District of Maryland
Press releases recorded for this federal judicial district.
Medical Director at a “Pill Mill” Sentenced to Federal Prison for Distributing Oxycodone Without a Medical NeedRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Daniel Alexander, age 53, of Pikesville, Maryland today to 18 months in prison, followed by three years of supervised release, for conspiring to distribute oxycodone and alprazolam. Chief Judge Blake also ordered Alexander to forfeit $30,000.
The sentence was 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; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
“Physician Daniel Alexander prescribed opioid drugs to people who had no medical need for the drugs,” said U.S. Attorney Rod J. Rosenstein. “In doing so, he violated his medical oath and distributed misery instead of medicine. Pharmaceutical pills can be just as harmful as illegal drugs when they are prescribed without a legitimate medical purpose.”
According to his plea agreement and court documents, in March 2011, co-defendants Michael Resnick, Alina Margulis and Gerald Wiseberg opened Healthy Life in Owings Mills, Maryland as a purported pain management clinic. Healthy Life later moved to a larger space in Timonium, Maryland, until it closed on May 15, 2012. Both Healthy Life locations attracted large and unruly crowds. Customers caused disturbances outside the locations, used narcotics inside the clinic itself, and engaged in narcotics transactions in the parking lot. Over 80% of the customers of Healthy Life were from out of state.
Wiseberg hired physician William Crittenden to serve as the medical director at Healthy Life because Wiseberg believed that Crittenden would write prescriptions for narcotics to customers without a legitimate medical need. Crittenden resigned as the medical director in August 2011, when the Maryland Board of Physicians—the agency authorized to issue licenses to practice medicine in Maryland and to discipline licensees—initiated an investigation into his prescribing practices. This investigation ultimately led the Maryland Board of Physicians to suspend Crittenden’s medical license.
In September 2011, Resnick, Margulis and Wiseberg hired Alexander because they believed that Alexander would likewise write drug prescriptions to customers without a legitimate medical need. Specifically, Margulis told Alexander that Healthy Life only prescribed pills and did not offer any alternative therapies.
In order to increase profits, Alexander spent a limited amount of time with each patient so that he could see a very large number of patients each day. Indeed, the owners nicknamed Alexander “Speedy Gonzalez” because of the rapidity with which he processed patients seeking narcotics. From September 2011 to March 2012, Alexander issued prescriptions to 627 patients on 946 separate office visits. Of those 946 visits, the customer received a prescription for oxycodone 97% of the time, and a prescription for alprazolam 23% of the time, despite Alexander’s knowledge that many of the customers did not have a legitimate medical need for the drugs. In a few instances, Alexander prescribed oxycodone to customers who he simultaneously discharged from Healthy Life, based on indications they were abusing illicit drugs. Alexander was paid $150 per hour, and received a total of $30,000 for his activities in the scheme.
Resnick, Margulis and Wiseberg, who were not doctors, established the standard operating procedures for Healthy Life, including which drugs the prescribing physician could prescribe and the maximum dosage amounts of these drugs. Healthy Life accepted cash payments in exchange for providing prescriptions for large amounts of oxycodone, alprazolam and other drugs, to customers who did not have a legitimate medical need for the drugs.
To maximize profits, they also encouraged the prescribing physicians to prescribe the maximum amount of oxycodone to each customer; and established that prescriptions would be written for 28-day cycles as opposed to 30-day cycles. Additionally, Margulis and Resnick handled complaints by Healthy Life customers who were unhappy with the prescriptions they received, particularly when a medical provider might prescribe less oxycodone than the customer wanted. In those instances, Margulis and Resnick would intervene and ask the prescribing medical provider to reconsider, knowing it would lead the provider to give the customer what the customer wanted.
Michael Resnick, a/k/a Michael Reznikov, age 55, and his wife, Alina Margulis, age 49, both of Brooklyn, New York, previously pleaded guilty to conspiracy to distribute oxycodone and alprazolam. Margulis also pleaded guilty to money laundering, and Resnick also pleaded guilty to structuring currency deposits. Chief Judge Blake sentenced Resnick to three years in federal prison and sentenced Margulis to a year and a day in prison and ordered that Resnick and Margulis forfeit $280,000, the amount of illicit profits they received from the scheme. Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 82, of Boca Raton, Florida, also pleaded guilty to his participation in the conspiracy and was sentenced to three years in prison. Chief Judge Blake also entered an order that Wiseberg forfeit $273,000.
Physician William Crittenden III, age 52, of Kensington, Maryland, who served as a medical director at Healthy Life before Alexander, was convicted at trial of conspiring to distribute oxycodone and alprazolam, and eight separate counts of unlawfully distributing oxycodone and was sentenced to three years in prison.
United States Attorney Rod J. Rosenstein commended DEA, IRS-CI, Baltimore County Police Department and Baltimore County State’s Attorneys’ Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Peter J. Martinez, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Essex Man Convicted by Federal Jury for Receiving and Possessing Child PornographyRead the Press Release
Baltimore, Maryland – A federal jury convicted Carl Javan Ross, age 30, of Essex, Maryland, for receipt and possession of child pornography. The verdict was returned on December 7, 2016, after 30 minutes of deliberation.
The conviction 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 a search warrant was executed at Ross’ residence on July 28, 2015, and law enforcement 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, that was 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.
As a result of his conviction, Ross will be required 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).
Ross faces a mandatory minimum of five years and a maximum of 20 years in prison for each of the two counts of receipt of child pornography, and a maximum sentence of 20 years in prison for possession of child pornography, followed by up to a lifetime of supervised release. U.S. District Judge J. Frederick Motz has not set a date for sentencing. Ross was previously convicted in Baltimore County Circuit Court on related sex offense charges. He is scheduled to be sentenced in that case on January 4, 2017. Ross remains detained pending sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
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 are prosecuting the federal case.
Frederick County Man Pleads Guilty in Federal Court to Sexually Exploiting a Toddler to Produce Child PornographyRead the Press Release
Baltimore, Maryland –William H. Steinhaus IV, age 34, of Brunswick, Maryland, pleaded guilty on December 6, 2016, to sexual exploitation of 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 Gordon B. Johnson of the Federal Bureau of Investigation; Frederick County Sheriff Charles A. “Chuck” Jenkins; Frederick County State’s Attorney J. Charles Smith; and Interim Chief Peter Newsham of the Metropolitan Police Department.
According to his plea agreement, between December 8 and 9, 2014, Steinhaus had a number of sexually explicit conversations on Kik, an instant messaging application, with other Kik users regarding their shared sexual interest in prepubescent children. Steinhaus took pictures using his iPhone or iPad of a two year old girl engaged in sexually explicit conduct and distributed them to approximately 25 other Kik users.
Steinhaus admitted that during those two days, he and another Kik user exchanged approximately 290 messages, including a discussion as to how Steinhaus could best sexually abuse the toddler. Steinhaus sent the user images of the child and Steinhaus engaged in sexually explicit conduct; and pictures of a couch, stating “That’s where tw[sic] assault will happen.”
Also on December 8, 2014, Steinhaus and a second Kik user exchanged approximately 293 messages. Steinhaus sent pictures of the child and Steinhaus engaged in sexually explicit conduct; and pictures of a couch, stating “That’s where the assault is going to happen.”
According to his plea agreement, between December 8 and 9, 2014, Steinhaus exchanged approximately 419 messages on Kik with an undercover law enforcement officer, whom Steinhaus had emailed earlier on December 8, 2014. Steinhaus sent the undercover officer approximately 30 pictures he had taken of the toddler, several of which contained images of the child and Steinhaus engaged in sexually explicit conduct.
Through emergency legal requests, on December 9, 2014, officers identified Steinhaus as the subscriber to the Kik and Yahoo accounts used to communicate with the undercover officer. Officers began surveillance of Steinhaus’ residence in advance of the execution of a search warrant. During the surveillance, Steinhaus began sending the undercover officer images of himself with the victim in the background. Steinhaus told the undercover officer that he would be alone with the victim and would continue the sexual abuse of the child. Officers used a ruse to get Steinhaus out of the residence. Steinhaus came out of the house with his iPhone, and the officers identified themselves. Steinhaus fought with the officers as they tried to secure his iPhone, but they were able to secure and access the device. Steinhaus was arrested and the victim was rescued by the officers.
As part of his plea agreement, Steinhaus 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). In addition, a provision of his plea agreement in the federal case is that Steinhaus must plead guilty to related charges pending against him in the Circuit Court for Frederick County, Maryland.
Steinhaus and the government have agreed that if the Court accepts the plea agreement Steinhaus will be sentenced to between 23 and 38 years in prison, followed by lifetime supervised release. Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for February 24, 2017, at 9:15 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.
United States Attorney Rod J. Rosenstein commended the FBI, Frederick County Sheriff’s Office, Frederick County State’s Attorney’s Office and Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Judson T. Mihok, who are prosecuting the case.
Accountant Sentenced to Federal Prison for $1.4 Million Mortgage Fraud Scheme Involving Baltimore City PropertiesRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Cecil Sylvester Chester, age 70, of Mitchellville, Maryland today to two years in prison, followed by three years of supervised release, for a mortgage fraud scheme involving the fraudulent purchase of seven properties in Baltimore, using fraudulent loan documentation and straw purchasers, resulting in losses of over $1.4 million. Judge Bredar also ordered Chester to pay restitution of at least $1.483 million, with the exact amount to be determined by the Court.
The sentences 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; Special Agent in Charge Bertrand Nelson of the U.S. Department of Housing and Urban Development Office of Inspector General; and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
Chester worked as an accountant from an office located on New Hampshire Avenue in Hyattsville, Maryland. Co-conspirator Andreas Tamaris purchased, renovated, and then resold distressed row houses in Baltimore City, primarily in the Highlandtown area. Co-conspirators Michael Camphor was a real estate agent and Christopher A. Kwegan was a real estate agent and general contractor.
According to his guilty plea, from February 2008 to July 2009, Chester and his co-conspirators, found buyers for Tamaris’ properties and for other property owners. Chester persuaded individuals, who were inexperienced with residential real estate transactions and who lacked the funds needed to pay the down payment and closing costs, to purchase Baltimore row houses owned by Tamaris or otherwise located by the conspirators. Chester advised these “straw purchasers” that they didn’t need to contribute funds for the down payment or closing costs to buy these properties. Chester also advised that he would place tenants in the properties whose rent payments would cover the monthly mortgage payments after the transactions closed, and that Chester would collect the rent and make the mortgage payments.
Chester and his co-conspirators set the purchase price for the properties to exceed their actual fair market value, thereby generating excess proceeds from the transactions from which they could profit. For example, when Kwegan located a house he wanted to sell, he sought assistance from Chester and real estate agent/consultant Michael Camphor, who were already operating a mortgage fraud scheme. Chester, Kwegan and Camphor set the price of a row house in Baltimore at $250,000, rather than the actual market price of approximately $75,000. Kwegan derived over $100,000 in proceeds from the sale of this home to a straw purchaser and paid another $40,000 to Chester for his assistance.
Chester, Camphor, and others recruited buyers to purchase houses, knowing that they did not qualify for the home mortgages. The conspirators provided false information about the straw purchasers’ employment, income and financial assets, as well as fraudulent supporting documentation to the mortgage loan brokers to enable the straw purchasers to qualify for home mortgage loans. The conspirators falsely indicated to the mortgage loan brokers that the straw purchasers each intended to use the property as their primary residence following the purchase. Tamaris and other individuals supplied the funds needed for the down payment and closing costs on each of the transactions, and were in turn reimbursed from the loan proceeds at settlement.
Chester brought the straw purchasers to the closing, and then caused the straw purchasers to falsely sign certifications in the closing documents affirming that they intended to use the properties as their primary residence and that no portion of the down payment and closing costs were borrowed. Following the settlement on each transaction in which they participated, Chester and the other conspirators received substantial payments drawn from the proceeds of the loan.
Few, if any, payments were made towards the mortgages. The seven properties in which Chester was involved all went into foreclosure, resulting in a loss of at least $1.483 million.
In related proceedings, Andreas E. Tamaris, age 46, of Bel Air, Maryland, Christopher A. Kwegan, age 59, of Randallstown, Maryland, Michael Gerard Camphor, age 60, of Baltimore, and Alexander Sivels, II, age 32, of Baltimore, previously pleaded guilty to their roles in this, or related mortgage fraud schemes. Tamaris was sentenced to 15 months in prison and was ordered to pay $1,229,206.28 in restitution. Sivels and Kwegan were each sentenced to 27 months in prison. Judge Bredar ordered Sivels to pay restitution of $1,317,314.35, and ordered Kwegan to pay restitution of $530,641.27. Camphor is scheduled to be sentenced on December 19, 2016.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available at http://www.justice.gov/usao-md/financial-fraud-and-identity-theft .
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI, HUD OIG - Office of Investigations and the U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
Government Contractor Indicted for Making False Claims and False StatementsRead the Press Release
Baltimore, Maryland – A federal grand jury has charged Shawn Penn, age 41, of Pasadena, with making false claims and false statements, for allegedly falsely representing to her employer that she was working as a security guard at a government facility, when she was actually elsewhere. The indictment was returned on December 1, 2016.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
According to the five-count indictment, Penn worked as a contract employee performing security guard services for the U.S. Department of Defense in Anne Arundel County, Maryland. In addition, Penn worked full-time, during regular business hours, as an active duty U.S. Army Intelligence Officer at Fort Meade, Maryland.
Penn performed her security guard services for a sensitive compartmented information facility (SCIF), which required that she hold a Top Secret-Sensitive Compartmented Information security clearance, possess a gun permit, and carry a government issued duty cell phone while on duty. Penn’s work locations had surveillance cameras that monitored her work station area, and areas inside and outside the building. Penn’s duties included reviewing computer monitors with live video from security cameras, checking for alarms, monitoring the temperature in the facility and performing exterior security sweeps.
The indictment alleges that from September 2015 to August 2016, Penn regularly abandoned her work station and falsely represented to her employer that she had been working as a security guard when she was actually elsewhere. According to the indictment, Penn’s false claims regarding her security work hours caused the government to pay more than $40,000 to her employers to which they and Penn were not entitled.
Further, the indictment alleges that on October 6, 2016, Penn falsely stated to investigators from the Defense Criminal Investigative Service that she had not abandoned her security guard duties until January 2016, when in fact, she had been abandoning her duties since at least September 2015; and that she falsely claimed that she “sat in her car,” was “across the street,” or “drove around the parking lot,” during her guard shifts, when Penn knew she was elsewhere during those shifts.
Penn faces a maximum sentence of five years in prison for each of the four counts of making false claims, and for making false statements. Penn had an initial appearance and arraignment this afternoon in U.S. District Court in Baltimore and was released under the supervision of U.S. Pretrial Services.
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 DCIS for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the case.
Two Maryland MS-13 Members Sentenced to Life in Federal Prison for Racketeering Conspiracy Including MurderRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Juan Alberto Ortiz-Orellana, aka “Chele” and “Furia,” age 28, of District Heights, Maryland; and Minor Perez-Chach, aka “Minor Chach-Perez,” “Little Bad” and “Bryant Sacarias,” age 25, of Hyattsville, Maryland, today to life in prison. On May 20, 2016, Ortiz-Orellana and Perez-Chach were convicted of multiple charges in connection with their MS-13 gang activities, including conspiracy to participate in a racketeering enterprise, murder in aid of racketeering and related firearm charges. Ortiz-Orellana was also convicted of conspiracy to commit murder in aid of racketeering.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell 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 Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to evidence presented at trial, from at least 2009 through October 2014, MS-13 members planned and committed murders, attempted murders, assaults, and robberies in Prince George’s, Montgomery, and Frederick Counties. Gang members also extorted brothel operators and owners of other illegal businesses and tampered with and retaliated against witnesses, among other crimes.
According to the trial evidence, in January 2013, co-defendant Jorge Moreno-Aguilar and Ortiz-Orellana, both members of the MS-13 Sailors Locotes Salvatrucha Westside Clique, targeted an individual associated with the rival 18th Street gang, obtained photographs of the victim from Facebook and conspired to murder him with other members of MS-13. On March 12, 2013, Moreno-Aguilar and Ortiz-Orellana went to Capitol Heights, Maryland, and shot the victim multiple times outside his home, killing him.
In addition, trial evidence showed that on February 23, 2013, Perez-Chach, who was a member of the MS-13 Langley Park Salvatrucha (LPS) Clique, followed a man whom he believed to be a member of MS-13 who had testified against MS-13 members in federal trials in Greenbelt, Maryland. In fact, the evidence showed that the victim was not the witness from the previous MS-13 trials. Perez-Chach stabbed the victim to death in his home while another member of MS-13 attacked the victim with a machete. During his arrest on May 20, 2013, Perez-Chach also illegally possessed a firearm and ammunition.
Jorge Moreno-Aguilar, age 23, of District Heights, Maryland, was convicted of conspiracy to participate in a racketeering enterprise, murder in aid of racketeering and conspiracy to commit murder in aid of racketeering. Moreno-Aguilar is scheduled to be sentenced on January 31, 2017.
Fourteen of the 15 defendants charged in this investigation have been convicted for their roles in the racketeering conspiracy. The final defendant is a fugitive.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, Prince George’s County and Montgomery County Police Departments, and Prince George’s and Montgomery Counties State’s Attorney’s Offices for their work in the investigation and proceedings. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan as well as Trial Attorney Catherine K. Dick with the Justice Department’s Organized Crime and Gang Section, who are prosecuting the case, and recognized former OCGS Trial Attorney Kevin Rosenberg who assisted in the prosecution.
Two MS-13 Members Sentenced to Life in Prison for Racketeering Conspiracy Including MurderRead the Press Release
Two Maryland gang members were sentenced today to life in prison for conspiring to participate in racketeering activities and committing murders on behalf of the racketeering enterprise known as La Mara Salvatrucha, or MS-13.
Assistant Attorney General Leslie R. Caldwell 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 Homeland Security Investigations (HSI) Baltimore Field Office; Chief Hank Stawinski of the Prince George’s County, Maryland, Police Department; Chief J. Thomas Manger of the Montgomery County, Maryland, Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks made the announcement.
Juan Alberto Ortiz-Orellana, aka Chele and Furia, 28, of District Heights, Maryland, and Minor Perez-Chach, aka Minor Chach-Perez and Little Bad and Bryant Sacarias, 25, of Hyattsville, Maryland, were each sentenced to life in prison by U.S. District Judge Roger W. Titus of the District of Maryland. Ortiz-Orellana and Perez-Chach were convicted by a jury on May 20, 2016 for conspiracy to participate in a racketeering enterprise, murder in aid of racketeering and related charges. Ortiz-Orellana was also convicted of conspiracy to commit murder in aid of racketeering.
MS-13 is a national and transnational gang that operates in the United States and Central America. Members engage in racketeering activity including murder, narcotics distribution, extortion, robberies, obstruction of justice and other crimes.
According to evidence presented at trial, a number of small MS-13 groups, or cliques, operate in the Washington, D.C., area and have frequent contact with MS-13 leadership in El Salvador. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
Trial evidence demonstrated that, from at least 2009 through October 2014, MS-13 members planned and committed murders, attempted murders, assaults and robberies in Prince George’s, Montgomery and Frederick Counties, as well as extorted brothel operators and owners of other illegal businesses and tampered with and retaliated against witnesses, among other crimes.
Evidence at trial further demonstrated that in January 2013, Ortiz-Orellana and another member of the MS-13 Sailors Locotes Salvatrucha Westside Clique, targeted an individual associated with the rival 18th Street gang, obtained photographs of the victim and conspired to murder him with other members of MS-13. On March 12, 2013, Ortiz-Orellana and the other gang member went to Capitol Heights, Maryland, and shot the victim multiple times outside his home, killing him.
According to the trial evidence, in the early morning hours of Feb. 23, 2013, Perez-Chach met a man whom he believed to be a member of MS-13 who had testified against MS-13 members in federal trials. In fact, the victim was not the witness from the previous MS-13 trials, according to trial evidence. Perez-Chach followed the victim to his home in Hyattsville, where he stabbed the victim to death while another member of MS-13 attacked the victim with a machete, trial evidence demonstrated. Evidence presented at trial showed that during his arrest on May 20, 2013, Perez-Chach was found to be in illegal possession of a firearm and ammunition.
Nine of the 15 defendants charged in this investigation have pleaded guilty to their roles in the racketeering conspiracy. Five defendants total have been convicted at trial, and one remains a fugitive of justice.
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 investigated the case. Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland are prosecuting the case. Former OCGS Trial Attorney Kevin Rosenberg assisted in the prosecution of this case.
Germantown Woman Pleads Guilty to Defrauding Her Employer of More Than $1 MillionRead the Press Release
Greenbelt, Maryland – Sobeida Maria Laboy, age 46, of Germantown, Maryland, pleaded guilty on November 30, 2016, to bank fraud arising from a scheme to defraud the financial institution for which she worked of more than $1 million.
The guilty plea 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 her plea agreement, Laboy worked in the Chevy Chase branch office of a financial institution that offered online banking services to its customers and had affiliates that offered homes loans and other financial services. Laboy admitted that from December 2007 through June 19, 2014, she created fraudulent invoices, which she submitted, along with check requests, for payment by her employer. The invoices purported to be for services provided by a specific vendor. Laboy submitted the fraudulent invoices along with a check request form, stating that the check should be sent to her at her office in Chevy Chase. Laboy forged the signature of another employee in the “approval” section of the form. Instead of sending the checks for payment to the vendor, Laboy endorsed the checks with her own signature and deposited them into her personal bank accounts.
Over the course of the scheme, Laboy deposited at least 60 checks issued by her employer and made payable to the vendor. Laboy deposited at least six additional checks either issued by her employer and made payable to other vendors, or issued by other vendors and made payable to her employer. As a result of the scheme, Laboy fraudulently obtained at least $1,020,576.28
Laboy faces a maximum sentence of 30 years in prison for bank fraud. U.S. District Judge Peter J. Messitte scheduled her sentencing for March 15, 2017, at 9:30 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lindsay Eyler Kaplan and Nicolas A. Mitchell, who are prosecuting the case.
Baltimore Man Sentenced to over 31 Years in Federal Prison for Extortion Related to a MurderRead the Press Release
Baltimore, Maryland –Matthew Hightower, age 34, of Baltimore, was sentenced today to 380 months in prison, followed by five years of supervised release, for collection of a debt by extortionate means, and use of interstate facilities for extortion resulting in death in connection with the murder of victim David Wutoh. Hightower was convicted by a federal jury on September 22, 2016, after a seven-day trial.
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; and Chief James W. Johnson of the Baltimore County Police Department.
According to evidence presented at trial, in 2013, Matthew Hightower was employed at RX Resources and Solutions (RXRS) as a delivery driver. RXRS was owned by Hightower’s co-defendant, Harry Crawford, who was also Hightower’s boss at RXRS.
According to trial testimony and Crawford’s plea agreement, in 2013 Crawford approached Hightower to facilitate a loan to Crawford’s longtime friend, David Wutoh. Wutoh promised Hightower that 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, and 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 Crawford’s 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 June 11, 2013, Crawford left Wutoh a voicemail, “Dave, I hope you don’t wanna go to sleep permanently. Give me a call.”
According to trial testimony, after further discussions about whether Wutoh would pay Hightower back, Crawford texted Wutoh on June 12, 2013, “You are putting me in a bad bad bad position I vouch for you and now you are sh**ting on Matt I have no control if you get hurt...” In response to these threats, Wutoh paid Hightower $6,000 of the $20,000 he had promised. On August 27, 2013, Hightower texted Wutoh that he was “really sick of your lies.” On September 6, 2013, Wutoh sent a message to Hightower in an attempt to repay Hightower with prescription drugs instead of money, which Hightower refused. Between September 6 and September 9, 2013, Hightower sent several messages to Wutoh about wanting his “money,” including a text to Wutoh stating, “Wheres my cheese man I don’t have time for these games.” “Cheese” is a slang term for money. On September 13, 2013, Crawford sent a 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 Hightower or Crawford all of the money he borrowed from them.
According to trial testimony, 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. According to testimony at Hightower’s trial, at approximately 2:45 a.m., Matthew Hightower walked up to the driveway of the house where Wutoh was staying and shot seven times through the window at Wutoh, who was asleep on the couch in the living room. Wutoh was shot in the arm, leg, and head, killing him almost instantly. Then Hightower fled the scene. According to the evidence presented in court, moments later, Hightower answered a phone call on a phone he used, but had registered in another person’s name. Records showed the phone was located in close proximity to the house where Wutoh was murdered. Hightower was subsequently interviewed by investigators, and he denied being “anywhere” in the vicinity of the murder. Several weeks later, Crawford asked an associate of Wutoh questions about Wutoh’s will.
On November 22, 2016, Harry Crawford, age 56, of Baltimore, pleaded guilty to: collection of a debt by extortionate means from victim David Wutoh; conspiracy to commit health care fraud in connection with schemes to defraud Medicaid and other health benefit programs of more than $1.2 million; and conspiracy to defraud the United States, for not reporting income from the health care fraud scheme on his taxes, resulting in over $125,000 in taxes owed. Judge Garbis scheduled sentencing for Crawford on March 28, 2017, at 11:30 a.m. Crawford is released under the supervision of U.S. Pretrial Services.
Hightower and co-defendant Elma Myles, age 52, of Baltimore, are scheduled to go to trial on charges related to the health care fraud scheme on January 23, 2017. Hightower remains detained.
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.
Assisted Living Facility Manager Pleads Guilty to Stealing Elderly Residents’ Identities to Obtain Credit CardsRead the Press Release
Baltimore, Maryland –Salah Eldean Sood, age 35, of Lutherville, Maryland, pleaded guilty late on November 28, 2016, to bank fraud and aggravated identity theft, arising from a scheme to open credit card accounts using the stolen identity information of elderly persons who were in Sood’s care at Holland Manor Eldercare, an assisted living facility in Towson, Maryland.
The guilty plea 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 (HHS); Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division (SSA).
According to his plea agreement, Sood managed Holland Manor Eldercare. In June 2015, P.J., a resident of Holland Manor, was transported to a local hospital. Baltimore County Fire Department personnel noted that conditions in the facility were unsanitary and that P.J.’s injuries were potentially indicative of a lack of proper medical care. P.J. died two days later. Maryland health officials revoked the Assisted Living Program License of Holland Manor Eldercare on September 25, 2015. On December 3, 2015, Baltimore County Fire Department and Baltimore County Police Department personnel responded to a fire alarm at Holland Manor and located two residents inside the facility without any staff present. An 80 year-old male resident, W.C., informed responders that no caretaker was generally present at the facility overnight. The second resident was restrained in a bed in a second floor bedroom, comatose, and unable to communicate. Responders were initially unable to reach Sood on his cell phone. Sood eventually responded to their calls, but refused to provide information as to his whereabouts.
Further investigation revealed that from July 2014 to January 2016, Sood opened credit card accounts at a bank using the names, dates of birth, and social security numbers of three elderly persons who resided at the assisted living facility, including P.J. and W.C. Sood submitted the applications electronically, using Holland Manor’s address as the home address. Sood obtained six credit cards in the names of the residents. Sood added himself as an authorized user on those accounts and made over $74,000 in purchases using the accounts.
As part of his plea agreement, Sood will be required to pay restitution in the full amount of the victims’ losses, $74,753.24.
Sood and the government have agreed that at the time of sentencing they will recommend a sentence of 48 to 52 months in prison to be served concurrent to the state sentence imposed in his Baltimore County Circuit court case. U.S. District Judge Marvin J. Garbis has scheduled sentencing for March 30, 2017 at 10:00 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 President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HHS, the Baltimore County Police Department, Baltimore County State’s Attorney’s Office and SSA for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Lauren E. Perry and Roann Nichols, who are prosecuting the case.
Waldorf Man Admits Committing Two Bank Robberies in Less Than a WeekRead the Press Release
Greenbelt, Maryland – Joshua Francisco Miranda, age 29, of Waldorf, Maryland, admitted committing two bank robberies in March 2016.
Today’s 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 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 note 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. According to his plea agreement, Miranda will be required to pay restitution in that amount.
Miranda and the government have agreed that if the Court accepts the plea agreement Miranda will be sentenced to between seven and eight years in prison. U.S. District Judge Theodore D. Chuang has scheduled sentencing for March 14, 2017 at 9:30 a.m.
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 is prosecuting the case.
Largo Drug Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Paul W. Grimm sentenced Rolando Oneal Thorpe, age 32, of Largo, Maryland, today to 10 years in prison, followed by five years of supervised release, for possession with intent to distribute marijuana and possession of a firearm in furtherance of drug trafficking.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Danny L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Hank Stawinski of the Prince George’s County Police Department; Chief Stanley Johnson, of the Maryland National Capital Park Police, Prince George’s County Division; and Chief Antonio DeVaul of the Maryland National Capital Park Police, Montgomery County Division.
According to his plea agreement, between September and November 2013, during an investigation of narcotics trafficking, Thorpe was overheard by law enforcement discussing with Marvin Taaff the various types of marijuana that Thorpe was distributing in Maryland. On November 22, 2013, a search warrant was executed at Thorpe’s residence. Law enforcement recovered 12 large ziplock bags containing over five kilograms of marijuana; a scale with drug residue; drug packaging materials; approximately $6,413 in cash; a 10mm handgun, with one round in the chamber and 14 rounds in the magazine; a 27 round capacity ammunition magazine, loaded with 23 rounds of 45 caliber ammunition; and a black laser site for a handgun. Thorpe was at home during the search and admitted that everything found in the apartment belonged to him.
Marvin Taaff, age 29, of Takoma Park, Maryland, was sentenced on June 9, 2016, to 140 months in prison, followed by five years of supervised release, for conspiring to possess with intent to distribute five kilograms or more of cocaine, cocaine base and 100 kilograms or more of marijuana.
United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department, and Maryland National Capital Park Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston, Lindsay Eyler Kaplan, and Menaka Kalaskar, who prosecuted the case.
Frederick Drug Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jonathan Robert Blackman, age 32, of Frederick, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin, powder and crack cocaine, and marijuana; and possession with intent to distribute heroin, cocaine and marijuana. Judge Bennett also entered an order requiring Blackman to forfeit $63,571, and a 12 gauge shotgun with an obliterated serial number.
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 Frederick County Sheriff Charles A. “Chuck” Jenkins.
According to Blackman’s plea agreement, law enforcement began an investigation into a drug conspiracy involving the distribution of heroin and other drugs in Frederick County and the Baltimore Metropolitan area. The investigation revealed that Blackman was a member of the drug trafficking organization. Evidence revealed numerous calls and texts in which Blackman coordinated drug sales in and around the Frederick area. Law enforcement subsequently executed a search warrant at Blackman’s residence and recovered: $63,571 in cash; 300.5 grams of heroin; 16.4 grams of cocaine; and 976 grams of marijuana.
Blackman admitted that the amount of heroin reasonably foreseeable to him in, and in furtherance of, this conspiracy amounts to between one and three kilograms of heroin.
United States Attorney Rod J. Rosenstein praised HSI-Baltimore and the Frederick County Sheriff’s Office Narcotics Task Force. Mr. Rosenstein thanked Assistant United States Attorney Jason D. Medinger, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Second ECI Correctional Officer Pleads Guilty to Racketeering Conspiracy and Civil Rights ViolationRead the Press Release
Baltimore, Maryland – Correctional Officer Stephen Wise, age 34, of Pocomoke, Maryland, pleaded guilty today to his participation in a racketeering conspiracy operating at the Eastern Correctional Institution in Westover, Maryland. Wise also pleaded guilty to a civil rights violation, deprivation of rights under color of law, for participating in the stabbing of an inmate.
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; Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement and court documents, the Eastern Correctional Institution (ECI) is the largest state prison in Maryland, operating near Westover, in Somerset County, on Maryland’s Eastern Shore. During the conspiracy, Wise was a Correctional Officer (CO) at ECI.
Wise admitted that he accepted bribes from at least eight inmates to smuggle contraband into ECI, including narcotics, cell phones and tobacco. Wise generally charged approximately $500 per package of contraband he smuggled into ECI. Law enforcement intercepted multiple calls and texts in which Wise and the inmates discussed contraband, and arranged payment for contraband.
According to the plea agreement, Wise smuggled contraband in exchange for bribes for a co-defendant, who was a leader of the Dead Man Incorporated (DMI) prison gang at ECI. On July 31, 2016, Wise induced the DMI leader to arrange the assault of an inmate who had filed a complaint against Wise that caused Wise to be removed from the housing unit. At the time he was removed, Wise had been given approximately $1500 by the DMI leader for contraband that he had not yet brought into the unit. Wise told multiple inmates, including the co-defendant, that the inmate who filed the complaint had to be taken out of the unit before Wise could be reassigned there. Wise knew that if an inmate is physically assaulted he is removed from a housing unit for his own safety. On July 31, 2016, the inmate who filed the complaint was assaulted and stabbed by several inmates who were members of the Cripps prison gang, and who had been paid $500 to do so by Wise’s co-defendant.
Wise faces a maximum sentence of 20 years in prison for the racketeering conspiracy, and a maximum of 10 years in prison for deprivation of rights under color of law for his participation in the stabbing of an inmate. U.S. District Judge James K. Bredar has scheduled sentencing for Wise on February 17, 2017 a 10:00 a.m.
The U.S. Attorney expressed appreciation to Secretary Moyer whose staff initiated the ECI investigation and who has made the full resources of the DPSCS available to assist the three-year investigation. U.S. Attorney Rosenstein also recognized the efforts of the Maryland Prison Task Force which has brought together federal, state and local agencies in meetings to generate reforms in prison procedures and facilitate joint investigations of prison corruption and prison gangs. Mr. Rosenstein thanked the members of the Maryland Prison Task Force and the and other agencies who assisted in this investigation and prosecution.
United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service, Department of Public Safety and Correctional Services, the Baltimore Police Department and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leo J. Wise, Robert R. Harding, and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Owner of Medical Equipment Provider Pleads Guilty to Collecting a Debt by Extortion and to Health Care Fraud ConspiracyRead the Press Release
Baltimore, Maryland –Harry Crawford, age 56, of Baltimore, Maryland, pleaded guilty today to collection of a debt by extortionate means from victim David Wutoh. 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.
Crawford also pleaded guilty to conspiracy to commit health care fraud in connection with schemes to defraud Medicaid and other health benefit programs, and conspiracy to defraud the United States, for not reporting income from the health care fraud scheme on his taxes.
The guilty plea 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; Special Agent in Charge Thomas Jankowski 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 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.”
Further, Crawford admitted that from 2010 through May 2014, he conspired with others to defraud Medicaid and other health benefit programs by having RXRS bill for supplies that were never provided, overcharge for materials actually delivered, and bill for supplies that were unneeded and had not been prescribed by a physician.
According to his plea agreement, Crawford and his co-conspirators 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’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. 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.
Finally, Crawford admitted that he conspired to defraud the United States by not reporting or paying taxes on the proceeds of the fraud. 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 hosting social events. The IRS determined that Crawford owes $102,782.17 in federal taxes and $25,000 for state taxes for tax years 2010 through 2013.
Crawford faces a maximum sentence of 20 years in prison for collection of extension of credit by extortion. Crawford also faces a maximum penalty of 10 years in prison for health care fraud and a maximum of five years in prison for conspiracy to defraud the United States. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Hightower on November 30, 2016, at 10:00 a.m. Hightower remains detained. Judge Garbis scheduled sentencing for Crawford on March 28, 2016, at 11:30 a.m. Crawford is released under the supervision of U.S. Pretrial Services.
Hightower and co-defendant Elma Myles, age 52, of Baltimore, are scheduled to go to trial on charges related to the health care fraud scheme on January 23, 2017.
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.
Maryland Felon Sentenced to Federal Prison for Illegal Possession of Firearms and AmmunitionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Curtis Portland Litten, age 54, of Huntingtown, Maryland, today to 21 months in prison, followed by three years of supervised release, for possession of firearms and ammunition by a convicted person. Litten pleaded guilty to that charge on September 1, 2016, and has been detained since his arrest on April 22, 2016.
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 Matthew R. Verderosa of the U.S. Capitol Police.
According to his plea agreement, from January 28 through March 24, 2016, Litten wrote and mailed at least nine cards and letters to the President of the United States and members of the United States Congress threatening harm to them and/or their family members. Fingerprint analysis of several of the cards identified latent fingerprints belonging to Litten.
In connection with the investigation into the identity of the sender of the threatening communications, a search warrant was executed at Litten’s home. Law enforcement seized envelopes and unsent greeting cards addressed to members of Congress and signed by Litten, computer printouts of addresses for elected officials, and reminders to write letters to elected officials. In addition, law enforcement seized: .22 caliber, .38 caliber, and .380 caliber pistols; a 12-gauge shotgun; a .410 bore shotgun; a .38 caliber blank firing revolver; 300 rounds of .22 caliber ammunition; 24 rounds of .380 caliber ammunition; four rounds of .410 caliber shotgun ammunition; and one 12-gauge shotgun shell.
As a result of a previous felony conviction, Litten was prohibited from possessing firearms or ammunition.
United States Attorney Rod J. Rosenstein praised the ATF and U.S. Capitol Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jennifer R. Sykes and Thomas P. Windom, who prosecuted the case.
Charles County Sheriff’s Deputy Facing Federal Charge for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – Charles County Sheriff’s Deputy Alexander C. Sullivan, age 37, of King George, Virginia, has been charged federally with possession of child pornography. The federal criminal complaint was filed on November 21, 2016 and Sullivan was arrested that evening. Sullivan is expected to have an initial appearance in U.S. District Court in Greenbelt at 3:00 p.m. today, before U.S. Magistrate Judge William Connelly.
The criminal complaint 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 Charles County Sheriff Troy Berry.
According to the affidavit filed in support of the criminal complaint, the National Center for Missing and Exploited Children (NCMEC) received four tips from a company that provides cloud security concerning suspected child pornography being uploaded to a specific telephone number in October and November 2016. An officer from the Charles County Sheriff’s Department conducted a search on the telephone number and determined that it belonged to Alexander Sullivan of Indian Head, Maryland. The officer recognized Sullivan’s name and telephone number as belonging to a fellow officer. Sullivan had resided in Indian Head prior to recently relocating to Virginia.
A state search warrant for Sullivan and his telephone was executed in Charles County on November 17, 2016. A preview of the materials on the phone allegedly revealed more than 200 images and five videos containing child pornography. The forensic investigation is ongoing.
If convicted, Sullivan faces a maximum sentence of 10 years in prison for possession of child pornography.
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.
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, and the Charles County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Joseph R. Baldwin and Kristi N. O’Malley, who are prosecuting the federal case.
Howard County Youth Gymnastics Coach Pleads Guilty in Federal Court to Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – Howard County youth gymnastics coach Paul Daniel Bollinger, age 57, of Windsor Mill, Maryland pleaded guilty today to distribution of child pornography. Bollinger worked as a youth gymnastics coach in Maryland for over 30 years prior to his arrest in this case.
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; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Baltimore County State’s Attorney Scott Shellenberger
According to his plea agreement, on May 15, 2016, Bollinger distributed computer files containing videos of child pornography using a file sharing program. An undercover Baltimore County Police detective downloaded at least 10 movie files containing child pornography that Bollinger distributed.
On May 25, 2016, investigators executed a state search warrant at Bollinger’s residence. During the search, investigators found a desktop computer powered on and running peer-to-peer file sharing software, and numerous files with titles indicative of child pornography were being shared and downloaded through use of the software. The wallpaper image on the computer monitor depicted a naked female child lying on her stomach. Law enforcement seized the desktop computer, hard drives and other digital media which contained over 40,000 image files and over 100 video files of child pornography. Next to Bollinger’s bed, detectives found over 100 pages of handwritten stories about an adult male having sex with young children.
According to his plea agreement, Bollinger was present during the execution of the search warrant and spoke with law enforcement. He characterized his involvement with child pornography as an obsession and stated that he had been viewing child pornography since approximately 1990. Bollinger advised that he prefers female children aged 8 to 12 years, the same age group of girls that he currently coached, but denied any inappropriate contact with children. Bollinger stated that he had sexual thoughts about a girl he coached in gymnastics and that he was attracted to the “body type” of many of the girls he coached.
Bollinger faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison for distributing child pornography. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Bollinger on March 3, 2017, at 10:00 a.m. Bollinger remains detained.
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, Baltimore County Police Department, HSI Baltimore, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the federal case.
Four Conspirators Convicted for Defrauding Victims of Millions of DollarsRead the Press Release
Greenbelt, Maryland – A federal jury convicted the following defendants late on November 18, 2016, for conspiracies to commit wire fraud and money laundering arising from a scheme to defraud vulnerable victims of millions of dollars:
Gbenga Benson Ogundele, a/k/a “Benson Ogundele,” age 58, of Laurel, Maryland;
Victor Oyewumi Oloyede, age 42, of Laurel;
Babtunde Emmanuel Popoola, a/k/a “Emmanuel Popoola” and “Tunde Popoola, age 34, of Bowie, Maryland; and his sister,
Mojisola Tinuola Popoola, a/k/a “Mojisola Oluwakemi Tin Popoola” and “Moji T. Popoola,” age 42, of Laurel.The conviction 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.
According to evidence presented at the 17-day trial, from January 2011 to May 18, 2015, members of the conspiracy searched online dating websites to initiate romantic relationships with vulnerable male and female individuals. They phoned, emailed, texted and used internet chat messenger services to form romantic relationships with the victims, who lived in Maryland and around the country.
Witnesses testified that members of the conspiracy used false stories and promises to convince the victims to provide money to the conspirators, including fake hospital bills, plane trips to visit the victims, problems with overseas businesses and foreign taxes. Ogundele, Oloyede, the Popoolas and other conspirators opened bank accounts, called “drop accounts,” in order to receive millions of dollars from the victims. Testimony at trial showed that victims provided money to the defendants as a result of the false stories and promises, either depositing money directly into drop accounts controlled by the defendants, or by checks sent to the conspirators. The payments from victims ranged from $1,720 to $50,000.
Ogundele, Oloyede, the Popoolas, and their co-conspirators dispersed money received from the victims by transferring funds to other accounts controlled by the conspirators, by obtaining cashier’s checks, and by writing checks to individuals or entities, in order to conceal the nature, source, and control of those assets.
The defendants face a maximum sentence of 20 years in prison for conspiring to commit wire fraud, and for conspiring to commit money laundering. Additionally, all of the defendants except for Mojisola Popoola face a mandatory minimum sentence of two years in prison to be served consecutive to any other sentence for aggravated identity theft, arising from the use of a victim’s name, bank account number or driver’s license in furtherance of the fraud scheme. U.S. District Judge Paul W. Grimm has scheduled sentencing for Oloyede on January 25, 2017; for the Popoolas on February 22, 2017; and for Ogundele on February 23, 2017.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorneys Thomas P. Windom and Leah Jo Bressack, who are prosecuting the case.
Prince George’s County Felon Pleads Guilty to Federal Robbery and Firearms ChargesRead the Press Release
Greenbelt, Maryland – Derrick Rondell Battle, age 43, of Bladensburg, Maryland, pleaded guilty today to armed commercial robbery, using and brandishing a firearm during a crime of violence and being a felon in possession of a firearm, related to three robberies he committed in September 2015.
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 Henry P. Stawinski of the Prince George’s County Police Department.
According to his plea agreement, Battle committed three armed robberies between September 21 and September 25, 2015. In each robbery Battle wore a mask and was armed with a black semi-automatic handgun, which he brandished at store employees.
Specifically, Battle robbed: a pharmacy in the 6400 block of Landover Road in Landover, Maryland on September 21, 2015, stealing $200; a discount store in the 6500 block of Annapolis Road in Landover Hills, Maryland on September 24, 2015, stealing $1,200; and a gas station in the 5800 block of Annapolis Road in Cheverly, Maryland, stealing $200.
As Battle fled the gas station, a strong wind blew the stolen money out of the bag and Battle stopped to collect the money. Responding police officers saw Battle in a nearby ravine and he was apprehended after a brief chase. Police officers recovered cash from Battle and within feet of where he was apprehended recovered the gun used in the robbery, additional cash and the jacket Battle wore during the robbery.
The gun was a .45 caliber semi-automatic handgun loaded with six .45 caliber rounds of ammunition. The total cash recovered was approximately $1,200.
Battle was prohibited from possessing a firearm or ammunition as a result of previous felony convictions.
Battle and the government have agreed that if the Court accepts the plea agreement Battle will be sentenced to 198 months in prison. U.S. District Judge Theodore D. Chuang has scheduled sentencing for January 19, 2017 at 2:00 p.m.
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 United States Attorneys Menaka Kalaskar and Bryan E. Foreman, who are prosecuting the case.
Correctional Officer and Two Others Plead Guilty to Racketeering Conspiracy at Eastern Correctional InstitutionRead the Press Release
Baltimore, Maryland – Correctional Officer Rachelle Hankerson, age 26, of Salisbury, Maryland; Ramel Chase, age 34, of Glen Burnie, Maryland; and Miguel Matos, age 46, of Ft. Washington, Maryland, pleaded guilty this week to racketeering conspiracy operating at the Eastern Correctional Institution in Westover, Maryland. Hankerson also pleaded guilty to deprivation of rights under color of law for participating in the stabbing of an inmate.
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; Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to their plea agreements and court documents, the Eastern Correctional Institution (ECI) is the largest state prison in Maryland, operating since 1987 near Westover, in Somerset County, on Maryland’s Eastern Shore. During the conspiracy, Hankerson was a Correctional Officer (CO) at ECI, Chase was an inmate, and Matos was the father of an inmate at ECI.
Hankerson admitted that she accepted payments from facilitators and inmates to smuggle contraband into ECI, including narcotics, cell phones and tobacco. Hankerson charged at least $500 per package of contraband she smuggled into ECI. Hankerson also admitted that she approached a co-defendant who was a member of the Bloods gang at ECI for whom she smuggled contraband, and asked the inmate to confront inmate D.S., with whom Hankerson had had a verbal dispute. Hankerson twice allowed her co-defendant onto the tier where D.S. was housed. The second time that the co-defendant entered D.S.’s cell he violently attacked D.S., stabbing him multiple times. Another inmate told Hankerson about the violent confrontation, but rather than notifying prison authorities, Hankerson left the area. She later told an inmate to provide a false story to prison authorities that Hankerson had not been on the tier when the attack occurred.
Chase admitted that he bribed and attempted to bribe COs to smuggle contraband, including narcotics, into ECI. Chase managed a contraband smuggling and distribution network involving co-defendants and others. Matos admitted that he facilitated his son’s contraband smuggling in ECI by obtaining narcotics and other contraband and transferring it to co-conspirators who smuggled it into the facility. In addition, Matos performed financial transactions in furtherance of the smuggling.
Law enforcement intercepted multiple calls in which Hankerson, Chase, Matos and others working with them discussed contraband, arranging meetings with correctional officers, and payment for contraband. In calls between Matos and his son, investigators overheard them discussing COs who smuggled contraband into ECI for them. Matos was also overheard discussing the packaging and delivery of contraband with a supplier.
The defendants each face a maximum sentence of 20 years in prison for the racketeering conspiracy. Hankerson also faces a maximum of 10 years in prison for deprivation of rights under color of law for her participation in the stabbing of an inmate. U.S. District Judge James K. Bredar has scheduled sentencing for Matos on February 24, 2017, at 10:00 a.m.; for Hankerson on March 7, 2017 at 2:00 p.m.; and for Chase on January 17, 2017 at 2:00 p.m.
The U.S. Attorney expressed appreciation to Secretary Moyer whose staff initiated the ECI investigation and who has made the full resources of the DPSCS available to assist the three-year investigation. U.S. Attorney Rosenstein also recognized the efforts of the Maryland Prison Task Force which has brought together federal, state and local agencies in meetings to generate reforms in prison procedures and facilitate joint investigations of prison corruption and prison gangs. Mr. Rosenstein thanked the members of the Maryland Prison Task Force and the and other agencies who assisted in this investigation and prosecution.
United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service, Department of Public Safety and Correctional Services, the Baltimore Police Department and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leo J. Wise, Robert R. Harding, and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Baltimore Woman Indicted for Fraud Schemes in Which She Allegedly Returns Stolen Merchandise for a RefundRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Marie Joy Tanamor-Steffan, a/k/a Marie Joy Steffan-Tanamor and Marie Joy Acibo Tanamore, age 42, of Baltimore, for wire fraud and false use of a passport in connection with schemes to defraud two retail chains. The indictment was returned on November 16 and unsealed today upon her arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard Ingram of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Special Agent in Charge Brian J. Ebert of the United States Secret Service - Washington Field Office.
The eight-count indictment alleges that Tanamor-Steffan defrauded a retail lingerie chain by shoplifting items from stores in Maryland, Virginia, and other states. The indictment alleges that Tanamor-Steffan then exchanged the shoplifted items at another store for items costing slightly more in total. The lingerie store allowed customers who did not have a receipt to exchange or return merchandise for store credit. Customers were required to provide a driver’s license, state identification card, or passport number, which was entered into the store’s computer system. The store limited the amount a customer could receive in non-receipted exchanges/returns in a 90-day period. Tanamor-Steffan presented a Philippine passport as her identification, but allegedly altered the passport number for each exchange to avoid triggering the store limit. Tanamor-Steffan paid the additional amount due with her debit card and received a receipt for the transaction. According to the indictment, Tanamor-Steffan then returned the items, with the refund being credited to the debit card she used during the exchange.
The indictment further alleges that Tanamor-Steffan conducted a similar scheme targeting a home improvement store. According to the indictment, Tanamor-Steffan would go to the home improvement store with a receipt for merchandise, but without the merchandise. The indictment alleges she would select the items on the receipt from inventory in the store, then take those items to customer service and “return” the items she had just selected but not purchased, using the receipt she brought to the store with her. The refund would be credited to Tanamor-Steffan’s bank account.
The indictment seeks the forfeiture of at least $61,322.42, alleged to be the proceeds of the fraud schemes.
If convicted, Tanamor-Steffan faces a maximum sentence of 20 years in prison for each of seven counts of wire fraud, and a maximum of 10 years in prison for passport fraud. Tanamor-Steffan had an initial appearance in U.S. District Court in Baltimore today and was ordered to be detained, pending a detention hearing scheduled for November 21, 2016 at 2:30.
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.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the Department of State’s Diplomatic Security Service, United States Secret Service – Baltimore Field Office and Washington Field Office, and National Capitol Region Fraud Task Force for their work in the investigation and thanked HSI-Baltimore for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine and Special Assistant United States Attorney Brian Fish, on detail from the U.S. Department of Homeland Security, who are prosecuting the case.
Lanham Drug Dealer Sentenced to over 12 Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore J. Chuang sentenced Gloria Patricia Taylor, age 52, of Lanham, Maryland today to 146 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute 1000 kilograms or more of marijuana, two counts of use of a communication device to facilitate narcotics trafficking, and possession with intent to distribute 100 kilograms or more of marijuana. Judge Chuang also entered an order requiring Taylor to forfeit $3.7 million. Taylor was convicted by a federal jury on April 28, 2016.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division.
According to evidence presented at her seven-day trial, on July 1, 2013, law enforcement officers intercepted three crates containing a total of approximately 630 kilograms of marijuana at a nationwide delivery company with a shipping office located in Maryland. All three crates were shipped from Tucson, Arizona. The crates were addressed to companies in in Landover and Lanham, Maryland. The bill of lading for the shipments described the contents as “Stone Group, Amethyst Stone,” and “Stone Group, Aragonite.” In total, the bales of marijuana from those three crates weighed over 1300 pounds, which evidence at trial showed was approximately $1.3 million dollars’ worth of marijuana.
According to trial evidence, records showed that at least 28 additional crates shipped from Arizona to those and other companies were sent from March 2011 through October 2013. The shipping company driver who delivered the packages testified that Taylor accepted delivery of and signed fictitious names for each of the crates (with the exception of 5 or so shipments, which were delivered to an associate of Taylor’s, at Taylor’s request), and that none of the crates were delivered to the addresses found on the bills of lading. Evidence at trial further showed that none of the delivery addresses on the bills of lading were in any way associated with any of the businesses. Taylor tipped the driver approximately $100 for each delivery.
Trial testimony showed that the driver first met Taylor when he attempted to deliver a crate to one of the companies. When the driver arrived at the address listed on the bill of lading, the individuals at that address did not accept the package. Shortly thereafter, Taylor contacted the driver and asked him to deliver the package to a location around the corner. Taylor arrived at the delivery spot with a U-Haul. Taylor requested that the driver become her regular delivery driver for all future deliveries. According to trial testimony, prior to each delivery, Taylor would contact the driver by telephone and inform him that the crates were arriving at the shipping company in Maryland. The day of the delivery, Taylor would call the driver to let him know where to make the delivery. When law enforcement intercepted the three crates in July 2013, shipping company personnel told the driver that drugs were found in the crates. The driver confronted Taylor, who apologized for getting him involved, and offered to pay the driver $10,000 to get the crate back and also offered him a new cell phone so that they could communicate. The driver refused the money and the cell phone and cut off all communication with Taylor. Taylor stopped using the shipping company.
The government’s evidence showed that Taylor traveled to Arizona during the same time period each of the shipments were shipped from Tucson, Arizona to Maryland. Even after Taylor stopped using the Maryland shipping company in July 2013, she continued to travel to and from Arizona and Maryland, renting a U-Haul within days of each return to Maryland, including in October 2013, January 2014, February 2014, April 2014, July 2014, and September 2014.
According to trial evidence, after Taylor returned to Maryland from Arizona on September 30, 2014, she rented a U-Haul van, which she drove to Washington, DC, and then back to her residence. On that same date, law enforcement executed a search warrant at Taylor’s residence and the U-Haul van. Law enforcement recovered 250 pounds of marijuana (approximately 130 kilograms) from a crate that Taylor was seen unloading from the U-Haul van, and nine cell phones from throughout the residence. In addition, within her master bedroom, law enforcement recovered additional marijuana, over $30,000 in cash, and drug ledgers which calculated Taylor’s sales and profit from her marijuana business.
The government’s evidence showed that, just between October 2012 and July 2013, Taylor shipped approximately 5,220 pounds (approximately 2,367 kilograms) of marijuana, worth approximately $5 million.
United States Attorney Rod J. Rosenstein praised the DEA for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O’Connell Hayes and Bryan E. Foreman, who prosecuted the case.
Bowie Man Pleads Guilty to Misusing a Social Security Number to Fraudulently Obtain a Medical LicenseRead the Press Release
Greenbelt, Maryland – Oluwafemi Charles Igberase, a/k/a Charles John Nosa Akoda, age 54, of Bowie, Maryland, pleaded guilty on November 15, 2016, to misusing a Social Security Account number to fraudulently obtain a medical license in Maryland.
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); Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Drew Grimm of the U.S. Office of Personnel Management - Office of Inspector General; 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, Igberase entered the United States in October 1991 on a nonimmigrant visa. In November 1991, January 1995, and September 1998, Igberase obtained fraudulent social security numbers using other names and false identifying information. Between 1992 and 1998, Igberase obtained three certifications from the Educational Commission for Foreign Medical Graduates (ECFMG) under different names, dates of birth and fraudulent social security numbers, in order to practice medicine and get into a residency program in the United States. The ECFMG Committee on Medical Education Credential subsequently revoked or suspended two certifications in December 1995, after learning that they were fraudulently obtained. In 1998, after receiving his third ECFMG certification in the name Charles John Nosa Akoda, Igberase was admitted to a residency program in New Jersey. Igberase was dismissed from the program two years later after officials learned that the social security number he used did not belong to him.
In 2011, Igberase also used the third social security number to fraudulently apply for federal education loans for his children. That same year, using a fourth fraudulent social security number that belonged to another individual, and other fraudulent documents in the name Charles John Nosa Akoda, Igbergase obtained a medical license in Maryland, after completing a U.S. residency program. He went on to practice obstetrics and gynecology and obtained medical privileges at a hospital in Prince George’s County.
In 2012, Igberase, using the Akoda identity, submitted a Medicare Enrollment Application, which was denied based in part on their determination that Igberase did not provide an accurate social security number.
A search warrant executed at Igberase’s residence recovered a false social security card in the Akoda name, a false Nigerian passport for Akoda, a false U.S. visa in the Akoda name, and fraudulent or altered documents related to immigration, medical diplomas, medical transcripts, letters of recommendation and birth certificates.
Igberase and the government have agreed that if the Court accepts the plea agreement Igberase will be sentenced to six months in prison, followed by six months of home detention as part of three years of supervised release. U.S. District Judge Paul W. Grimm has scheduled sentencing for February 27, 2017 at 1:00 p.m.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Offices of Inspector General for the Social Security Administration, Department of Health and Human Services and Office of Personnel Management, the FBI, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O’Connell Hayes and Michael T. Packard, who are prosecuting the case.
Baltimore Man Exiled to 10 Years in Federal Prison for Illegal Possession of a Firearm by a Previously Convicted FelonRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced James Kingsborough, age 26, of Baltimore, Maryland, today to 10 years in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm. Kingsborough was convicted by a federal jury on June 22, 2016.
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; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to the evidence presented at the two-day trial, on June 17, 2015, at approximately 11:25 a.m., Baltimore Police officers saw Kingsborough bent over at the waist appearing to be injured. The officers approached Kingsborough inquiring if he was “OK.” Kingsborough responded he was “on the box,” meaning he had on an electronic monitoring device. Kingsborough departed abruptly and walked across the intersection of North Franklintown Road and West Franklin Street. As he walked, the officers saw him adjusting his waistband and altering his gait in a manner suggesting he had a firearm. Kingsborough went into a nearby barber shop and an officer followed him inside. Kingsborough turned around, grabbed his right midsection, and walked towards the officer. The officer instructed Kingsborough to show his hands, but Kingsborough refused. The officer attempted to grab Kingsborough, who shifted out of the officer’s grasp, but the officer was able to grab the back of Kingsborough’s shirt as he squirmed past the officer. Kingsborough and officer struggled through the shop’s front door and the second officer approached them. A firearm dropped from Kingsborough’s waistband onto the ground and Kingsborough and the second officer began struggling. The first officer, fearing for the safety of his fellow officer, deployed his Taser. The officers arrested Kingsborough and recovered the firearm, a .380 caliber handgun, loaded with .380 hollow point rounds.
Kingsborough is prohibited from possessing a firearm or ammunition as a result of four previous felony convictions, including a conviction for attempted second degree murder. This offense occurred less than five months after Kingsborough’s release from prison on that conviction.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys David Metcalf and John W. Sippel, Jr. who prosecuted the case.
Leader of Baltimore BGF Gang Sentenced to Life in Prison for Federal Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – On November 14, 2016, U.S. District Judge James K. Bredar sentenced BGF leader Mark Bazemore, a/k/a Uncle Mark, age 31, of Baltimore, to life in prison for racketeering and drug conspiracies related to his Black Guerilla Family (BGF) gang activities. Judge Bredar sentenced Michael Smith, Jr., a/k/a Mikey, Lil Mike and Mik, age 30, of Baltimore, to 210 months in prison, and Timothy Hurtt, a/k/a Uncle Tim and Tim, age 45, of Baltimore County, to 324 months in prison, each followed by five years of supervised release for participating in a racketeering conspiracy and drug conspiracy related to their membership in BGF. A federal jury convicted them of those charges on June 6, 2016. Bazemore and Hurtt were also convicted of conspiring to use and carry a firearm in relation to a crime of violence and a drug trafficking crime. Bazemore was also convicted of conspiring to commit murder in aid of racketeering; and attempted murder in aid of racketeering.
Today, Judge Bredar sentenced Irvin Vincent, age 28, of Hanover, Maryland, to 18 years in prison, followed by five years of supervised release, for racketeering and drug conspiracies related to his membership in the Black Guerilla Family (BGF) gang, possession with intent to distribute heroin, and possession of a firearm in furtherance of a drug trafficking crime.
The sentences 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; Baltimore Police Commissioner Kevin Davis; Chief Gary Gardner of the Howard County Police Department; Howard County State’s Attorney Dario Broccolino; and Baltimore City State’s Attorney Marilyn Mosby.
“If we want to stop the killing in Baltimore, we need to remove the killers from Baltimore,” said U.S. Attorney Rod J. Rosenstein.
The Black Guerilla Family (BGF) is a nationwide gang operating in prisons and on the streets of cities throughout the United States. BGF is involved in criminal activity, including murder, robbery, extortion, narcotics trafficking, obstruction of justice and witness intimidation in Baltimore, in Maryland, and elsewhere. BGF members were required to follow a code of conduct. Members who violate this code or disobey an order from a superior are subjected to disciplinary measures called “sanctions,” which include fines, physical beatings, stabbings, and murders administered by other BGF members. According to court documents and evidence presented at trial, these defendants and other BGF members regularly paid dues to BGF and met to discuss gang business, including: the sanctioning of BGF members; the identities of individuals suspected of cooperating with law enforcement and actions to be taken against them; and the commission of future crimes.
According to trial evidence, Bazemore, who was a BGF leader, issued sanctions on several fellow BGF members, including the attempted murder of one BGF member who was shot on March 10, 2014, and the murder of another member who was killed on June 16, 2014. Bazemore and Smith collected dues from BGF members who were dealing drugs in the area of Pratt and Payson Streets, a BGF controlled open-air drug shop in Baltimore. In addition to collecting dues, the defendants conspired to operate street-level drug shops throughout Baltimore where they distributed heroin. Timothy Michael Gray, a/k/a “Mike Gray,” who was the Baltimore “city-wide” commander of BGF would often be driven by Hurtt to various BGF-controlled drug shops, like Pratt and Payson, to collect drugs and money from their subordinates. In addition, Hurtt and Gray provided armed protection in a BGF drug deal.
According to his plea agreement, Vincent obtained wholesale quantities of heroin, which he distributed to other BGF members for redistribution, or provided the heroin to intermediaries to be sold in Howard County, Maryland, and elsewhere. Vincent often packaged his individual units of heroin in small green bags. Vincent was overheard by law enforcement discussing the wholesale purchase and sale of heroin to various customers in Howard County and other locations throughout Maryland. On July 8, 2014, Vincent was arrested driving his vehicle after being observed meeting with his source of supply, and a search and seizure warrant was executed on his apartment in Anne Arundel County, Maryland. Agents recovered approximately 75 grams of heroin, as well as heroin packaged in green bags; a loaded Taurus .357 revolver on top of a document containing the BGF oath; and a loaded 9mm handgun. A later search of Vincent’s car revealed a hidden compartment behind the dashboard containing an additional 50 green bags containing heroin, a ski mask, and a loaded 9mm handgun.
According to evidence presented at today’s sentencing hearing, two of Vincent’s regular drug customers obtained heroin from him or one of his employees which they provided to two individuals in Howard County who died of a heroin overdose. According to today’s testimony, after being advised by his customers that someone may have died from using his heroin, Vincent stated that he did not want to hear about it, and told the customers not to bring it up again.
Timothy Michael Gray, a/k/a “Mike Gray,” age 48, of Baltimore, previously pleaded guilty to the racketeering conspiracy. Nine other co-defendants pleaded guilty to their roles in the conspiracies and are awaiting sentencing, including six defendants who are scheduled to be sentenced this week.
United States Attorney Rod J. Rosenstein praised the FBI; Baltimore City and Howard County Police Departments; and Baltimore City and Howard County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Keri Borzilleri, on detail from the Maryland Attorney General’s Office for her assistance in today’s sentencing, and Assistant United States Attorneys James T. Wallner and Clinton Fuchs, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Baltimore Man Sentenced to 10 Years in Federal Prison for a Series of Commercial RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Taft Redd, age 45, of Baltimore, Maryland, today to 10 years in federal prison, followed by 3 years of supervised release, for six commercial robberies committed between July 22 and August 18, 2015.
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; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, in each robbery Redd entered the store, approached the register, displayed what appeared to be a black handgun, and demanded money. Redd stole cash from each store and occasionally took merchandise as well. Specifically, on July 22 and August 18, 2015 Redd robbed the same convenience store located in the 5200 block of Harford Road in Baltimore; on July 22 Redd robbed a shoe store located in the 3200 block of Greenmount Avenue in Baltimore; July 29 and August 12, 2015 Redd robbed the same shoe store located in the 3900 block of Erdman Avenue in Baltimore; and on August 16, 2015 Redd robbed a fast food restaurant in the 2000 block of N. Broadway in Baltimore.
When Redd was arrested on August 19, 2015, he was in possession of a black BB gun that was the same weapon seen by witnesses in the six robberies.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Matthew C. Sullivan, who is prosecuting the case.
Owner of Baltimore Real Estate Consulting Company and Real Estate Agent Each Sentenced to over Two Years in Federal Prison for Mortgage Fraud SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced real estate consultant Alexander Sivels, II, age 32, of Baltimore, and real estate agent Christopher A. Kwegan, age 59, of Randallstown, Maryland, each to 27 months in prison, followed by three years of supervised release, for related mortgage fraud schemes. Judge Bredar also ordered Sivels to pay restitution of $1,317,314.35, and ordered Kwegan to pay restitution of $530,641.27. Kwegan was sentenced today and Sivels was sentenced yesterday.
Sivels previously pleaded guilty to wire fraud involving the fraudulent purchase of at least nine properties in Baltimore using fraudulent loan documentation and settlement documents, resulting in actual or attempted losses of more than $1.3 million. Kwegan participated in the fraudulent sale of two properties with losses of more than $530,000.
The sentences 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; Special Agent in Charge Bertrand Nelson of the U.S. Department of Housing and Urban Development Office of Inspector General; and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
“Mortgage fraud perpetrators steal by inducing lenders to make loans that will never be repaid, and they harm neighborhoods when the inevitable foreclosures drive down property values,” stated U.S. Attorney Rod J. Rosenstein.
According to Sivels’ plea agreement and other court documents, Sivels owned Royal Real Estate Consultants LLC, and co-conspirator Cecil Chester worked as an accountant from an office located on New Hampshire Avenue in Hyattsville, Maryland. Co-conspirator Andreas Tamaris purchased, renovated, and then resold distressed row houses in Baltimore City, primarily in Highlandtown. In 2007 or 2008, Sivels met Andreas Tamaris and agreed to assist Tamaris to find purchasers for houses he had bought and renovated, or that were owned by developers who owed money to Tamaris for renovation work. Tamaris told Sivels the amount he needed to receive from the sale of each property to recover his investment and earn a profit. Tamaris told Sivels that he could keep any excess funds generated if Sivels sold the house for more than the amount Tamaris needed to cover his costs.
Between 2008 and 2011, Sivels participated in the sale of at least nine properties, all of which were eventually foreclosed upon, resulting in losses of more than $1.3 million. In 2008 and 2009, Sivels and Chester recruited buyers to purchase houses, knowing that they did not qualify for the home mortgages. To enable the buyers to purchase the properties, Sivels and his co-conspirators prepared fraudulent mortgage applications which misrepresented the buyers’ income and assets. Sivels sometimes created fake tax documents and false pay stubs, and falsified bank statements to reflect the substantial balances referenced by the loan application. The conspirators often inflated the price of the house to insure a profit for themselves. At the settlements for the properties, the proceeds of the sale were generally distributed to Tamaris, who would write checks to Sivels for his portion of the profits. From the sale of just four of the properties Sivels received payments totaling more than $200,000.
In 2010 and 2011, Sivels assisted with the sales of several other Tamaris-owned properties by providing prospective lenders with fraudulent verifications of employment for the purchasers, falsely representing that they worked at a home renovation company Sivels owned, receiving cash payments in return for his assistance.
According to his guilty plea, in the summer of 2008, Kwegan learned that the owner of a row house on Washington Boulevard in Baltimore City was trying to sell his home. The owner had purchased the property 10 years earlier for $11,500 and Kwegan told him that he could sell it for $75,000. The owner agreed to sell it for that price. Rather than trying to sell the property at the actual market price, Kwegan requested assistance from Cecil Chester, who was already operating a mortgage fraud scheme and they set the sale price of the row house at $250,000.
Kwegan arranged to use the personal identifiers of an individual recruited by Chester to buy the property as a straw purchaser. Kwegan and his co-conspirators knew that the straw purchaser lacked the necessary assets to pay for the down payments and closing costs on the property, or the income to keep up the mortgage payments on the house after the transaction closed. Chester provided a mortgage loan broker with a false loan application and fraudulent supporting documents which inaccurately represented that the straw purchaser’s employment, annual income, and assets. Based upon these false representations, a bank wired $242,500 to finance the purchase of the property, at the settlement on September 30, 2008. Kwegan used his own funds to obtain a cashier’s check in the amount of $9,391.53 to cover the down payment and the straw purchaser’s share of the closing costs. After the settlement, just $15,773.65 was disbursed to the seller of the property. In contrast, $145,000 was wired to an entity identified as “CAK,” which were Kwegan’s initials. These funds were transferred into Kwegan’s bank account. Kwegan then wrote a check to Chester for $35,000. No payments were made on the mortgage. The property went into foreclosure and remains unsold at this time, resulting in a loss of between $150,000 and $235,000. At today’s hearing, the Court found that Kwegan was also involved in the fraudulent sale of another property with Chester, resulting in a loss of $296,000. Kwegan derived over $100,000 in proceeds from this transaction and paid another $40,000 to Chester for his assistance.
Andreas E. Tamaris, age 46, of Bel Air, Maryland, previously pleaded guilty to one count of conspiracy to commit mail and wire fraud and is scheduled to be sentenced on November 15, 2016. Co-conspirator Cecil Sylvester Chester, age 69, of Mitchellville, Maryland pleaded guilty to the fraudulent purchase of seven properties in Baltimore, using fraudulent loan documentation and straw purchasers, resulting in losses of over $1.4 million. Chester is scheduled to be sentenced on November 28, 2016. Michael Gerard Camphor, age 60, of Baltimore, previously pleaded guilty for his participation in the fraudulent purchase of four properties in Baltimore resulting in losses of over $736,000. Judge Bredar scheduled Camphor’s sentencing for December 19, 2016.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available at http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI, HUD OIG - Office of Investigations and the U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the cases.
Germantown Insurance Agent Pleads Guilty in Scheme to Fraudulently Obtain over $630,000 in CommissionsRead the Press Release
Greenbelt, Maryland – Alicia Jones, age 48, of Germantown, Maryland, pleaded guilty on November 3, 2016, to conspiracy to commit wire fraud, in connection with a scheme to submit fraudulent insurance applications using the identities of others, in order to obtain over $630,000 in commissions.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division.
According to her plea agreement, on November 23, 2011, Jones was licensed to sell insurance in Maryland and soon thereafter began working for Insurance Company A. Insurance Company A routinely provided insurance agents with advance commission payments at the time a new application was submitted to the company, representing approximately 50% of the total commission due.
Jones admitted that Between March 2012 and January 2013, she electronically submitted more than 3100 fraudulent insurance applications under her name and insurance license, as well as under the names and insurance licenses of others, in order to obtain the advance commissions. Jones submitted over 1400 fraudulent applications for over 310 fictitious individuals and over 1700 fraudulent applications for over 370 real persons who were not eligible for policies and did not know the policies were submitted on their behalf. Jones encouraged multiple family members to obtain licenses to sell insurance and work with her. Jones submitted fraudulent applications under her name, the names of her family members and others. Jones either had access or stole access to her family members’ bank accounts in order to withdraw the advance commission payments on the fraudulent policies she submitted under their names prior to them noticing the deposits.
As part of her plea agreement, Jones will be required to pay restitution of $636,278.12, the amount of loss or attempted loss foreseeable to Jones during the conspiracy.
Jones faces a maximum sentence of 20 years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for February 8, 2017, at 2:30 p.m.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney David I. Salem who is prosecuting the case.
United States Reaches $900,000 Settlement with Drug City Pharmacy and its Former Owner for Unlawful Distribution of Controlled SubstancesRead the Press Release
Baltimore, Maryland – Drug City Pharmacy, Inc. and its former owner, Mark Lichtman, have agreed to pay $900,000 to the United States to resolve allegations that they violated the Controlled Substances Act (CSA) by dispensing controlled substances pursuant to prescriptions that were not issued for a legitimate medical purpose.
The settlement agreement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division.
“Pharmacies and pharmacists are responsible for making sure controlled substances prescriptions were issued for legitimate medical purposes,” said U.S. Attorney for the District of Maryland Rod J. Rosenstein. “Doctors and pharmacists are the gatekeepers in preventing abuse and diversion of pharmaceutical drugs for non-medical purposes.”
“The abuse of prescription drugs has rampantly spread throughout our communities,” stated DEA Special Agent in Charge Karl C. Colder. “This abuse has directly resulted in the escalation of heroin addiction and related overdoses. Today’s settlement sends a clear message to all pharmacies that it is essential to dispense controlled substances in compliance with DEA’s record keeping requirements. DEA is dedicated to combat the prescription drug abuse problem in Maryland and throughout the country and to hold pharmacies and its owners like Drug City and Lichtman, accountable.”
Under the CSA, pharmacies have a responsibility to dispense only those prescriptions that have been issued for a legitimate medical purpose by a health care provider acting in the usual course of professional practice. Knowingly filling an illegitimate prescription subjects a pharmacy to civil penalties under the CSA.
According to the settlement agreement, Drug City and Lichtman admitted that from January 1, 2010 to April 4, 2012 they dispensed controlled substances in a manner not fully consistent with their compliance obligations under the CSA and related regulations. Specifically, the settlement agreement states that controlled substances were dispensed to individuals that Drug City or Lichtman should have known were diverting the drugs. This settlement caps off an another investigation that began as part of the DEA’s crackdown on prescription drug abuse in Maryland.
U.S. Attorney Rod J. Rosenstein commended the DEA’s Office of Diversion Control, Washington Division, Baltimore District Office for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas F. Corcoran, who handled the case.
Baltimore Man Ordered to Pay $1 Million in Restitution for Obstructing Firefighters’ Efforts to Fight CVS Fire During Baltimore RiotsRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, today to pay $1 million in restitution, to serve 250 hours of community service and three years of supervised release, after giving him credit for time served (five weeks), for impeding firefighters by puncturing a firehose during the civil disturbance in Baltimore on April 27, 2015.
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; Commissioner Kevin Davis of the Baltimore Police Department; Maryland State Fire Marshal Brian Geraci; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to the information presented to the court at Butler’s plea hearing and today’s sentencing, on April 27, 2015, riots erupted in Baltimore and at approximately 6:30 p.m. the Baltimore City Fire Department (BCFD) was notified of a fire at the CVS Pharmacy located at 2509 Pennsylvania Avenue, which is adjacent to the intersection of Pennsylvania Avenue and West North Avenue in Baltimore. Several BCFD engines were dispatched to suppress and extinguish the fire at the CVS. Firefighters deployed fire hoses to provide water in those efforts and to protect firefighters inside and near the building. Throughout the course of BCFD’s fire suppression and extinguishment efforts, rioting continued in the vicinity of CVS Pharmacy.
One hose was attached to a hydrant near the intersection of Pennsylvania and West North Avenues. Once the hose was attached to the hydrant and the water was flowing into the hose, Butler admitted that he punctured the hose twice using a knife. Both punctures released a high-pressure stream of water from the hose and rendered the hose inoperable. As a result, the efforts to put out the fire at the CVS were impeded and delayed.
Federal prosecutors previously have charged four other defendants for arson crimes committed during the Baltimore riots on April 27, 2015. Trevon Green, age 23, of Baltimore, pleaded guilty to the arson of a Baltimore food market and admitted that he participated in the looting of a liquor store and assaulted the store’s owner. Green was sentenced to 70 months in federal prison. Darius Raymond Stewart, age 22, of Baltimore, pleaded guilty to malicious destruction of property by fire, arising from the arson of a liquor store and was sentenced to five years in federal prison. Donta Betts, age 20, of Baltimore, was sentenced to 15 years in federal prison for making a destructive device in connection with the April 27, 2015, riots in Baltimore and, in an unrelated case, for discharge of a firearm in furtherance of a drug trafficking crime on July 2, 2015. Raymon Carter, age 25, of Baltimore, Maryland, pleaded guilty to the federal crime of rioting, including the arson of the CVS Pharmacy on April 27, 2015, and was sentenced to four years in prison and ordered to pay restitution of $500,000.
The investigation into arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, Maryland State Fire Marshal’s Office and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Philip A. Selden and Matthew J. Maddox, who prosecuted the case.
Richard Byrd Pleads Guilty to Leading Major Baltimore Drug Distribution OrganizationRead the Press Release
Baltimore, Maryland –Richard Byrd, a/k/a Robert Smith, age 43, a Jamaican national residing in Maryland and Arizona, pleaded guilty today to conspiracy to distribute and possess with intent to distribute cocaine and marijuana, and to conspiracy to launder drug proceeds.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration, Washington Field Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Frank L. Milstead, Director of the Arizona Department of Public Safety; Chief Jeri Williams of the Phoenix, Arizona Police Department; and Chief Sean Duggan of the Chandler, Arizona Police Department.
“Richard Byrd ran a major drug distribution ring that generated millions of dollars in proceeds,” said U.S. Attorney Rod J. Rosenstein.
“This is one of the largest and most prolific drug organizations that has been dismantled in Baltimore in recent memory”, stated Special Agent in Charge Karl C. Colder. “This investigation and guilty plea is a prime example of how DEA, with our federal and local partners in HIDTA (High Impact Drug Trafficking Area), continues to target and dismantle large scale, complex trafficking organizations that operate in Baltimore, the surrounding metropolitan area, and throughout the nation.”
According to his plea agreement and court documents, from 2009 through April 2014, Richard Byrd was the leader and organizer a drug distribution network which provided for the acquisition, transportation and distribution of cocaine and marijuana. The sale of marijuana and cocaine generated proceeds in the millions of dollars. These proceeds were counted and packaged in and around Baltimore. Byrd used couriers to transport the proceeds to the Atlanta, Georgia area, then others to transport the money from Atlanta to cities in Nevada, Texas, Arizona, and California, where the cash was used to purchase additional quantities of drugs.
Byrd also acquired a financial interest in a business in order to launder drug proceeds, finance commercial ventures, and pay other bills and expenses. At his direction, several million dollars in cash were deposited into the bank accounts maintained by the business. Many of these transactions involve deposits in excess of $10,000. In addition, Byrd used bank accounts in the name of an alias, Robert Smith, to conduct financial transactions intended to launder drug proceeds, including paying personal bills and expenses.
The conspirators used freight companies to ship drugs obtained in Arizona, California and elsewhere to distribution points in Baltimore, and other east coast destinations. Rasan Byrd supervised the Arizona-based activities of organization. Under the direction of Richard Byrd, Rasan coordinated the acquisition of large quantities of marijuana and cocaine from Mexican sources of supply and supervised several workers who weighed and packaged the drugs in a way to avoid detection by law enforcement. On April 22, 2013, law enforcement officers in Arizona seized 16 kilograms of cocaine and over 600 pounds of marijuana which were about to be shipped to Byrd’s Baltimore-based distributors.
The Baltimore distributors included Jerome Castle, Joseph Byrd, and Harold Byrd. Castle supervised the Baltimore operation, taking delivery of the drugs, selling them, and collecting and counting proceeds from the drug sales. On April 22, 2013, law enforcement officers in Maryland seized approximately 350 pounds of marijuana and over 10 kilograms of cocaine from businesses and residences utilized by Castle, Joseph Byrd, and Harold Byrd. In addition, almost $58,000 in currency and jewelry valued at more than $400,000 were recovered at the residence of Jerome Castle. The money and jewelry were also proceeds from illegal drug sales.
In addition, over $1 million was seized in Arizona from Richard Byrd in early 2011. In July 2012, an additional of $372,000 was seized from a residence in Arizona occupied by Richard and Rasan Byrd. These money seizures were proceeds from east coast drug sales intended for use in acquiring additional quantities of marijuana and cocaine.
During the course of this conspiracy more than 150 kilograms of cocaine and 20,000 kilograms of marijuana were acquired and distributed by Richard Byrd and his associates.
Byrd and the government have agreed that if the Court accepts the plea agreement Byrd will be sentenced to 26 years in prison and will be required to pay a money judgment of $20 million dollars, as well as forfeit his interest in two properties, three businesses, and 10 vehicles, and forfeit $1,609,411.51 in cash seized during the investigation. U.S. District Judge Richard D. Bennett has scheduled sentencing for February 9, 2017, at 3:00 p.m.
Brothers Rasan Byrd, age 41, of Houston, Texas, Harold Alexander Byrd, age 27, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 35, of Owings Mills, Maryland, previously pleaded guilty to their roles in the conspiracy. Rasan was sentenced to 14 years in prison and Harold and Joseph were each sentenced to 10 years in prison.
Jerome Adolfo Castle, a/k/a Dontwon Burris, age 37, a Jamaican citizen residing in Pikesville, Maryland, previously pleaded guilty to his role in the conspiracy and was sentenced to 14 years in prison. Castle was also ordered to forfeit $57,997 in cash, his interest in seven Baltimore properties, jewelry valued at more than $411,000, 98 pairs of men’s shoes, two laptop computers and an I-Pad, seven firearms and ammunition, as well as six vehicles, including a 2009 Jaguar XF Premium.
Maurice Jones, age 62, and Richard Drummond, age 40, both of Baltimore, also pleaded guilty to their roles in the conspiracy and were sentenced to seven years in prison and two years in prison, respectively.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department, the Maryland Transportation Authority Police, IRS-Criminal Investigation, HSI-Baltimore, Arizona Department of Public Safety, Phoenix Police Department, and Chandler, Arizona Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Catonsville Man Charged with Making Threats by Telephone and EmailRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Stephen Charles Williams-Hill, age 32, of Catonsville, Maryland, today for allegedly using a telephone and emails to threaten to kill, intimidate, or injure the victims and their residence by means of an explosive, and communicating in interstate commerce, a threat to kidnap or injure another person.
The criminal complaint 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 James W. Johnson of the Baltimore County Police Department; Commissioner Kevin Davis of the Baltimore Police Department, as part of the FBI Joint Violent Crimes Task Force; and Chief Chris Magnus of the Tucson Police Department.
According to the affidavit, from July through October 2016, Williams-Hill, using the name Gio Calle, made numerous threats to the victim and her family. The affidavit alleges that Williams-Hill called, emailed and left messages, for the victim, her mother and her sibling. In those calls and emails Williams-Hill allegedly threatened to blow up the building where the mother worked, blow up the family’s residence, kill, maim and torture the victim and the members her family. Williams-Hill claimed to have a semiautomatic weapon, that he threatened to use to kill the family and individuals at the mother’s work place. According to the affidavit, on several occasions Williams-Hill stated that he’d been wanting to kill someone since he was six years old.
If convicted, Williams-Hill faces a maximum sentence of 10 years in prison for using a telephone and emails to threaten to kill, intimidate, or injure the victims and their residence by means of an explosive; and a maximum of five years in prison for communicating in interstate commerce, a threat to kidnap or injure another person. Williams-Hill had an initial appearance this afternoon in U.S. District Court in Baltimore and was detained pending a detention hearing scheduled for November 3, 2016 at 2:00 p.m.
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, Baltimore City and Baltimore County Police Departments and the Tucson, Arizona Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney John W. Sippel, Jr. who is prosecuting the case.
Maryland Man Exiled to 10 Years in Federal Prison for Possession of a Stolen FirearmRead the Press Release
Baltimore, Maryland –U.S. District Judge James K. Bredar sentenced Daniel Hill, age 44, of Baltimore, Maryland, today to 10 years in prison, followed by three years of supervised release, for possession of a stolen gun.
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; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to Hill’s guilty plea, on October 14, 2014, three Baltimore Police Department officers were on patrol in a marked police vehicle on S. Pulaski Street in Baltimore City. As the officers approached the 2100 block of Booth Street, they saw a woman and man standing in the block. The woman appeared scared and the officers approached to investigate. When the man, later identified as Daniel Hill, spotted the police officers, he ran away. Police pursued Hill through an alleyway and Hill was quickly apprehended.
The woman told police that Hill had brandished a black handgun and demanded money from her. The woman gave Hill three $20 bills. She also told police that Hill had thrown the gun into the back yard of a residence and police recovered a .44 caliber handgun from the yard. After his arrest, Hill was searched and officers recovered three $20 bills from his left side pocket. At a subsequent interview, after waiving his rights, Hill admitted that he was in possession of the gun. Investigation showed that the gun was reported stolen in Ohio prior to its recovery in Maryland.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney John W. Sippel, Jr., who prosecuted the case.
Bulgarian National Pleads Guilty to Possession of a Device to Make Fraudulent Credit and Debit CardsRead the Press Release
Baltimore, Maryland – Martin Aleksandrov Enev, age 27, a Bulgarian national residing in Randallstown, Maryland, pleaded guilty today to possession of device-making equipment with the intent to defraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, on July 20, 2016, Bulgarian Customs Officers contacted U.S. Secret Service agents after they identified what they believed to be an illegal “ATM skimming device” concealed within a black and green nylon pouch, which is capable of reading the encrypted information contained in the magnetic strip on the back of a credit or debit card. The pouch had been discovered during a routine screening of international shipments scheduled to depart from the airport. The pouch was enclosed inside a shipper’s plastic delivery envelope with a packing slip attached addressed to “Marin Penev” at an address in Randallstown. Bulgarian authorities sent photographs of the device and envelope to the Secret Service.
On July 21, 2016, members of the USSS Maryland Electronic Crimes Task Force arranged a controlled delivery of the envelope and its contents once it arrived in the United States. On July 26, 2016, Enev picked up the package, providing a Maryland driver’s license in his name as identification. Special Agents of the USSS and Baltimore County Detectives followed Enev to a residence in Randallstown. The owner of the residence advised agents that Enev rented a room on the first floor of the residence and provided agents with Enev’s telephone number. A Secret Service agent called the phone number and spoke to Enev who agreed to exit the residence. Enev came out of the house and was taken into custody.
Search warrants were executed at Enev’s residence and his vehicle. From the vehicle, law enforcement recovered the opened shipping envelope, which was empty; one box containing 15 pre-paid gift and credit cards capable of being recoded with fraudulently obtained financial proceeds, along with various business cards; and three paper receipts indicating the reloading of a pre-paid gift card in the amount of $270. The search of Enev’s living area recovered: the black and green nylon pouch containing an ATM skimming, which matched the photographs of the device sent by Bulgarian authorities; two other ATM skimming devices inside the hall closet, along with a magnetic card re-encoder and 40 blank white credit cards; a desktop computer and cellular phone; and prepaid credit cards found in a desk and in Enev’s wallet. Also located in the wallet was a Maryland driver’s license bearing his name and photograph, and a Bulgarian identification card bearing Enev’s photograph. His Republic of Bulgaria driver’s license and European Union identification card were also seized during search.
A preliminary review of the prepaid gift cards and credit cards seized during the search revealed that some of them had been recoded with other people’s personal identifying information (PII), including their names and financial account numbers, creating a counterfeit access device capable of accessing those persons’ bank accounts and/or credit card balances through an ATM machine. The USSS confirmed that money had already been withdrawn from some of those financial accounts. PII contained on some of the other cards in Enev’s possession was obtained from financial accounts or credit cards created and issued in Europe. The government believes that Enev played a key role in an ongoing identity theft ring with ties to a criminal association based in Europe.
Enev and the government have agreed that if the Court accepts the plea agreement Enev will be sentenced to 33 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for January 9, 2017 at 3:00 p.m. Enev remains detained.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Martin J. Clarke, who is prosecuting the case.
Leader of Baltimore County Heroin Distribution Organization Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Adrian Spence, a/k/a “AJ,” and “SP,” age 28, of Baltimore, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin. Judge Bennett also entered an order requiring Spence to forfeit $26,320 seized from his residence during the execution of a search warrant.
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 Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, law enforcement began an investigation into a drug conspiracy involving the distribution of heroin in the Baltimore Metropolitan area. The investigation revealed that Adrian Spence was a leader of a heroin distribution ring in Baltimore County. Evidence revealed numerous calls in which Spence: coordinated drug sales in and around the Baltimore County area; directed his codefendant to “start stomping on it” and “crushing it down,” referring to cutting the heroin for a subsequent sale; and attempted to secure sources of heroin for later re-sale. On July 31, 2015, law enforcement executed a search warrant at Spence’s residence and recovered: $26,320 in cash; cellular phones; and other items.
Spence admitted that the amount of heroin reasonably foreseeable to him in, and in furtherance of, this conspiracy amounts to between one and three kilograms of heroin. Spence also admitted that he was an organizer and leader of a drug trafficking organization of more than five individuals.
United States Attorney Rod J. Rosenstein praised HSI-Baltimore, the ATF, Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorneys’ Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Jason D. Medinger, Christina Hoffman, and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Federal Indictment Charges Suitland Man in Fatal Shooting at the U.S. Census BureauRead the Press Release
Greenbelt, Maryland – A federal grand jury today returned an indictment charging Ronald Anderson, age 48, of Suitland, Maryland, with kidnapping, murder of a federal officer, attempted murder of a federal officer, using and discharging a firearm during a crime of violence, causing death by use of a firearm during a crime of violence, and being a felon in possession of a firearm.
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; Chief Hank Stawinski of the Prince George’s County Police Department; Interim Chief Peter Newsham of the Metropolitan Police Department; and Director Eric Patterson of the Federal Protective Service, Department of Homeland Security.
The indictment alleges that on April 9, 2015, Anderson abducted Victim One from Washington, D.C. and drove Victim One to Maryland. According to court documents, once in Maryland Victim One got out of Anderson’s vehicle and into a Honda CRV driven by an acquaintance of Anderson’s and they sped away. Anderson pursued the CRV at a high rate of speed.
According to court documents, the acquaintance drove to the U.S. Census Bureau building at 4600 Silver Hill Road in Suitland, with Anderson continuing to pursue the CRV. The Honda CRV crashed into a light pole near two armed security officers. Anderson stopped his vehicle behind the Honda CRV and exchanged gunfire with the two security officers. The indictment alleges that Anderson shot and killed one of the officers and attempted to murder the second officer.
Anderson was subsequently arrested in Washington, D.C. by Metropolitan Police Department (MPD) officers after a vehicle pursuit and gunfight, with Anderson firing numerous times at MPD officers. Anderson was shot multiple times and an MPD officer was struck in the leg. According to court documents, a .45 caliber pistol was recovered from Anderson’s vehicle. The indictment alleges that Anderson has a previous felony conviction and is prohibited from possessing a firearm.
If convicted, Anderson faces a maximum sentence of life in prison. An initial appearance has not been scheduled. Anderson continues to undergo medical treatment and remains detained on related charges filed in the Superior Court for the District of Columbia.
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 praised the FBI, Prince George’s County Police Department, Metropolitan Police Department, and the Federal Protective Service of the National Protection and Programs Directorate, Department of Homeland Security for their work in the investigation and thanked the U.S. Attorney’s Office for the District of Columbia for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas M. Sullivan and Bryan E. Foreman, who are prosecuting the case.
Ellicott City Man Indicted in $3 Million Insurance Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Glenn R. Fischer, age 69, of Ellicott City, Maryland, on charges of wire fraud and aggravated identity theft arising from a scheme to defraud businesses seeking insurance. The indictment alleges that as a result of the scheme, Fischer fraudulently collected more than $3 million in insurance premiums. The indictment was returned on September 22, 2016 and unsealed today.
The indictment 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 five-count indictment, Fischer was a partner at TriArc Financial Services, Inc., (TriArc Services) which provided automotive and mortgage insurance products, including residual value insurance. Residual Value Insurance (“RVI”) helped companies leasing vehicles to consumers to manage the risk from decreases in the value of the vehicle during the term of an auto lease. RVI typically provided for payments to the owner of a leased vehicle if the value of the vehicle at the end of the lease was less than a certain amount specified in the terms of the insurance coverage when the lease began. In the early 2000s, RVI policies were widely issued by insurance companies and TriArc Services generated substantial revenue for the company and its partners, including Fischer, who served as insurance brokers for RVI products. In 2008 and 2009, in conjunction with the financial recession and changes in consumers’ desires for used automobiles, many insureds suffered substantial losses in conjunction with previously issued RVI insurance policies.
The indictment alleges that from 2009 until 2014, Fischer persuaded victim businesses to purchase RVI insurance coverage, which Fischer knew did not exist, so that Fischer could use a substantial portion of the victims’ insurance premiums for his personal benefit. Specifically, in the summer of 2009, Fischer created a Nevada corporation called TriArc Marketing Solutions (TriArc Solutions) and opened bank accounts for TriArc Solutions. According to the indictment, during the course of the scheme Fischer caused prospective insureds to believe that he was acting on behalf of TriArc Services. Fischer concealed the creation and use of TriArc Solutions from his partners at TriArc Services.
Fischer allegedly created and sent false insurance coverage documents, fraudulent emails, premium invoices, lists of covered vehicles, and other documents to victim companies, causing them to falsely believe that they had purchased RVI insurance through Fischer. Fischer used the identity of an employee of a multinational property and casualty insurance company in furtherance of the fraud, including his name, title and purported signature on the declaration pages of the fake insurance policies. Fischer concealed from the employee and the company that Fischer was pretending to issue RVI insurance policies on behalf of the company.
The indictment alleges that Fischer collected millions in RVI insurance premiums from the victims, which he deposited into the TriArc Solutions bank accounts. According to the indictment, Fischer and his relatives used the proceeds of the insurance premium payments for their personal benefit.
The indictment seeks the forfeiture of all property which constitutes or is derived from the proceeds of the fraud, including: a money judgment of $3 million, six bank accounts, coins, precious metals, a Nitro Z-8 boating vessel, and two vehicles.
If convicted, Fischer faces a maximum sentence of 20 years in prison for each of the four counts of wire fraud, and a mandatory minimum of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft.
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.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry M. Gruber and David Metcalf, who are prosecuting the case.
United States Attorney Appoints District Election Officer Pursuant to Nationwide Federal Election Day ProgramRead the Press Release
Baltimore, Maryland – United States Attorney Rod J. Rosenstein announced today that Assistant United States Attorney (AUSA) Leo J. Wise has been appointed to serve as the District Election Officer (DEO) for Maryland in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Wise is responsible for overseeing the federal response to any complaints of election fraud and voting rights abuses in consultation with state authorities, the FBI, and Justice Department Headquarters.
United States Attorney Rod J. Rosenstein said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
“The Justice Department’s nationwide election day program deters election fraud and discrimination and promotes public confidence in the election process,” said U.S. Attorney Rod J. Rosenstein. “Every U.S. Attorney appoints an election officer to review specific allegations of election fraud and voting rights violations, consult with state and federal authorities where appropriate, and pursue any evidence that warrants prosecution.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Rosenstein stated that AUSA/DEO Wise will be on duty in this District while the polls are open. He can be reached by the public at 410-209-4800.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 410-265-8080.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at https://www.justice.gov/crt/complaint/votintake/index.php.
Baltimore Man Pleads Guilty to Transporting Stolen GoodsRead the Press Release
Baltimore, Maryland – William Albert Engel, Jr., age 40, of Baltimore, Maryland, pleaded guilty today to interstate transportation of stolen goods in connection with a scheme to steal property from shopping mall kiosks and sell it online.
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 Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from October 7, 2014 through March 29, 2016, Engel conspired with co-defendant Brian Halsey and others to steal property, including designer sunglasses, with a retail value of more than $500,000, and sell the items online. Engel stole the items and brought them to Halsey, who used online accounts opened in different names and identities to sell the stolen items, including designer sunglasses, and ship them nationwide from his home in Dundalk, Maryland.
Specifically, 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 designer sunglasses and other 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 and 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.
Engel admitted that more than five individuals participated in the scheme, helping to package and ship the stolen sunglasses, providing their identification information to Halsey to set up bank and online accounts, and/or assisting Engel in the thefts. The estimated loss from the scheme was approximately $500,000.
Engel faces a maximum sentence of 10 years in prison. As part of his plea agreement, Engel will also be required to forfeit and pay a money judgment of $500,000. U.S. District Judge Richard D. Bennett has scheduled sentencing for January 24, 2017 at 3:00 p.m. Engel remains detained.
Brian Nelson Halsey, age 52, of Westminster, Maryland, formerly of Dundalk, Maryland, previously pleaded guilty to his role in the scheme and is scheduled to be sentenced on November 15, 2016 at 3:00 p.m. Halsey remains detained.
United States Attorney Rod J. Rosenstein commended FBI and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
Management Firm Owner Sentenced to 42 Months in Federal Prison for Stealing over $2.5 Million from Client Homeowner and Condo AssociationsRead the Press Release
Baltimore, Maryland – Tuesday afternoon, U.S. District Judge Ellen L. Hollander sentenced William Kyndall Francis, age 39, of Elkridge, Maryland, to 42 months in prison, followed by three years of supervised release, for wire fraud. Judge Hollander also entered an order requiring Francis to pay a money judgment forfeiting $2.5 million, and restitution in the amount of $93,935.28.
The sentence 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.
Francis owned and operated Legacy Investment and Management, Inc. (Legacy Inc.) and Legacy Investment and Management, LLC (Legacy LLC), which were both located at 10015 Old Columbia Rd. in Columbia, Maryland. Legacy Inc. and Legacy LLC (collectively Legacy) were both management firms that provided financial and property services primarily to homeowner and condominium associations (HOAs) in Maryland, Washington D.C. and Virginia in exchange for a monthly fee. One of the services that Legacy provided was management of the HOAs’ reserve funds, which were typically held in savings or money market accounts and were to be used to cover long term and unexpected capital expenses.
According to his plea agreement, from October 2011 to August 2012, Francis defrauded at least 51 of Legacy’s HOA clients by taking reserve funds that belonged to the HOAs. For many of the HOAs, Francis created false bank statements that he gave to the HOA representatives that falsely reflected that their reserve funds were intact and earning returns. In fact, Francis had spent the funds for his own personal and business benefit, including: $7,165.70 to Dogtopia, a dog grooming service; $2,339 to Delicate Touch Nails, a nail salon; $8,244.42 to the Washington Wizards; $1,000.01 to Bare Exposure and $3,848.67 to Pure Gold, adult entertainment clubs; $2,088.50 to A Platinum Plus Limousines; $3,700 to Shadow Room, a Washington D.C. night club; thousands of dollars for the purchase of clothing, liquor, restaurant meals, groceries and other living expenses; $40,025.07 for payroll for Legacy Inc. employees; and payment to AT&T.
The total loss caused by the fraudulent scheme was at least $2,573,753.92.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Kathleen O. Gavin, who prosecuted the case.
PCP Dealer Sentenced to 22 Years in Federal Prison for Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced George Jack Smith, age 29, of Burtonsville, Maryland, today to 22 years in prison, followed by five years of supervised release, for possession with intent to distribute phencyclidine (PCP), illegal possession of a firearm by a previously convicted felon; and using, carrying and discharging a weapon in connection with drug trafficking. A federal jury convicted Smith of those charges on December 7, 2015.
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.
According to evidence presented at the five day trial, on December 1, 2013, Smith got into a vehicle outside an apartment complex in the 9300 block of Cherry Hill Road in College Park, Maryland, in order to sell PCP to the vehicle’s occupants. One of the vehicle’s occupants pulled out a knife. Smith got out of the car and fired a gun in the direction of the vehicle as it drove away. One of the bullets broke a pane of glass at the entrance to the apartment building.
Witnesses testified that a short time later, Smith got into a taxi, which was stopped by law enforcement at the apartment complex. Smith was ordered out of the cab and taken into custody. Law enforcement recovered the following items from the pockets of Smith’s jacket: a vial containing ¾ ounce of PCP; a loaded .380 caliber pistol, which had been reported stolen; and a .38 caliber revolver with five spent rounds.
A search warrant was executed at Smith’s residence on December 2, 2013, and law enforcement recovered a third gun (a.22 caliber revolver).
Smith had at least two previous felony drug convictions and a conviction for robbery conspiracy, all in Montgomery County Circuit Court, and was therefore prohibited from possessing firearms or 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 Nicolas A. Mitchell and Kristi N. O’Malley, who prosecuted the case.
Abingdon Man Sentenced to 14 Years in Federal Prison for Cocaine Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced William Frederick Cornish, age 52, of Abingdon, Maryland, today to 14 years in federal prison, followed by five years of supervised release for conspiracy to possess with intent to distribute cocaine.
The sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Tim Altomare; Chief Michael A. Pristoop of the Annapolis Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Richard McLaughlin of the Laurel Police Department; Harford County Sheriff Jeffrey R. Gahler; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea agreement and court documents, in August 2015, DEA received information about a group that was trafficking large amounts of cocaine into Maryland and using a warehouse on Golden Ring Road in Baltimore. Investigation showed that the business using that location, KMKJ Trucking, LLC, had been evicted by July 31, 2015. The investigation subsequently identified a warehouse on Hammonds Ferry Road in Linthicum Heights, Maryland, as the new location being used by the group.
According to the plea agreement, on April 6, 2016, a tractor trailer with the KMKJ logo arrived at the Hammonds Ferry Road warehouse and backed up to the rear bay door of the unit. Investigators observed items being unloaded from the tractor trailer into the warehouse. A short time later, law enforcement observed a van traveling around the parking lot and warehouse building, conducting counter-surveillance to determine if law enforcement was in the area.
On the evening of April 8, 2016, investigators saw Cornish’s co-conspirators arrive at the Linthicum Heights warehouse. One of the co-conspirators then left in a black Honda, followed by a silver F-150 pickup truck. After a conversation on a nearby street between the drivers of the Honda and the pickup truck, they returned to the warehouse. The co-conspirator got out of his car and went into the warehouse and the F-150 entered the warehouse through the bay door, which was then closed. A few minutes later, the bay door re-opened and the F-150 drove out of the warehouse. The truck, driven Cornish, was stopped by law enforcement shortly after leaving the warehouse area. A narcotics detection dog was brought to the scene. The dog scanned the truck resulting in a positive response for the presence of illegal drugs. Law enforcement recovered 31 kilograms of cocaine from a box in the back seat of the truck. Law enforcement also stopped Cornish’s co-conspirators as they left the warehouse.
Search warrants were obtained and executed at the warehouse and at the residences of Cornish and his co-conspirators. Law enforcement recovered three large duffel bags in the basement of one of the homes containing approximately $2.4 million in cash, vacuum sealed in plastic bags marked with the amount of cash on the outside of each plastic bag. Investigators also recovered a drug/money ledger in the home documenting just over $2.4 million in receipts from the sale of illegal drugs. From Cornish’s home, law enforcement recovered a money counter, colored rubber bands, latex gloves and a digital scale, typically used in the narcotics trade to count and package money and to weigh drugs prior to distribution. Investigators also recovered a radio frequency detector that is commonly used by drug traffickers to “sweep” cars, people, and other items for hidden transmitters and electronic devices that are often used by law enforcement while investigating the distribution of illegal drugs.
The 31 kilograms of cocaine recovered from Cornish’s truck have a wholesale value in Baltimore of approximately $1 million.
United States Attorney Rod J. Rosenstein commended DEA, the Maryland Transportation Authority Police, Baltimore Police Department, Baltimore County Police Department, Anne Arundel County Police Department, Annapolis Police Department, Maryland State Police, Laurel Police Department, Harford County Task Force, and IRS Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Joshua T. Ferrentino, who are prosecuting the case.
Maryland Man Indicted with Attempting to Provide Material Support to ISILRead the Press Release
A federal grand jury charged Nelash Mohamed Das, 24, a citizen of Bangladesh residing in Landover Hills, Maryland, with attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Rod J. Rosenstein for the District of Maryland and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office.
The indictment alleges that from October 2015 to Sept. 30, 2016, Das knowingly attempted to provide material support and resources to a foreign terrorist organization, namely ISIL. Further, the indictment alleges that Das knew that ISIL is a designated foreign terrorist organization and engages in terrorist activity.
According to court documents ISIL members and supporters have posted identifying information about U.S. military personnel in hopes that those inspired by ISIL would carry out attacks against them. Das allegedly planned to kill a U.S. military member in support of ISIL.
If convicted, Das faces a maximum sentence of 20 years in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
U.S. Attorney Rosenstein and Acting Assistant Attorney General McCord commended the FBI’s Joint Terrorism Task Force for its work on the investigation and thanked the prosecutors that are handling the matter.
Lanham Man Sentenced to over Seven Years in Federal Prison for Bank Fraud ConspiracyRead the Press Release
Baltimore, Maryland – On October 14, 2016, U.S. District Judge George L. Russell III sentenced Junaidu Saljan Savage, a/k/a James Kamara, age 30, of Lanham, Maryland, to 87 months in prison, followed by five years of supervised release, for conspiring to commit bank fraud and for aggravated identity theft arising from a scheme to defraud a bank by using account holders’ personal information to take over their accounts. Judge Russell also ordered Savage to pay restitution of $36,400. A federal jury convicted Savage on March 15, 2016.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Brian Ebert of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to testimony at his six-day trial, from January 1, 2012 through April 2012, Savage conspired with Jayad Zainab Ester Conteh, Paul Anthony Williams and others to defraud a bank. Conteh, a bank teller, looked up bank account holder information on the computer system without authorization and disclosed the account holders’ personal identifying information to Savage and other co-conspirators. Using that information, Savage would call the bank pretending to be the account holder, change certain account information and order checks on the compromised account to be delivered by overnight mail. Savage and other co-conspirators would obtain those checks, including by intercepting the checks upon delivery at the actual account holders’ addresses. Wilson cashed the checks at bank branches in Maryland.
Trial evidence showed that as a result of the conspiracy at least seven bank account holders’ accounts were improperly accessed, with intended losses of more than $120,000.
Jayad Zainab Ester Conteh, age 24, of Glenarden, Maryland, was convicted after trial and sentenced to 64 months in prison for conspiring to commit bank fraud, bank fraud, aggravated identity theft and unauthorized access to a computer to obtain banking information. Judge Russell also entered an order that Conteh pay $36,400 in restitution to the victim bank and forfeit $36,400.
According to court documents and trial testimony, in July 2014, after Conteh had reported to prison to begin serving her sentence, Savage went to visit her relatives. An audio and video recording of the meeting revealed that Savage told Conteh’s relatives that he was involved in her criminal conduct and would pay the restitution ordered by the Court. In late August 2014, Savage’s girlfriend provided $6,000 in cash to a relative of Conteh as partial payment of Conteh’s restitution.
Co-conspirator Paul Anthony Wilson, a/k/a Anthony Johnson, age 53, of Washington, D.C., was arrested while attempting to cash a check on the account of one of the victims. Wilson pleaded guilty to his role in the conspiracy and was sentenced to 39 months in prison.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas P. Windom and Ray D. McKenzie, who prosecuted the case.
Former Vice Chairman of the Joint Chiefs of Staff Pleads Guilty to Federal Felony in Leak InvestigationRead the Press Release
Washington, D.C. – Retired General James E. Cartwright, age 67, of Gainesville, Virginia, pleaded guilty today to making false statements in connection with the unauthorized disclosure of classified information.
The announcement was made by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for National Security Mary B. McCord; and Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office
“People who gain access to classified information after promising not to disclose it must be held accountable when they willfully violate that trust,” said U.S. Attorney Rod J. Rosenstein. “We conducted a thorough and independent investigation that included collecting tens of thousands of documents through subpoenas, search warrants and document requests, and interviewing scores of current and former government employees. The evidence showed that General Cartwright disclosed classified information without authorization to two reporters and lied to federal investigators. As a result, he stands convicted of a federal felony crime and faces a potential prison sentence.”
“General Cartwright violated the trust that was placed in him by willfully providing information that could endanger national security to individuals not authorized to receive it and then lying to the FBI about his actions,” said Acting Assistant Attorney General McCord. “With this plea, he will be held accountable.”
“Today, General Cartwright admitted to making false statements to the FBI concerning multiple unauthorized disclosures of classified information that he made to reporters,” said Assistant Director in Charge Abbate. “This was a careful, rigorous, and thorough multi-year investigation by special agents who, together with federal prosecutors, conducted numerous interviews to include Cartwright. The FBI will continue to take all necessary and appropriate steps to thoroughly investigate individuals, no matter their position, who undermine the integrity of our justice system by lying to federal investigators.”
According to his plea agreement, Cartwright is a retired U.S. Marine Corps four-star general who served as the Vice Chairman of the Joint Chiefs of Staff from August 31, 2007, to August 3, 2011, and as Commander of the U.S. Strategic Command from 2004 to 2007. During that time, Cartwright held a top secret security clearance with access to sensitive compartmented information (SCI).
Cartwright signed more than 36 non-disclosure agreements related to Department of Defense programs. The forms explain that the recipient is obligated by law and regulation not to disclose classified information without authorization. The forms also contain warnings that any breach of the agreement may violate federal criminal law. In addition, Cartwright received annual training about handling classified information.
On September 1, 2011, Cartwright retired from the U.S. Marine Corps. Upon his retirement, Cartwright maintained his top secret clearance. The clearance enabled him to engage in consulting and private employment, including sitting on a special committee of the board of directors of a defense contractor, which oversaw the company’s classified U.S. government contracts.
At the time of his retirement, Cartwright again signed a “Classified Information Non-Disclosure Agreement,” which included warnings “that unauthorized disclosure…by me could cause damage or irreparable injury to the United States or could be used to advantage by a foreign nation.”
Between January and June 2012, Cartwright disclosed classified information to two reporters without authorization. Some of the information disclosed to the reporters was classified at the top secret level. Each reporter included the classified information in published articles. In addition, classified information that Cartwright communicated to one reporter was included in a book.
FBI agents interviewed Cartwright on November 2, 2012. During the interview, Cartwright gave false information to the interviewing agents, including falsely stating that he did not provide or confirm classified information to the first reporter and was not the source of any of the quotes and statements in that reporter’s book. In addition, Cartwright falsely stated that he had never discussed a particular country with the second reporter, when in fact, Cartwright had confirmed classified information about that country in an email to the reporter.
Cartwright faces a maximum sentence of five years in prison for making false statements to federal investigators. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court. U.S. District Judge Richard J. Leon has scheduled sentencing for January 17, 2017.
U.S. Attorney Rod J. Rosenstein and Acting Assistant Attorney General McCord commended the FBI for its work in the investigation and thanked Assistant U.S. Attorneys Leo J. Wise and Deborah A. Johnston, Justice Department National Security Division Counterintelligence and Export Control Section Trial Attorney Elizabeth Cannon, and U.S. Attorney’s Office National Security Chief Harvey Eisenberg, who are handling the prosecution.
Former Vice Chairman of the Joint Chiefs of Staff Pleads Guilty to Federal Felony in Leak InvestigationRead the Press Release
Retired General James E. Cartwright, 67, of Gainesville, Virginia, pleaded guilty to making false statements in connection with the unauthorized disclosure of classified information. The guilty plea was entered in the District of Columbia.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Rod J. Rosenstein for the District of Maryland and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
“General Cartwright violated the trust that was placed in him by willfully providing information that could endanger national security to individuals not authorized to receive it and then lying to the FBI about his actions,” said Acting Assistant Attorney General McCord. “With this plea, he will be held accountable.”
“People who gain access to classified information after promising not to disclose it must be held accountable when they willfully violate that promise,” said U.S. Attorney Rosenstein. “We conducted a thorough and independent investigation included collecting tens of thousands of documents through subpoenas, search warrants and document requests, and interviewing scores of current and former government employees. The evidence showed that General Cartwright disclosed classified information without authorization to two reporters and lied to federal investigators. As a result, he stands convicted of a federal felony offense and faces a potential prison sentence.”
“Today, General Cartwright admitted to making false statements to the FBI concerning multiple unauthorized disclosures of classified information that he made to reporters,” said Assistant Director in Charge Abbate. “This was a careful, rigorous, and thorough multi-year investigation by special agents who, together with federal prosecutors, conducted numerous interviews, to including Cartwright. The FBI will continue to take all necessary and appropriate steps to thoroughly investigate individuals, no matter their position, who undermine the integrity of our justice system by lying to federal investigators.”
According to his plea agreement, Cartwright is a retired U.S. Marine Corps four-star general who served as the Vice Chairman of the Joint Chiefs of Staff from Aug. 31, 2007, to Aug. 3, 2011, and as Commander of the U.S. Strategic Command from 2004 to 2007. During that time, Cartwright held a top secret security clearance with access to sensitive compartmented information (SCI).
Cartwright signed more than 36 non-disclosure agreements related to Department of Defense programs. The forms explain that the recipient is obligated by law and regulation not to disclose classified information without authorization. The forms also contain warnings that any breach of the agreement may violate federal criminal law. In addition, Cartwright received annual training about handling classified information.
On Sept. 1, 2011, Cartwright retired from the U.S. Marine Corps. Upon his retirement, Cartwright maintained his top secret clearance. The clearance enabled him to engage in consulting and private employment, including sitting on a special committee of the board of directors of a defense contractor, which oversaw the company’s classified U.S. government contracts.
At the time of his retirement, Cartwright again signed a “Classified Information Non-Disclosure Agreement,” which included warnings “that unauthorized disclosure…by me could cause damage or irreparable injury to the United States or could be used to advantage by a foreign nation.”
Between January and June 2012, Cartwright disclosed classified information to two reporters without authorization. Some of the information disclosed to the reporters was classified at the top secret level. Each reporter included the classified information in published articles. In addition, the classified information that Cartwright communicated to one reporter was included in a book.
FBI agents interviewed Cartwright on Nov. 2, 2012. During the interview, Cartwright gave false information to the interviewing agents, including falsely stating that he did not provide or confirm classified information to the first reporter and was not the source of any of the quotes and statements in that reporter’s book. In addition, Cartwright falsely stated that he had never discussed a particular country with the second reporter, when in fact, Cartwright had confirmed classified information about that country in an email to the reporter.
Cartwright faces a maximum sentence of five years in prison for making false statements to federal investigators. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court. U.S. District Judge Richard J. Leon has scheduled sentencing for January 17, 2017.
Acting Assistant Attorney General McCord and U.S. Attorney Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorneys Leo J. Wise and Deborah A. Johnston of the District of Maryland, Trial Attorney Elizabeth Cannon of the National Security Division’s Counterintelligence and Export Control Section and National Security Chief Harvey Eisenberg of the U.S. Attorney’s Office, who are handling the prosecution.
Federal Grand Jury Returns Indictment Charging Maryland Man with Attempting to Provide Material Support to ISILRead the Press Release
Greenbelt, Maryland – A federal grand jury charged Nelash Mohamed Das, age 24, a citizen of Bangladesh residing in Landover Hills, Maryland, today with attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for National Security Mary B. McCord; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
The indictment alleges that from October 2015 to September 30, 2016, Das knowingly attempted to provide material support and resources to a foreign terrorist organization, namely ISIL. Further, the indictment alleges that Das knew that ISIL is a designated foreign terrorist organization and engages in terrorist activity.
According to court documents ISIL members and supporters have posted identifying information about United States military personnel in hopes that those inspired by ISIL would carry out attacks against them. Das allegedly planned to kill a U.S. military member in support of ISIL.
If convicted, Das faces a maximum sentence of 20 years in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI’s Joint Terrorism Task Force for its work in the investigation Mr. Rosenstein thanked his office’s national security prosecutors that are handling the matter, and recognized the Justice Department’s National Security Division, Counterterrorism Section, for its support.
Crips Gang Member Sentenced to 11 Years in Federal Prison for Armed Robbery and Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Donte Powell, a/k/a “Rain,” age 29, of Washington, D.C. and Columbia, Maryland, on October 14, 2016, to 11 years in prison followed by three years of supervised release for robbery, and being a felon in possession of a firearm. Powell is currently serving a 20-year state sentence for an unrelated armed robbery and Judge Russell ordered that the federal sentence was to be served consecutive that sentence.
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; Chief Gary Gardner of the Howard County Police Department; Howard County State’s Attorney Dario Broccolino; and Chief Richard McLaughlin of the Laurel Police Department.
According to his plea agreement, Powell is a member of the Crips gang and is affiliated with the set called “Dogghouse Crips.” Powell admitted that on January 21, 2014, he and co-defendant Avery Terry robbed the CVS Pharmacy in Elkridge, Maryland at gun point. A store video camera recorded the robbery, including the distinctive clothing worn by the robbers. Powell was armed with a black handgun. Powell had a previous felony conviction and was prohibited from possessing a gun or ammunition.
On January 26, 2014, Howard County Police arrested Desmick Lewis in connection with a January 23, 2014 robbery and homicide. At the time of his arrest, Lewis was in a car driven by Avery Terry. Police recovered a black .38 caliber revolver, different from the gun used in the CVS robbery, from under the driver’s seat where Terry was sitting.
A Howard County detective who was investigating the CVS robbery was also participating in the execution of the arrest warrant that day. The detective noticed clothing in Terry’s car that matched the distinctive clothing worn by the Powell and Terry during the CVS robbery on January 21. Law enforcement executed a search warrant at Terry’s home and recovered a mask and other clothing matching that worn by one of the CVS robbers.
Powell was arrested on February 3, 2014 in Laurel. According to Laurel Police, an officer spotted a car without its lights on just after 1 a.m., traveling the wrong way on a one-way street. When officers began pursuing the driver, they saw a naked man jump out of the passenger side of the car. The driver crashed shortly thereafter, flipping the car. The naked man told police he was the victim of an armed robbery. After Powell’s arrest, a loaded .40 caliber pistol was recovered from the car. That gun was subsequently identified as the gun used in the CVS robbery. Powell pleaded guilty to the armed robbery and was sentenced to 20 years in prison. While serving his sentence, Powell continued to state his allegiance to the Crips gang in recorded jail calls and in letters.
Subsequent investigation revealed Powell and Terry had additional knowledge of the January 23, 2014, robbery/homicide. Evidence presented at the sentencing reflected that Powell, Terry, Lewis, and others involved in the robbery/homicide met after the murder and discussed what had happened. Call records show that between January 21 and January 26, 2014, there were also frequent telephone communications between Powell, Terry, Lewis, and others involved in the robbery/homicide.
Avery Terry, age 23, of Laurel, Maryland, pleaded guilty in U.S. District Court to the robbery of the CVS Pharmacy on January 21, 2014, in Elkridge, Maryland, and to using and brandishing a firearm during that robbery. In addition, Terry pleaded guilty to being an accessory after the fact to the January 23, 2014 robbery and murder. Terry was sentenced to 181 months in prison.
Desmick Lewis, age 24, of Columbia, pleaded guilty in Howard County Circuit Court to his role in the January 23, 2014 robbery and murder and was sentenced to life in prison
United States Attorney Rod J. Rosenstein commended the ATF, Howard County Police Department, Laurel Police Department, and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Lauren E. Perry, who prosecuted the case.
Kensington Man Sentenced to 17 Years in Federal Prison for Producing Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Steven Edward Baker, age 41, of Kensington, Maryland, today to 17 years in federal prison, followed by lifetime supervised release, for producing child pornography. Judge Grimm also ordered that upon his release from prison, Baker must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by 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 his plea agreement, on July 8, 2015, FBI agents interviewed Baker at his business, Action Signs, located in Vienna, Virginia. Baker admitted that he had child pornography on both his work and home computers, and that he had been downloading child pornography for approximately 10 years. He estimated that his child pornography collection was approximately one terabyte in size.
Further investigation of digital media items obtained from Action Signs and Baker’s residence revealed 45 images and seven videos of a girl under the age of 12, all constituting child pornography, and produced by Baker. Baker produced the images and videos, including pictures taken at a park and what appears to be Baker’s home, from January 2008 to July 2013, using two cameras. The images included close ups of the victim, including numerous close-ups of the victim’s genitalia, and showing Baker touching areas in and around her genitalia.
Additionally, over 50,000 images and 1,000 videos of child pornography were found on the digital media which were not produced by Baker, but were downloaded from the internet. These images and videos depict real, prepubescent children engaged in sexually explicit conduct.
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 for its work in the investigation and thanked Assistant U.S. Attorney Thomas M. Sullivan, who prosecuted the case.