District of Maryland
Press releases recorded for this federal judicial district.
Registered Sex Offender Indicted for Cyberstalking and Enticing a Minor Victim to Engage in Sexually Explicit ConductRead the Press Release
Ceradoy was convicted of possession of child pornography in 2005 and attempted sexual exploitation of a minor in 2014
Baltimore, Maryland – A federal grand jury has charged Piere Ceradoy, age 36, of Crofton, Maryland, for production and advertisement of child pornography, coercion and enticement, cyberstalking, transfer of obscene material, and for engaging in this conduct while a registered sex offender. The indictment was returned on May 23, 2017. He was also ordered to be detained following a detention hearing held on May 25, 2017.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to the seven count indictment, and information presented at the detention hearing, Ceradoy met a minor victim on social networking apps in the spring of 2016, within months of being released from prison in Washington for his conviction on attempted sexual exploitation of a minor.
The victim told Ceradoy she was 13, and Ceradoy immediately initiated sexually explicit discussions. Ceradoy enticed the victim to engage in sex acts, and received videos and photos of the victim engaged in these acts. He also threatened to post the explicit photos on the internet and to send them to the victim’s family, and Ceradoy threatened to kill the victim and members of her family.
Ceradoy faces a mandatory minimum of 15 years and a maximum of 30 years in prison, followed by a lifetime of supervised release for each counts of production and advertising of child pornography; a mandatory minimum of 10 years and a maximum of life in prison, followed by a lifetime of supervised release for coercion and enticement; a maximum of 10 years, followed by three years of supervised release for cyberstalking; a maximum of 10 years, followed by three years of supervised release for transfer of obscene matter to a minor; and 10 years consecutive to all the charges stated above, excluding cyberstalking, for being a registered sex offender, followed by a lifetime of 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.
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 for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Former Johns Hopkins Employee Pleads Guilty to Immigration Fraud in Connection with False Statements to Conceal Membership in Military Unit Responsible for War CrimesRead the Press Release
Morales is currently under indictment in Guatemala for alleged serious human rights offenses, including those committed at Dos Erres massacre
Baltimore, Maryland – Jose Ortiz Morales, age 55, of Hyattsville, Maryland, pleaded guilty on May 25, 2017, to attempted unlawful procurement of naturalization charges.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to his plea agreement, 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, the defendant 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, including at Johns Hopkins University in Baltimore, Maryland. He applied for and was granted Lawful Permanent Resident (LPR) 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 faces a maximum sentence of 10 years in prison. U.S. District Judge Marvin J. Garbis has scheduled sentencing for September 8, 2017 at 2:15 p.m.
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 is prosecuting the case, and trial attorney Christine Duey, of the Department of Justice’s Human Rights and Special Prosecutions Section.
Man Pleads Guilty to Mail FraudRead the Press Release
A man pleaded guilty today in U.S. District Court for the District of Maryland to mail fraud, 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, 43, 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 returns that reported, among other falsities, that West was entitled to claim as dependents on his return two individuals who were not in fact his dependents. West knew that he was not entitled to claim these individuals as 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 in furtherance of the scheme.
Sentencing is scheduled for Sept. 18, 2017. West faces a statutory maximum sentence of twenty years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Stephen M. Schenning commended special agents of IRS–Criminal Investigation and Treasury Office of the 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 are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Consultant Sentenced to 18 Months in Federal Prison for Conspiracy to Bribe A Public OfficialRead the Press Release
Greenbelt, Maryland – On May 23, 2017, U.S. District Judge Theodore D. Chuang sentenced Anatoly Samgorodsky, age 65, of Sarasota, Florida to 18 months in prison, followed by three years of supervised release, for conspiracy to bribe a public official. Judge Chuang also ordered Samgorodsky to pay a $25,000 fine and restitution in the amount of $70,000.
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 his plea agreement, Samgorodsky was a metallurgy consultant and part owner of a metallurgical research company located in Long Island City, New York. Between August 2014 and December 2015, Samgorodsky and co-conspirators entered into what they believed to be a $3.4 million Department of Energy (DOE) funded research contract, but was in fact, a pretextual contract arranged by the Federal Bureau of Investigation (FBI).
During the course of negotiating the contract, Samgorodsky and co-conspirators negotiated the specifics of a bribe to be paid to a public official who worked at DOE, who unbeknownst to Samgorodsky, was cooperating with the FBI. In September 2014, Samgorodsky requested the public official’s assistance with obtaining government or private sectors contracts to benefit his company. During the same month, at the direction of FBI investigators, the public official contacted Samgorodsky. In a recorded conversation, Samgorodsky relayed his company’s interest in obtaining new clients and contracts, and how he would reward the public official for helping him. The public official subsequently introduced Samgorodsky and a co-conspirator to an undercover FBI agent posing as a DOE employee. Samgorodsky and his co-conspirators eventually agreed to pay a bribe of approximately $80,000 in installments to the undercover FBI agent.
Between June 2015 and August 2015, Samgorodsky and his co-conspirators received a total of $263,500 in progress payments from the FBI under the alleged contract. Samgorodsky and his co-conspirators then agreed to convert a portion of these funds into cash, and pay the undercover agent in installments of $5,000 and $10,000 in June and July 2015, respectively, and $2,500 on September 3, 2015.
Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney David I. Salem, who prosecuted the case.
Former Government Employee Pleads Guilty to Receipt of Illegal Gratuities and Impersonation of A United States Immigration OfficerRead the Press Release
Baltimore, Maryland – John Theis, age 40, of Sparrows Point, Maryland, pleaded guilty today to receipt of illegal gratuities and impersonation of a United States officer.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Mark Tasky of the Department of Homeland Security (DHS), Office of Inspector General (OIG); Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea agreement, from January 2015 through his resignation in September 2015, Theis worked at the Department of Homeland Security, United States Citizenship & Immigration Services (USCIS) in Baltimore, Maryland. Theis was an Immigration Services Officer (ISO), whose duties and responsibilities included adjudicating immigration and citizenship cases and granting permanent residence status. Theis was required to obtain approval for any outside employment and no such requests had been submitted by Theis seeking or gaining such approval.
From 2014 and through his departure from federal service, Theis accepted cash in return for promising favorable immigration adjudications for a number of aliens. On one occasion, while working at USCIS, Theis advised an alien on the documents needed for a green card approval. Additionally, Theis took photos of the applicant’s case file from a USCIS database. In exchange, Theis received approximately $500 from the alien applicant.
Beginning in December of 2014 through February 2015, Theis and a co-conspirator agreed to work together in an immigration business to assist immigrants with getting their paperwork approved through USCIS. Theis would do presentations at an immigration program known as Deferred Action for Parents of Americans and Lawful Permanent Residents (DAPA). There, Theis would wear clothes that identified him as an immigration officer in order to influence new clients into paying him for assistance with immigration paperwork.
In April 2015, Theis went on disability leave after making false statements about his ability to work. He also took various forms of paid leave and never returned to the USCIS.
On September 29, 2015, Theis resigned from government service and left for Brazil in October 2015. He continued to do immigration work in Brazil while holding himself out to be a special agent with Immigration and Customs Enforcement (ICE) until his return to the United States and arrest in December 2016.
The approximate value of gratuities Theis received was over $15,000. He also received over $1,600 in disability benefits to which he was not entitled.
Theis faces a maximum sentence of two years in prison for receipt of illegal gratuities and a maximum sentence of three years in prison for impersonation of a United States officer. U.S. District Judge George L. Russell has scheduled sentencing for August 8, 2017 at 9:30 a.m.
Acting United States Attorney Stephen M. Schenning commended DHS OIG, Immigration and Customs Enforcement, Office of Professional Responsibility, USCIS, FBI, and IRS for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Sandra Wilkinson and Paul E. Budlow, who are prosecuting the case.
Two More Retailers Sentenced to Federal Prison for Food Stamp FraudRead the Press Release
Baltimore retailers ordered to pay over $7 million cumulatively for defrauding the Food Stamp Program
Baltimore, Maryland – In August 2016, a federal grand jury returned nine indictments charging 14 retail store operators in the greater Baltimore area with food stamp fraud and wire fraud in connection with obtaining over $16 million from the United States Department of Agriculture by illegally trading food stamp benefits for cash. Twelve of the fourteen charged defendants have pleaded guilty, and two defendants were sentenced this week to federal prison.
Today, U.S. District Judge Richard D. Bennett sentenced Mohammad Shafiq, age 51, of Baltimore, Maryland to 46 months in prison, followed by three years of supervised release. Judge Bennett ordered Shafiq to pay restitution in the amount of $3,712,353.00.
In a separate sentencing hearing held on May 18, 2017, Judge Bennett sentenced Mohammad Irfan, age 59, of Baltimore County, Maryland, to 51 months in prison, followed by three years of supervised release. Judge Bennett also ordered Irfan to pay restitution in the amount of $3,550,662.00.
The sentences were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation.
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers must bill the government only in return for providing approved food items.
Although charged in separate and unrelated schemes, Shafiq and Irfan engaged in similar conduct to defraud the SNAP program.
According to two separate plea agreements, from October 2010 through at least July 2016, Shafiq, Irfan and co-conspirators exchanged EBT benefits for cash, in violation of the food stamp program rules. They typically paid half the value of the EBT benefits in cash. To avoid detection, they often debited the funds from the card in multiple transactions over a period of hours or days, or called a different store where the transaction was processed manually.
Shafiq and Irfan owned and/or operated stores in the Baltimore area that were authorized to accept SNAP. The defendants received instruction regarding the requirements and regulations of the food stamp program and were aware that only eligible food items could be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.
Shafiq and his family members owned and operated four stores: Quick Stop Convenience Store, 237 N. Patterson Park Avenue; New York Food Mart, 1201 N. Patterson Park Avenue; and Barclay Food Mart, 2454 Barclay Street, all in Baltimore; and Shafiq Corporation, 6929 Holabird Avenue, in Dundalk, Maryland. From October 2010 through July 2016, Shafiq himself, and by and through his family members obtained more than $3.7 million in payments for food sales that never occurred or were substantially inflated.
Irfan and his family members also owned and/or operated four stores: New Sherwood Market, 6324 Sherwood Road in Northwood, Maryland; Martin Mart, 1504 Martin Boulevard in Middle River, Maryland; Rosedale Mart, 6326 Kenwood Avenue in Rosedale, Maryland; and M&A Mart 7400-A Belair Road in Baltimore. From October 2010 through August 2016, Irfan and his co-conspirators obtained more than $3.5 million in payments for food sales that never occurred or were substantially inflated.
Two retail store operators have previously been sentenced to federal prison. On March 27, 2017, Muhammad Sarmad was sentenced to 18 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $3,550,662. On April 27, 2017, Shaheen Tasewar Hussain was sentenced to 30 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $778,183.00.
The defendants listed below have all pleaded guilty and are awaiting sentencing:
Walayat Khan, age 37, of Reisterstown, Maryland;
Barbara Ann Duke, age 51, of Owings Mills, Maryland;
Kelym Novas Perez, age 35, of Baltimore;
Jose Remedio Gonzalez Reyes, age 51, of Baltimore;
Mulazam Hussain, age 55, of Windsor Mill, Maryland;
Alia Shaheen, age 25, of Baltimore;
Mahmood Hussain Shah, age 58, of Catonsville, Maryland;
Muhammad Rafiq, age 32, of Reisterstown;
Rizwan Pervez, age 39, of Essex, Maryland; and
Kassem Mohammad Hafeed, a/k/a Kassam Mohammad Hafeed, age 51, Baltimore
Acting United States Attorney Stephen M. Schenning commended the USDA Office of Inspector General and FBI for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Rachel M. Yasser and Kathleen O. Gavin, who separately prosecuted Shafiq and Irfan.
Berlin Man Sentenced to 36 Years in Federal Prison for Production of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced David Edward Weatherholtz, age 57, of Berlin, Maryland today to 36 years in prison, followed by a lifetime of supervised release, for production of child pornography. Judge Hollander also ordered that Weatherholtz pay a total of $105,471.12 in restitution to the victims and ordered that Weatherholtz forfeit certain property, including his interest in the commercial real estate property located at 12600 Marjan Lane, Ocean City, MD 21842.
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); Worcester County Sheriff Reggie T. Mason, Sr.; Worcester County State’s Attorney Beau Oglesby; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from at least August 1990 through his arrest in 2015, Weatherholtz had sexual contact and/or sexual intercourse with at least four minors.
On December 3, 2014, an undercover detective with the Worcester County Sheriff’s Office responded to a sexually explicit ad placed on an internet website. Records obtained from the website identified Weatherholtz as the person who posted the advertisement and further indicated that the ad was one of many posted by Weatherholtz from 2009 to December 2014 for the purpose of meeting young males interested in sex.
Weatherholtz and the undercover detective exchanged emails and text messages, in which the detective identified himself as a 13-year-old deaf white male who lived with his aunt in Snow Hill. Weatherholtz sent the detective two video files by text messages. In the first video file Weatherholtz depicted himself greeting the purported 13-year-old deaf male, and in the second video file he pretended to be the 13-year-old deaf male greeting Weatherholtz.
Weatherholtz arranged to meet the purported 13-year-old male at a restaurant in Snow Hill on December 16, 2014, and indicated that he would bring the boy back to his residence. When Weatherholtz arrived at the meeting location, he was taken into custody. A search warrant was also executed at his home and law enforcement seized numerous computers, hard drives, and other media storage devices. Subsequent forensic analysis of those items recovered numerous still photographs and a video of Weatherholtz engaged in sexually explicit conduct with a minor male victim.
On August 17, 2016, an employee at a building formely owned by Weatherholtz found a box on the property that was addressed to “Aaron Weatherholtz” – the defendant’s dog. Inside the box were photos of minor males engaged in sex acts; sheets of paper called “official progress charts” that depicted dated, hand-traced outlines of erect male penises; CDs and DVDs; and two VHS-compatible camcorder cassette tapes. A review of that material revealed three other minor male victims engaged in sexually explicit conduct.
Acting United States Attorney Stephen M. Schenning commended HSI Baltimore, Worcester County Sheriff’s Office, Worcester County State’s Attorney’s Office, Maryland State Police, and the Internet Crimes Against Children Task Force for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Ayn B. Ducao and Paul A. Riley, who prosecuted the case.
Cockeysville Man Pleads Guilty to Production of Child Pornography and to CyberstalkingRead the Press Release
Baltimore, Maryland – Kevin Graham Conlon, age 30, of Cockeysville, Maryland, pleaded guilty on May 15, 2017, to production of child pornography and cyberstalking.
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; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to his plea agreement, between 2014 and January 2017, Conlon induced four minor females and two minor males to take photographs and videos of themselves engaging in sexually explicit conduct and send those images and videos to Conlon using fictitious online social networks. Conlon created fictitious accounts using the identities of some of the victims, and distributed the child pornography he induced them to create in order to entice the others to produce and send him sexually explicit images and videos. Conlon also used various online accounts to engage in a course of conduct that was intended to cause the victims and their families substantial emotional distress.
Colon faces a mandatory minimum sentence of 15 years and up to 30 years in prison for production of child pornography and five years in prison for cyberstalking. U.S. District Judge J. Frederick Motz has scheduled sentencing for July 25, 2017 at 10:00 a.m.
Acting United States Attorney Stephen M. Schenning commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.
Waldorf Man Pleads Guilty to Illegal Possession of Unregistered Machine Guns, Unregistered Short-Barreled Rifles and Destructive Devices, and Possession of Child Pornography ChargesRead the Press Release
Greenbelt, Maryland – Caleb Andrew Bailey, age 31, of Waldorf, Maryland, pleaded guilty in federal court today to illegal possession of unregistered machine guns, unregistered short-barreled rifles, unregistered destructive devices, and possession of child pornography charges.
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; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division; and Charles County Sheriff Troy Berry.
According to the plea agreement, on May 5, 2016, Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) Special Agents executed federal search warrants at adjoining properties in Waldorf, Maryland associated with the Defendant. At the Defendant’s residence, law enforcement located, among other items, an underground bunker containing machine guns, machine gun manufacturing parts and devices, firearms, explosives, unregistered short-barreled rifles and destructive devices; covert recording devices; and child pornography on electronic devices seized inside and outside the residence, including one electronic device located within the underground bunker and other items moved from the Defendant’s bedroom at his residence and hidden in the woods by a minor victim at the direction of Bailey. At his parents’ residence, in the Defendant’s bedroom, law enforcement recovered an electronic device that contained internet searches indicative of child pornography.
During the execution of the search warrant on May 5, 2016, a 17-year-old minor was present at Bailey’s residence. The minor admitted that Bailey instructed the minor to remove a Panasonic Toughbook laptop, a Sony camera, and a Seagate external hard drive from Bailey’s residence and cover them with leaves by a footbridge in the woods behind the residence. Law enforcement recovered these items.
On May 17, 2016, the Department of Homeland Security, Homeland Security Investigations conducted a forensic analysis of Bailey’s electronic devices. The forensic analysis revealed that Bailey used hidden cameras to surreptitiously record videos of the victims in the bathroom of Bailey’s recreational vehicle, with the focus of those videos on the victims’ genitals. Bailey also physically transported the hidden cameras outside of Maryland to various hotels at which he stayed with the victims while competing in ATV races. In total, Bailey recorded over 100 videos capturing the genitals of the victims between March 2014 and January 2016. Bailey also created screen captures of portions of some of the videos that Bailey recorded of the victims. The screen captures depict the victims nude with their genitals exposed. Bailey saved these videos and video screen captures on the Seagate hard drive recovered during the execution of the search warrant at the Defendant’s residence on May 5, 2016. The forensic analysis also revealed that Bailey possessed other images and videos of child pornography on various electronic devices, including a hard drive located within his bunker, that do not appear to have been produced by him, including depictions of prepubescent minors and depictions of sadistic or masochistic conduct involving minors (bondage). Bailey’s collection of child pornography included more than 280 images and 54 videos depicting children engaged in sexually explicit conduct.
As part of his plea agreement, Bailey 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).
Bailey and the government have agreed that if the Court accepts the plea agreement Bailey will be sentenced to between 120 and 324 months in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for November 30, 2017 at 9:00 a.m.
Acting United States Attorney Stephen M. Schenning commended ATF Baltimore Field Division, HSI Baltimore, U.S. Postal Inspection Service - Washington Division and Charles County Sheriff’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Jennifer R. Sykes, Kristi N. O’Malley, and Thomas P. Windom, who are prosecuting the case.
Maryland Woman Indicted on Murder-For-Hire ChargeRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Susan Anderson, age 56, of Elkton, Maryland, on charges related to a murder-for-hire. The indictment was returned on May 11, 2017.
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 indictment, Anderson allegedly paid someone to commit a murder.
Anderson faces a maximum sentence of 10 years in prison for the use of interstate commerce facilities in the commission of murder-for-hire; and 20 years for solicitation to commit a crime of violence.
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 U.S. Attorney David D. Metcalf, who is prosecuting the case.
Former Vice President of Maryland Bank Sentenced to 3 Years in Federal Prison for Scheme to Steal over $1.8 Million from Bank CustomersRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Melissa Strohman, age 54, of Nottingham, Maryland today to three years in prison, followed by three years of supervised release, for six-year scheme to steal over $1.8 million from bank customers at the bank where she worked as the Senior Vice President and Bank Secrecy Act Officer. Judge Bennett also ordered Strohman to pay restitution in the amount of $1,611,108.73.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Patti Tarasca, Special Agent in Charge, New York Region, Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to her plea agreement, from April 2010 through July 2016, Strohman as the Senior Vice President at a federal savings bank in Maryland, which had branches in Pikesville and Highlandtown, was responsible for managing the bank’s savings department, including overseeing deposits and Individual Retirement Accounts for every customer. In addition, as the bank’s Bank Secrecy Officer, Strohman was responsible for filing Currency Transaction Reports and Suspicious Activity Reports for any transactions that were deemed to be suspicious or potentially illegal.
Strohman admitted that she used her position of trust at the bank to cause more than 200 unauthorized transfers and withdrawals of funds from six customers’ bank accounts to pay for mortgages, credit card bills and property tax bills associated with Strohman and her family members. Three of the six victim customers were at least 80 years old, and for two of the accounts the customers were deceased.
For example, Strohman used her supervisory override function on the bank’s electronic banking system to facilitate unauthorized transfers between the victim customers’ accounts to accounts associated with Strohman; forged the signature of one victim customer in order to complete an unauthorized transaction from that person’s bank account to an American Express account associated with Strohman; and caused unauthorized transfers of funds between the victim customers’ accounts to replace the monies Strohman stole and to conceal those thefts.
Acting United States Attorney Stephen M. Schenning commended FDIC Office of Inspector General and FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Evan Shea, who prosecuted the case.
Leader of Drug Trafficking Organization Sentenced to 8 Years in Federal Prison for Conspiracy to Distribute DrugsRead the Press Release
Greenbelt, Maryland – On May 10, 2017, U.S. District Judge Theodore D. Chuang sentenced Mario Finesse Wright, a/k/a Super and Finesse, age 29, of Harrison, New Jersey, to 96 months in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute drugs. The following additional individuals, including three of Wright’s family members were part of the conspiracy:
Nikko Taylor Wright, age 26, of Germantown, Maryland;
Clayton Dion Hollywood Wright, a/k/a Hollywood, and Harrison Wright, age 23, of New Jersey;
Maximillan Kabir Bradford Wright, age 22, of New Jersey;
Shahryar Talebi-Nejad, a/k/a Skeet, age 28, of North Potomac, Maryland;
Matthew Joseph Hochman, a/k/a Greasy, age 28, of Gaithersburg, Maryland;
Daniel Rocco Famulare, age 29, of Gaithersburg, Maryland;
Brandon Alexander Ade, age 25, of Germantown, Maryland;
Arian Siasi, a/k/a The Prince of Persia, age 26, of Silver Spring, Maryland;
Ilya Bechutsky, age 30, of Boyds, Maryland; and
Terrence Devon Taylor, a/k/a Scoop, and T, age 28, of Clinton, Maryland.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Carl J. Kotowski of the Drug Enforcement Administration – New Jersey Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, from at least March 2014 to May 2016, the defendants conspired to distribute heroin and cocaine in several states, including New Jersey and Maryland. Over a period of years, three New Jersey-based brothers, Mario, Clayton, and Max Wright, supplied their Maryland-based brother, Nikko Wright, with large quantities of heroin and cocaine, which Nikko Wright in turn distributed to a network of dealers in the Maryland and Washington, D.C., metropolitan area. Notably, two of the Maryland-based dealers involved in this conspiracy have admitted that heroin they distributed resulted in overdose deaths in Maryland.
All of the charged members of this conspiracy have pled guilty. In addition to Mario Wright, two others have been sentenced: Matthew Joseph Hochman was sentenced to 63 months in prison and Clayton Dion Hollywood Wright was sentenced to 66 months in prison. The remaining defendants are scheduled for sentencing in the coming weeks and months.
Acting United States Attorney Stephen M. Schenning commended the DEA and the Montgomery County Police Department for their work in the investigation, and in particular praised the DEA’s multi-jurisdictional efforts in this investigation, which included substantial efforts of agents based in both Maryland and New Jersey. Mr. Schenning also recognized the Bureau of Alcohol, Tobacco and Firearms, the United States Marshal Service, Calvert County Police Department, Howard County Police Department, and Prince George's County Police Department for their assistance. Mr. Schenning thanked Assistant U.S. Attorneys Michael T. Packard and Ray D. McKenzie, who are prosecuting this Organized Crime Drug Enforcement Task Force case, and also thanked their colleagues in the U.S. Attorney’s Office for the District of New Jersey, who provided valuable support to the prosecution team.
Former Army Contractor Pleads Guilty to Bribery Scheme Involving Contracts at Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – On May 10, 2017, Matthew Barrow, age 43, of Toledo, Ohio, pleaded guilty to bribery charges related to contracting at the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, in March 2006, the U.S. Army Contracting Command at APG awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. Former Army officials John and Danielle Kays each had leadership positions related to this contract. From September 2006 through April 2011, a series of task orders for services pursuant to the contract were placed.
John and Danielle Kays were civilian employees who represented the Army on these types of multi-year contracts. From January 2011 until his resignation from government service in July 2014, John Kays held the position of Deputy Project Manager for Mission Command, in effect the number two position for Mission Command. From June 2009 through June 2012, Danielle Kays was the Deputy Director of the Technical Management Division, and from 2012 until her resignation from government employment in October 2015, Danielle Kays was the Product Director of Common Hardware Systems. Barrow was the President and owner of MJ-6, LLC, a company which he and his wife formed in Ohio in 2008 to obtain military subcontracts. From June 2008 through August 2010, Barrow was also employed as a procurement manager by a glass company in Ohio.
From August 2008 to June 2014, John and Danielle Kays agreed to take official actions favorable to Barrow and MJ-6 in return for Barrow paying them a total of approximately $800,000. Specifically, the Kays used their official positions to add MJ–6 as a subcontractor acceptable to the Army, to steer potential employees for government contractors to work for MJ-6, to approve MJ-6 employees to work on various TOs, and to approve the pay rates, status reports, and travel reimbursements for MJ-6 employees. The Kays steered subcontracts worth approximately $21 million to MJ-6.
In order to conceal their corrupt relationship Barrow caused the glass company he worked for to purportedly enter into contracts and make payments to Transportation Logistics Services, LLC, a company incorporated by John Kays; and later made payments to the Kays in cash, which Barrow allegedly withdrew from his personal accounts and from MJ-6 accounts. Barrow withdrew the money in amounts less than $10,000 to avoid bank reporting requirements. To further conceal the scheme, John and Danielle Kays made false statements on the government ethics forms that they were required to file by failing to disclose the cash payments received from Barrow.
Barrow faces a maximum sentence of 15 years in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for January 12, 2018, at 11 a.m.
John and Danielle Kays have been indicted and are pending trial.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
Acting United States Attorney Stephen M. Schenning commended the DCIS, Army Criminal Investigation Command, and FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Joyce K. McDonald and Harry M. Gruber, who are prosecuting the case
District of Columbia Man Sentenced to 10 Years in Federal Prison for Sex Trafficking of MinorsRead the Press Release
Greenbelt, Maryland – On May 10, 2017, U.S. District Judge George J. Hazel sentenced Adarryl Hayes, a/k/a Prince, a/k/a Crummy, age 23, of Washington D.C., to 10 years in prison, followed by 10 years of supervised release, for sex trafficking of two minors.
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 Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement, from February 1, 2016 through February 24, 2016, Hayes recruited a 14-year old minor (Victim 1) and a 17-year old minor (Victim 2) to engage in commercial sex acts. Hayes used a website to advertise prostitution services for both victims.
Hayes directed Victim 1 and Victim 2 to communicate with clients and potential clients that called. Hayes would rent and transport the victims to hotels throughout Maryland to meet with their clients. After each date, the victims gave the prostitution proceeds to Hayes. Hayes did not allow Victim 1 to retain any of the proceeds, but would purchase condoms, food, clothing, toiletries, and other necessities for Victim 1.
On February 24, 2016, an undercover officer with Prince George’s County Police Department contacted the telephone number on the advertisement for Victim 1. The undercover officer and Victim 1 agreed to a price. Victim 1 directed the undercover officer to a hotel in Capitol Heights, Maryland. After asking if Victim 1 was alone, Victim 1 let the undercover officer know that Victim 2 would also be in attendance; the undercover officer agreed for a price for both victims. After arriving at the hotel room and Victim 1 accepting the money, the undercover officer identified himself as a police officer.
Immediately following the undercover operation, Hayes was located in the hotel parking lot where he was placed under arrest.
Acting United States Attorney Stephen M. Schenning commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.
Maryland Man Sentenced to over 7 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Theodore Gerald Reiss, age 81, of Halethorpe, Maryland today to 90 months in prison, followed by a lifetime of supervised release, for distribution of child pornography.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to his plea agreement, on August 17, 2015, Reiss used a personal computer to distribute, in a peer-to-peer network, a file containing a video of minors engaged in sexually explicit conduct. Additionally, during a search of Reiss’s home on September 9, 2015, investigators found Reiss in possession of various electronic devices and CDs that were later found to contain 291 videos and 29 still images of child pornography.
Acting United States Attorney Stephen M. Schenning commended the FBI, HSI, and the Baltimore County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Matthew J. Maddox, who prosecuted the case.
Maryland Man Sentenced to over 4 Years in Federal Prison for Transporting Stolen GoodsRead the Press Release
Sold $500,000 Worth of Designer Sunglasses and Other Items Stolen from Shopping Mall Kiosks
Baltimore, Maryland – On May 8, 2017, U.S. District Judge Richard D. Bennett sentenced Brian Nelson Halsey, age 52, of Westminster, Maryland, formerly of Dundalk, Maryland to 57 months in prison, followed by three years of supervised release, for a scheme to sell property stolen from shopping mall kiosks online.
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 Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from October 7, 2014 through March 29, 2016, Halsey used online accounts opened in different names and identities to sell stolen items, including designer sunglasses, and shipped the items nationwide from his home in Dundalk, Maryland.
Specifically, Halsey’s co-conspirator, William Albert Engel, broke into kiosks and stores in shopping malls in Cape Girardeau, Missouri; Fairview Heights, Illinois; Wilmington, North Carolina, and Myrtle Beach, Columbia, and Florence, South Carolina, and stole merchandise which he brought to Halsey in Maryland. Halsey sold the property through an online market, and used the U.S. Postal Service and commercial carriers to ship the stolen property to the buyers. Halsey provided cash from the sale of the stolen property to Engel and also helped to finance Engel’s travel expenses to other states to commit thefts in order to obtain more property for sale. Halsey maintained multiple online market accounts, online payment accounts, and bank accounts under different names and identities during the scheme.
On August 28, 2015, law enforcement searched Halsey’s residence and recovered over $200,000 worth of stolen designer sunglasses, as well as a printing and labeling system, and a large number of documents related to selling sunglasses through an online market. Law enforcement also recovered lock-pick kits and numerous atlases and street maps.
Halsey admitted that more than five individuals participated in the scheme, helping Halsey to package and ship the stolen sunglasses, providing their identification information to Halsey to set up bank and online accounts, and/or assisting in the thefts. Halsey organized the sale of items online and their shipment to buyers outside Maryland. The estimated loss from the scheme was approximately $500,000.
Engel has pleaded guilty and is scheduled to be sentenced on June 5, 2017, at 3:00 p.m.
Acting United States Attorney Stephen M. Schenning commended the FBI and Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
Baltimore Man Sentenced to One Year and a Day in Federal Prison for Illegal Possession of Guns and SilencerRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Joseph Goldman, age 35, of Baltimore, Maryland today to one year and a day in prison, followed by three years of supervised release, for possessing unregistered firearms and for making a firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Baltimore Field Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, on December 19, 2016, while executing a search warrant at Goldman’s home as part of an investigation by Baltimore Police Department, law enforcement discovered a cache of suspected illegal firearms and contacted ATF for assistance.
The following firearms were recovered from Goldman’s residence and seized by law enforcement: from behind the couch in the first floor living room, a 556 short barrel AR-15 long gun with a silver 6.5 inch silencer attached; from Goldman’s bedroom, a 12 gauge short barrel shotgun and two semi-automatic pistols; and 20 rounds of ammunition, a machine vice, miscellaneous gun parts and tools.
Goldman admitted to making and possessing firearms in violation of the National Firearms Act (“NFA”). Specifically, Goldman sawed off the barrel of the shotgun, made a short barreled rifle without a serial number, and made a silencer for the rifle. Despite knowing the length of the firearms and the purpose of the silencer, Goldman did not register these items with the National Firearms Registration and Transfer Record.
Acting United States Attorney Stephen M. Schenning commended ATF, FBI, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Virginia Woman Pleads Guilty in Federal Court to Sex Trafficking A Sixteen Year Old GirlRead the Press Release
Baltimore, Maryland – Heather Wagoner, age 31, of Buchanan, Virginia, pleaded guilty today to a sex trafficking conspiracy involving a sixteen year old girl.
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; and Chief Edward G. Hargis of the Frederick City Police Department.
According to her plea agreement, Wagoner and a co-conspirator conspired to engage in sex trafficking of a minor who was 16 years old at the time. From October 15, 2014 through December 19, 2014, Wagoner and her co-conspirator used the internet to solicit individuals for prostitution in Maryland. Wagoner instructed the victim to engage in sexual acts and provided condoms.
For two weeks in December 2014, the victim resided with Wagoner at various hotels in West Virginia and Maryland. Wagoner received calls from customers inquiring about the victim, and then relayed the information to her co-conspirator who facilitated the victim’s “date” with the customers. Wagoner and the victim would split the proceeds from the dates, and Wagoner would use some of her proceeds to pay her co-conspirator for driving the victim.
On December 19, 2014, detectives, acting in an undercover capacity, contacted the phone number provided on the website for the victim and spoke with Wagoner. The detectives arranged a meeting at a hotel in Frederick, Maryland, where investigators subsequently identified the victim as a minor and arrested the co-conspirator.
On the same day, investigator’s obtained a search warrant for the co-conspirator’s phone, which indicated numerous communications between the co-conspirator and Wagoner regarding sex trafficking of the victim. After police seized the co-conspirator’s phone, Wagoner continued to text the co-conspirator regarding the conspiracy to sex traffic the victim. Investigators arrested Wagoner on July 1, 2016.
Wagoner and the government have agreed that if the Court accepts the plea agreement Wagoner will be sentenced to eight years in prison, followed by a lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for July 20, 2017, at 10:00 a.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.
Acting United States Attorney Stephen M. Schenning commended the FBI and Frederick City Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Aaron S.J. Zelinsky, who is prosecuting the case.
Aliquippa, Pennsylvania Man Sentenced to 35 Years in Prison for Production of Child PornographyRead the Press Release
Baltimore, Maryland – On May 5, 2017, U.S. District Judge Ellen L. Hollander sentenced Michael John Bickel, age 26, of Aliquippa, Pennsylvania to 35 years in prison, followed by a lifetime of supervised release, for production of child pornography.
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.
Bickel is currently incarcerated in the Pennsylvania State Department of Corrections institution SCI Dallas in Dallas, Pennsylvania. According to his plea agreement, between September 24, 2013 through January 1, 2015, in the District of Maryland, Bickel, sexually abused and produced images of minors engaged in sexually explicit conduct.
In March 2015, after being arrest by law enforcement authorities in Washington County, Pennsylvania, Bickel disclosed that in addition to at least three local children he had sexually abused in Pennsylvania, he also sexually abused two minors during visits he made to Howard County, Maryland.
Bickel was prosecuted by authorities in Washington County, Pennsylvania, for child sex offenses he committed in that jurisdiction with children other than the two victims in Howard County, Maryland. He is currently serving a state sentence in Pennsylvania of between 59 and 118 years, for which he is expected to serve a minimum term of 59 years.
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 for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Michael P. Cunningham, who prosecuted the case.
Former National Institutes of Health Employee Pleads Guilty to Theft of Government PropertyRead the Press Release
Greenbelt, Maryland – Christopher Dame, age 50, of Gaithersburg, Maryland pleaded guilty on May 3, 2017, to theft of government property. Dame, a former Visual Information Specialist for the National Institutes of Health’s (NIH) Medical Arts Division located in Bethesda, Maryland, admitted to stealing NIH property and selling it online without authorization.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Elton Malone of the Department of Health and Human Services Office of the Inspector General; and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
According to his plea agreement, 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, enriching himself. also deceived his colleagues into purchasing surplus ink for NIH, with the intent to ultimately steal the ink and sell it online. During the relevant time period, Dame stole over four hundred 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.
Dame faces a maximum sentence of 10 years in prison. U.S. Magistrate Judge Timothy J. Sullivan has scheduled sentencing for September 6, 2017, at 2:30 p.m.
Acting United States Attorney Stephen M. Schenning commended the Department of Health and Human Services Office of the Inspector General for its 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.
Former Pastor of St. Mary’s County Church Pleads Guilty to Federal Bank Fraud ChargesRead the Press Release
Greenbelt, Maryland – On May 1, 2017, John S. Mattingly, age 71, of Charlotte Hall, Maryland, pleaded guilty to bank fraud in connection with a scheme to steal funds from St. Francis Xavier Catholic Church, while he was the pastor.
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, St. Mary’s County Sheriff Tim Cameron, and St. Mary’s County State’s Attorney Richard Fritz.
According to his plea agreement, Mattingly was ordained as a Roman Catholic priest in 1972 and was the pastor of St. Francis Xavier Catholic Church (St. Francis), in Leonardtown, Maryland, from 1994 until September 1, 2010, when he resigned. While serving as a parish priest, Mattingly was paid a salary and stipend by St. Francis.
From September 2006 through September 2010, Mattingly fraudulently deposited checks from parishioners made payable to St. Francis and to the St. Vincent de Paul Society, which were intended by the St. Francis parishioners to be charitable donations, into a bank account he controlled. In order to conceal the scheme, Mattingly falsely represented that that the checks he deposited into his bank account would be used for charitable purposes and/or church maintenance and renovations. Mattingly did not use the charitable contributions from the St. Francis parishioners for their intended purposes, but instead transferred the fraudulently obtained funds from his bank account to his personal individual retirement account. He also wrote unauthorized checks from the St. Francis bank account payable to himself and deposited those checks into his personal individual retirement account.
Mattingly fraudulently deposited more than 500 checks, totaling at least $76,000, written by more than 135 parishioners and made payable to St. Francis or the St. Vincent de Paul Society, and not to Mattingly.
Mattingly and the government have agreed that if the Court accepts the plea agreement he will be sentenced to home detention from six to 18 months. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for July 31, 2017 at 10:00 a.m.
Acting United States Attorney Stephen M. Schenning commended the FBI, St. Mary’s County Sheriff’s Office, and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.
Baltimore, Maryland Man Sentenced to 8 Years in Federal Prison for His Role in Six Year Scam Using Fake Companies and False Documentation to Defraud Car Dealers and LendersRead the Press Release
Baltimore, Maryland – On May 1, 2017, U.S. District Judge Catherine C. Blake sentenced Sean Stanley Jackson, age 44, of Baltimore, Maryland to eight years in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud and money laundering charges as the leader of a scheme to defraud auto dealers in Anne Arundel, Howard, Baltimore and Montgomery counties and nation-wide financial lenders. Judge Blake also ordered Jackson to pay forfeiture and restitution in the amount of $692,587.63.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, from January 2010 to February 2016, Jackson, and his co-Defendants Erika P. Ryles, and Walter J. Perry, III conspired to make false representations on loan applications to lenders in order to obtain loans to purchase vehicles from dealers, for which they were not financially qualified. Jackson and his co-conspirators organized and registered shell entities, including The Black Group LLC, which they used to make false representations in loan applications. For example, the conspirators falsely represented that The Black Group was a legitimate, thriving business with millions of dollars in annual revenues. To support their false representations, the defendants created fake documents, including paystubs, bank account statements, utility bills and corporate tax returns and schedules for the shell entities, which they submitted with auto loan applications, and to banks and other lenders.
On December 5, 2013, Jackson sent a message to Ryles asking her to create a fake bank account statement showing specific deposits and balance, which she did. Jackson and another co-conspirator, who was an elderly family member, then used the fraudulent bank statement to apply for loans on behalf of The Black Group on two different 2014 Ford F450 trucks, a Chevrolet Express Van, and a 2009 Audi A8. After obtaining more than $246,349 to purchase the four vehicles, Jackson and the co-conspirator defaulted on the loans, causing losses to the lender. In June 2014, Ryles again prepared false bank statements at Jackson’s request. Jackson and the co-conspirator then used the false bank statement in support of a loan application to purchase a 2006 5900i International Dump Truck. After receiving the financing to purchase the dump truck, Jackson and the co-conspirator again defaulted on the loan, causing a loss to the lender.
Jackson also used The Black Group to launder proceeds he obtained from the sale of a 2012 Chevrolet Avalanche. On May 10, 2012, Jackson submitted a false loan application and obtained $63,067.38, to finance the purchase of a 2012 Chevrolet Avalanche. After a few months, Jackson stopped making payments on the loan and the lender attempted to repossess the vehicle, but was unsuccessful since Jackson did not live at the address he provided on the loan application. Jackson continued using the vehicle. On November 29, 2014, Jackson went to a title shop in Maryland and presented a Mississippi title for the Avalanche which reflected that the vehicle had been sold to The Black Group on November 24, 2014, by the original owner, Thomas Mack, and that the vehicle did not have any outstanding liens. In order to conceal the true ownership of the vehicle, Jackson used the Mississippi title to obtain a Maryland MVA title on the Avalanche in the name of The Black Group. On December 15, 2014, Jackson, acting as a representative of The Black Group, sold the Avalanche to a car dealership in Maryland for $34,000, receiving a check in that amount made payable to The Black Group.
The next day, Jackson directed Perry to open two bank accounts representing that Perry owned a company called “Black Group,” and had Perry deposit the check from the sale of the Avalanche into one of those accounts. On December 18, 2014, at Jackson’s direction, Perry use the funds in that account to purchase three cashiers’ checks totaling $23,000, each made payable to Jackson. In addition, Perry withdrew $8,000 in cash and gave the money to Jackson. On January 9, 2015, Jackson had Perry purchase the Avalanche from the dealership where he’d sold it. At Jackson’s direction, Perry applied for a loan to purchase the vehicle, falsely stating that he was president of the Black Group LLC. Jackson provided Perry with two fake pay stubs, which Perry used as part of his loan application.
Acting United States Attorney Stephen M. Schenning commended the IRS - Criminal Investigation and Baltimore County and City Police Departments for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Dana J. Brusca, who prosecuted the case.
Baltimore Sex Offender Sentenced to 35 Years in Federal Prison for Production of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Louis Frances Bradley, age 66, of Baltimore, Maryland today to 35 years in prison, followed by a lifetime supervised release, for production of child pornography. Bradley has four previous state convictions on charges related to the sexual exploitation of children.
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 Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, between 2014 and 2016, Bradley paid numerous women in the Philippines to take sexually explicit photos of prepubescent females and send the images to Bradley using social media. Bradley also paid the women to expose their genitals to Bradley using video streaming programs.
Bradley created two social media accounts and used the accounts to become “friends” with hundreds of young women who lived in the Philippines. Many of the women “friended” by Bradley had prepubescent children or access to prepubescent children. Bradley asked the women to send sexually explicit images of prepubescent females under their care in exchange for money. Bradley admitted that he sent 120 payments to at least 17 payees in the Philippines, totaling $8,291. At least six of the recipients sent Bradley images or videos of children engaged in sexually explicit conduct in exchange for the payments.
As part of his plea agreement, Bradley must continue to 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 and Baltimore Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Retailer Sentenced to 2.5 Years in Federal Prison for Food Stamp FraudRead the Press Release
Baltimore, Maryland – On April 27, 2017, U.S. District Judge Richard D. Bennett sentenced Shaheen Tasewar Hussain, age 61, of Columbia, Maryland to 30 months in prison, followed by three years of supervised release, for conspiracy to commit food stamp fraud and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Bennett also ordered Hussain to pay restitution in the amount of $778,183.00.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation.
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers may bill the government only in return for providing approved food items.
Hussain was the owner of Safe #7, Inc. d/b/a Shop & Save (hereinafter sometimes referred to as “the store” or “Shop & Save”), which was a convenience store located at 301 Crain Highway South, Suite D in Glen Burnie, Maryland. Hussain, through the store, participated in the Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the Food Stamp Program.
According to her plea agreement, from July 2011 through August 2016, Hussain redeemed EBT benefits at the Shop & Save in exchange for cash in violation of the food stamp program rules and regulations. Hussain paid individuals presenting SNAP benefits cash in exchange for their benefits and kept up to 50 percent of the benefits for the store. As a result of these unlawful transactions, Hussain obtained more than $778,183 in EBT deposits for food sales that never actually occurred. Hussain knew that exchanging cash for EBT benefits was in violation of the laws, rules and regulations regarding the food stamp program and that she was not entitled to the EBT deposits made by FNS into the bank account for Safe #7, Inc.
In September 2011, months after being permanently disqualified from the SNAP program for violating FNS regulations, Hussain used a straw owner to submit an application to license Shop and Save to participate in the food stamp program. FNS approved the form which had been signed by another individual other than Hussain and licensed Shop & Save as a SNAP retailer. Hussain, however, subsequently operated Shop & Save.
Hussain was observed by law enforcement working the cash register and personally trafficking SNAP benefits in exchange for giving reduced cash payments to EBT cardholders. Between April 2015 through September 2015, agents working in an undercover capacity entered Shop and Save multiple times and asked to sell food stamp benefits in exchange for cash. Hussain was working behind the register each time and agreed to the transactions. For example, on April 14, 2015, Hussain swiped the undercover agent’s SNAP benefit EBT card twice, charging $75.02 for the first transaction and $25.60 on the second transaction just seconds later for a total of $100.62. In exchange, the Defendant gave the undercover agent $60 in cash.
On each of the occasions, Hussain did not sell the undercover agent any eligible food items. Hussain also broke up these transactions into increments of less than $100, because she knew that transactions over $100 for such a small store would likely alert law enforcement that she was trafficking SNAP benefits in exchange for cash.
On August 30, 2015, law enforcement executed a search warrant at Shop & Save. Officers discovered that the vast majority of the food items at the store were expired, covered in dust, spoiled by pests, and not amenable for human consumption.
Acting United States Attorney Stephen M. Schenning praised the USDA Office of Inspector General and FBI for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Jason D. Medinger and Kathleen O. Gavin, who prosecuted the case.
Defense Contractor Sentenced to 5 Years in Federal Prison for $53 Million Procurement Fraud and Illegal Gratuities SchemeRead the Press Release
Baltimore, Maryland – On April 27, 2017, U.S. District Judge Marvin J. Garbis sentenced John Wilkerson, age 51, of Moultrie, Georgia to five years in prison, followed by three years of supervised release, for a wire fraud conspiracy and for paying illegal gratuities to a government official, in connection with the award of more than $53 million in federal government contracts. Judge Garbis also ordered Wilkerson to pay forfeiture and restitution in the amount of $9,441,340.11.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Commander of the Air Force Office of Special Investigations (OSI); Special Agent in Charge Robert Craig, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office; and U.S. Small Business Administration Acting Inspector General Mike Ware.
According to his plea agreement, Wilkerson was a Department of Defense Account Manager for Iron Bow Technologies, LLC (Iron Bow), which provided IT consulting and other services to government and industry customers. Wilkerson was also part owner and operated an information technology company, Superior Communications Solutions, Inc. (SCSI).
Andrew Bennett, who was separately charged and has pled guilty, was a program manager for an information technology company, Advanced C4 Solutions, or AC4S, from 2005 until 2011. In 2011, Bennett left AC4S and went to work for Wilkerson at SCSI.
James T. Shank, who was separately charged and has pled guilty, was a Program Manager at the United States Navy’s Space and Naval Warfare (SPAWAR) Systems Center
From September 2009 through August 2012 Wilkerson, Bennett and Shank conspired to steer government contracts at Joint Base Andrews to companies affiliated with Wilkerson and Bennett. After the award of the contracts, Wilkerson offered, and Shank accepted, employment with SCSI while Shank was still a government employee and while he was taking official actions that benefited Wilkerson. In addition, Wilkerson paid Shank $86,000 in the year after Shank retired from government service, funneling the payment through two other companies in order to conceal the source of the funds. Wilkerson also hired Bennett and paid him a $500,000 bonus using proceeds from the fraud scheme.
For example, Shank, Wilkerson, and Bennett developed a request for proposal (RFP) for DO27, a contract to supply labor services for an Air Force technology project, including for overall project management services, so that AC4S would win the contract. On June 10, 2010, DO27 was awarded to AC4S in the amount of $18,332,738.10. Wilkerson provided Bennett with a quote for labor on behalf of SCSI that was less than the quote he had previously submitted on behalf of Iron Bow as their sales representative. After SCSI was selected as a subcontractor on DO27, it subcontracted with Iron Bow to provide most of the labor SCSI was supposed to provide under DO27. Wilkerson was able to earn income from the work Iron Bow employees were doing by having SCSI act as a middleman and charging a mark-up on Iron Bow’s work. Wilkerson and Bennett also directed an SCSI employee to create false invoices supposedly documenting the hours SCSI employees spent working on DO27, which were submitted to AC4S and paid by the United States government. SCSI received $6,794,432.98 on DO27 out of the $18 million AC4S received for providing labor for the project.
Shank also initiated the procurement process on more than 11 delivery orders that purchased telecommunications equipment and furniture as part of the Air Force project. Those delivery orders were issued to Iron Bow in 2010 and 2011. Wilkerson took multiple items of commercially available furniture, bundled them together and assigned them an SCSI specific number and a price that included a significant mark up over what SCSI paid the furniture manufacturer for the items. Shank then submitted to SPAWAR contracting officers a purchase order asking for authority to buy the bundle of furniture that bore the SCSI specific part number. SCSI received approximately $33 million of the $35 million paid to Iron Bow under the various furniture and equipment delivery orders. Wilkerson charged the United States a 25 percent markup on furniture purchased under these two purchase orders, resulting in a profit to him of more than $6 million.
In addition, from 2010 until his retirement in June 2011, Shank falsely certified that the United States government received more than $1 million worth of goods under the W91QUZ-07-D-0010 contract that the government did not in fact receive.
In late 2010 or early 2011, Wilkerson offered Shank employment. Shank did not disclose that fact to anyone at SPAWAR and did not recuse himself from any of the contracts that benefited Wilkerson. In February 2011, Bennett left AC4S and went to work for Wilkerson at SCSI. Bennett received a $500,000 bonus when he joined SCSI, which was paid for by profit Wilkerson had earned on the furniture contracts.
Shank accepted employment with SCSI in May 2011, but was still working for SPAWAR when he approved more than $1.1 million worth of invoices that benefitted SCSI and Wilkerson.
Between July 2011 until August 2012, Wilkerson paid Shank approximately $86,000. The funds that Wilkerson paid Shank were funneled through T&M Communications, LLC, a company owned by T.R., a senior executive at SCSI, who ultimately paid out the funds to Shank. Further, in some instances funds paid to Shank were also funneled through Decision Point Technologies, LLC, another company owned by Wilkerson. Shank did no work for Decision Point Technologies or T&M Communications in that time period.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
Acting United States Attorney Stephen M. Schenning thanked Air Force OSI, DCIS, and the U.S. Small Business Administration Office of Inspector General for their work in the investigation. Mr. Schenning commended Assistant U.S. Attorneys Leo J. Wise and Philip A. Selden, who are prosecuting the case.
Westminster, Maryland Man Indicted for Production and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Eric Wayne Grinder, age 36, of Westminster, Maryland, with three counts of production of child pornography and two counts of possession of child pornography. The indictment was returned on April 26, 2017.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Sheriff James T. DeWees of the Carroll County Sheriff’s Office.
According to the indictment, from June 2013 through August 2016, Grinder allegedly sexually abused a now 10-year old minor, and produced images of himself and the minor engaged in sexually explicit conduct. Further, Grinder used electronic communications devices to store and obtain visual depictions of minor victims engaged in sexually explicit conduct.
Grinder faces a maximum sentence of 30 years in prison for each of count of production of child pornography and a maximum of 20 years in prison for each count of possession of child pornography. An initial appearance has been scheduled in U.S. District Court in Baltimore on Thursday, May 4, 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.
United States Attorney Rod J. Rosenstein commended HSI, the Maryland State Police, the Carroll County Sheriff’s Office, and the Carroll County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul Riley and Paul Budlow, who are prosecuting the case.
Seven Baltimore Men Indicted in Federal Drug Conspiracy Related to 2014 Murder of Mckenzie ElliottRead the Press Release
Gang Member Allegedly Shot and Killed Three-Year-Old Girl in Turf Battle;
Authorities Aim to “Catch the Killer and Dismantle his Gang”Baltimore, Maryland – A federal grand jury has returned an indictment charging seven alleged members of the Old York Money Gang, an alleged drug trafficking organization (DTO) operating in the Waverly Way section of Baltimore, with conspiracy to distribute and possess with the intent to distribute controlled substances. One defendant is charged with using a gun to kill an innocent bystander. The indictment was returned on April 25, 2017, and unsealed today upon the arrest of the defendants.
The indictment charges the following defendants, all of Baltimore:
Terrell Plummer, a/k/a Rell, age 28;
Davonte Rich, a/k/a Chopper, age 22;Trevon Beasley, a/k/a Tre, age 23;
Tyrone Jamison, a/k/a Ty, age 23;
Davin Lawson, a/k/a D, age 25;
Calvin Watson, a/k/a Monster, age 26; andTyron Brown, a/k/a Boobie, age 26.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Commissioner Kevin Davis of the Baltimore Police Department.
“Exceptional police officers and prosecutors worked tirelessly and creatively to catch the killer and dismantle his gang because they care about saving lives,” said U.S. Attorney Rod J. Rosenstein. “The indictment alleges that an armed drug dealer killed McKenzie Elliott, which is no surprise because most murders in Baltimore are committed by armed drug dealers who belong in prison.”
“The loss of any life is heartbreaking to a family member, but to see this level of callous disregard for human life, especially when it leads to the loss of an innocent child, is wholly unacceptable,” said ATF Baltimore Special Agent in Charge Daniel L. Board. “ATF will remain steadfast in our partnerships with the Baltimore City Police Department and the USAO to combat these blatant and vicious attacks against our communities.”
"This case rocked not only the Waverly community, but the entire city of Baltimore," said Baltimore Police Commissioner Kevin Davis. "McKenzie should be in school, running around with her friends and doing everything a six-year-old does, but instead, her life was cut short by a coward with a gun. This case exemplifies the strength of our federal partnerships and our resolve to go after those who choose to harm citizens, especially our most vulnerable."
According to the 16-count indictment, the defendants were members and associates of the Old York Money Gang (OYMG), a violent drug trafficking organization operating in the Waverly Way neighborhood in the northeastern district of Baltimore since January 2014. Crimes committed by the gang include murder, robbery, extortion, burglary, and narcotics trafficking. A neighborhood gang, OYM generally limits its membership to persons that originate from or live in the Waverly Way neighborhood, and excludes outsiders. The gang represents their association through social and digital media in which members and associates identify themselves by hand signals forming the letters “OY” or written labels of “Old York Money Gang” or OYMG.
The indictment alleges that the defendants sold heroin, powder and crack cocaine, and marijuana in their territory in Waverly Way and elsewhere. The defendants and their associates controlled, maintained, and defended drug territories called “shops” and permitted only OYMG members to sell drugs in these shops. Any non-OYMG members who wished to distribute drugs in these shops would be violently attacked. The defendants agreed to defend their territory. In order to maintain and increase their power, they agreed to commit murder and assaults against anyone who posed a threat to their organization or who invaded their territory.
In the summer of 2014, Plummer allegedly carried a firearm defend OYMG territory and collect drug debts. On July 31, 2014, Plummer, Rich and other OYMG members allegedly violently attacked three victims who had entered OYMG territory to support a friend who was engaged in a dispute with the sister of an OYMG member. In this incident, an OYMG member stabbed one of these victims.
The three victims returned to the same OYMG drug shop on August 1. In order to protect OYMG territory, Plummer allegedly shot multiple rounds at the vehicle carrying the three victims. One of the rounds hit a victim in the head but did not kill him. Another bullet missed the three victims and killed a three year-old girl named McKenzie Elliott.
If convicted, the defendants each face a maximum sentence of 40 years in prison for the drug conspiracy. Plummer faces a maximum sentence of death or life in prison for possession of a firearm in furtherance of a drug trafficking conspiracy in which death results and a maximum of life imprisonment in prison for using, brandishing, and discharging a firearm during a drug trafficking crime. Beasley, Lawson, Jamison, Watson, Plummer, and Brown also face a maximum of 20 years in prison for each count of distribution of heroin, powder cocaine and/or crack cocaine. Rich also faces a maximum of 5 years in prison for distribution of marijuana. The defendants are expected to have an initial appearance later today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the ATF and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys David Metcalf and Robert R. Harding, who are prosecuting the case.
Odenton, Maryland Man Exiled to 8 Years in Prison for Firearms Trafficking ConspiracyRead the Press Release
Baltimore, Maryland – On April 25, 2017, U.S. District Judge James K. Bredar sentenced Delray Jamare Randall, a/k/a “Black,” age 35, of Odenton, Maryland to eight years in prison followed by two years of supervised release for engaging in the business of dealing in firearms and conspiracy.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Commissioner Kevin Davis of the Baltimore Police Department; Acting Chief, Major Scott Baker of the Annapolis Police Department; and Chief Tim Altomare of the Anne Arundel County Police Department.
“Experience shows us that illegally trafficked firearms are destined to wind up in the hands of criminals and be used in acts of violence that devastate our communities,” said ATF Special Agent in Charge Daniel L. Board. “ATF is the federal agency responsible for supporting and regulating the legal flow of firearms through commerce, but when we become aware of individuals who seek to illegally introduce firearms into our neighborhoods, which may eventually be used to perpetrate violence… make no mistake, we will take action.”
During his guilty plea, Randall admitted that from late 2014 and up to December 12, 2015, Randall and another person engaged in the business of dealing in firearms without a license, and that each participated in and assisted the other’s firearms activities. Randall also admitted that he agreed and conspired with other persons to engage in the business of dealing in firearms without a license.
In the days leading up to December 12, 2015, an undercover informant, acting on instruction from federal investigators, maintained communication with Randall. The informant communicated to Randall that he had firearms for sale and would be in the Baltimore area on December 12, 2015. Randall expressed an interest in meeting with the informant and made statements (in both text message format and during recorded phone voice calls) that Randall was lining up other persons who were either going to purchase firearms from Randall or whom Randall would introduce to the informant for the purpose of engaging in firearms purchases. Randall stated that he was lining people up for such transactions and inquired with the informant about the availability and price of firearms.
On December 12, 2015, Randall came to a hotel and met with the informant. Unknown to Randall, the room in which Randall and the informant met was under law enforcement surveillance, and Randall’s interactions and conversations were video and audio-recorded. During the meeting, Randall examined various firearms and purchased and made a down payment for four firearms. Randall was immediately arrested before he left the room.
While he was in the hotel room, Randall took photographs of the firearms with his cell phone, and sent photographs of those firearms to his customers. Randall engaged in text communications with his own customers in which he discussed possible prices for which the customers could purchase the firearms. Randall knowingly possessed the aforementioned firearms.
United States Attorney Rod J. Rosenstein commended the ATF and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael Hanlon and Philip Selden, who prosecuted the case.
Baltimore Woman Sentenced to over Five Years in Federal Prison for Bank Fraud and Narcotics ConspiracyRead the Press Release
Baltimore, Maryland – On Friday April 21, 2017, U.S. District Judge George L. Russell, III sentenced Yasmine Young, age 29, of Baltimore, Maryland to 66 months in prison, followed by five years of supervised release for bank fraud and narcotics conspiracy. Judge Russell also ordered Young to pay $326,487.11 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea agreement, from July 2014 through October 2014, while employed at a financial institution, Young used her employee access to target customer accounts with high dollar balances. Without permission and a business purpose, she printed screen shots of the account holders’ personal information and copies of checks that had previously been written and processed. Young provided these screen shots to co-schemers.
Using the screen shots provided by Young, co-schemers called into the financial institution’s banking system and were able to bypass the verification protocols. The co-schemers ordered checks from these accounts and forged them in order to cash them or deposit them into various accounts. The financial institution identified 22 victims, all of whom had high dollar balances and all of whom had fraudulent checks drawn on their accounts. The scheme has resulted in a loss to the financial institution of over $300,000.
While awaiting trial on this charge, from November 2015 through January 2016, Young and co-defendant Kaemarr Antonio Cox with others conspired to distribute marijuana. On January 12, 2016, DEA in Maryland received information from DEA in San Diego, California regarding a suspicious United Parcel Service (UPS) parcel that was in route for an apartment in Windsor Mill, Maryland.
On January 14, 2016, a detective interdicted the parcel where a narcotics dog alerted to the parcel for illegal narcotics. DEA found 11 pounds of marijuana inside. The parcel was repackaged and delivered by an undercover detective to Windsor Mill where Young accepted the package. Later that day DEA knocked and announced their presence at the door to execute a state search and seizure warrant. Young came to the front window, but did not open the door. Forced entry was made and members of the entry team took Young and Cox, the only subjects in the residence into custody.
Cox advised that the marijuana that was delivered was his. At the time, Young was on release post-indictment and pending trial on the federal fraud charges. Young’s release conditions required that she live in the Windsor Mill apartment where the search warrant was conducted and that she not commit any new crimes. Young subsequently had her release conditions violated, was detained in federal prison and pled guilty to fraud and aggravated identity theft charges in April 2016.
Cox pled guilty to narcotics conspiracy and brandishing a weapon in furtherance of a drug trafficking crime and is scheduled to be sentenced by Judge Russell on July 14, 2017 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Drug Enforcement Administration, the Baltimore City Police Department, and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lauren Perry and Sandra Wilkinson, who prosecuted the case.
Richmond Business Owner Convicted of Fraud in Credit Repair SchemeRead the Press Release
Baltimore, Maryland – On April 21, 2017, a federal jury convicted Benjamin Bland, age 41, of Richmond, Virginia, of conspiracy to commit wire fraud, wire fraud, and social security fraud.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to evidence presented at his five day trial, Bland was the owner and registered agent of a company headquartered in Richmond, Virginia that hosted a website that purported to provide individuals with a legal means to start a new credit file through the issuance of a “secondary credit number.” Bland falsely told his customers that these “secondary credit numbers” were “100% legal” and issued “by lawyers.” However, Bland had invented the term “secondary credit number,” there were no lawyers involved with his business, and the “secondary credit numbers” were actually social security numbers that had been previously issued to other individuals, predominantly children.
According to the trial evidence, one of the primary purposes of the fraud scheme was to obtain bank loans, private loans, auto loans, and lines of credit using the stolen social security numbers, counterfeit social security cards, and personal identity information (“PII”) of actual persons to create a false (improved) credit score.
The trial evidence also established that Bland obtained and sold the misappropriated social security numbers to Michael Westbrook and at least 20 others located throughout the country, whom Bland called his “affiliates.” These “affiliates” in turn sold those numbers to buyers. For an additional fee, Bland would provide fraudulent social security cards bearing the stolen number and the name of the “buyer.” Bland also provided fraudulent driver’s licenses to the “customers.” These items were provided so that “customers” could defraud banks and other lenders by drawing upon lines of credit using the stolen social security numbers.
According to the trial evidence, Bland compromised the social security numbers of at least 1,500 people during the conspiracy. The majority of the stolen social security numbers belonged to children all over the United States.
A co-conspirator, Michael Westbrook, also pled guilty to conspiracy to commit wire fraud and aggravated identity theft. He is awaiting sentencing.
Bland faces a maximum sentence of 20 years in prison on each of the wire fraud counts and a maximum of 10 years in prison on each of the social security fraud counts. Senior U.S. District Judge J. Frederick Motz has scheduled sentencing for July 14, 2017 at 10:00 am.
United States Attorney Rod J. Rosenstein commended HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lauren Perry and Aaron Zelinsky, who are prosecuting the case.
Ohio Man Sentenced to 10 Years in Federal Prison for Travel with Intent to Engage in Illegal Sexual ConductRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Michael L. Fischer, age 42, of Toledo, Ohio, today to 10 years in federal prison, followed by 20 years of supervised release, for travel with intent to engage in illicit sexual conduct. Fisher traveled from Ohio to Maryland to engage in sexual activity with a fifteen-year-old girl.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation - Baltimore; Special Agent in Charge Stephen D. Anthony of the Federal Bureau of Investigation – Cleveland, Ohio; Commissioner Kevin Davis of the Baltimore Police Department; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, in the summer of 2014, Fischer and the victim met online and communicated using chat rooms, social media, and telephone during the summer and fall of 2014. The victim told Fischer that she was 15 years old from their earliest communications, and prior to Fischer meeting the victim in person. In August and early September 2014, Fischer travelled from Ohio to Maryland and engaged in sexual activity with the girl. On September 19, 2014, Fisher and his wife travelled from Ohio to Maryland and picked the girl up near her home in the early morning of September 20, 2014. Fischer and his wife then transported the girl to Fischer’s home in Toledo. At the time, Fisher’s wife was not aware that Fisher had been engaging in sexual conduct with the victim. Between September 20 and 26, 2014, Fischer engaged in sexual conduct with the victim in Ohio.
On September 23, 2014, the Fischers were contacted by law enforcement regarding the victim’s whereabouts. According to his plea agreement, prior to meeting with law enforcement, the Fischers dropped the victim off at a store in Toledo. Fischer lied to law enforcement officers that he did not know where the victim was and suggested to law enforcement that he believed she may be in Florida. After the meeting, Fischer transported the victim from Ohio to Brighton, Michigan, and left the victim with one of his relatives. She was recovered by law enforcement officers two days later.
The 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.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children.
United States Attorney Rod J. Rosenstein commended the FBI Baltimore, Cleveland, Ohio and Detroit, Michigan Field Offices, the Baltimore Police Department, Maryland State Police, and the Toledo Child Exploitation Task Force for their work in the investigation, and thanked the Brighton, Michigan Police Department, the Livonia, Michigan Police Department and the Michigan State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Ayn B. Ducao, who prosecuted the case.
Allegany County Man Pleads Guilty to Sexual Exploitation of a Minor to Produce Child PornographyRead the Press Release
Baltimore, Maryland – Jason Wayne Hines, age 37, formerly of Cumberland, Maryland, pleaded guilty today to sexually exploiting a child to produce child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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 is 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).
Hines and the government have agreed that if the Court accepts the plea agreement Hines will be sentenced to between 17 ½ and 25 years in prison, followed by a lifetime of supervised release. U.S. District Judge Richard D. Bennett has scheduled sentencing for July 18, 2017, at 3:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States 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 Rod J. Rosenstein commended HSI-Baltimore, Maryland State Police, and Allegany County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Sandra Wilkinson, who are prosecuting the federal case.
Four Members of Baltimore Drug Distribution Conspiracy Plead GuiltyRead the Press Release
Baltimore, Maryland – Four Baltimore men, all members of a Baltimore drug trafficking conspiracy pleaded guilty this week to conspiring to distribute crack cocaine. Tarik Brooks, age 41, pleaded guilty today; Jermaine Epps, age 42, pleaded guilty on April 4, 2017, and Terry Downs, age 24, and Theodore Smith, age 41, pleaded guilty on April 3, 2017.
After their guilty pleas, U.S. District Judge James K. Bredar sentenced Epps and Downs to 108 months in prison, and 60 months in prison, respectively, each followed by four years of supervised release. Brooks was sentenced to 151 months in prison, followed by five years of supervised release.
The guilty pleas and sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Commissioner Kevin Davis of the Baltimore Police Department; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to their plea agreements, the defendants were part of a drug distribution conspiracy that operated an open-air drug market near the 600 block of Glenwood Avenue in the Woodbourne-McCabe neighborhood in Baltimore. Members of the conspiracy distributed the organization’s signature orange-top vials of crack cocaine in that location, as well as other locations in Baltimore. Members of the conspiracy purchased powder cocaine, which they converted to crack cocaine. Some members of the conspiracy also sold large quantities of heroin. The conspirators used residences in and around North Baltimore as stash houses to cut, package and store these narcotics. Some members of the conspiracy routinely carried firearms and committed acts of violence in furtherance of the organization’s activities.
Epps and Downs were street lieutenants of the organization’s open-air drug market, and oversaw the sale of crack cocaine to customers. Smith was in charge of overseeing and managing the distribution of crack cocaine at the street shop, collecting proceeds from sales, making sure the organization had a sufficient supply of cocaine, and cooking powder cocaine into crack. On April 28, 2016, Downs was overheard by law enforcement requesting more “shirts” from a co-defendant, which is code for packages of orange-top vials of crack cocaine. Downs and the co-defendant were then recorded by law enforcement meeting outside a nearby stash house where they exchanged a bag containing crack cocaine. On June 1, 2016, an undercover officer approached Epps to purchase 12 vials of crack cocaine. Epps arranged for the undercover officer to purchase the crack cocaine from a lower level street hitter, who Epps supervised.
Brooks was in charge of packaging orange-top vials of crack cocaine for the organization, which were then distributed to street lieutenants who oversaw the street shop and open-air drug market. Law enforcement intercepted text messages in which Brooks discussed the number of vials of crack cocaine that were ready to be distributed. In addition, law enforcement intercepted text messages Smith exchanged with another conspirator discussing purchasing cocaine for the organization for $38,000 per kilogram.
On June 16, 2016, law enforcement seized over 1,100 orange-top vials of crack cocaine from a stash house on Craig Avenue that was used by the organization. On September 1, 2016 law enforcement seized narcotics from another stash house on Reese Street, including 130 grams of raw heroin, 15 grams of crack cocaine, 36 grams of diluted heroin, and 20 orange-top vials of crack cocaine. That same day, law enforcement seized 230 grams of heroin from a bar operated by Smith and used by the organization to conduct drug trafficking operations. Also on September 1, 2016, law enforcement seized a loaded .40 caliber handgun from Epps’ residence that was purchased by, and registered to, Epps’ girlfriend.
Co-defendant Asante Leroy Marshall, age 23, of Baltimore, previously pleaded guilty and was sentenced to 50 months in prison.
Judge Bredar has scheduled sentencing for Smith on August 15, 2017 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Federal Charges Filed Against Maryland State Senator for Accepting Payments in Exchange for Official ActionsRead the Press Release
Baltimore, Maryland – A federal criminal complaint was filed today charging Maryland State Senator Nathaniel Thomas Oaks, age 70, of Baltimore, Maryland, with honest services wire fraud for allegedly accepting illegal payments in exchange for using his official position or influence to benefit an individual on business-related matters. Oaks’ initial appearance is scheduled today at 4:00 p.m. before U.S. Magistrate Judge Mark J. Coulson in U.S. District Court in Baltimore, Maryland.
The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the affidavit filed in support of the criminal complaint, Oaks was a Maryland State Delegate representing District 41 (Baltimore City) from 1994 until being appointed to the Maryland Senate in February 2017, representing the same District.
The affidavit alleges that on September 21, 2015, a cooperating individual (the Cooperator) introduced Oaks to an FBI confidential human source (the CHS) who portrayed himself as an out-of-town businessperson interested in obtaining contracts in the City of Baltimore through a minority-owned business (the Company). The Company is a real business that is operated by a different cooperating defendant who is assisting the FBI with the investigation. The meeting took place at a restaurant in Pikesville, Maryland, and was consensually recorded by the Cooperator and the CHS. During the meeting, Oaks offered to assist the CHS with business development in Maryland.
During the months following the September 21, 2015 meeting between the CHS and Oaks, the CHS consensually recorded numerous telephone and in-person conversations with Oaks during which they discussed possible development and business-related opportunities that may be available to the CHS in Maryland. One such opportunity was a United States Department of Housing and Urban Development (HUD) project (the Project) that the CHS told Oaks that he was interested in developing in the City. Oaks told the CHS that he wanted to help with the HUD project.
According to the affidavit, on March 16, 2016, the CHS discussed paying Oaks for his assistance. The affidavit alleges that, in the Spring and Summer of 2016, Oaks knowingly sent two letters on his official Maryland House of Delegates letterhead supporting the Project. The letters allegedly contained false statements about Oaks’ relationship to the CHS and Oaks’ involvement and knowledge of the Project. The CHS paid Oaks $10,300 for his assistance.
Further, the affidavit alleges that September 22, 2016, the CHS made another $5,000 cash payment to Oaks in exchange for Oaks filing a bond bill with the Maryland Department of Legislative Services (DLS) requesting $250,000 for the Project, which Oaks filed later that same day. On November 21, 2016, the CHS received a forwarded email from Oaks that had been sent to Oaks by a DLS employee, attaching a draft of the bill to establish a $250,000 bond to be used for the Project.
All the money paid to Oaks by the CHS was supplied by the FBI and the meetings were recorded using audio/video recording equipment.
If convicted, Oaks faces a maximum sentence of 20 years in prison for honest services wire fraud.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kathleen O. Gavin and Leo J. Wise, who are prosecuting the case.
Montgomery County Man Indicted Federally for Production of Child PornographyRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Kyle Stephen Thompson, age 31, of Burtonsville, Maryland, on 18 counts of production of child pornography. The indictment was returned late on April 5, 2017.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to the indictment, from May 9, 2015, to January 28, 2017, Thompson allegedly engaged in sexually explicit conduct with three minors, in order to produce visual depictions documenting the abuse.
Investigators believe that Kyle Thompson may have befriended women who have young girls in order to gain access to those girls. Anyone who may have information regarding inappropriate or criminal activity committed by Thompson, or possible victims of Thompson, is asked to contact the Baltimore FBI at 410-265-8080.
If convicted, Thompson faces a mandatory minimum of 15 years in prison and up to 30 years in prison for each of the 18 counts of production of child pornography. Thompson is currently detained on related state charges. Thompson’s initial appearance in U.S. District Court in Greenbelt has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Montgomery County Police Department, and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O'Connell Hayes and Kristi N. O’Malley, who are prosecuting the federal case.
Man Admits Robbing the University of Maryland Inn and Conference CenterRead the Press Release
Greenbelt, Maryland – Jamal Ulysses Green, age 24, of no fixed address, pleaded guilty today to a commercial robbery and to using, brandishing and discharging a firearm during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief David B. Mitchell of the University of Maryland Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, on September 6, 2016, Green and a co-conspirator robbed the University of Maryland University College Inn and Conference Center (UMUC). Green, who was armed and was not wearing a mask, approached a security guard and advised the guard that he was making a delivery to UMUC. The guard followed Green to the loading dock, where Green grabbed the security guard. The security guard fought back. During the altercation Green fired his gun, but did not strike the guard.
Shortly after that, Green’s co-conspirator, wearing a mask and brandishing a handgun, entered the security office of UMUC demanding money and ordering the occupants to the ground. During this time, the security guard involved in the physical altercation with Green on the loading dock returned to the Security Office. As the security guard returned to the Security Office, the co-conspirator appeared in the doorway and fired his gun at the security guard, striking the security guard in the upper left arm, with the bullet going through his/her arm, and lodging next to the security guard’s spine. The injury to the security guard required emergency medical attention. A few seconds later, Green entered the security office. Green and his co-conspirator took three safes from the security office, and fled the area.
Prince George’s County Police Department’s (PGPD) K-9 Unit and Air One helicopter unit responded to 911 emergency calls, and performed a search for the two suspects. Several hours later, a K-9 unit tracked to a wood line directly across the street from the UMUC loading dock. PGPD K-9 found Green in the woods adjacent to the wood line, hiding in overgrown shrubs and trees. Green matched the physical description of the unmasked person seen in the UMUC security video, and was wearing clothing similar in color as one of the suspects who committed the robbery.
Two of the safes taken from the UMUC Security Office were located in the immediate vicinity of where Green was hiding. A third, larger safe, that Green was seen on video carrying out of the security office, was found near the loading dock area concealed amongst trees, next to a.40 caliber semi-automatic pistol. The pistol had a magazine in it, and was loaded with seven rounds of .40 caliber ammunition. The caliber of the firearm was the same as the shell casing found by the loading dock where the security guard was involved in the physical altercation with Green. A forensic analysis of the magazine recovered from the firearm revealed a fingerprint that matches Green’s fingerprint.
Green was arrested and subsequently charged in Prince George’s County District Court with several criminal offenses. Green was detained, at the Prince George’s County Correctional Center (PGCCC). By PGCCC policy, any calls made to or from inmates are recorded. Prior to any conversation, the inmate and the person calling the inmate are advised that the conversation is being recorded. On September 7, 2016, Green made a recorded call to an unidentified male during which he admitted that he fired his gun, but did not hit anybody.
Green faces a maximum sentence of 20 years in prison for the robbery, and a mandatory 10 years and up to life in prison, consecutive to any other sentence imposed, for using, brandishing and discharging a firearm during a crime of violence. U.S. District Judge George J. Hazel has scheduled sentencing for July 12, 2017 at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, University of Maryland Police Department, Prince George’s County Police Department, and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Nicolas A. Mitchell, who prosecuted the case.
Conspirator Admits Scheme to Defraud Movie Finance CompanyRead the Press Release
Baltimore, Maryland – David Odom, age 53, of Chicago, Illinois pleaded guilty today to a wire fraud conspiracy arising from a scheme to defraud lenders from February to August 2011 in order to obtain financing for a movie. Co-conspirator Darryl Wesley Clements, age 50, of Detroit, Michigan, previously pleaded guilty to wire fraud conspiracy. Rodney Patrick Dunn, age 40, of Elkridge, Maryland, pleaded guilty to receipt of a bribe by a bank official.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and Eric M. Thorson, Inspector General for the Department of the Treasury.
According to the plea agreements for the defendants, Rodney Dunn was a vice president and a bank loan officer. In 2009, Dunn met Clements. Dunn believed that Clements was a broker for cash lenders and attempted to raise loan funds through Clements and other loan brokers for an athletic complex in the Newport News area of Virginia. Dunn subsequently agreed that if he received a telephone message where he did not recognize the caller’s name, he would text or telephone Clements with the caller’s information and permit Clements to return the telephone call posing as “Rodney Dunn, bank officer.” Dunn believed he would obtain from Clements valuable contacts with professional athletes that would catapult his career change into sports agency. Clements also promised to pay Dunn for his assistance.
David Odom owned CityScope Productions, LLC, and was seeking financing to produce the movie “Season Tickets.” Odom met Clements through an attorney in New York. Clements created documents falsely stating that CityScope had permanent financing of $13 million for the movie from Bridge Capital and The Shah Group, and that the funds were held in escrow at a bank in Baltimore, where Dunn was employed. In fact, there was no such financing, and there were no escrow funds held at the bank. The false documents further stated that CityScope needed a $2.5 million bridge loan to complete the financing for the movie.
In order to carry out the fraud scheme, Clements created email accounts which appeared to belong to Dunn and The Shah Group, but which Clements actually controlled. February 2011, Dunn purchased five cashiers’ checks from his employer bank, each for $20 and made payable to Clements. Clements then altered the checks so that they totaled $4 million, the payees were individuals and entities affiliated with the movie, and “The Shah Group,” was the remitter. Clements provided the altered checks to Odom/CityScope. Odom knew that the checks were fraudulent since no one had been paid. Clements also fraudulently placed Dunn’s forged signature on escrow agreements and proof of funds statements, which Clements emailed to Odom, so that he could furnish those fraudulent documents to prospective lenders.
Dunn communicated by telephone with Clements when a prospective lender called Dunn at the bank to verify the funds in the escrow accounts, so that Clements could return the telephone call, pose as Dunn, and verify the existence of the escrow accounts and their balances. Odom sought financing from multiple lenders including an unsuccessful attempt thwarted by the prospective lender’s local counsel in Baltimore. Among other things, Clements created a fictitious bank statement for a purported escrow account which Odom admitted he sent to a prospective lender.
In a telephone call on May 9, 2011, Clements posed as Dunn and fraudulently verified the account numbers and balances of the phony escrow accounts to an official of a California company which specialized in providing bridge financing for movies (California finance company). On the same day, the California finance company loaned $2.5 million to CityScope and transmitted the funds by wire, specifying that the funds were to be used solely for movie expenses.
In early 2011, Odom’s house was sold in a foreclosure proceeding to the mortgage lender and Odom was faced with moving or eviction. Odom admitted that he used the bridge loan funds to spend $821,000 to purchase his home back from the lender, approximately $60,000 to buy two cars, approximately $6,000 to take his family on "Exotic Western Caribbean Cruise" by Carnival Cruise, approximately $90,000 in transfers to family members, and another approximately $75,000 in personal expenses. Odom also paid some pre-production movie expenses.
Odom did not repay the loan. The California finance company prepared to have the bank repay the loan from the purported escrow account, leaving messages for Dunn at the bank, which he then passed on to Clements. Clements, posing as Dunn, falsely told the company that the loan repayment had been sent to CityScope. When the California finance company did not receive the funds from CityScope, it brought lawsuits to recover its loan. Because of the allegations contained in the civil law suits, Odom believed that criminal charges would be brought against Clements, and he told Clements his fears. Clements was engaged in another loan fraud and received proceeds of $4 million. In August 2011, Clements transferred $2 million to CityScope, which Odom used to settle the California finance company’s lawsuit.
Odom and Clements face a maximum sentence of 20 years in prison at their sentencings, which U.S. District Judge George L. Russell III has scheduled for July 27, 2017 at 11:30 a.m. and April 28, 2017 at 9:30 a.m., respectively. Rodney Dunn faces a maximum sentence of 30 years in prison at his sentencing, which Judge Russell has scheduled for June 9, 2017, at 9:30 a.m.
Today’s announcement is part of the efforts undertaken in connection with the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’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.
United States Attorney Rod J. Rosenstein commended the FBI, SIGTARP, and the Treasury Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Joyce K. McDonald and Rachel M. Yasser, who are prosecuting the case.
Baltimore Conspirator Sentenced to over Three Years in Federal Prison for Stolen Identity Refund Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Adebola Opeyemi Adeniyi, age 32, a Nigerian citizen living in Baltimore, today to 42 months in prison, followed by three years of supervised release, for conspiring to commit wire fraud in a stolen identity refund fraud (SIRF) scheme. Adeniyi admitted that the conspirators defrauded the IRS by using the personal identifying information (PII) of individual victims to obtain over $655,000 in fraudulent tax refunds. Judge Motz also entered an order requiring Adeniyi to pay restitution of $550,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to his plea agreement, from October 17, 2013 through March 17, 2015, Adeniyi and his co-conspirators filed false tax returns, arranging for the electronic transfer of the fraudulently obtained tax refunds to prepaid debit cards. Adeniyi also obtained victims’ account information from the 2013 Target Store data breach, which he and other participants in the scheme used to re-encode the magnetic strips of payment cards in their possession. Adeniyi and other participants used the debit cards loaded with SIRF funds and the re-encoded payment cards to purchase money orders, which the conspirators cashed at check cashing businesses. Adeniyi shared the cash proceeds with other participants in the scheme. The total value of money orders purchased with SIRF funds and cashed by Adeniyi or at his direction was at least $665,635. The total value of money orders purchased with account information compromised during the Target Store data breach and cashed at Adeniyi’s direction was at least $80,500. At least $100,874 in SIRF funds were loaded onto prepaid debit cards for which co-conspirator Mayowa Towobola provided account numbers and security codes to Adeniyi and other participants in the scheme, and the total value of fraudulently obtained money orders cashed by Towobola was at least $58,524. In text messages found on Adeniyi and Towobola’s cell phones, seized during searches executed on July 21, 2015, they discuss loading a total of at least $1,237,358 in fraudulently obtained funds onto various prepaid debit cards.
Further, Adeniyi admitted that he used some of the money orders obtained from the two schemes to: purchase vehicles at auctions in Maryland, and arrange for their shipment to purchasers in Nigeria; and to engage in currency exchange transactions, exchanging U.S. currency for Nigerian currency at competitively low rates.
Co-conspirators Mayowa Olabiyi Towobola, age 26, a resident of Parkville, Maryland, and Hafis Omowonuola Oladokun, age 39, of Owings Mills, Maryland, previously pleaded guilty to their involvement in the wire fraud conspiracy and were sentenced to 33 months in prison, and two years in prison, respectively. Judge Motz also ordered Towobola to pay restitution $159,398. Adeolu Adeola Solabu, age 25, of Baltimore, also pleaded guilty and is scheduled to be sentenced on April 14, 2017, at 11:00 a.m.
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 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.
United States Attorney Rod J. Rosenstein commended HSI-Baltimore, IRS-CI and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew J. Maddox and Paul E. Budlow, who are prosecuting the case.
Maryland Rap Star Known as “Big Flock” Sentenced to Federal Prison on Gun and Drug Charges After Publishing “Letter to the World”Read the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Charles Ulysses Bowman-Bey, a/k/a “Big Flock,” age 24, of Upper Marlboro, Maryland, today to 45 months in prison, followed by three years of supervised release for being a felon in possession of firearms and possession with intent to distribute Alprazolam.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Hank Stawinski of the Prince George’s County Police Department.
“Charles Bowman-Bey realized too late that ‘the streets don’t love anybody,’ as he wrote in his letter to the world, apologizing for his life of crime and his music videos glorifying drug dealing and gang violence,” said U.S. Attorney Rod J. Rosenstein. “His letter should be required reading for young drug dealers.”
According to his plea agreement, on October 19, 2016, law enforcement executed a search warrant at Bowman-Bey’s residence and recovered: a loaded 5.7x28mm semiautomatic handgun, equipped with a laser sight; a .40 caliber semiautomatic handgun; a .380 caliber semiautomatic handgun; rounds of ammunition of various calibers; a loaded drum-style extended magazine; a .40 caliber extended magazine; $5,561 in cash; 94 tablets of Alprazolam, as well as some ground-up Alprazolam; and a digital scale.
Bowman-Bey admitted that he possessed the Alprazolam to distribute to others and that the $5,561 in cash was the proceeds of his drug dealing. Bowman-Bey also admitted possessing the firearms in furtherance of his drug trafficking, as well as for protection. Bowman-Bey had a previous felony conviction and was prohibited from possessing firearms and ammunition.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael T. Packard and Thomas J. Sullivan, who prosecuted the case.
Maryland Pimp Pleads Guilty to Being a Felon in Possession of Firearms and to Enticing and Coercing Women to Travel to Engage in ProstitutionRead the Press Release
Baltimore, Maryland – Jason David Young, a/k/a Bird, J Bird, and Chris, age 33, of New Carrollton, Maryland, pleaded guilty today to illegal possession of firearms and to enticing and coercing women to travel across state lines to engage in prostitution.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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 Hank Stawinski 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 several online advertisements were posted 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 occasion on 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 wouldn’t 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 in exchange for Young collecting the proceeds of their commercial sex acts. Young controlled all of the women’s money and movements, threatening 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.
Young and the government have agreed that if the Court accepts the plea agreement Young will be sentenced to 20 years in prison, followed by five years of supervised release. U.S. District Judge George L. Russell III has scheduled Young’s sentencing for June 16, 2017, at 2:00 p.m. Young has been detained since his arrest in October 19, 2015.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein 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. Rosenstein 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 are prosecuting the case.
Former Baltimore Man Sentenced to Seven Years in Federal Prison for 2011 Post Office RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jeffrey Jackson, age 51, formerly of Baltimore, Maryland today to seven years in prison, followed by five years of supervised release, for the armed robbery of a post office.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division.
“Although these types of crimes are rare, our employees and customers can rest assured that Postal Inspectors will always continue to pursue justice for criminals who would jeopardize their safety,” said Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division. He continued, “We extend sincere gratitude to our law enforcement partners who assisted in bringing this investigation to a successful resolution.”
According to his plea agreement, on August 3, 2011, Jackson and another man robbed the Perry Point U.S. Post Office in Cecil County, Maryland at gunpoint. One robber vaulted the counter and ordered the Postmaster to open the cash drawer. After taking cash from the drawer, both robbers forced the Postmaster to open the safe, and the robbers removed additional cash and money orders. The Postmaster was forced into a utility closet and instructed to stay there for five minutes or the robbers would kill the Postmaster. Postal inspectors determined that in addition to cash, approximately 60 blank postal money orders were stolen.
Many of the postal money orders were negotiated at locations in and around Baltimore. Postal Inspectors interviewed several individuals who negotiated the stolen and altered postal money orders. One of those individuals admitted receiving the stolen postal money orders from “Jeff,” whom the individual identified in a photograph as Jeffrey Jackson. Jackson provided that individual with details about the robbery that could only have been known to someone that was at the robbery.
An eyewitness to the robbery subsequently identified Jackson in a photo lineup. That person had come in to the Post Office during the robbery. There was no one behind the counter. A minute later, Jackson came out of a back room and told the witness to come back later because the Postmaster was “too busy to help right now.” The eyewitness left and immediately went to the Perry Point Veterans Administration (VA) Police Department to report the suspicious activity. Postal Inspectors and Perry Point VA Police responded to the robbery.
After Jackson’s arrest on unrelated state burglary charges, Jackson contacted police to say he had information about the postal robbery at Perry Point. Jackson was interviewed by Postal Inspectors and provided non-public information about the post office robbery that could only have been known by the robbers. As a result of the robbery, the loss to the USPS was approximately $19,700 in cash and negotiated stolen postal money orders.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service for its work in the investigation and thanked the VA Office of Inspector General, Perry Point VA Police Department, Perryville Police Department, and Maryland State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson, Paul E. Budlow and Rachel Miller Yasser, who prosecuted the case.
Armed Robber Sentenced to over 10 Years in Federal Prison for Violent Fast Food Restaurant RobberyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Rodney Levon Davis, age 47, of Upper Marlboro, Maryland, today to 121 months in prison, followed by three years of supervised release, for robbery, and for using, brandishing, and discharging a firearm during the robbery of a fast food restaurant in Prince George’s County.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, on December 24, 2014, Davis approached a fast food restaurant on Landover Road in Hyattsville, Maryland wearing a hooded jacket and an “Iron Man” mask. At the entrance, Davis brandished a revolver at an employee. The victim stated that he did not have a key to the safe and that the manager was not present. Davis shoved the revolver into the victim’s back and threatened to shoot the victim if the victim didn’t comply with his demands. Davis then hid behind a brick wall and waited for the manager to return to the restaurant.
Once the manager arrived, Davis used the revolver to enter the restaurant and directed the victim, manager and several other employees into the manager’s office. Davis demanded that the manager open the safe, from which Davis stole money.
While the employees were in the manager’s office, Davis discharged the revolver. He also sprayed lighter fluid on the wall and floor, and ignited the lighter fluid. Davis and the employees rushed out of the office to the front of the restaurant. Davis removed additional money from the cash registers and fled. The manager chased after Davis and Davis fired at least two shots, which struck the side of the restaurant.
Davis got into his vehicle and drove away. Prince George’s County police attempted to stop Davis’ vehicle, but Davis led them on a high speed chase. Eventually, Davis stopped his vehicle in the middle of the intersection of Marlboro Pike and Nova Avenue in Prince George’s County. Officers arrested Davis and seized the “Iron Man” mask, a bag containing $2,095, a revolver which contained three spent cartridges and three live rounds, and bottles of lighter fluid. Approximately $73 stolen from the restaurant was not recovered.
Davis subsequently admitted that he robbed the restaurant because he was upset that his employment with that restaurant had been terminated.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Menaka S. Kalaskar, who prosecuted the case.
Owner of Medical Equipment Provider Sentenced to 12 Years in Federal Prison for Collecting A Debt by Extortion and for Tax and Health Care Fraud ConspiraciesRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Harry Crawford, age 57, of Baltimore, Maryland, on March 28, 2017, to 12 years in prison, followed by three years of supervised release. Crawford previously pleaded guilty to collection of a debt by extortionate means from victim David Wutoh; conspiracy to commit health care fraud; and conspiracy to defraud the United States, for not reporting income from the health care fraud scheme on his taxes.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, Crawford owned, and was President and CEO of RX Resources and Solutions (RXRS), a durable medical equipment provider located in Randallstown, Maryland. Beginning in 2012, co-defendant Matthew Hightower worked as a delivery driver for RXRS.
According to his plea agreement, in 2013 Crawford approached Hightower to facilitate a loan to Crawford’s longtime friend, David Wutoh. Wutoh promised Hightower an enormous rate of return. In exchange for $15,000 in cash, Wutoh would pay Hightower $20,000 within a short period of time. Crawford also loaned Wutoh at least $6,000 of his own money. Wutoh did not pay either man back the money he had borrowed, as a result, from May through September 2013, Crawford and Hightower used cellular telephones and electronic messaging to harass, threaten, and coerce Wutoh to repay the loans.
For example, according to the plea agreement, on June 7, 2013, Wutoh sent an electronic message to Crawford stating, “Battery dying.” Crawford responded, “You will be also. Stop playing with people’s money.” On September 13, 2013, Crawford sent an electronic message to Wutoh telling him to put him in his will. Wutoh responded to Crawford, “you are.” As of September 21, 2013, Wutoh had not repaid Crawford or Hightower all of the money he borrowed from them.
According to Crawford’s plea agreement, on the evening of September 21 and the early morning hours of September 22, 2013, Hightower traveled from West Baltimore to East Baltimore County in the area of Wutoh’s home. At about 2:50 a.m. on September 22, 2013, Wutoh was shot in the living room of his home, by an assailant who fired multiple shots through the front window. According to the plea agreement and evidence presented in court, moments later, Hightower answered a phone call on a phone registered in another person’s name. Records showed the phone was located in close proximity to the house where Wutoh was murdered.
During interviews conducted with Crawford by law enforcement officers investigating the murder, Crawford never disclosed Hightower’s outstanding loan to Wutoh, nor Crawford’s efforts to have Wutoh repay it. When asked directly whether Hightower had any reason to harm Wutoh, Crawford said, “No.”
Co-defendant Matthew Hightower, age 34, also of Baltimore, was convicted of extortion and the murder of David Wutoh on September 22, 2016, after a seven-day trial and sentenced to 380 months in prison. Health care fraud charges remain pending and a trial date has not been set.
Further, Crawford admitted that from 2010 through May 2014, he conspired with co-defendant Elma Myles, who was a biller at RXRS, to defraud Medicaid and other health benefit programs by having RXRS bill for adult incontinent supplies (diapers) that were never provided, overcharge for supplies actually delivered, and bill for supplies that were unneeded and had not been prescribed by a physician. Myles and Crawford lived together and were once domestic partners.
According to their plea agreements, Crawford and Myles used the personal identity information of clients to submit fraudulent claims to Medicaid and other health care benefits programs for disposable medical supplies that were not delivered to the beneficiary. In addition, Crawford and his co-conspirators delivered medical supplies to beneficiaries who did not need the supplies and whose physicians had not prescribed the supplies, even after the beneficiaries reported that they did not want or need the supplies. According to the plea agreement, a co-conspirator would sign or have someone else sign delivery tickets when deliveries had not actually taken place so that the records of RXRS would falsely document the delivery.
On February 4, 2014, federal agents executed a search warrant at RXRS and Crawford and Myles’s home. Agents recovered almost $60,000 in cash from a clothes bin beside the bed in Crawford’s room, and boxes of patient files from the house. A review of bank records shows that Crawford used the proceeds of the fraud directly for the accounts of RXRS, using a significant portion of the proceeds for his personal benefit, including mortgage payments, personal travel, restaurants, and social events. In addition, Myles had made a makeshift closet containing tens of thousands of dollars’ worth of clothing and designer shoes, including apparel for her then three-year-old granddaughter who competed in beauty pageants. From RXRS agents recovered emails documenting a criminal plan at the inception of RXRS, and fraudulent delivery tickets from December 2013 and January 2014.
An analysis of RXRS billing of Medicaid from 2007 through 2014 establishes that the loss to Medicaid just for incontinent supplies billed but not provided is approximately $1.2 million. A review of bank records shows that Crawford and Myles used the proceeds of the fraud directly for the accounts of RXRS, using a significant portion of the proceeds for their personal benefit, including clothing, personal cars, mortgage payments, payments to Myles’ daughter and to a business entity set up for the benefit of Myles’ daughter, to a private school for their granddaughter, personal travel, restaurants, and hosting social events. Finally, Crawford admitted that he conspired to defraud the United States by not reporting or paying taxes on the proceeds of the fraud. The IRS determined that Crawford owes $102,782.17 in federal taxes and $25,000 for state taxes for tax years 2010 through 2013. Judge Garbis ordered Crawford to pay restitution in those amounts.
On March 2, 2017, Judge Garbis sentenced Elma Myles, age 52, of Baltimore, to four years in prison, in connection with her role in a health care fraud scheme, aggravated identity theft, and conspiracy to defraud the United States for failing to file income tax returns. Judge Garbis also ordered Myles to pay restitution of $1,207,585.38 to Medicaid.
United States Attorney Rod J. Rosenstein commended the HHS-OIG, IRS, and Baltimore County Police Department for their work in the investigation, and thanked the Maryland Attorney General’s Office Medicaid Fraud Control Unit for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky, Judson T. Mihok, and Sandra Wilkinson, who are prosecuting the case.
Baltimore Area Retailer Sentenced to Federal Prison for Food Stamp FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Muhammad Sarmad, age 41, of Nottingham, Maryland, to 18 months in prison, followed by three years of supervised release, for conspiracy to commit food stamp fraud and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. At the sentencing on March 27, 2017, Judge Bennett also ordered that Sarmad pay restitution of $3,550,662.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation.
“The food stamp program can be exploited by criminals like Muhammad Sarmad, who take advantage of the fact that the Department of Agriculture trusts retailers to actually provide food in return for taxpayer money,” said U.S. Attorney Rod J. Rosenstein.
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers must bill the government only in return for providing approved food items.
Sarmad, co-defendant Mohammad Irfan, and other family members owned and/or operated New Sherwood Market, 6324 Sherwood Road in Northwood, Maryland; Martin Mart, 1504 Martin Boulevard in Middle River, Maryland; Rosedale Mart, 6326 Kenwood Avenue in Rosedale, Maryland; and M&A Mart 7400-A Belair Road in Baltimore. All of the stores were authorized to accept SNAP, except the M&A Mart. According to their plea agreements, from October 2010 through at least July 2016, Sarmad, Irfan, and their co-conspirators exchanged EBT benefits for cash, in violation of the food stamp program rules. Sarmad, Irfan, and their co-conspirators typically paid half the value of the EBT benefits in cash. To avoid detection, they often debited the funds from the card in multiple transactions over a period of hours or days, or called a different store where the transaction was processed manually. Since the M&A Mart was not authorized to accept SNAP, Sarmad or a co-conspirator would call one of the other stores to run the transaction at the other store and then hand out the cash at M&A Mart.
Sarmad, Irfan and their co-conspirators received instruction regarding the requirements and regulations of the food stamp program, including that only eligible food items could be exchanged for EBT benefits, and that a retailer may never exchange EBT benefits for cash or non-food items. Sarmad admitted that from October 2010 through August 2016, Sarmad and his co-conspirators obtained more than $3.5 million in payments for food sales that never occurred or were substantially inflated.
In addition to Sarmad and Irfan, nine other retail store operators have pleaded guilty to their roles in similar schemes to illegally redeem food stamp benefits in exchange for cash, and are awaiting sentencing. Three other defendants are scheduled to go to trial later this year.
Mohamad Irfan, age 59, of Baltimore, previously pleaded guilty to conspiracy to commit wire and food stamp fraud, and faces a maximum sentence of five years in prison. Judge Bennett has scheduled sentencing for Irfan on May 9, 2017 at 11:00 a.m. Irfan is detained pending sentencing.
United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Kathleen O. Gavin, who prosecuted Sarmad and Irfan.
Six Alleged MS-13 Members Indicted in Federal Court for Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland – A federal grand jury returned a second superseding indictment charging six men in connection with a conspiracy to participate in a racketeering enterprise known as the La Mara Salvatrucha, or MS-13. The indictment was returned on March 27, 2017 and charges the following defendants:
Jose Augustin Salmeron-Larios, a/k/a Joseph Morales-Martinez, Angel Salvador Gutierrez,
Yankee, and Kean, age 24, of Severn, Maryland;Noe Coreas-Mejia, a/k/a Tsunami, age 20, of Langley Park, Maryland;
Oscar Ernesto Delgado-Perez, a/k/a Indio and Complicado, age 28, of Gaithersburg, Maryland;
Juan Carlos Espinal-Rapalo, a/k/a Chiki, age 19, of Gaithersburg;Daniel Adonai Ramos-Romero, a/k/a Taylor Romero and Binga, age 20, of Gaithersburg; and
Kevin Henriquez-Chavez, a/k/a Loco and Crazy, age 22, of Washington Grove, Maryland.
All of the defendants are in custody.
The second superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief J. Thomas Manger of the Montgomery County Police Department; Chief Hank Stawinski of the Prince George’s 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 international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 cliques often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. In Maryland and the surrounding area, these cliques include Parkview Locos Salvatrucha (“PVLS”), Normandie Locos Salvatrucha (“NLS” or “Normandie”), Sailors Locos Salvatrucha Westside (“SLSW” or “Sailors”), Langley Park Salvatrucha (“LPS”), Weedoms Locos Salvatrucha (“Weedoms”), and Cabanas Locos Salvatruchas (“Cabanas”). To protect the gang and to enhance its reputation, MS-13 members and associates are expected to use any means necessary to force respect from those who show disrespect, including acts of intimidation and violence. MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controlla,” which translates to, “kill, steal, rape, control.”
MS-13 members and associates meet in their clique on a regular basis to discuss gang affairs and report on acts of violence committed by their members, with the goal of inciting and encouraging further violence. Any perceived indiscretions by members and associates or violations of rules are talked about at clique meetings and punishments or “violations” are issued. Violations often take the form of beatings by fellow members. More serious violations result in the issuance of a “greenlight.” A greenlight is an order and/or approval to kill.
According to the indictment, Salmeron-Larios was a member of the PVLS clique and a leader within MS-13 in Maryland. Corea-Mejia was a member and associate of the PVLS clique; Delgado-Perez was a member of the SLSW clique; and Espinal-Rapalo, Ramos-Romero and Henriquez-Chavez were members and associates of the Cabanas clique
The 11-count indictment alleges that from before 2015 through 2017, the defendants were members and associates of MS-13 who planned and committed murders, attempted murders and extortion. The defendants and other MS-13 members and associates agreed to purchase, maintain, and circulate weapons and firearms for use in criminal activity by MS-13 members. In addition, the defendants and other MS-13 members and associates received income from sources including extorting business persons, and drug distribution. Funds obtained through criminal activities were used for gang purposes such as obtaining weapons and providing support for MS-13 gang members, including those in prison in the United States and in El Salvador.
According to the indictment, on November 1, 2015, Espinal-Rapalo, Ramos-Romero, Henriquez-Chavez and another member of the Cabanas clique planned to kill a person that Espinal-Rapalo and other MS-13 members had previously robbed, because they believed the victim was associated with a rival gang. That same day, Espinal-Rapalo and Ramos-Romero lured the victim to a wooded area behind a school in Montgomery Village, where they each shot the victim, killing him.
The indictment further alleges that in November 2015, Salmeron-Larios and other MS-13 members and associates planned to kill an individual and lured that person to a location in Prince George’s County, under the guise that a female would be meeting the victim at that location. An MS-13 associate who was with Salmeron-Larios at the location attempted to kill the victim and another person on November 7, 2015. According to the indictment, on December 6, 2015, Coreas-Mejia and other MS-13 members and associates assaulted a victim as part of a disciplinary proceeding, where the victim was beaten by MS-13 members and associates while Coreas-Mejia counted. The indictment alleges that after the victim reported the assault to police, Coreas-Mejia and other MS-13 members lured the victim to a secluded area beneath an Interstate 495 overpass in the Silver Spring area, where they killed the victim. In June 2016, the indictment alleges that Delgado-Perez directed a MS-13 associate to lure a person to a wooded area in the Gaithersburg, Maryland, area of Montgomery County, where Delgado-Perez and MS-13 members and associates murdered the victim.
The indictment alleges that between January and December 2015, Coreas-Mejia and others extorted money from two victims, and from 2015 through 2016, Salmeron-Larios collected “rent” or extortion money from illegal businesses operating throughout Prince George’s County. Finally, Henriquez-Chavez is alleged to have threatened to kill a victim, and the victim’s family, if that person did not prove that they were not cooperating with law enforcement.
The defendants all face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise. Coreas-Mejia also faces life in prison for murder in aid of racketeering. All the defendants, except Delgado-Perez, also face a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering. Salmeron-Larios also faces: a maximum sentence of 10 years in prison each, for attempted murder in aid of racketeering, and for transfer of a firearm for use in a crime of violence; a mandatory 10 years in prison, consecutive to any other sentence, and up to life in prison, for using and carrying a firearm during a crime of violence; and a maximum of 20 years in prison for drug distribution conspiracy. Espinal-Rapalo and Ramos Romero each also face a maximum of 20 years in prison for conspiracy to use and carry a firearm during a crime of violence. Henriquez-Chavez also faces a sentence of 20 years in prison for witness tampering.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Prince George’s County Police Department, Montgomery County Police Department, Prince George’s County State’s Attorney’s Office, and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Montgomery County and Prince George’s County Departments of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Ray D. McKenzie, William D. Moomau and Lindsay Eyler Kaplan, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Maryland MS-13 Member Pleads Guilty to Federal Charges of Conspiracy and Attempted Murder in Aid of RacketeeringRead the Press Release
Greenbelt, Maryland – Celvin Eulice Ramos-Meija, a/k/a “Cadejo,” age 21, of Columbia, Maryland, pleaded guilty today to conspiracy and attempted murder in aid of racketeering related to his membership in La Mara Salvatrucha, or MS-13.
The guilty plea announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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 Tom Kemp of the Greenbelt Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick, Maryland. MS-13 members are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to the plea agreement, from at least 2012 until at least 2016, Ramos-Mejia was a member and associate of the Sailors Locos Salvatrucha Westside (“SLSW,” or “Sailors”) clique of MS-13. In order to maintain and increase his position in MS-13, Ramos-Mejia admitted that he and other members and associates of MS-13 conspired to murder a victim that Ramos-Mejia and his co-conspirators had identified as a “chavala.”
Specifically, on June 6, 2016, Ramos-Mejia and other members and associates of MS-13 approached the victim in Greenbelt, Maryland. Ramos-Mejia made an MS-13 sign in the face of the victim, and then he and his co-conspirators began to attack the victim. Ramos-Mejia was armed with a knife and stabbed the victim during the attack. The victim survived the attack but sustained multiple stab wounds and injuries including lacerations to his abdomen, liver, and diaphragm. The victim was hospitalized for ten days as a result of the attack.
Ramos-Mejia faces a maximum sentence of 10 years in prison each for the conspiracy, and for attempted murder in aid of racketeering. U.S. District Judge Peter J. Messitte has scheduled sentencing for June 22, 2017, at 9:30 a.m.
United States Attorney Rod J. Rosenstein and Acting Assistant Attorney General Kenneth A. Blanco commended HSI Baltimore, the Greenbelt and Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office, for their work in the investigation and prosecution. Mr. Rosenstein and Mr. Blanco thanked Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan, and Trial Attorney Francesca Liquori of the Justice Department’s Organized Crime and Gang Section, who are prosecuting the case.
MS-13 Member Pleads Guilty to Conspiring to Commit Murder in Aid of RacketeeringRead the Press Release
A Columbia, Maryland, man pleaded guilty today to his participation in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including his participation in an attempted murder.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James Tom Kemp of the Greenbelt Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
Celvin Eulice Ramos-Meija, aka Cadejo, 21, Ramos-Mejia pleaded guilty before U.S. District Judge Peter J. Messitte in the District of Maryland to conspiracy to commit murder in aid of racketeering and attempted murder in aid of racketeering. Ramos-Mejia had been detained on related Maryland state charges since June 2016. Sentencing is set for June 22, 2017.
MS-13 is a national and international gang that was formed and is headquartered in 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, Maryland. MS-13 members are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to his plea agreement, Ramos-Mejia admitted that for the purpose of maintaining and increasing his position in MS-13, he conspired with other MS-13 members to murder a victim that he and his co-conspirators had identified as a “chavala.”
Specifically, the Ramos-Mejia admitted that on June 6, 2016, he and other members and associates of MS-13 approached the victim in Greenbelt, Maryland. The defendant made an MS-13 sign in the face of the victim, and then he and his co-conspirators began to attack the victim. The victim survived the attack, but sustained multiple stab wounds and injuries, including lacerations to his abdomen, liver and diaphragm. The victim was hospitalized for 10 days as a result of the attack.
HSI Baltimore, the Greenbelt Police Department, the Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office investigated the case. Trial Attorney Francesca Liquori of the Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland are prosecuting the case.
Waldorf Man Sentenced to Eight Years in Federal Prison for Committing Two Bank Robberies in Less Than a WeekRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Joshua Francisco Miranda, age 29, of Waldorf, Maryland, today to eight years in prison, followed by five years of supervised release, for committing two bank robberies in March 2016. Judge Chuang also entered an order requiring Miranda to pay restitution of $7,800.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement, on March 23 and March 29, 2016, Miranda robbed banks in Accokeek and Fort Washington, Maryland, respectively. In each robbery Miranda entered the bank and gave the teller a note demanding $5,000. The notes also threatened that Miranda had a bomb which he would detonate if the teller did not comply with his demand. Surveillance footage and witness testimony showed that in each robbery Miranda had a wire coming out of one of his shirt sleeves. Miranda stole a total of $7,800 from the two banks. At the time of these robberies, Miranda was on parole and probation for three previous state robbery convictions.
United States Attorney Rod J. Rosenstein commended the FBI, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas M. Sullivan, who prosecuted the case.
Former Vice President of National Construction Company Pleads Guilty to Stealing over $4.5 Million from EmployerRead the Press Release
Baltimore, Maryland – Wendy Collins, age 46, of Woodbine, Maryland, pleaded guilty today to wire fraud, in connection with a scheme in which she stole more than $4.5 million from her employer.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division.
According to her plea agreement, Collins worked at a national construction company (the “Company”) with projects throughout the United States. In 2010, Collins was promoted to the Company’s Vice President of Administration, and was responsible for managing the Company’s finances, including payroll, accounting, petty cash, health reimbursement account (HRA) and overseeing payments to the Company’s subcontractors and employees. Collins also had access to the Company’s bank and credit card accounts, including multiple American Express credit card accounts.
Collins admitted that from April 2012 through September 2016, she stole money from the Company in several different ways. Specifically, Collins caused unauthorized withdrawals from the Company’s petty cash account and HRA account transfers to her personal accounts, totaling at least $367,435.52; used $3,814,578.17 in Company’s funds to pay the credit card bills for herself, family members and others; and caused unauthorized increases to her company bonus checks, totaling at least $164,970. In addition, Collins approved invoices related to payments for construction work to be completed at her residence with Company funds, and signed a $25,000 check from the Company’s funds to be paid to a family member’s business.
In some instances, in order to facilitate and conceal the unauthorized credit card charges, Collins created fraudulent expenses and accounting entries in the Company’s financial ledgers and internal credit card reports, which she then paid with the Company’s funds. To further her scheme, Collins “linked” the personal credit card accounts held by her, her family, and her friends, to the Company’s bank accounts so that automatic payments would be made by the Company’s bank account toward the balances owed on Collins’ personal credit card accounts and those associated with her family and friends. Collins, her family members, and her friends charged luxury items that were paid for with Company funds, including: more than $90,000 at Del Frisco’s Steak House; more than $90,000 at Ethan Allen, William Sonoma and Pottery Barn; more than $55,000 for Washington Redskins tickets; more than $14,500 at a Napa, California Vineyard as well as $1,400 for beauty products at Estee Lauder and Kiehl’s Since 1851. Also purchased with the credit cards were: a Porsche 911 Carrera, a Porsche Macan GTS, a Mercedes-Benz G550, a Dodge Ram Truck, a Mazda CX-3, a Mazda MX-5 race car, as well as a Haulmark Trailer, using the Company’s funds.
Further, Collins admitted that she forged the signature of her longtime employer, the President of the Company, multiple times from 2014 through 2016, in order to conceal and complete the unauthorized increases to her bonus checks.
As part of her plea agreement, Collins will be required to forfeit the vehicles and pay a money judgment of at least $4,273,749.83.
Collins faces a maximum sentence of 20 years in prison for wire fraud. U.S. District Judge Marvin J. Garbis has scheduled sentencing for June 26, 2017 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI and the U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Philip A. Selden and Evan T. Shea, who are prosecuting the case.
Essex Man Sentenced to 10 Years in Federal Prison for Receiving and Possessing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Carl Javan Ross, age 30, of Essex, Maryland, today to 10 years in prison, followed by lifetime supervised release, for receipt and possession of child pornography. Judge Motz ordered that the federal sentence be consecutive to the state sentence Ross is currently serving for sexual abuse of a minor. Judge Motz also ordered that upon his release from prison, Ross 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). Ross was convicted by a federal jury on December 7, 2016, after 30 minutes of deliberation.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to the evidence presented at his three-day trial, on July 2, 2015, an undercover Baltimore County detective was conducting an online investigation looking for offenders sharing child pornography on certain file sharing networks. The detective downloaded two video files documenting the sexual abuse of prepubescent children from an IP address later identified as being used by Ross.
Trial testimony showed that law enforcement executed a search warrant at Ross’ residence on July 28, 2015, and recovered his laptop computer. A preview of the computer showed that it contained a user hash, which is a unique value assigned by the file sharing program, identical to that of the computer that shared the two videos of child pornography downloaded by the detective. In addition, investigators found search terms indicative of child pornography and digital images of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States 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 Rod J. Rosenstein commended HSI Baltimore, the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul E. Budlow and Paul Riley, who prosecuted the federal case.