage in ProstitutionRead 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 Chukwuemeka Ekwonna, age 28, of Glenn Dale, Maryland, on charges related to sex trafficking of minors and use of interstate commerce facilities to entice minors to engage in prostitution.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); Chief Tim Altomare of Anne Arundel County Police and Wes Adams of Anne Arundel State’s Attorney’s Office.
According to the 10-count indictment, beginning on or about January 24, 2016, Ekwonna worked as a police officer with the Metropolitan Police Department (MPD), in Washington, District of Columbia, where he was issued a Glock 17 handgun for use in connection with his duties as a police officer. On or about June 7, 2010, Ekwonna created a Tagged social media account entitled “E-man aka wateva u want me 2 be.” Tagged is a social media platform that allows members to create profiles, post status updates, upload photos, and send and receive messages. Tagged provides a mobile version of the platform that allows users to search for others based on location and engage in real-time chat.
Between June 1, 2011, and on or about April 6, 2017, Ekwonna exchanged approximately 53,000 messages with thousands of other Tagged users. Ekwonna used his Tagged account to send messages to many other users offering to pay them to engage in specific sex acts with him and to negotiate over the prices he would pay for sex.
Between December 19, 2016, and April 5, 2017, Ekwonna exchanged approximately 200 text and Tagged messages with a 14-year-old girl. In the messages, on several occasions Ekwonna offered to pay the victim to engage in sex acts with him. On January 9, 2017, Ekwonna exchanged approximately 54 Tagged messages with a 15-year-old girl. In the messages, Ekwonna also offered to pay the second victim to engage in sex acts with him. In both exchanges, Ekwonna discussed the sex acts they would engage in, and where they would meet. Both victims were students in the ninth grade at the time of the offenses.
On January 9, 2017, in the back seat of his vehicle, Ekwonna pointed a handgun at the second victim and demanded that she give him the money he had just paid her.
Ekwonna faces a minimum of 10 years in prison and maximum of life in prison and a fine of $250,000. An initial appearance is expected in U.S. District Court in Baltimore on August 11, 2017.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended the HSI, the Anne Arundel County Police Department and the Anne Arundel States Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Zachary A. Myers who is prosecuting the case.
Woman Pleads Guilty to Domestic Violence Resulting in Maryland MurderRead the Press Release
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Baltimore, Maryland – Dolores Delgado, age 32, of San Antonio, Texas, pled guilty in federal court for interstate travel to commit domestic violence resulting in death, in connection with the death of Karlyn Ramirez.
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; Commanding General Mark S. Inch of the U.S. Army Criminal Investigation Command; and Anne Arundel County Police Chief Tim Altomare.
According to the statement of facts supporting the plea agreement, Karlyn Ramirez was an active duty soldier of the United States Army assigned to Fort Meade, Maryland. She was found shot to death in her off-post residence on the morning of August 25, 2015. Her four-month old daughter had been placed in her arms. Forensic evidence estimates the likely time of death was during the late evening hours of August 24, 2015.
At the time of her death, Ramirez was married to another active duty soldier and they had a four-month old daughter. They had recently separated and Ramirez had obtained a protective order through the Army prohibiting all contact between Ramirez and her husband.
Ramirez’s husband was stationed at Fort Jackson, South Carolina. On August 24, 2015, he finished work in the early afternoon and traveled from South Carolina to Severn, Maryland. He entered Ramirez’s townhouse using his key and brandishing a Taurus .357 caliber revolver. Ramirez attempted to calm her husband but she reiterated that she did not want to see him again. The husband shot Ramirez three times, killing her. He then took off her pants and pulled down her underwear in an attempt to make it look like a sexual assault. He also placed their 4-month old daughter in Ramirez’s arm.
Delgado provided the firearm that killed Ramirez and allowed her co-conspirator to drive her car from South Carolina to Maryland to commit the murder. Delgado also purchased large gas cans to take with him, so that he would not have to stop for gas and risk being seen. During the murder, (who lived in Florida at the time) stayed at Ramirez’s husband’s apartment in South Carolina with his phone and vehicle so that it would appear that he was in South Carolina at the time of the murder. After the murder, and a third party went to a waterway in Florida and disposed of the firearm, shell casings, the co-conspirators clothing worn during the murder, and the key he used to enter the townhouse. also dismantled the revolver and took steps to obliterate the serial number. The firearm was subsequently recovered by law enforcement divers and forensic testing determined that it was indeed the gun used by the co-conspirator to shoot Karlyn Ramirez to death.
Delgado faces a maximum sentence of life in prison. remains detained pending her sentencing, which is scheduled for November 20, 2017 at 11am. The case against ’s codefendant is still pending.
Acting United States Attorney Stephen M. Schenning commended the FBI Baltimore, Army CID, and Anne Arundel County Police Department for their work in the investigation, and thanked the U.S. Attorney’s Office for the Western District of Texas and FBI San Antonio for their assistance. Mr. Schenning also thanked Assistant U.S. Attorneys James G. Warwick, Kenneth S. Clark, who are prosecuting the case.
Maryland Man Charged with Attempting to Provide Material Support to ISIS and Attempted MurderRead the Press Release
A federal grand jury charged Nelash Das, age 25, a citizen of Bangladesh previously residing in Landover Hills, Maryland, today with attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization; attempting to murder a federal employee; and using and carrying a firearm during and in relation to a crime of violence. The defendant previously had been indicted on the material support charge. The defendant remains detained pending further court proceedings.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Stephen M. Schenning for the District of Maryland and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office made the announcement.
The superseding indictment alleges that from October 2015 to Sept. 30, 2016, Das knowingly attempted to provide material support and resources to a foreign terrorist organization, namely ISIS. The superseding indictment further alleges that Das knew that ISIS is a designated foreign terrorist organization and engages in terrorist activity. The superseding indictment charges Das with attempting to murder a federal employee – an individual who was a member of the uniformed services and a Special Agent with the FBI. The superseding indictment also charges Das with using and carrying a firearm during and in relation to the material support and attempted murder charges. Das is a legal permanent resident.
According to court documents, ISIS members and supporters have posted identifying information about U.S. military personnel in hopes that ISIS supporters would carry out attacks against them. Das allegedly planned to kill a U.S. military member in support of ISIS.
If convicted, Das faces a maximum sentence of life in prison.
A superseding indictment is not a finding of guilt. An individual charged by superseding indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Boente and Acting U.S. Attorney Schenning commended the FBI’s Joint Terrorism Task Force for its work on the investigation and thanked the prosecutors that are handling the matter.
Maryland Man Charged with Attempting to Provide Material Support to ISIS and Attempted MurderRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Greenbelt, Maryland – A federal grand jury has charged Nelash Das, age 25, a citizen of Bangladesh previously residing in Landover Hills, Maryland, with attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization; attempting to murder a federal employee; and using and carrying a firearm during and in relation to a crime of violence. The defendant previously had been indicted on the material support charge. The defendant remains detained pending further court proceedings.
The superseding indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Acting Assistant Attorney General for National Security Dana J. Boente; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
The superseding indictment alleges that from October 2015 to September 30, 2016, Das knowingly attempted to provide material support and resources to a foreign terrorist organization, namely ISIS. Further, the superseding indictment alleges that Das knew that ISIS was a designated foreign terrorist organization and engaged in terrorist activity. The superseding indictment also charges Das with attempting to murder a federal employee – an individual who was a member of the uniformed services and a Special Agent with the FBI. The superseding indictment further charges Das with using and carrying a firearm during and in relation to the material support and attempted murder charges.
According to court documents, ISIS members and supporters have posted identifying information about U.S. military personnel in hopes that ISIS supporters would carry out attacks against them. Das allegedly planned to kill a U.S. military member in support of ISIS.
If convicted, Das faces a maximum sentence of life in prison.
A superseding indictment is not a finding of guilt. An individual charged by superseding indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Boente and Acting United States Attorney Stephen M. Schenning commended the FBI’s Joint Terrorism Task Force for its work in the investigation. Mr. Schenning thanked his office’s national security prosecutors that are handling the matter, and recognized the Justice Department’s National Security Division, Counterterrorism Section, for its support.
Maryland MS-13 Member Sentenced to Life in Federal Prison for Racketeering Conspiracy Including MurderRead the Press Release
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Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Jorge Moreno-Aguilar, aka “Flaco” and “Castigato,” age 24, of District Heights, Maryland today to life in prison. On May 20, 2016, Moreno-Aguilar was convicted of multiple charges in connection with their MS-13 gang activities, including conspiracy to participate in a racketeering enterprise, murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering.
The sentence 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 R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to evidence presented at trial, from at least 2009 through October 2014, MS-13 members planned and committed murders, attempted murders, assaults, and robberies in Prince George’s, Montgomery, and Frederick Counties. Gang members also extorted brothel operators and owners of other illegal businesses and tampered with and retaliated against witnesses, among other crimes.
According to the trial evidence, in January 2013, Moreno-Aguilar and co-defendant Juan Alberto Ortiz-Orellana, both members of the MS-13 Sailors Locotes Salvatrucha Westside Clique, targeted an individual associated with the rival 18th Street gang, obtained photographs of the victim from Facebook and conspired with other members of MS-13 to murder him. On March 12, 2013, Moreno-Aguilar and Ortiz-Orellana went to Capitol Heights, Maryland, and shot the victim multiple times outside his home, killing him.
In addition, trial evidence showed that on February 23, 2013, co-defendant Minor Perez-Chach, who was a member of the MS-13 Langley Park Salvatrucha (LPS) Clique, followed a man whom he believed to be a member of MS-13 who had testified against MS-13 members in federal trials in Greenbelt, Maryland. In fact, the evidence showed that the victim was not the witness from the previous MS-13 trials. Perez-Chach stabbed the victim to death in his home while another member of MS-13 attacked the victim with a machete. During his arrest on May 20, 2013, Perez-Chach also illegally possessed a firearm and ammunition.
Co-defendant Ortiz-Orellana, age 29, of District Heights, Maryland, was convicted of conspiracy to participate in a racketeering enterprise, murder in aid of racketeering conspiracy to commit murder in aid of racketeering, and related firearms charges. Perez-Chach, age 26, of Hyattsville, Maryland. Both were sentenced to life imprisonment on December 1, 2016.
Fourteen of the 15 defendants charged in this investigation have been convicted for their roles in the racketeering conspiracy. The final defendant is a fugitive.
Acting United States Attorney Stephen M. Schenning commended HSI Baltimore, Prince George’s County and Montgomery County Police Departments, and Prince George’s and Montgomery Counties State’s Attorney’s Offices for their work in the investigation and proceedings. Mr. Schenning thanked Assistant United States Attorneys William D. Moomau and Lindsay Kaplan as well as Trial Attorney Catherine K. Dick with the Justice Department’s Organized Crime and Gang Section, who prosecuted the case.