District of Maryland
Press releases recorded for this federal judicial district.
Capitol Heights Felon Pleads Guilty to Stealing Guns from a Federally Licensed Firearms Dealer and to Illegal Possession of AmmunitionRead the Press Release
Greenbelt, Maryland – Gary Alphonso Robinson, age 27, of Capitol Heights, Maryland, pleaded guilty today to the theft of eight firearms and possession of ammunition by a convicted felon.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Queen Anne’s County Sheriff Gary Hofmann; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement, on July 27, 2015, Robinson robbed a federally licensed firearms dealer in Stevensville, Maryland. Robinson entered the store by breaking a glass window and squeezing through the security bars. Robinson smashed a display case and took a 9mm semi-automatic handgun, a .45 caliber semi-automatic handgun, a .44 caliber revolver, a .38 caliber revolver, and three .357 caliber revolvers. He placed the guns in a bag, which he handed to a co-conspirator through the broken window. A security video recorded Robinson’s actions and the DNA profile of blood recovered from the scene matched Robinson’s, as did a partial palm-print found on a piece of the broken glass.
On September 17, 2015, a search warrant was executed at Robinson’s residence. Law enforcement recovered 43 rounds of 9mm ammunition hidden in a shoe in Robinson’s bedroom closet. Robinson had a previous felony conviction and was prohibited from possessing firearms or ammunition.
Robinson faces a maximum sentence of 10 years in prison for each of the two counts: theft of firearms; and possession of ammunition by a convicted felon. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 12, 2016 at 12:30 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Queen Anne’s County Sheriff’s Office, Maryland State Police, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Joseph R. Baldwin and Deborah A. Johnston, who are prosecuting the case.
Private Contractor Sentenced for Bribing a U.S. Postal Service Contracting OfficialRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Barbara Murphy, age 52, of Rocky Mount, North Carolina, today to 10 months in prison followed by three years of supervised release for bribing a contracting officer with the U.S. Postal Service in exchange for favorable treatment in connection with the awarding of contracts to deliver mail. Judge Hazel ordered Murphy to begin serving her sentence today, and to forfeit $17,920.31.
The sentence was 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; and Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General.
According to a factual stipulation filed with the court, Murphy was the sole owner of ER&R Transportation and MC&G Trucking LLC, which she used to bid for and perform on transportation contracts with the U.S. Postal Service. Murphy admitted that from January 2011 to July 2012, she bribed Gregory Cooper, a U.S. Postal Service contracting officer representative. These bribes included cash paid directly into Cooper’s bank accounts, automobile loan payments, college tuition for Cooper’s daughter, five cell phone bill payments, an airline ticket and fitness equipment.
Murphy admitted that she provided these benefits in exchange for Cooper’s favorable treatment of her companies on U.S. Postal Service contracts. Specifically, Cooper recommended to his superiors that 10 contracts on which Murphy bid be awarded to Murphy’s companies. Additionally, Murphy admitted that Cooper provided her with advice on how to address specific issues that arose from her contract performance and drafted documents that Murphy provided to the U.S. Postal Service.
Gregory Cooper, age 60, of Glenn Dale, Maryland, previously pleaded guilty to his participation in the bribe scheme and was sentenced to 15 months in prison. Judge Hazel also ordered Cooper to forfeit $25,931.76.
U.S. Attorney Rosenstein and Assistant Attorney General Caldwell commended the U.S. Postal Service Office of the Inspector General for its work in the investigation. The case was prosecuted by Assistant U.S. Attorney David I. Salem and Trial Attorneys Mark Cipolletti and Monique Abrishami of the Criminal Division’s Public Integrity Section.
Kensington Man Pleads Guilty to Producing Child PornographyRead the Press Release
Greenbelt, Maryland – Steven Edward Baker, age 41, of Kensington, Maryland, pleaded guilty today to producing child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins 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 in various states of undress, 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.
As part of his plea agreement, 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).
Baker and the government have agreed that if the Court accepts the plea agreement, Baker faces between 15 and 24 years in prison followed by a lifetime of supervised release and a $250,000 fine. U.S. District Judge Paul W. Grimm has scheduled sentencing for October 14, 2016 at 9:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
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 is prosecuting the case.
Two Members of Cherry Hill Group Sentenced to 25 Years and 10 Years in Prison for Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Steven Jackson, a/k/a Cutty, age 25; and Alonzo Clea, a/k/a Zo, age 26, both of Baltimore, to 25 years in prison, and 10 years in prison, respectively, both followed by five years of supervised release, for conspiring to participate in a racketeering enterprise in connection with their gang activities as members of the “Up the Hill,” “Up da Hill” and “UDH” ( UDH) organization, which operates in the Cherry Hill section of Baltimore.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
“Many shootings and murders in Baltimore City involve disputes between rival gangs,” said U.S. Attorney Rod J. Rosenstein. “Police and prosecutors are saving lives by holding accountable the criminals who turned Cherry Hill into a war zone.”
According to their plea agreements, from at least 1997 to 2013, the UDH organization operated in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members have been in a violent dispute with both the “Coppin Court” and “Little Spelman,” which are organizations involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” or “Down da Hill.” In addition to selling drugs, UDH members have also committed murders, assaults and robberies.
Some of these acts of violence include the August 28, 2011 murder of Little Spelman member Dewayne Jones; the January 20, 2012 murder of Little Spelman leader Dominic Hope; the June 13, 2009 non-fatal shooting of Tavon Staley; and the August 9, 2009 murder of Charles Pratt.
Jackson admitted that on October 3, 2006, he shot a rival gang member in the 600 block of Cherry Hill Road; on August 8, 2007, he committed an armed robbery in the 800 block of W. Patapsco Avenue; and on January 22, 2011 he and another individual shot and killed rival Little Spelman gang member Harry Hicks, all in Baltimore.
Clea admitted that he possessed a firearm on November 10, 2008 near the 600 block of E. Patapsco; September 15, 2009 near the 5000 block of E. Monument; and July 19, 2014 near the 2800 block of Spelman Road, all in Baltimore.
To date, a total of 35 Cherry Hill gang members have pleaded guilty to their participation in the racketeering conspiracy. Little Spelman gang member Davon Martin, age 26, admitted to drug dealing and the murders of two UDH gang members and was sentenced to 35 years in prison. UDH member Dominic Evans, a/k/a “FlatLine,” age 25, admitted to drug dealing, two stabbings and to his participation in a murder, and was sentenced to 30 years in prison.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Pawn Shop Owner Sentenced to over 3 Years in Prison in Scheme to Sell Stolen GoodsRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Noel Erik Anshel, age 49, of Owings Mills, Maryland today to 46 months in prison followed by three years of supervised release for transporting stolen goods. Judge Motz also ordered Anshel to forfeit $551,000, including funds held in four PayPal accounts and six bank accounts, six properties in Baltimore purchased with proceeds from the scheme, and property seized from his pawn shop.
The sentence 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; Chief Gary Gardner of the Howard County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, from January 1, 2010 to January 1, 2014, Anshel was part owner of Hilltop Cellular, a pawn shop located in the 5400 block of Reisterstown Road in Baltimore. Anshel became the sole owner and manager of the shop from January 1, 2014 to August 12, 2015.
From at least January 1, 2010 to August 12, 2015, Anshel paid cash to more than five shoplifters in exchange for products stolen from retailers, including construction tools, pressure washers, kitchen appliances, electrical generators and consumer electronics. The products were frequently new and still in the original box. The shoplifters brought the stolen items to Hilltop Cellular, where Anshel purchased them for far less than the products’ retail value. Anshel paid at least three of his “regular” shoplifters over $40,000 each for stolen products.
Anshel had a license to resell “second-hand” merchandise at Hillside Cellular, but would list the stolen items on eBay as new.
In April 2014, Howard County Police officers followed an individual from a Home Depot store where the individual had stolen several items, to Hilltop Cellular where the individual sold the items to Anshel. Investigators then entered the pawn shop and seized the stolen items. At that time, Anshel stated that, “90% of what I buy is stolen,” and “it’s the cost of doing business.”
Law enforcement subsequently executed a search warrant at Hilltop Cellular and seized a large amount of stolen property worth approximately $20,000.
The total estimated loss from the scheme is approximately $551,000. Anshel used the proceeds of the scheme to purchase, among other things, six houses in Baltimore.
Former Catonsville Resident Sentenced to 70 Months in Prison for Distributing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Michael P. Strange, age 56, formerly of Catonsville, Maryland, now of Greenville, South Carolina, today to 70 months in prison followed by 25 years of supervised release for distributing child pornography. Judge Hollander ordered that upon his release from prison, Strange 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; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, in April 2015, a Maryland State Police investigator connected to the internet identified files containing child pornography that Strange had available for download. On April 27, 2015, the investigator downloaded three video files depicting children engaged in sexually explicit conduct.
A search warrant was executed at Strange’s residence in Catonsville on June 12, 2015, and law enforcement seized two laptops. One laptop over 150 videos of child pornography, including the three videos downloaded on April 27, and the other laptop contained search terms indicative of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Baltimore Man Sentenced for Selling Stolen MerchandiseRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Adrian Scott Little, age 55, of Baltimore, Maryland today to 18 months in prison followed by three years of supervised release for transporting stolen goods. Judge Garbis ordered Little to forfeit the contents of several bank accounts and the large quantity of retail products seized from his warehouse and residence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; and the United States Secret Service - Baltimore Field Office.
According to his plea agreement, from at least December 2011 to March 2015, Little bought stolen consumer products from shoplifters to resell online on eBay and Bonanza. The products included over-the counter medication, bath and beauty products and razor blades. He also obtained similar products from other sources, including internet auction websites.
Little maintained a business warehouse where he removed anti-theft devices and stored the stolen items. He also stored and shipped stolen items out of his home.
Little obtained approximately $200,000 from the fraud scheme.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorneys Zachary A. Myers and Aaron S.J. Zelinsky, who prosecuted the case.
Waldorf Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced James Devwan Pixley, age 26, of Waldorf, Maryland, today to 10 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base and cocaine, and for possession of a firearm in furtherance of a drug trafficking crime. Judge Chasanow also ordered Pixley to forfeit six firearms, a car and a trailer.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Charles County Sheriff Troy Berry; Chief Hank Stawinski of the Prince George’s County Police Department; Acting Chief Stanley Johnson, of the Maryland National Capital Park Police, Prince George’s County Division; St. Mary’s County Sheriff Tim Cameron; and Calvert County Sheriff Mike Evans.
According to his plea agreement and other court documents, from January through July 2015, Pixley conspired with others to sell primarily crack, but also cocaine and other illegal drugs, such as prescription painkillers. Pixley obtained cocaine up to four times a month from co-defendant Colbert Jones, generally in four ounce increments for $1,700 per ounce. Pixley used the majority of that cocaine to manufacture into crack, which he cooked in his kitchen. Pixley sold the cocaine to his customers at various locations including his residence and his mother’s home in Leonardtown, Maryland, which Pixley used as stash houses.
Pixley also possessed and sold firearms on several occasions, while selling drugs. He stored the firearms at his residence and his mother’s. A search warrant was executed on August 6, 2015, at his and his mother’s residences. Several firearms were seized, including a loaded 12 gauge shotgun from Pixley’s residence.
The investigation revealed that Pixley was responsible for the distribution of between 500 grams and 5 kilograms of cocaine, and between 280 and 840 grams of crack cocaine.
Co-defendants Troy Taishon Swann, age 39, of Waldorf; Antoine Dewayne Savoy, age 35, of Lusby, Maryland; Fletcher, age 29, of Clinton, Maryland; and Colbert Juan Jones, Jr., age 33, of St. Leonard, Maryland, previously pleaded guilty to their participation in the drug trafficking conspiracy. Fletcher and Jones were each sentenced to 10 years in prison. Judge Chasanow has scheduled sentencing for Savoy on June 27, 2016 at 12:30 p.m. and for Swann on July 11, 2016 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, DEA, Charles County Sheriff’s Office, Prince George’s County Police Department, Maryland National Capital Park Police, Prince George’s County Division, and the St. Mary’s and Calvert County Sheriffs’ Offices for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Michael T. Packard and Leah J. Bressack, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Leader of Washington, D.C. Metro Area Drug Trafficking Organization Sentenced to over 11 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Paul W. Grimm sentenced Marvin Taaff, age 29, of Takoma Park, Maryland, today to 140 months years 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.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Hank Stawinski of the Prince George’s County Police Department; Acting Chief Stanley Johnson, of the Maryland National Capital Park Police, Prince George’s County Division; Chief Antonio DeVaul of the Maryland National Capital Park Police, Montgomery County Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from April to October 2013, Taaff distributed cocaine base (crack cocaine) during several controlled purchases with a law enforcement source. Further investigation revealed that Taaff was a significant local distributor of marijuana, cocaine and cocaine base. Taaff, who was a leader of the drug operation in Maryland, coordinated the shipments of controlled substances from sources within and outside Maryland, including Arizona. He directed other members of his drug trafficking organization to provide locations to store and distribute drugs.
On December 5, 2013, search warrants were executed at several locations in and around Prince George’s and Montgomery Counties, and in Tucson, Arizona, including Taaff’s residence and the residences of his co-conspirators. Narcotics, drug paraphernalia, shipping materials, cash, and firearms were seized from locations associated with the conspiracy. Law enforcement seized a .38 caliber revolver with an obliterated serial number and a loaded 9mm pistol; ammunition; a quarter ounce of suspected powder cocaine; and drug paraphernalia, from Taaff’s residence.
The investigation revealed that Taaff conspired with members of his drug trafficking organization to distribute over five kilograms of cocaine, between 196 and 280 grams of cocaine base, and at least 100 kilograms of marijuana.
Phillip Bingham, age 56, of Tucson, Arizona; Mahmood Hussain, age 31, of Laurel, Maryland; Fernando Gastellum-Rivas, age 43, of Tucson; and Annis Attar, age 30, of Largo, Maryland, previously pleaded guilty to their roles in the conspiracy and were sentenced to 11 years in prison, 10 years in prison, 42 months in prison, and 40 months in prison, respectively.
United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department, Maryland National Capital Park Police and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Lindsay Eyler Kaplan, who prosecuted the case.
Berlin Armed Bank Robber Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Jeff V. Hare, age 54, of Berlin, Maryland, today to 10 years in prison followed by five years of supervised release for armed bank robbery and brandishing a firearm during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Worcester County Sheriff Reggie T. Mason, Sr.; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Worcester County State’s Attorney Beau Oglesby.
According his plea agreement, on March 13, 2015, Hare entered the BB&T branch located on Racetrack Road in Berlin, wearing a ski mask and brandishing a handgun. Hare told the bank tellers that he had a gun and was robbing the bank. Hare moved through the lobby from employee to employee, pointing the handgun at each employee and demanding money. Hare also demanded each teller give him their car keys and purse, but the tellers told Hare they did not have them available. Hare stole approximately $2,850 in cash from the bank.
Hare admitted that after robbing the tellers in the lobby, he found a bank employee who had locked herself in a back room of the bank. Hare forced open the locked door and demanded her car keys and her purse. The employee gave Hare her purse, which contained cash and personal effects, and the keys to her car. Hare fled in the stolen car, which he abandoned at a nearby business.
Hare was arrested later that evening at a residence in Ocean Pines, Maryland. At the time of his arrest, Hare was still in possession of the money stolen from the bank.
Hare has been detained since his arrest. During that time, Hare attempted to impede the investigation of the armed bank robbery and carjacking by seeking to arrange for the disposal of evidence of the crimes. On May 1, 2015, an associate of Hare visited him at the Worcester County Detention Center in Snow Hill, Maryland. During that visit, Hare told his associate that he was being framed and that unidentified persons had a box of garbage that would incriminate him. Hare asked the person to retrieve the box from his former residence in Ocean Pines. On May 6, Hare called his associate and asked if he got rid of the “trash,” referring to the box Hare had asked the associate to retrieve. The box contained the ski mask Hare wore during the robbery and carjacking, a .38 caliber revolver believed to have been used during the robbery, and the purse Hare stole from the bank employee, including her driver’s license.
United States Attorney Rod J. Rosenstein praised the FBI, Worcester County Sheriff’s Office, Maryland State Police and the Worcester County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Matthew J. Maddox and Zachary A. Myers, who prosecuted the case.
Baltimore Man Sentenced to 20 Years in Prison for Armed RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Derek Anthony Davis, age 31, of Baltimore, Maryland today to 20 years in prison followed by five years of supervised release for robbery conspiracy and possession of a firearm by a convicted felon.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl 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 his plea agreement, from June 17 to June 30, 2015, Davis and a co-conspirator committed five armed robberies of a hair academy on Dundalk Avenue North in Dundalk; a barber shop on Eastern Avenue in Baltimore; a beauty parlor on Reisterstown Road in Baltimore; a barber shop on Garrison Boulevard in Baltimore; and a hair salon on Edmondson Avenue in Baltimore.
During each robbery, Davis brandished a firearm. Davis and his co-conspirator stole cash and products from employees, customers and the businesses.
While robbing the barber shop on Eastern Avenue, Davis demanded that an employee give him cash. When the employee initially resisted, Davis yelled that the employee was going to be the reason they all got shot.
At least $1,208 was stolen during the robberies.
On July 29, 2015, a police officer saw Davis walking out of an alley in the 500 block of Normandy Avenue in Baltimore. Davis fled when he saw the officer. When the officer caught up with him, Davis tossed a .22 caliber pistol onto a nearby porch roof. Davis had previously been convicted of a felony and was prohibited from possessing a firearm.
Davis also admitted that he is an armed career criminal.
United States Attorney Rod J. Rosenstein praised 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 Seema Mittal, who prosecuted the case.
Havre De Grace Sex Offender Pleads Guilty to Transporting Child PornographyRead the Press Release
Baltimore, Maryland – Gary Scott Conway, age 45, of Havre de Grace, Maryland, pleaded guilty late yesterday to transporting child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; the Federal Bureau of Investigation, Idaho Office; Ada County (Idaho) Sheriff Stephen Bartlett; Harford County Sheriff Jeffrey R. Gahler; and U.S. Marshal Johnny Hughes.
According to his plea agreement, Conway collected child pornography on the internet. From October 2014 to July 2015, Conway used an internet chat website to communicate with adults and minor children. Beginning on March 30, 2015, he uploaded child pornography to an internet-based file storage service.
On May 29, 2015, representatives from the internet-based file storage service notified the National Center for Missing and Exploited Children that Conway’s account contained at least 35 videos of child pornography. The Harford County Sheriff’s Office investigated, determined that the files were uploaded from Conway’s residence, and executed a search warrant at the residence on July 8, 2015. Investigators seized various digital media, including a desktop computer. Forensic analysis of that computer revealed at least 350 images of child pornography, including depictions of prepubescent children engaged in sexual acts.
Conway’s internet file storage service account was examined pursuant to a search warrant, and was found to contain approximately 3,174 unique images and 319 unique videos of child pornography. The videos and images depicted prepubescent boys and girls engaged in sexual acts with adult men, including oral sex and anal sex.
On July 14, 2015, Conway took his wife’s vehicle and fled Maryland. Conway had previously been convicted in 2004 in the Circuit Court for Harford County, Maryland of sexual offense in the third degree for having oral sex with a 15 year old victim, and was sentenced to 10 years’ incarceration, all of which was initially suspended. When he fled Maryland, Conway failed to notify the Maryland Sex Offender Registration authorities, as required by law. He travelled to Virginia, Tennessee, New Mexico, Arkansas, Oklahoma, Texas, California, Arizona and Idaho.
While in Arizona, Conway stayed at a resort in Sedona for 12 days. During that time, he did not notify the state of Arizona of his sex offender status; and two families complained to the local authorities that Conway made inappropriate sexual advances toward their teenage sons. After being questioned by Sedona Police, Conway left Sedona before his resort reservation was completed. He travelled to Six Flags Magic Mountain in California, and then to Idaho.
Conway stayed in Idaho for more than three weeks, never notifying the state authorities of his sex offender status. He was arrested in Idaho on August 26, 2015.
Conway admitted that as a medical professional in the Navy, he once performed oral sex on a male patient while the patient was sedated.
He also admitted to sexually molesting a severely autistic, non-verbal boy while the victim was 11 to 13 years old; having sexual contact on multiple occasions with an eight year old girl; sexually molesting two infants, one of which was the child of a Navy colleague whom he was babysitting; fondling two boys between the ages of nine and 10 years old while playing with them in and around a pool; and engaging in sex acts with two different 15 year old boys who he met online.
As part of his plea agreement, Conway 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).
Conway faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 40 years in prison. U.S. District Judge J. Frederick Motz scheduled sentencing for September 9, 2016 at 9:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Harford County Sheriff’s Office, Ada County (Idaho) Sheriff’s Office; and U.S. Marshal Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Frederick Pediatrician Whose License Was Revoked Admits to Prescribing Oxycodone Without a Medical NeedRead the Press Release
Baltimore, Maryland – Nicola Tauraso, age 81, of Frederick, Maryland pleaded guilty today to health care fraud.
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 Division; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Colonel Robert K. "Ken" Ziegler Jr., Superintendent of the Maryland Natural Resources Police; Washington County Sheriff Douglas W. Mullendore; and Captain Paul “Joey” Kifer, Acting Chief of the Hagerstown Police Department.
According to his plea agreement, from 1972 to 2007, Tauraso practiced as a pediatrician. In 2009 he began a practice in pain management, located in Frederick, in which he saw an excessive number of patients and wrote prescriptions for certain drugs, particularly Oxycodone and Oxycontine, without determining if a medical need existed for these prescriptions. For example, records of Tauraso’s prescriptions with only one pharmacist showed that in 2009 to 2010, he wrote 6,368 prescriptions, and that oxycodone accounted for the vast majority.
Cash deposits and the number of prescriptions gradually increased through the beginning of 2010 and peaked in May 2010, when Tauraso had $251,673 in cash deposits. Tauraso deposited approximately $821,358 in cash into his bank accounts in 2010, of which approximately $575,000 was transferred to a bank in Panama.
Law enforcement frequently observed three or four patients getting out of a car to enter Tauraso’s office. Former employees told law enforcement that Tauraso would see approximately 80 patients in a usual eight hour day.
In June 2011, the Maryland State Board of Physicians revoked Tauraso’s medical license, after finding that Tauraso prescribed Oxycondone, oxycontin and other drugs to 17 patients without taking sufficient medical history, or performing a physical or other tests.
An insurance investigator found that: 75% of the patients listed were being seen for lumbago, a non-descript diagnosed back injury, which is a red flag for drug diversion; the volume of medical claims was alarming; at least five patients were prescribed Oxycontin, Oxycodone, Xanax and Tramadol, which is a deadly medication combination; patients traveled from great distances including from Pasadena, Dundalk, Prince George’s County and outside Maryland in order to see Tauraso; and patients did not use insurance for doctor visits with Tauraso, but used insurance for their prescriptions.
At least seven pharmacists in the Frederick area stopped filling Tauraso’s prescriptions in 2009 and 2010 due to concerns that these prescriptions were not medically necessary.
Taursao admitted that the loss from his billings to Medicare and Medicaid and for fraudulent prescriptions was $350,000.
Tauraso has agreed to forfeit funds held in his Panamanian bank account, which is approximately $100,000.
Tauraso faces a maximum sentence of 10 years in prison. U.S. District Judge Marvin J. Garbis scheduled sentencing for August 8, 2016 at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the DEA, Frederick County Sheriff’s Office, Department of Health and Human Services – OIG, Maryland Natural Resources Police, Washington County Sheriff’s Office and the Hagerstown Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.
Employee of a Silver Spring Non-Profit Admits to Stealing over $270,000Read the Press Release
Greenbelt, Maryland – Monica Kendrick, age 47, of Walkersville, Maryland, pleaded guilty today to wire fraud arising from a scheme in which she embezzled money from her employer.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; 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 her plea agreement, In May 2014, Kendrick was hired as the office and finance administrator for a non-profit organization located in Silver Spring, Maryland, which acted as a trade association for the herbal products industry. Almost immediately after being hired, Kendrick began stealing money from the company. From May 2014 to November 2015, Kendrick wrote over 80 unauthorized checks from the company and deposited the fraudulent checks into a bank account. She then withdrew the illicit proceeds from the account.
Kendrick has agreed to pay restitution of $271,921.06, the total amount of loss resulting from the scheme.
Kendrick faces a maximum sentence of 20 years in prison and a fine of $250,000. U.S. District Judge Theodore D. Chuang scheduled sentencing for August 15, 2016, at 10:30 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 U.S. Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Leah Jo Bressack, who is prosecuting the case.
Pill Mill Operator Sentenced to Prison for Conspiring to Distribute Oxycodone and Other Drugs in Maryland and New YorkRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 83, of Boca Raton, Florida today to three years in prison followed by three years of supervised release for conspiring to distribute oxycodone and other drugs. Chief Judge Blake also entered an order that Wiseberg forfeit $273,000.
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.
“State and federal authorities are continuing to look at ways to shut down ‘pain clinics’ that are really just fronts for criminals who divert pharmaceutical drugs and hook a new generation of addicts,” said U.S. Attorney Rod J. Rosenstein. “Gerald Wiseberg traveled from state to state setting up clinics that prescribed opioid drugs to people who had no medical need for the drugs.”
“This pill mill operator case shows the complexity of the drug abuse cycle and how law enforcement must take a multi-tiered approach in dealing with prescription drug abuse and the connected abuse of heroin”, stated Assistant Special Agent in Charge Don A. Hibbert. “When users of prescription medications, especially opiate derivatives like oxycodone, become abusers of the medication, they often find themselves switching from oxycodone to a cheaper drug such as heroin. In doing so, a new generation of heroin addicts are created, which leads to an increase in cases of heroin overdoses we see every day in this nation.”
According to his plea agreement, from March 2010 through February 2011, Wiseberg owned and operated Total Care Medical Center, a pain management clinic located in Deerfield Beach, Florida. Although Wiseberg was not a medical doctor, he established the standard operating procedures for the clinic, including which drugs the prescribing physician could prescribe and the maximum dosage amounts of these drugs. As a result, Total Care accepted cash payments in exchange for providing prescriptions for large amounts of controlled substances, including oxycodone and alprazolam, to customers who did not have a legitimate medical need for the drugs.
In late 2010 and early 2011, two co-conspirators, Michael Resnick and his wife Alina Margulis, traveled to Florida to learn how to operate a pain clinic like Total Care. By early 2011, Wiseberg, Resnick and Margulis agreed to open a similar pain management clinic in Maryland. They opened Healthy Life, with Wiseberg as an investor, consultant and operator of the business. Wiseberg interviewed and hired medical directors at Healthy Life, specifically because he believed they would write prescriptions for narcotics to customers without a legitimate medical need.
Healthy Life first opened in Owings Mills, Maryland, and in October 2011, moved to a larger office in Timonium, Maryland. Both Healthy Life locations attracted large and unruly crowds. While outside the locations, customers caused disturbances, used narcotics, and engaged in narcotics transactions. Over 80% of the customers who received a prescription from Healthy Life were from out of state. Approximately 97% of the customers who received prescriptions from Healthy Life received at least one prescription for oxycodone.
From June 2011 through April 2012, Resnick and Margulis paid Wiseberg $12,000 a month for his role at Healthy Life. Wiseberg also received cash payments for his 30% share of the net profits from Healthy Life. In 2011 alone, those cash payments totaled $165,000.
Wiseberg also pleaded guilty to a charge filed in the Southern District of New York for conspiring to distribute oxycodone and other drugs. In that case, Wiseberg conspired with others to recruit patients from pain clinics to fill their prescriptions at specific pharmacies owned and controlled by Wiseberg’s co-conspirators. Wiseberg admitted that he knew the prescriptions were not for a legitimate medical purpose, but that the pharmacies would honor the prescriptions because his co-conspirators had staffed the pharmacies with pharmacists who would fill such prescriptions. Wiseberg and his co-conspirators required that patients filling prescriptions for oxycodone and other narcotics submit another prescription for a non-controlled substance at the same time. Wiseberg knew that these patients would pay substantially marked-up prices for oxycodone, and purchase additional non-controlled substances they did not need, in order to receive the painkillers.
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. Resnick and Margulis have agreed to the entry of an order to forfeit $280,000. Resnick and Margulis await sentencing.
Physician William Crittenden III, age 52, of Kensington, Maryland, who served as a medical director at Healthy Life, was convicted at trial of conspiring to distribute oxycodone and alprazolam, and eight separate counts of unlawfully distributing oxycodone. Crittenden also awaits sentencing.
United States Attorney Rod J. Rosenstein commended the DEA Baltimore District Office and New Jersey Field Division, IRS, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office, for their work in these investigations. Mr. Rosenstein expressed his appreciation to U.S. Attorney Preet Bharara for the Southern District of New York, and Assistant U.S. Attorneys Edward Diskant, Daniel Tehrani, and Shawn Crowley, who handled the New York prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Peter J. Martinez, who prosecuted the Maryland case.
Washington, DC Man Sentenced to over 25 Years in Prison for Armed Robbery and Carjacking ShootingsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 24, of Washington, D.C., today to 308 months in prison followed by five years of supervised release for robbery, discharging a gun during a robbery and carjacking, in connection with an armored car robbery and a carjacking in which a victim was shot in the arm and head.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Alan Goldberg of the Takoma Park Police Department; Montgomery County State’s Attorney John McCarthy; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
“We are pleased with the sentence,” said Chief Alan M. Goldberg of the Takoma Park Police Department. “The defendants in this case were involved in several violent crimes throughout the Washington, D.C. area. They displayed a total disregard for life while committing serious crimes. This sends a clear message to criminals that through a coordinated effort from our regional and federal partners, that this behavior has consequences.”
According to his plea agreement and court documents, on October 26, 2012, Freeman and co-conspirators Anthony Cannon and Tonnie Floyd who were riding in a stolen Jeep, followed an armored transport truck to a store located on University Boulevard East in Takoma Park, Maryland. An employee got out of the armored truck, walked into the store and picked up a bag containing $3,911. As the employee returned to the armored truck, he was confronted by two co-conspirators with guns. The employee dropped the money bag and at least one co-conspirator fired a gun at the employee. The employee shot back. One of the defendants picked up the money bag. They ran back to the stolen Jeep. As the defendants drove away, the employee continued to fire his handgun at the Jeep, striking a tire and the back window. Floyd was wounded in the shoulder during the gunfire.
The defendants left the Jeep in a neighborhood nearby because it had a flat tire as a result of the shooting. They saw a man entering a vehicle, and shot the man in the arm and head, causing permanent and life-threatening bodily injury, then stole his vehicle. The defendants drove the vehicle into the District of Columbia, where they set it on fire.
Police evidence personnel recovered blood containing DNA of Floyd from the back seat of the Jeep. Floyd went to a hospital that day in the District of Columbia for medical treatment of his gunshot wound. Freeman’s finger and palm prints were found on the money bag left in the Jeep.
Co-conspirator Anthony Terrell Cannon, age 26, of Washington, D.C., was convicted at trial conspiracy, robbery, carjacking, and two counts of discharging a gun during a crime of violence, and interstate transportation of a stolen vehicle. Judge Chasanow sentenced Cannon on May 27, 2016 to 75 years in prison. Judge Chasanow ordered that 50 years of his sentence is to be served consecutive to the 60 year sentence Cannon previously received in the U.S. District Court for the Eastern District of Virginia for other crimes. Cannon has also been sentenced to life in prison in the Prince George’s County Circuit Court.
Tonnie Floyd, age 23, of Washington, D.C., previously pleaded guilty to robbery, and discharging a gun during the robbery and carjacking and was sentenced to 222 months in prison.
United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and Montgomery County Police Departments, the Metropolitan Police Department, the Takoma Park Police Department and the Prince George’s County and Montgomery County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Bryan E. Foreman, who prosecuted the case.
Three Black Guerilla Family Gang Members Convicted in Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – A federal jury convicted Mark Bazemore, a/k/a Uncle Mark, age 31; and Michael Smith, Jr., ak/ka Mikey, Lil Mike and Mik, age 30, both of Baltimore, and Timothy Hurtt, a/k/a Uncle Tim and Tim, age 45, of Baltimore County, today for participating in a racketeering conspiracy and drug conspiracy related to their membership in the Black Guerilla Family (BGF) gang. 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; attempted murder in aid of racketeering; and carrying, brandishing and discharging a firearm in relation to a crime of violence.
The convictions were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins 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.
“These convictions are significant and are as a result of our on-going local, state and federal effort to combat violence in our communities,” said FBI Baltimore Special Agent in Charge Kevin Perkins. “This investigation and resulting convictions is proof again that the Baltimore Safe Streets Task Force is making a significant difference; there is a lot of work to do, but FBI Baltimore and our partners are committed in the fight against violent crime.”
“This is a verdict for the citizens of Baltimore to show these violent gang members that we will stop at nothing to prosecute them to the fullest extent of the law,” said Baltimore Police Commissioner Kevin Davis. “I hope this guilty verdict sends a message to those who continually harm our communities that we will work collectively to disrupt your illegal activity and organizations.”
According to court documents, 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. The evidence showed that the defendants and other BGF members regularly paid dues to BGF and discussed gang business at meetings, 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. Between September and December 2013, co-defendant Timothy Gray, who was the Baltimore “city-wide” commander of BGF, sanctioned the murder of a BGF member by Hurtt and a co-conspirator. Also, Hurtt and Gray provide armed protection in a BGF drug deal. Bazemore, Smith and Hurtt 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.
The defendants face a maximum penalty of life in prison for the racketeering and drug conspiracies. Bazemore and Hurtt also face a maximum penalty of 20 years in prison for conspiracy to use and carry a firearm in relation to a drug trafficking crime. Bazemore also faces a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering and attempted murder in aid of racketeering, and life in prison for using, carrying, brandishing and discharging a firearm in relation to a crime of violence. U.S. District Judge James K. Bredar has scheduled sentencing for November 14, 2016 at 10 a.m.
Timothy Michael Gray, a/k/a “Mike Gray,” age 48, of Baltimore, previously pleaded guilty to the racketeering conspiracy and is scheduled to be sentenced on November 16, 2016, at 10:00 a.m. Ten other co-defendants pleaded guilty to their roles in the conspiracies and are scheduled to be sentenced between November 15 and 21, 2016.
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 Assistant United States Attorneys James T. Wallner and Clinton Fuchs, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Leader of Bank Fraud Scheme Sentenced to over 5 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Leslie Okyere, age 33, of Hyattsville, Maryland today to 66 months in prison followed by five years of supervised release for conspiring to commit bank fraud, using an unauthorized access device and aggravated identity theft. Judge Hazel also ordered Okyere to pay restitution of $1,040,646.14.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to his plea agreement and court documents, co-defendant Bertrand Essem recruited college students to open a bank account and obtain a debit card and PIN number associated with that debit card. After the recruits opened the bank accounts, Essem collected the debit cards and PIN numbers and gave them to Okyere.
Okyere kept the recruited individuals’ bank account information in a portfolio book, along with a handwritten list of telephone numbers for numerous The Home Depot stores located throughout the country, and a handwritten schedule listing the days of the week followed by dollar figures alongside the recruited individuals’ names and their debit card numbers. At the same time, Okyere obtained individual victims’ stolen credit card information from several sources, including co-defendant Godfred Obeng.
For example, sometime in 2012, Okyere recuited Obeng to fraudulently access the credit card information for cardholders from Obeng’s employer, Capital One Bank. Okkyere received approximately 538 text messages from Obeng containing stolen account numbers, cardholders’ names and addresses for the cardholders.
On numerous occasions Okeyere ordered construction materials from The Home Depot stores by phone in amounts ranging from $2,500 to $8,000, using a victim’s stolen credit card number as payment. Within a few days, Okyere called to cancel the order and requested that the refunds be sent to the debit card account numbers and bank accounts in the name of the recruited individuals. From June 2010 to January 2014, a total of approximately 173 refunds from unauthorized credit card purchases at The Home Depot were credited to bank accounts of recruited individuals.
The recruits, including Stanley Nmesirionye and Dosis Feludu, would be required to withdraw the majority of the money from the bank account and give that to Essem or to the person by whom they were recruited. The recruit could keep a portion, in some cases as much as $300, and a significant portion of the refunded money was given to Okyere.
The court determined at today’s hearing that the total loss attributable to Okyere’s conduct arising from the fraudulent scheme was $1,040,646.14.
Bertrand Awah Essem, age 28, of Beltsville, Maryland; Stanley Nmesirionye, age 25, of Owings Mills, Maryland; Dosis Feludu, age 26, of Salisbury, Maryland; Gideon Turkson age 25, of Burtonsville, Maryland and Godfred Obeng, age 39, of Glen Allen, Virginia, previously pleaded guilty to their participation in the fraud scheme. Obeng was sentenced on April 14, 2016 to three years in prison and ordered to pay restitution of $338,548.45. Essem was sentenced on February 5, 2016 to 27 months in prison and ordered to pay restitution of $264,757.29. Feludu, Nmesirionye and Turkson were each sentenced to a day in prison. Feludu was ordered to pay restitution of $71,221.82, Nmesirionye to pay $57,255.85 and Turkson to pay $52,953.13.
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 U.S. Postal Inspection Service and U.S. Department of the Treasury – OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.
Former Maryland Resident Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
Greenbelt, Maryland – A South Carolina man pleaded guilty to a criminal information charging conspiracy to defraud the United States for the purpose of obstructing the functions of the Internal Revenue Service (IRS), announced U.S. Attorney Rod J. Rosenstein of the District of Maryland and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to information presented in court, Menachem Shoham, age 67, of Rockville, Maryland, conspired with several family members and with Martin Lack, a former asset manager at a firm in Zurich, to maintain undeclared offshore bank accounts in order to conceal assets and income from the IRS. Lack pleaded guilty in 2014 to a charge of conspiracy to defraud the United States.
“In today’s plea, Menachem Shoham admitted to conspiring to defraud the IRS through the use of undeclared offshore bank accounts, secretly tapping into the funds through large cash withdrawals abroad and employing credit cards directly linked to the accounts to pay personal expenses,” said Acting Deputy Assistant Attorney General Goldberg. “This case is another step in the department’s ongoing efforts, along with its partners in the IRS, to actively investigate and prosecute the illegal use of offshore bank accounts, not just in Switzerland, but around the world.”
“No matter how you attempt to disguise your income, one is still legally required to pay taxes on it,” said Special Agent in Charge Thomas Jankowski of IRS-Criminal Investigation (CI) Washington, D.C., Field Office. “Today’s plea is a reminder that IRS Criminal Investigation is committed to following the money trail across the globe and will not be deterred by sophisticated financial transactions.”
As part of the conspiracy, Shoham and his family members traveled both within the United States and to the Bahamas, the United Kingdom and Switzerland in order to meet with Lack and obtain at least $379,930 in cash withdrawals from their offshore accounts. The co-conspirators further obtained credit cards linked to their offshore accounts as an additional means of accessing the funds while at the same time concealing them from the IRS. Shoham and his family members also provided false information to their tax return preparers in order to conceal the ownership and control of the offshore accounts.
For the years 2005 to 2010, Shoham filed false U.S. individual income tax returns with the IRS on which he failed to report his offshore bank accounts. For the years 1999 to 2010, Shoham was required to file annual Reports of Foreign Bank and Financial Accounts (FBARs) with the IRS; however, despite maintaining account balances which at times exceeded $500,000, Shoham failed to file the required FBARs. As a result of the conspiracy, Shoham caused a tax loss to the United States of $36,287.
At his August 15 sentencing, Shoham faces a statutory maximum sentence of five years in prison. He also faces monetary penalties and restitution.
U.S. Attorney Rosenstein and Acting Deputy Assistant Attorney General Goldberg commended the IRS-Criminal Investigation, who investigated the case, and Senior Litigation Counsel Mark F. Daly and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney David Salem of the District of Maryland, who are prosecuting this case.
Former Maryland Resident Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
Used Secret Foreign Accounts to Hide over $500,000 in Funds and Avoid Paying Taxes
A South Carolina man pleaded guilty to a criminal information charging conspiracy to defraud the United States for the purpose of obstructing the functions of the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rod J. Rosenstein of the District of Maryland.
According to information presented in court, Menachem Shoham, 67, conspired with several family members and with Martin Lack, a former asset manager at a firm in Zurich, to maintain undeclared offshore bank accounts in order to conceal assets and income from the IRS. Lack pleaded guilty in 2014 to a charge of conspiracy to defraud the United States.
“In today’s plea, Menachem Shoham admitted to conspiring to defraud the IRS through the use of undeclared offshore bank accounts, secretly tapping into the funds through large cash withdrawals abroad and employing credit cards directly linked to the accounts to pay personal expenses,” said Acting Deputy Assistant Attorney General Goldberg. “This case is another step in the department’s ongoing efforts, along with its partners in the IRS, to actively investigate and prosecute the illegal use of offshore bank accounts, not just in Switzerland, but around the world.”
“No matter how you attempt to disguise your income, one is still legally required to pay taxes on it,” said Special Agent in Charge Thomas Jankowski of IRS-Criminal Investigation (CI) Washington, D.C., Field Office. “Today’s plea is a reminder that IRS Criminal Investigation is committed to following the money trail across the globe and will not be deterred by sophisticated financial transactions.”
As part of the conspiracy, Shoham and his family members traveled both within the United States and to the Bahamas, the United Kingdom and Switzerland in order to meet with Lack and obtain at least $379,930 in cash withdrawals from their offshore accounts. The co-conspirators further obtained credit cards linked to their offshore accounts as an additional means of accessing the funds while at the same time concealing them from the IRS. Shoham and his family members also provided false information to their tax return preparers in order to conceal the ownership and control of the offshore accounts.
For the years 2005 to 2010, Shoham filed false U.S. Individual Income Tax Returns, Forms 1040, with the IRS, on which he failed to report his offshore bank accounts. For the years 1999 to 2010, Shoham was required to file annual Reports of Foreign Bank and Financial Accounts (FBARs) with the IRS; however, despite maintaining account balances which at times exceeded $500,000, Shoham failed to file the required FBARs. As a result of the conspiracy, Shoham caused a tax loss to the United States of $36,287.
At his Aug. 15 sentencing, Shoham faces a statutory maximum sentence of five years in prison. He also faces monetary penalties and restitution.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Rosenstein commended special agents of IRS-CI, who investigated the case, and Senior Litigation Counsel Mark F. Daly and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney David Salem of the District of Maryland, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Landover Company Employee Sentenced to 6 Years in Prison for Fraudulently Obtaining Business ExpensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced James Charlton Davis, III, age 57, of Anderson, South Carolina, today to six years in prison followed by five years of supervised release for wire fraud arising from an elaborate scheme to defraud his employer of at least $240,000. Judge Chuang also ordered Davis to pay restitution of $240,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, from May 7, 2012 to March 13, 2013, Davis was the director of the electrical division for a small company in Landover, Maryland that provided construction and preconstruction services to federal agencies. When applying for his job, Davis falsely represented that he had earned a Ph.D. from the Massachusetts Institute of Technology (MIT), when in fact Davis had not attended MIT. Part of his duties as director was to develop new business for the company.
Davis falsely told company executives that he knew executives at several corporate entities, and that he was pursuing contracts with these corporate entities. Davis created and falsely registered online domain names that closely resembled legitimate domain names associated with several of these corporate entities. Davis used these falsely-registered domains to send emails to himself and others at his employer to legitimize the fictional contracts he claimed to obtain on his employer’s behalf. Davis also assumed the identity of an individual who investigation revealed was a contractor with a technology company. Davis had previous interactions with this individual during his previous employment.
In July 2012, Davis told his employer that he had procured contracts with the technology company, headquartered in San Jose, California, to construct cell towers in Alpharetta, Georgia. Davis communicated with himself via email using the stolen identity of the individual, in connection with fictitious contracts with the tech company, and with other corporate entities for supposed upgrades to their data centers. Davis represented that he was working with this individual to perform these contracts. For several of the contracts, Davis sent communications to himself and/or others at his employer, or caused others at his employer’s company to send emails to various personas he had created—some of whom appear to refer to actual employees of the corporate entities with whom Davis claimed to be negotiating contracts.
Related to his supposed efforts to obtain and perform contracts with these corporate entities, Davis traveled extensively and incurred bills for expensive dinners and accommodations. Davis sought and obtained reimbursement from his employer for travel, meals, equipment and labor costs. In fact, however, Davis did not pursue any legitimate business and did not have interactions with any of these corporate entities on behalf of his employer.
Because of Davis’s fraudulent emails, his employer believed that demand for its services had grown exponentially. As a result, his employer stopped pursuing additional contracts, sought larger lines of credit and hired additional personnel.
In March of 2013, his employer learned of the fraud scheme when none of the invoices being submitted to these corporate “clients” - the fictional contacts at these companies - were being paid. Davis’s employer started contacting these “clients” independently, and they all confirmed that they had no business dealings with Davis’s employer or with Davis.
In determining his sentence, the court considered the defendant’s 30 year criminal history, including six previous convictions for theft and making false statements.
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 M. Sullivan and Ray D. McKenzie, who prosecuted the case.
Three Maryland U.S. Attorney’s Office Employees Honored by Department of Justice at Executive Office for United States Attorneys Director’s Awards CeremonyRead the Press Release
Baltimore, Maryland – Assistant U.S. Attorneys Michael C. Hanlon and William D. Moomau, and Law Enforcement Coordinator Steven J. Hess of the U.S. Attorney’s Office in the District of Maryland, were three of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.
The District of Maryland was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Hanlon, Moomau and Hess were recognized for superior performance in prevention and reentry activities for their Project Safe Neighborhoods program which includes a personalized deterrence message to repeat offenders, while offering them assistance and community reintegration services. Hanlon, Moomau and Hess organize and conduct meetings for ex-offenders, known as call-ins, in Baltimore, Prince George’s County, and other areas throughout the state, in cooperation with federal agencies, local police, prosecutors, state parole and probation officers, community groups and non-governmental organizations. The awardees research the participants’ criminal histories to develop individual risk assessments, which are shared with the participants during the meeting, while also making the participants aware of services that are available to assist them. Since 2009, Hanlon, Moomau and Hess have conducted approximately 46 call-ins across the state, reaching an estimated 700 violent repeat offenders.
"The call-in programs are an effective way to communicate a deterrent message directly to the persons most likely to reoffend,” said U.S. Attorney Rod J. Rosenstein. “We warn them about the consequences of getting caught with a gun or drugs, and we offer opportunities for them to pursue legitimate employment.”
In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”
“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao
Final Defendant Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
Baltimore, Maryland – Dorian Maurice Griffin, age 20, of Baltimore, pleaded guilty today to conspiracy to commit bank fraud and to aggravated identity theft. Four co-defendants have previously pleaded guilty to the scheme, in which the defendants deposited counterfeit checks drawn on the accounts of identity theft victims into bank accounts opened by the defendants in the name of shell companies. The defendants then withdrew the funds before the fraud could be detected.
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, between February 2014 and July 2014, Griffin conspired with lead defendant Monika Hill, Mark Peeples, Alysia Rascoe, Christopher McKoy, and others to open 22 business bank accounts online, using the personal identifying information of identity theft victims. The bank accounts were funded using forged checks bearing the bank account numbers and forged signatures of other identity theft victims.
For example, Grant U Pleasure, LLC was registered with the State of Maryland Department of Labor, Licensing and Regulation as businesses on March 12, 2014. The business listed an identity theft victim as the managing member/owner, and the defendant used that person’s social security number and date of birth to open online bank accounts for the business. Shortly thereafter, the co-conspirators deposited counterfeit checks into the accounts, and withdrew the funds before the fraudulent checks were detected.
Specifically, beginning on March 25, 2014, 31 counterfeit checks totaling $51,490 were deposited into three business banks accounts opened online in the name of Grant U Pleasure. A total of $52,433 was drawn out of two of those accounts by checks being cashed against funds in the accounts. All of the deposited counterfeit checks were from an account belonging to three identity theft victims. Hill and Peeples deposited a total of seven counterfeit checks into the Grant U Pleasure accounts, each bearing the forged signature of a victim account owner. Once the counterfeit checks were deposited, Hill provided checks to Griffin, Rascoe, Peeples, and others drawn on the Grant U Pleasure accounts. The checks were made out to them in amounts ranging from $1,500 to $1,800, and bore the forged signature of the purported managing member/owner of Grant U Pleasure. Griffin and his co-defendants cashed the checks, providing their driver’s licenses, fingerprints and signatures. They typically kept about $200 of the proceeds for themselves and provided the rest to Hill and others. Between March 26 and April 8, 2014, Griffin cashed 11 checks drawn on the Grant U Pleasure accounts totaling $19,345.
Over the course of the conspiracy, Griffin cashed a total of 30 checks in this same manner, drawn on nine shell corporations with business band accounts. The total amount of checks cashed by Griffin alone was $47,455.
The loss to the bank as a result of the scheme was $179,808.76, the amount actually withdrawn. The intended loss was $233,190.02, the total amount of the counterfeit checks deposited.
Griffin faces a maximum sentence of 30 years in prison for conspiracy to commit bank fraud, and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Griffin on October 21, 2016, at 10:00 a.m.
Lead defendant Monika Michelle Hill, age 36, of Baltimore and Cockeysville, Maryland, pleaded guilty to three counts of conspiracy to commit bank fraud, aggravated identity theft, and to committing these offenses while on pre-trial release in another fraud case. Hill and government have agreed that if the Court accepts her plea agreement, Hill will be sentenced to 10 years in prison. Mark Darnell Peeples, age 31, and Alysia Samon Rascoe, age 26, both of Baltimore pleaded guilty to conspiracy to commit bank fraud and to aggravated identity theft. Judge Hollander has scheduled sentencing for Peeples on August 23, 2016 and for Rascoe on July 20, 2016, both at 2:30 p.m. Christopher Vance McKoy, age 24, of Baltimore, pleaded guilty to two counts of conspiracy to commit bank fraud. McKoy and the government have agreed that if the Court accepts his plea agreement McKoy will be sentenced to between 21 and 27 months in prison. Judge Hollander has scheduled sentencing for McKoy on July 19, 2016 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 the U.S. Secret Service and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Matthew J. Maddox, who are prosecuting the case.
Two Commercial Trash Haulers Sentenced for Bribing Baltimore City Landfill EmployeesRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Quentin Turgot Glenn, age 50, of Hanover, Maryland, who owned and operated Glenn Services, LLC, a trash hauling business, today to three years in prison followed by three years of supervised release for conspiracy and bribery in connection with a scheme in which commercial haulers paid Department of Public Works (DPW) employees cash in return for allowing the haulers to deposit trash at the Quarantine Road Landfill (Landfill) without paying the required disposal fees. Judge Garbis also ordered Glenn to pay restitution of $306,000.
Judge Garbis also sentenced Jessie Lee Wilson, Jr., age 41, of Baltimore, who was employed by Glenn Services as a truck driver, today to three years of probation, with the first year to be spent in community confinement, for the conspiracy and bribery.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
The DPW’s Bureau of Solid Waste is responsible for managing Baltimore City’s waste management services, including overseeing citizen drop-off centers, such as the Northwest Transfer Station (NWTS) and the Landfill. Baltimore City’s waste management system generates revenue for the City by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities. The City contracts with private salvage companies to purchase and remove scrap metal from its trash collection facilities. The salvage companies regularly pick up the scrap metal and, based on predetermined prices per ton, the salvage companies pay the City for the value of the scrap metal.
Individuals or companies commercially hauling trash that have registered their vehicles with the City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located within the Landfill. Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill. DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system. The scale house operators reweigh each truck as it leaves the Landfill.
According to facts agreed upon by Wilson and Glenn, at times when Wilson drove a truckload of trash to the Landfill, neither he nor Glenn Services was charged a disposal fee. In return, Glenn Services paid scale house employees a bribe of $100 per truckload of trash. After a certain number of unpaid trips, Glenn would arrange for himself or one of his drivers, including Wilson, to meet a scale house operator to pay the balance of the cash bribes.
In a recorded phone conversation on January 23, 2015, Wilson explained to a scale house employee why Glenn Services had not yet paid bribes on dozens of trips to the Landfill. Wilson said he had tried to text the employee using coded language to arrange a meeting, and that he carried the bribery money around in his pocket for so long that he eventually tried to give it back to Glenn, but Glenn insisted that Wilson keep the money until the employee was ready to receive it.
In another recorded phone conversation with the employee on January 29, Wilson said he needed the “numbers for the dinner,” and the employee replied that Glenn Services still owed for 34 trips, or $3,400. In a subsequent call, Wilson confirmed that in addition to paying this amount, Glenn would also pay for the few times Glenn Services was actually charged for dumping (at the FBI’s direction).
On February 1, 2015, Wilson met the employee at a parking lot on Edmondson Avenue in Baltimore City and gave the employee $2,500 in cash. He said that Glenn would give her the rest later in the week, and complained about the times Glenn Services was actually charged a disposal fee, which was a “[c]ouple of them…was like 16, 1700 dollars.”
On April 21, 2015, in a series of phone calls and text messages, the employee told Wilson that Glenn owed for 39 trips since February 1, 2015, plus for five other trips, for a total of $4,400. Wilson arranged a meeting between the employee and Glenn.
On April 23 and 24, Glenn met with the employee, providing a total of $4,000 in cash for 40 trips to the Landfill. Also during the meetings, they agreed to deal directly with each other without going through Wilson or Tamara Washington, another DPW employee, and to try to meet more regularly every time Glenn’s drivers made 10 trips to the Landfill.
From July 1, 2014 to May 1, 2015, Wilson fraudulently gave and agreed to participate in giving DPW employees cash payments in lieu of paying waste disposal fees that totaled more than $5,000.
Former Baltimore City Department of Public Works (DPW) employees Tamara Oliver Washington, age 55, William Charles Nemec, Sr., age 56; and Michael Theodore Bennett, age 47, all of Baltimore, and Jarrod Terrell Hazelton, age 33, of Parkville, Maryland, a former employee at the Quarantine Road Landfill, previously pleaded guilty to their roles in the schemes. Nemec was sentenced to 78 months in prison and ordered to pay restitution of $6 million. Bennett was sentenced to 46 months in prison and ordered to pay restitution of $400,000. Washington and Hazelton await sentencing.
Five other commercial trash haulers have also pleaded guilty, and a sixth trash hauler was convicted of conspiracy and two counts of bribery after a five day trial in November 2015. Judge Garbis sentenced two commercial haulers for their participation in the bribery scheme: Adam Williams, Jr., age 52, of Randallstown, to one year in prison followed by two years of community confinement with work release; and Larry Lowry, age 61, of Orchard Beach, Maryland, to 30 months in prison. Judge Garbis also entered an order that Williams pay restitution of $900,000, and Lowry pay restitution of $180,000.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General, and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Martin J. Clarke and Leo J. Wise, who prosecuted the case.
Maryland Man Pleads Guilty to an Armed Robbery Conspiracy and the Robbery of a St. Mary’s County Jewelry Store and PharmacyRead the Press Release
Greenbelt, Maryland – Abdelrahim Ayyad, a/k/a Sahid, age 50, of White Plains, Maryland, pleaded guilty today to: an armed robbery conspiracy; two armed commercial robberies; and to using and brandishing a firearm in relation to a crime of violence. Ayyad was originally scheduled to go to trial today on those charges, but instead pleaded guilty to the superseding indictment.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and St. Mary’s County Sheriff Tim Cameron.
According to court documents, in June 2014, Ayyad conspired with Furman Troy, Darrell Lee and Michael Burgess, to rob commercial businesses in St. Mary’s County, Maryland. For example, on June 18, 2014, Ayyad admitted that he drove to Washington, D.C. and picked up Troy, Lee and Burgess and drove them to a jewelry store in Charlotte Hall, Maryland in order to commit a robbery. Ayyad handed Troy a bag containing a gun. Troy and Lee entered the store and Lee brandished a firearm at the owner of the store. Troy subsequently bound the victim with duct tape. The robbers then demanded the key to the jewelry counter from an employee of the store and stole jewelry worth more than $8,800, cash, a laptop computer and other items. On June 22, 2014, Ayyad and Burgess drove to a pharmacy in Mechanicsville, Maryland, with Troy and Lee following in another vehicle. Ayyad and Burgess waited in their vehicle while Troy and Lee robbed the pharmacy. During the robbery Lee again brandished a gun and Troy bound the pharmacy employee with duct tape. According to their plea agreements, Troy and Lee stole cash and prescription bottles containing oxycodone, methadone, hydrocodone and endocet, valued at $8,897.
U.S. District Judge George J. Hazel has scheduled sentencing for Ayyad on September 12, 2016, at 2:00 p.m.
Furman Troy, age 45, and Darrell Lee, age 48, both of Charlotte Hall, Maryland, and Michael Burgess, age 54, of Alexandria, Virginia, previously pleaded guilty to their roles in the robberies. Furman was sentenced to 12 years in prison. Lee and Burgess are awaiting sentencing
United States Attorney Rod J. Rosenstein commended the FBI and St. Mary’s County Sheriff’s Office for their work in the investigation and recognized the St. Mary’s County State’s Attorney’s Office for its assistance in the case. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and Thomas P. Windom, who are prosecuting the case.
Conspirator Sentenced to over 12 Years in Prison for Robbing Four BanksRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Malcolm Xavier Green, age 24, of Temple Hills, Maryland, today to 154 months in prison followed by three years of supervised release for bank robbery conspiracy, bank robbery, armed bank robbery and brandishing a firearm in relation to a bank robbery. Judge Bennett also ordered Green to pay restitution of $10,593.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Kent County Sheriff John F. Price IV; Loudoun County Sheriff Michael L. Chapman; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, Green and co-defendant Andrew Walker robbed three banks in Maryland and one bank in Virginia. On July 1, 2015, Green and Walker entered the BB&T Bank on Allentown Road in Camp Springs, Maryland. Walker passed a note to a teller demanding money in large and small bills. When the bank teller stated that she did not have large bills, Walker patted his waistband with his hand. The teller believed that this motion was meant to indicate that Walker had a weapon. The teller provided money and the defendants left.
On July 13, the defendants presented a demand note to a teller at the Essex Bank on Ingleside Road in Baltimore. The teller provided cash and the defendants left with approximately $100. A dye pack ignited in Green’s pants, burning his legs and ruining the money.
On July 17, the defendants walked into the BB&T Bank on Cypress Avenue in Millington, Maryland. Green passed the teller a note demanding money, and threatening to come back shooting if his demands were not met. When the teller hesitated, Walker pulled out a gun from his waistband, brandishing it several times. The teller provided cash and the defendants left.
On July 24, 2015, the defendants entered the BB&T Bank in Lovettsville, Virginia. Green brandished a gun and gave the teller a note demanding money and no dye packs. The teller provided money and the defendants left.
The total amount that the defendants stole from the banks was in excess of $10,590.
Investigators identified the defendants through fingerprint analysis on a robbery note, law enforcement databases and surveillance footage of the robberies. Green and Walker were arrested on August 3, 2015.
Andre Antoine Walker, age 23, of Temple Hills, previously pleaded guilty to his participation in the conspiracy and is scheduled to be sentenced on July 21, 2016 at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Prince George’s County Police Department, Kent County Sheriff’s Office, Loudoun County Sheriff’s Office and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked the Loudoun County Commonwealth’s Attorney’s Office for their assistance, and Assistant United States Attorney Aaron S. J. Zelinsky, who prosecuted the case.
Washington, DC Man Sentenced to 75 Years in Prison for Armed Robbery and Carjacking ShootingsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Anthony Terrell Cannon, age 26, of Washington, D.C., today to 75 years in prison, followed by five years of supervised release, for conspiracy, robbery, carjacking, and two counts of discharging a gun during a crime of violence, and interstate transportation of a stolen vehicle, in connection with an armored car robbery and a carjacking in which a victim was shot in the arm and head. Cannon was convicted on September 12, 2014.
Judge Chasanow ordered that 50 years of today’s sentence is to be served consecutive to the 60 year sentence Cannon previously received in the U.S. District Court for the Eastern District of Virginia for other crimes. Cannon has also been sentenced to life in prison in the Prince George’s County Circuit Court.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Alan Goldberg of the Takoma Park Police Department; Montgomery County State’s Attorney John McCarthy; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to the evidence presented at Cannon’s two week trial, on October 26, 2012, Cannon, Tonnie Floyd, and Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, driving a stolen Jeep, followed a Garda Cash Logistics armored transport vehicle to the Cricket store located in the 1300 block of University Boulevard East, Takoma Park, Maryland. A Garda employee exited the armored truck, went into the store and picked up a bag containing $3,911. As the employee returned to the armored truck, he was confronted by two co-conspirators with guns. The Garda employee dropped the money bag and at least one co-conspirator fired a gun at the employee. The employee shot back. One of the co-conspirators picked up the money bag. The co-conspirators ran back to the stolen Jeep. As the co-conspirators drove away, the employee continued to fire his handgun at the Jeep, striking a tire and the back window. Floyd was wounded in the shoulder during the gunfire.
The co-conspirators left the Jeep in a neighborhood nearby because it had a flat tire as a result of the shooting. They saw a man entering a vehicle, and shot the man in the arm and head, causing permanent and life-threatening bodily injury, then stole his vehicle. They drove the vehicle into the District of Columbia, where they set it on fire.
Police evidence personnel recovered blood containing DNA of Floyd from the back seat of the Jeep. Floyd went to a hospital in the District of Columbia for medical treatment of his gunshot wound on October 26, 2012 at approximately 8:20 p.m. The Garda money bag was found in the Jeep and the bag had Freeman’s finger and palm prints upon it. A drink bottle was recovered from the front console area of the Jeep Cherokee that had DNA of Cannon on the top area that would have come into contact with his mouth when drinking.
The evidence also included a recorded call between Cannon and an inmate at Prince George’s County Detention Center in which Cannon acknowledged his participation in the crimes and expressed disappointment in leaving an evidence trail in the stolen Jeep.
Co-conspirator Tonnie Floyd, age 23, of Washington, D.C., previously pleaded guilty to robbery, and discharging a gun during the robbery and carjacking and was sentenced to 222 months in prison. Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 24, also of Washington, D.C., pleaded guilty to the same offenses. Freeman and the government have agreed that if the Court accepts his plea, Freeman will be sentenced to between 241 months and 30 years in prison at his sentencing on June 6, 2016.
United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and Montgomery County Police Departments, the Metropolitan Police Department, the Takoma Park Police Department and the Prince George’s County and Montgomery County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Bryan E. Foreman, who prosecuted the case.
Paradigm Spine Agrees to Resolve False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – Medical device manufacturer Paradigm Spine has agreed to pay the United States $585,000 to resolve allegations under the False Claims Act that the company caused health care providers to submit false claims to Medicare and other federal health care programs for spine surgeries by marketing the company’s coflex-F® device for surgical uses that were not approved by the U.S. Food and Drug Administration (FDA). The settlement further resolves allegations that Paradigm caused false claims by giving false recommendations on how to code health claims for procedures involving the company’s coflex® device.
The settlement was announced today 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 Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Drew Grimm, Office of Personnel Management, Office of Inspector General.
“A medical device manufacturer has a duty to be truthful about the approved uses of medical devices and the appropriate billing codes to use when seeking payment from the government,” said U.S. Attorney Rod J. Rosenstein.
According to the settlement agreement, from 2011 to 2013, Paradigm Spine allegedly marketed coflex-F for surgical uses that were not approved by the FDA. Further, from 2012 to 2015, Paradigm Spine allegedly provided health care providers with improper guidance on how to claim reimbursement for coflex. As a result of this conduct, the United States claimed that Paradigm Spine caused physicians and hospitals to submit false claims to federal health care programs for certain spine surgeries that were not eligible for reimbursement. Paradigm denies the allegations.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act by Chris Coyle, a former Paradigm Spine sales representative (United States ex rel. Charles Coyle v. Paradigm Spine, LLC, et al., Case No. DKC-14-CV-2086 (D. Md.)). The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. As part of today’s resolution, Mr. Coyle will receive approximately $105,300. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
The settlement was the result of an investigation the U.S. Attorney’s Office for the District of Maryland, U.S. Department of Justice, the Department of Health and Human Services’ OIG, the Department of Defense’s OIG and the Office of Personnel Management’s OIG, with assistance from the FDA’s Office of Chief Counsel and Office of Criminal Investigations. The case was handled by Assistant U.S. Attorneys Thomas Barnard and Rebecca Koch, and Trial Attorney Lisa Samuels from the Department of Justice.
North Carolina Man Admits Receiving and Selling Misbranded Silicone for Buttocks Injections Resulting in the Death of a ClientRead the Press Release
Greenbelt, Maryland –Vinnie Lysander Taylor, a/k/a “T,” age 44, of Wilmington, North Carolina, Pennsylvania and Georgia, pleaded guilty on May 26, 2016, to charges of receiving and selling industrial grade silicone, but representing to customers that it was medical grade silicone.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Prince George’s County State’s Attorney Angela D. Alsobrooks; Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
“Injecting industrial-grade silicone into individuals’ bodies can result in serious bodily injury or death,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations’ Metro Washington Field Office. “FDA’s OCI will continue to work with our law enforcement partners to bring to justice those who offer this dangerous product to the public.”
Taylor admitted that from at least 2008 through December 16, 2014, he administered silicone injections into the buttocks of customers who wanted larger or fuller buttocks. Taylor, who was not a licensed medical practitioner, falsely represented to customers and victims to whom he administered liquid silicone injections that the procedure was safe and that he used medical grade silicone, when in fact the silicone was not medical grade silicone. Taylor administered the injections in hotel rooms in Prince George’s County, Maryland, St. Louis, Missouri, Arlington, Virginia, and elsewhere. Taylor charged between $800 and $1000 for the initial injections and between $350 and $800 for subsequent injections. When used in this fashion, liquid silicone is a medical device subject to regulation by the FDA.
In Maryland, between at least 2012 and December 2014, Taylor administered silicone injections to more than 10 individuals, representing to each victim that he used medical grade silicone and that it was safe. In fact, Taylor did not use medical grade silicone, but used polydimethylsiloxane, a common silicone product used in commercial applications such as foods, lubricating oils, sealants and shampoos.
On March 20, 2014, Taylor injected silicone into the buttocks of a victim. After the victim left the hotel she began having breathing difficulties. On March 22, 2014, the victim checked herself into the hospital and two days later, she died. An autopsy determined that the cause of death was acute and chronic respiratory failure due to a foreign substance causing a pulmonary embolization. The medical examiner ruled the manner of death to be a homicide. A clear viscous fluid removed from the victim’s buttocks during the autopsy was determined to be polydimethylsiloxane.
According his plea agreement, from approximately 2008 through December 2, 2014, Taylor purchased 152 gallons of food grade liquid silicone. Taylor stored the liquid silicone in plastic bottles that were not labeled nor approved by the FDA for that purpose. Therefore, the liquid silicone was adulterated and misbranded. The 152 gallons of silicone equates to 3,196 sessions. At $500 per treatment, Taylor’s mid-range fee, proceeds from the illegal injections total at least $1,598,000.
As part of his plea agreement, Taylor has agreed to plead guilty to a criminal information that will be filed in Prince George’s County Circuit Court, admitting that Taylor’s conduct resulted in the death of the victim in March 2014. In exchange, the Prince George’s County State’s Attorney’s Office dismissed first degree murder charges which were pending against Taylor.
Taylor, the U.S. Attorney’s Office, and Prince George’s County State’s Attorney’s Office have agreed that if the Court accepts the plea agreement Taylor will be sentenced to between 12 and 15 years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for August 19, 2016 at 9:30 a.m. Taylor remains detained.
United States Attorney Rod J. Rosenstein praised the FDA Office of Criminal Investigations’ Metro Washington Field Office, the Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston and William D. Moomau, who are prosecuting the case.
Conspirator Pleads Guilty to Bank Fraud Scheme Involving over 200 VictimsRead the Press Release
Baltimore, Maryland – Shivani Patel, age 30, of Reisterstown, Maryland, pleaded guilty today to bank fraud conspiracy and aggravated identity theft arising from a scheme to use stolen credit information of more than 200 victims to defraud financial institutions.
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); and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to her plea agreement and court documents, from at least June to December 18, 2013, Patel conspired with Tariq Hicks, her then boyfriend Eddie Carey and others to defraud financial institutions by accessing stolen credit card and debit card accounts belonging to real people and using counterfeit cards encoded with the stolen account information to make unauthorized purchases.
Hicks purchased the stolen account information over the internet. Patel and Hicks used a computer and an electronic device called a “reader-writer” to encode the stolen credit and debit card information onto existing credit cards, gift cards, or other similar cards. These cards were sold or distributed to co-conspirators, such as Carey and Ishia Cason, who used them and provided the bulk of the proceeds to Hicks. Patel often delivered cards to the individuals who were conducting transactions, called “strikers.” Patel also recruited workers.
Hicks also purchased or obtained over the internet “credit profiles” containing the identity information of victims. He then obtained full credit reports for these victims. Hicks gave this information to Patel and others, who went into stores where the victims had existing credit accounts, with the victim’s personal identity information so that they could “authenticate” themselves as the victim. Patel, Carey, Cason and others would then make purchases on the existing accounts (called “account takeover”).
In addition, Hicks used the credit reports to identify stores at which a victim did not have an account, and sent Patel, Carey, Cason and others into those stores with the same personal identity information. Patel and the co-conspirators would apply for new credit accounts in the victim’s identity, and then use that “instant credit” to make purchases before the victim learned of the account.
For all of these schemes, Hicks obtained fraudulent drivers’ licenses which bore the information of the victim, but the photograph of a co-conspirator. Patel had many such identifications which bore her photo but the identity information of victims. Often Hicks or Patel would provide a cheat sheet with the necessary personal identity and account information so that a co-conspirator would have ready and covert access to the information as needed. The co-conspirators could then use the counterfeit license to establish their identity as the victim.
Patel and others instructed those using the cards and information to travel to other states to engage in the fraud. Patel and Carey traveled to conduct account takeovers, instant credit fraud and other fraudulent transactions. Co-conspirators frequently traveled north to Pennsylvania and south as far as Georgia to engage in fraud, as well as the states that lie between Baltimore and Atlanta, including North and South Carolina, West Virginia, and Virginia.
On December 18, 2013, a search warrant was executed at Patel’s residence, where she lived with Hicks and Carey. A complete set up for the fraud scheme was on the dining table, including a computer with the credit profiles and credit reports, a reader/writer device, credit cards in various states of manufacture, money gram receipts for payments for the stolen credit card numbers and profiles, lists of personal identity information and “cheat sheets.” Also recovered were dozens of credit cards bearing victims’ names and accounts, as well as dozens of fraudulent identification to match the credit cards, all bearing the information of the victims but the photographs of co-conspirators.
In a basement space shared by Patel and Carey were more lists of victim information and a receipt for a storage locker rented to “Aishwarya Gupta,” a fictitious identity that Patel created as an alter ego and used to obtain a $42,073.22 loan for the purchase of a 2010 BMW 528XI. There was also a small notebook in Patel’s handwriting which numerous personal identity information; notations as to money grams which had to be sent to various individuals in Kiev and the amounts owed; notations as to what merchandise was ordered and delivered to customers of the scheme at what price; notations as to how much was owed to workers in the scheme, and a reminder to pay the storage locker fee.
A search warrant was executed on the storage unit and a duplicate “mill” was located, including an embosser to manufacture embossed credit cards, and boxes containing hundreds of blank plastic cards ready for counterfeiting, including white, gold, silver and black cards. There were also over 150 cards in various states of manufacture.
Over 450 compromised accounts were compiled from the evidence seized from the residence and storage locker, although most had not yet been used in the scheme. There were over 200 victims, including businesses and financial institutions which sustained an actual loss and victims who had their identities compromised in the conspiracy. Based on the individual victims and credit accounts which were recovered from the search warrant, actual losses associated with the scheme are $61,030.78. As part of her plea agreement, Patel will be required to pay restitution in the full amount of the victims’ losses.
Patel faces a maximum sentence of 30 years in for the bank fraud conspiracy, and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge James K. Bredar scheduled sentencing for September 30, 2016 at 3:00 p.m.
Tariq Hicks, age 48, of Owings Mills, Maryland, pleaded guilty on May 2, 2016; and Eddie Carey, age 32; and Ishia Biff Cason, age 36, both of Baltimore, pleaded guilty on May 5, 2016, to bank fraud conspiracy and aggravated identity theft. Judge Bredar scheduled sentencing for Hicks on June 10, 2016 at 9:30 a.m.; for Carey on August 18, 2016 and for Cason on August 5, 2016, both at 2:00 p.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 HSI Baltimore and the U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Seven Indicted in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has charged seven individuals for a bank fraud conspiracy in which the defendants allegedly impersonated individual victims to remove funds from the victims’ investment accounts. Two of the defendants are also alleged to have participated in a conspiracy to transport stolen vehicles to Africa. The superseding indictment, which adds six defendants and additional charges, was returned on May 19, 2016, and unsealed today upon the arrest of six defendants. Law enforcement is still seeking the seventh defendant.
The following defendants have been arrested:
Mohammed Kwaning, a/k/a Kofi, age 35, of Laurel, Maryland;
Issah Mohammed, a/k/a Yissa and Ali, age 28, of Laurel;
Sandra Badu, age 30, of Jessup, Maryland;
Francis Osei Fosu, a/k/a Pino, age 27, of Dallas, Texas;
Mark Dennis, age 28, of Beltsville, Maryland; and
Abayomi Davies, age 29, of Silver Spring, Maryland.The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); U.S. Customs and Border Protection Baltimore Port Director Diana Bowman; Chief James W. Johnson of the Baltimore County Police Department; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to the 14 count superseding indictment, the defendants stole money from the accounts of individual victims by: obtaining the email addresses of victims, then purporting to be the victims, sending emails to investment account managers requesting that funds be wired into a business account controlled by Kwaning and Mohammed; and by obtaining victims’ account information at various investment account firms and taking over the online accounts of the victims. According to the superseding indictment, Mohammed and Kwaning also created fraudulent checks and cashier’s checks drawn on the victims’ accounts, which Davies, Dennis, Badu and others deposited into accounts they controlled. The defendants then withdrew or transferred the funds from the business account they maintained to receive the victims’ funds to other accounts controlled by the conspirators before the bank discovered the fraud.
Further, the superseding indictment alleges that from at least January 31, 2013, through May 12, 2014, Kwaning and Mohammed were part of a conspiracy to have vehicles stolen in New York, New Jersey and Washington, D.C., then transported to Africa for sale. Specifically, the indictment alleges that after causing the vehicles to be stolen, the conspirators would transfer possession of the vehicles to Kwaning, Mohammed and others. The conspirators used business bank accounts opened by Kwaning and Mohammed for paperwork associated with the stolen vehicles, such as the title, registration, shipping, bill of sale and insurance. They caused the stolen vehicles to be loaded into a shipping container and delivered to the Ports of Baltimore and Newark, New Jersey, where they were shipped to destinations including Lagos, Nigeria and Accra, Ghana.
According to the indictment, the proceeds from the bank and wire fraud conspiracy were pooled with the funds used and generated from the purchase and sale of the stolen vehicles.
If convicted, the defendants face a maximum sentence of 30 years in prison for the bank and wire fraud conspiracy, and for each count of bank and wire fraud in which they are charged. Kwaning and Mohammed also face a maximum of five in prison for conspiracy to transport stolen motor vehicles, and a maximum of 10 years in prison for each of four counts of receipt and possession of stolen motor vehicles. Finally, Kwaning also faces a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft. The defendants had an initial appearance today before U.S. Magistrate Judge J. Mark Coulson in U.S. District Court in Baltimore. Kwaning, Mohammed and Davies are detained and Badu and Dennis were released under the supervision of U.S. Pretrial Services. Kwaning and Davies have detention hearings scheduled for May 27 and May 31, 2016, respectively. Fosu had his initial appearance in Texas and was detained pending a detention hearing.
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 HSI Baltimore, U.S. Customs and Border Protection and the Baltimore County and Prince George’s County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok and Zachary A. Myers, who are prosecuting the case.
Former Washington DC Resident Sentenced to over Four Years in Prison for Credit Card Skimming SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Perry Haywood, Jr., age 29, formerly of Washington, D.C., today to 54 months in prison, followed by three years of supervised release, for credit card fraud and aggravated identity theft. Judge Titus also ordered Haywood to pay restitution of $1,700 and to forfeit the computers and skimming devices used in the scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department
According to his plea agreement, on March 18, 2012, Haywood approached a government informant working at a Prince George’s County, Maryland, hotel and asked the informant if she was willing to skim credit cards used for payment at the hotel in exchange for $1,000 per week. After notifying federal law enforcement of Haywood’s solicitation, the informant arranged to meet with Haywood. During that meeting, Haywood explained the skimming operation to the informant and showed her how to use the skimming device. Haywood told the informant that he wanted her to skim 20-25 cards per week, and he would take steps to make it difficult for law enforcement to determine where the cards had been compromised. Haywood advised that he was giving the skimming device he had with him to another co-conspirator and arranged to meet the informant later to provide her with a skimming device.
On March 23, 2012, Haywood met the informant at a coffee shop and gave her a skimming device. He also provided the informant with a pre-paid cell phone to use to contact him. Haywood paid for that phone with a credit card encoded with the name and credit account of Victim #1. The informant, with government permission, used the skimming device to record the credit card information of five hotel customers, then arranged to return the skimming device to Haywood.
On April 2, 2012, Haywood was arrested while attempting to retrieve the skimmer from the informant. At the time of his arrest, Haywood was carrying another skimming device that contained the credit information of 19 additional victims. In addition, Haywood was carrying 11 credit cards encoded with information belonging to 11 separate victims, but which did not match the information that was embossed on the plastic cards themselves. Finally, in Haywood’s rental car, agents located six additional plastic cards, five of which were encoded with information belonging to victims that did not match the information embossed on the cards themselves.
After Haywood’s arrest, agents searched his residence in Washington, D.C., and seized two computers, two additional skimming devices, a device capable of encoding magnetic strips on credit cards, and 31 plastic cards with magnetic strips. Of the 31 cards, eight had been encoded with information, including the information of three additional victims. Subsequent forensic examination determined that one of the computers was loaded with software and drivers to operate a magnetic strip reader/writer and information consistent with credit card track data. Additionally, the computer had been used to access websites selling magnetic strip readers, blank magnetic card stocks, encoders, and embossers. The total actual and attempted loss as a result of Haywood’s fraudulent scheme was between $10,000 and $30,000.
On June 28, 2012, Haywood was released under conditions of pre-trial release, and was allowed to reside with his mother in Atlanta, Georgia. In late September 2012, Haywood failed to report to his supervising pre-trial services officer, and the Court ordered a bond review hearing on October 3, 2012. When Haywood failed to appear for that hearing, the Court issued a warrant for his arrest. On June 17, 2014, Haywood was arrested after he was located by federal authorities in Jacksonville, Florida.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service – Washington Field Office, HSI Baltimore and Ocean City, and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ray D. McKenzie, who prosecuted the case.
Accokeek Man Sentenced to over Three Years in Prison for Conspiracy to Fraudulently Obtain over $300,000 in Vehicle LoansRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Robert Anthony Fitzgerald Lathan, age 48, of Accokeek, Maryland, today to 42 months in prison, followed by five years of supervised release, for a bank fraud conspiracy in which the conspirators obtained fraudulent vehicle loans. Judge Chasanow also ordered Lathan to forfeit and pay a money judgment of $169,385.83.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement and other court documents, from January 2009 to April 29, 2015, Lathan and others applied for vehicle loans with financial institutions and lenders using false information as to employment history at shell entities created by the conspirators, addresses, dates of birth and social security numbers. Lathan and others created and submitted fake documents, such as lien releases, utility bills, paystubs, letters of recommendation and a police report. The defendants often applied for vehicle loans on the same vehicle with different lenders. They sold the vehicles, obtained money from the sales and then did not provide the vehicles to the buyers. They deposited the loan funds into bank accounts and cashed loan checks at liquor stores. Lathan and his co-conspirators failed to pay the vehicle loans, which often resulted in the vehicles being repossessed by the lenders. Lathan knew that he had no intention of purchasing a vehicle and that the loan proceeds would be split between himself and his co-conspirators.
One of Lathan’s roles in the conspiracy was to create fake documents for other co-conspirators to use when making fraudulent loan applications. For example, Lathan created a fake lien release for a vehicle, a deal worksheet with false information, and fake paystubs. Lathan sent the fake documents to a co-conspirator, who either used the documents himself or provided them to other conspirators to use while applying for fraudulent loans. In addition, Lathan permitted co-conspirators to use his name and other information on fraudulent loan applications.
The total intended loss resulting from Lathan’s conduct in the scheme was at least $304,560.83.
Four co-defendants have pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
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 HSI Baltimore and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and Joseph R. Baldwin, who are prosecuting the case.
11 Alleged Members of a Drug Trafficking Organization Charged in Federal CourtRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted 11 defendants, including four family members, for conspiring to distribute and possess with intent to distribute drugs:
Mario Finesse Wright, a/k/a Super and Finesse, age 27, of New Jersey;
Nikko Taylor Wright, age 25, of Germantown, Maryland;
Clayton Dion Hollywood Wright, a/k/a Hollywood, and Harrison Wright, age 22, of New Jersey;
Maximillan Kabir Bradford Wright, age 21, of New Jersey;
Shahryar Talebi-Nejad, a/k/a Skeet, age 27, of North Potomac, Maryland;
Matthew Joseph Hochman, a/k/a Greasy, age 28, of Gaithersburg, Maryland;
Daniel Rocco Famulare, age 28, of Gaithersburg, Maryland;
Brandon Alexander Ade, age 24, of Germantown, Maryland;
Arian Siasi, a/k/a The Prince of Persia, age 25, of Silver Spring, Maryland;
Ilya Bechutsky, age 29, of Boyds, Maryland; and
Terrence Devon Taylor, a/k/a Scoop, and T, age 27, of Clinton, Maryland.The indictment was returned yesterday and unsealed today upon the arrests of the defendants and the execution of search warrants at over 20 locations in Maryland and New Jersey by over 250 members of law enforcement.
The indictment 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 Division; Special Agent in Charge Carl J. Kotowski of the Drug Enforcement Administration – New Jersey Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to the indictment and evidence presented to the court, from at least March 2014 to May 2016, the defendants conspired to distribute heroin and cocaine. The government contends that the three New Jersey-based brothers, Mario, Clayton, and Max Wright, supplied their Maryland-based brother, Nikko Wright, with large quantities of heroin and cocaine over the course of several years, and that Nikko Wright in turn distributed those drugs to a network of dealers in the Maryland and Washington, D.C., metropolitan area.
The Wright brothers, Shahryar Talebi-Nejad, and Matthew Hochman, all face sentences of up to 40 years in prison, with a mandatory minimum of five years. The other defendants all face sentences of up to 20 years in prison. Initial appearances are being held today in U.S. District Court in Greenbelt.
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 DEA and the Montgomery County Police Department for their work in the investigation. U.S. Attorney Rosenstein also recognized the Bureau of Alcohol, Tobacco and Firearms, the United States Marshal Service, Calvert County Police Department, Howard County Police Department and Prince George's County Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Michael T. Packard and Ray D. McKenzie, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Liquor Wholesaler and Three Employees Indicted for $9 Million Scheme to Smuggle Liquor from Maryland to New YorkRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Republic National Distribution Company, LLC, and its employees, Eugene Gerzsenyi, age 52, of Glen Burnie, Maryland; Jason Lockerman, age 38, of Bel Air, Maryland; and Lisa Robbins, age 55, of Woodbine, Maryland, today on charges arising from a scheme to defraud the state and city of New York, and registered New York liquor wholesalers. Specifically, the indictment alleges that the defendants transferred and moved liquor from Maryland, where the state excise tax rate for liquor was approximately $1.50 per gallon, to New York, where the state excise tax for liquor was approximately $7.44 per gallon, for retail sale.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Administrator for Field Operations Tom Crone, U.S. Treasury Department, Alcohol and Tobacco Tax and Trade Bureau (TTB); and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the indictment Republic National Distribution Company, LLC, (RNDC), which has offices in Jessup, Maryland, is a wholesale distributor of liquor in Maryland and elsewhere in the United States. Eugene Gerzsenyi was the Assistant Director of Operations for RNDC, Jason Lockerman was a salesman for RNDC and Lisa Robbins was an accounting manager. According to the indictment, any wholesaler transferring or distributing liquor for retail sale in Maryland, or in New York, was required to register with the state, and to provide monthly reports of the quantities of liquor transferred or distributed for retail sale in the state. RNDC was registered in Maryland and sold and delivered liquor to Cecil County retailers, including liquor stores, bars and restaurants.
The 23 count indictment alleges that from at least June 2009 through June 2012, a number of New York liquor retailers communicated with several retail liquor stores in Cecil County to order cases of wine and liquor. People working at the Cecil County retailers then passed the orders to RNDC though salesmen, including Lockerman. The indictment alleges that Lockerman and the other RNDC salesmen knew that the liquor was intended for retail sale in New York, and they transmitted those orders to RNDC to be filled. According to the indictment, RNDC delivered the ordered liquor to the Cecil County retailers, where it was held for the New York retailers. The New York retailers and their agents then picked up and transported the liquor to New York, where it was sold to customers without the New York excise taxes being paid.
The indictment alleges that RNDC, Robbins, Gerzsenyi, and Lockerman facilitated the payment to RNDC for liquor that was moved from RNDC, through the Cecil County retailers to the New York retailers and their agents. Specifically, RNDC submitted invoices to the Cecil County retailers that included the amounts owed to RNDC for the liquor that had been delivered to the New York retailers and their agents. The New York retailers paid the Cecil County retailers in cash, which the Cecil County retailers deposited into their business accounts. The Cecil County retailers then paid RNDC by check.
The indictment alleges that RNDC, the New York retailers, and the Maryland retailers, did not register as liquor wholesalers or distributors in New York; did not provide monthly reports of the quantities of liquor shipped into New York for retail sale; and did not pay New York excise taxes. In addition, RNDC allegedly filed false reports to the Maryland State Comptroller’s Office, indicating that all liquor sold to the Cecil County retailers was intended for resale in Maryland.
The indictment seeks forfeiture of all proceeds traceable to the scheme, including a money judgment of at least $9 million.
If convicted, the company and the individual defendants face a $250,000 fine, and the individual defendants also face a maximum sentence of 20 years in prison, for wire fraud conspiracy and each of four counts of wire fraud. If convicted of the money laundering counts, the indictment seeks forfeiture from RNDC of the funds involved in those offenses. No initial appearance has been scheduled for the defendants.
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 HSI Baltimore, TTB, and IRS-Criminal Investigation for their work in the investigation and thanked the New York State Department of Taxation and Finance Criminal Investigations Division for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Tamera L. Fine and Richard C. Kay, who are prosecuting the case.
Leader in Conspiracy to Distribute over $6.6 Million in Contraband Cigarettes Sentenced to PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 43, of Owings Mills, Maryland, to 18 months in prison followed by three years of supervised release for conspiring to possess and distribute over $6.6 million in contraband cigarettes; and for trafficking and distributing oxycodone. Judge Motz imposed the sentence on May 20, 2016, and entered an order requiring Rakhamimov to pay restitution of $400,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to his guilty plea, Elmar Rakhamimov was the leader and organizer of the contraband cigarettes scheme. Contraband cigarettes are cigarettes on which the applicable state taxes have not been paid. Elmar Rakhamimov coordinated with Ilgar Rakhamimov (no relation) and Artur Zakharyan to collect the money to purchase the contraband cigarettes, and to arrange for the storage and transportation of the contraband cigarettes to Brooklyn, New York. The Rakhamimovs and Zakharyan purchased contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area.
According to court documents and trial testimony, Artur Zakharyan recruited his son, Nikolay Zakharyan, to participate in the scheme. Nikolay Zakharyan assisted in the unloading, accounting, bagging, moving and loading of the master cases of contraband cigarettes. Other members of the conspiracy included Zarakh Yelizarov, Salim Yusufov, Adam Azerman, Shamil Novakhov, and Ruslan Ykiew.
The first transaction occurred on December 11, 2011, when Elmar Rakhamimov and Ilgar Rakhamimov purchased 20 master cases of contraband cigarettes in exchange for $18,000 in cash. After the first transaction, the contraband cigarettes were delivered to and stored at Elmar Rakhamimov’s home. Prior to each transaction, Elmar Rakhamimov, Ilgar Rakhamimov, and Artur Zakharyan discussed the transaction on the phone, and frequently met at Elmar Rakhamimov’s home to discuss the purchase and compile and count the money for the transaction.
The cigarettes were sold in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. At the time of the indictment, the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $4.35 per package of cigarettes ($43.50 per carton of cigarettes). The total tax evaded over the course of the conspiracy was more than $2.5 million.
Following many of the deliveries, the conspirators met at Elmar Rakhamimov’s residence to discuss moving the cigarettes to Brooklyn, New York where the cigarettes were sold at a profit to individuals in New York, who further distributed the contraband cigarettes. The cigarettes were often transported from Maryland to New York by Adam Azerman, who delivered them to Shamil Novakhov, a relative of Ilgar Rakhamimov. Ilgar Rakhamimov brought Novakhov into the conspiracy, and was the primary contact with Novakov throughout the conspiracy. Novakhov’s nephew, Ruslan Ykiew, also would travel from New York to Maryland to obtain contraband cigarettes and transport them to his uncle in New York. Ykiew initially stored the cigarettes in a restaurant he owned. At Novakhov’s request, in 2012 Ykiew rented a warehouse for the storage of the contraband cigarettes. The conspirators paid $30 for each carton of contraband cigarettes, and sold them to buyers in New York for approximately $41 - $45 per carton.
Elmar Rakhamimov and his cousin, Zarakh Yelizarov, laundered the proceeds of the contraband cigarette sales through an international money laundering operation that wired funds from banks located in Latvia, Cyprus, Estonia, and New York, to a bank in Maryland, disguising the money as legitimate business payments for medical equipment or supplies. From December 27, 2012 through September 5, 2013, Yelizarov and Rakhamimov wired a total of $649,500 through 12 transactions.
Elmar Rakhamimov also distributed Oxycodone, prescription drugs, counterfeit prescription drugs and other drugs as partial payment for contraband cigarettes and in exchange for cash. He conducted 15 drug transactions for which he received $356,123.00 in cash. Additionally, on October 28, 2013, Rakhamimov sold 340 pills of Oxycodone and 1,000 pills of counterfeit Cialis to an individual who paid him $38,980 in cash. This cash amount represented payment of $30,980 for such drugs and for drugs provided in an earlier drug transaction, and an $8,000 money laundering fee relating to contraband cigarette transactions.
Finally, the government presented evidence to the court that Elmar Rakhamimov was involved in the fencing of stolen jewelry from a violent robbery orchestrated by his nephew, Stanislav “Steven” Yelizarov. After kidnapping a store employee, whose movements they had been monitoring, Yelizarov and his co-conspirators brandished firearms and forced the victim to provide the alarm codes for the jewelry store. Yelizarov and a co-conspirator stole jewelry worth approximately $500,000 from the store. The next day, Elmar Rakhamimov told a confidential informant (CI) that he had a million dollars of “hot” jewelry to sell, and set up a meeting for January 18 at Rakhamimov’s home. The CI met Rakhamimov and Yelizarov, who were wearing gloves and had the stolen jewelry. The CI bought a selection of the stolen jewelry for $29,000.
Zarakh Yelizarov, age 53, of Pikesville, Maryland was sentenced to 18 months in prison and ordered to pay restitution of $2.5 million; Ilgar Rakhamimov, age 41, also of Pikesville, was sentenced to a year and a day in prison and ordered to pay a $10,000 fine; Shamil Novakhov, age 60, of Brooklyn, New York, was sentenced to a year and a day in prison and ordered to pay restitution of $400,000; and Adam Azerman, age 61, Pikesville, was sentenced to time served and ordered to pay restitution of $912,780. Nikolay Zakharyan, age 25, of Owings Mills, Maryland, was convicted by a federal jury after a five day trial and was sentenced to a year and a day in prison, and ordered to pay restitution of $9,659,880.
Artur Zakharyan, age 54, of Reisterstown, Maryland, to one year of home detention, as part of four years’ probation and ordered to pay restitution of $2,500,000 and to forfeit $50,000 believed to be proceeds of the offense, $11,947, and a five troy ounce gold bars and a gold coin seized during searches.
Elmar Rakhamimov’s brother, Salim Yusufov, age 43, of Reisterstown, Maryland, was sentenced to 12 months home confinement as part of four years’ probation, for conspiracy to traffic over $6.6 million in contraband cigarettes, health care fraud, and receipt and delivery of misbranded drugs. Yusufov was also ordered to forfeit $200,000. Ruslan Ykiew, age 40, of Brooklyn, New York, was sentenced to two years’ probation.
Stanislav “Steven” Yelizarov, age 26, of Pikesville, Maryland, was sentenced on April 13, 2016 to 30 years in prison on charges arising from the robbery of a jewelry store, including a carjacking and kidnapping.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office for its assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who prosecuted the case.
Four Army National Guardsmen Indicted in Two Fraud SchemesRead the Press Release
Greenbelt, Maryland – Three guardsmen from the District of Columbia Army National Guard were indicted on charges arising from a scheme to use Bitcoin to buy stolen credit and debit card numbers from foreign websites, re-encode cards issued in their names with those stolen numbers, and then fraudulently purchase items at Army and Air Force Exchange Service (AAFES) stores on military bases and elsewhere for use and resale (Shelton Stewart Indictment):
Derrick K. Shelton, II, age 28, of Washington, D.C.,
James C. Stewart, III, (J. Stewart) age 25, of District Heights, Maryland; and
Quentin T. Stewart, age 28, of Parkville, Maryland.
A fourth national guardsman, Vincent Anthony Grant, age 27, of Laurel, Maryland was also indicted in a separate case involving a similar fraud scheme (Grant Indictment). The indictments were returned on May 9, 2016 and unsealed last Friday, May 20, 2016 following the arrests of the defendants.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office (DCIS); and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
Shelton, J. Stewart and Grant were specialists, and Q. Stewart was a former sergeant, all in the District of Columbia Army National Guard.
“Bitcoin” is a digital currency that operates through an online, decentralized ledger system. Bitcoin is not issued by any government, bank, or company, but rather is generated and controlled through computer software operating through a decentralized network. Bitcoin can be exchanged for other currencies, products, or services.
The Shelton Stewart Indictment alleges that from July 2014 to May 2015, Shelton, J. Stewart and Q. Stewart, along with co-conspirator Jamal Moody and others, used Bitcoin to purchase stolen credit and debit card numbers of individuals and businesses from foreign internet websites. They selected and purchased stolen credit and debit card numbers of individuals and businesses holding federal credit union accounts, and those with billing addresses in or near Maryland. They bought magnetic strip card-encoding devices and software to re-encode credit, debit and other cards with the stolen credit and debit card numbers.
According to the Shelton Stewart Indictment, the defendants used the cards they fraudulently re-encoded to buy merchandise, including gift cards, electronic items, and luxury goods, from AAFES stores on U.S. military bases, and other locations in Maryland and elsewhere. They used the merchandise themselves or resold the merchandise.
The Grant Indictment alleges that from July 2014 to April 2015, Grant, along with co-conspirator Moody and others, engaged in a scheme similar to the one described above.
Shelton, J. Stewart and Q. Stewart face a maximum sentence of 20 years in prison for conspiring to commit wire fraud, and wire fraud. Grant faces a maximum sentence of seven and half in prison for conspiring to commit access device fraud. All four defendants also face a mandatory minimum of two years in prison for aggravated identity theft, consecutive to any other sentence imposed. The defendants had their initial appearances last week and were released under pretrial supervision, except for Quentin Stewart who is scheduled to have a detention hearing tomorrow, May 24, 2016, at noon before U.S. Magistrate Judge Charles B. Day in U.S. District Court in Greenbelt.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
In a separate proceeding, Jamal Alexander Moody, age 28, of Oxon Hill, Maryland, and Waynesboro, Pennsylvania, who was also a specialist in the District of Columbia Army National Guard, pleaded guilty to conspiring to commit access device fraud and aggravated identity theft. Moody admitted that from July 2014 to April 2015, he purchased a magnetic-strip card-encoding device which he used to re-encode credit and debit cards issued in his name with more than 100 stolen credit and debit card numbers of other individuals that he purchased through Bitcoin transactions. Moody used the fraudulently re-encoded cards to purchase – often from AAFES stores - gift cards or electronic and luxury goods for resale. Moody is awaiting sentencing.
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 DCIS and FBI for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Gustav William Eyler, of the U.S. Justice Department, Criminal Division - Fraud Section, and Assistant U.S. Attorney Thomas P. Windom, who are prosecuting the case.
Waldorf Man Sentenced to 13 Years in Prison for Stealing Guns from a Federally Licensed Firearms Dealer and Setting the Store on FireRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore Chuang sentenced Edward White, age 46, of Waldorf, Maryland, today to 13 years in prison, followed by five years of supervised release, for theft of firearms and use of fire during the commission of a felony, in connection with the robbery and arson of a federally licensed firearms dealer.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Charles County Sheriff Troy Berry.
“ATF worked hand-in-hand with the Charles County Sheriff's Office as well as federal prosecutors to build a strong case against Mr. White in an effort to hold him responsible for the theft of firearms and arson of Fred's Sporting Goods,” said ATF Acting Special Agent in Charge Frank Riehl. “The hard work of ATF's DNA chemists and the Charles County Forensic Science Unit provided unquestionable scientific evidence as to White's participation in this crime.”
According to his plea agreement, in February 2014, White planned to burglarize Fred’s Sports and Furniture, a federally licensed firearms dealer in Waldorf, Maryland. In preparation for the burglary White took photographs outside and inside the store, including the fence, gate, the padlock used to secure the gate, guns, and display cases containing the guns. White also accessed the roof of the store by climbing the HVAC system at the rear of the building, and took photos of the roof and the HVAC system. White’s DNA was recovered from a beam next to the HVAC system. White shared the photos with at least one co-conspirator.
On October 13, 2014, co-conspirators robbed Fred’s Sports and set it on fire. Specifically, co-conspirators cut the chain and padlock previously photographed by White, using bolt cutters provided by White. At least one co-conspirator climbed onto the roof of the building and cut a hole in the roof at the same location photographed by White. A co-conspirator entered the store and gathered more than 70 handguns from display cases throughout the store. After more than an hour, the co-conspirators poured an accelerant on the floor throughout the interior of the store, exited through the hole in the roof and ignited the accelerant. The fire destroyed Fred’s Sports and rendered the building uninhabitable.
Law enforcement officers recovered White’s cell phone near the rear of the store. The phone contained the photos of Fred’s Sports taken by White.
On November 6, 2014, law enforcement executed a search warrant at White’s home and recovered a .380 handgun stolen from Fred’s Sports and five .40 caliber rounds of ammunition. White’s DNA was found on the firearm. White, who was not under arrest at the time, agreed to go with law enforcement officers to the Charles County Sheriff’s Office, where he requested to use the rest room. While in the toilet stall, White placed a black cloth object in the trash can next to the toilet. Law enforcement subsequently searched the trash can and discovered a black cloth belly band holster containing a .40 caliber semi-automatic handgun, loaded with a magazine and 10 rounds of ammunition. This firearm was also stolen from Fred’s Sports on October 13, 2014. The next day, law enforcement searched White’s car and recovered the bolt cutters used during the robbery.
In addition to the two stolen guns recovered from White, several of the firearms stolen from Fred’s Sports were recovered in Washington, D.C., including: two guns used in separate shootings - one in which the victim was found next to the gun; one gun used in a robbery; one gun used in a carjacking; one gun recovered from a brothel; and two guns used in separate domestic altercations.
United States Attorney Rod J. Rosenstein commended the ATF and Charles County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Daniel C. Gardner, who prosecuted the case.
Three MS-13 Members Convicted in RICO ConspiracyRead the Press Release
A federal jury convicted three defendants today of multiple charges related to a 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 (ICE) 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.
Jorge Enrique Moreno-Aguilar, aka Flaco and Castigato, 22, of District Heights, Maryland; Juan Alberto Ortiz-Orellana, aka Chele and Furia, 27, also of District Heights; and Minor Perez-Chach, aka Minor Chach-Perez, Little Bad and Bryant Sacarias, 25, of Hyattsville, Maryland, were convicted by a federal jury sitting in the U.S. District Court for the District of Maryland. All three defendants were found guilty of conspiracy to participate in a racketeering enterprise and murder in aid of racketeering. Additionally, Moreno-Aguilar and Ortiz-Orellana were convicted of conspiracy to commit murder in aid of racketeering, and Ortiz-Orellana and Chach-Perez were also convicted on various related firearms charges.
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. Trial evidence demonstrated that Moreno-Aguilar and Ortiz-Orellana were members and associates of the MS-13 Sailors Locotes Salvatrucha Westside Clique and Perez-Chach was a member of the MS-13 Langley Park Salvatrucha Clique.
Trial evidence demonstrated that on January 2013, Moreno-Aguilar and Ortiz-Orellana 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, Moreno-Aguilar and Ortiz-Orellana 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.
In addition to these convictions, 8 of the other 13 defendants charged in this investigation have pleaded guilty to their roles in the racketeering conspiracy.
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 Attorneys Kevin Rosenberg and 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 are prosecuting the case.
Three MS-13 Members Convicted in Murder ConspiracyRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Jorge Enrique Moreno-Aguilar, aka “Flaco,” and “Castigato,” age 22; Juan Alberto Ortiz-Orellana, aka “Chele” and “Furia,” age 27, both of District Heights, Maryland; and Minor Perez-Chach, aka “Minor Chach-Perez,” “Little Bad” and “Bryant Sacarias,” age 25, of Hyattsville, Maryland, on charges related to a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
The convictions 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.
All three defendants were found guilty of conspiracy to participate in a racketeering enterprise and murder in aid of racketeering. Moreno-Aguilar and Ortiz-Orellana were each convicted of conspiracy to commit murder in aid of racketeering. Ortiz-Orellana was also convicted of discharge of a firearm during a crime of violence, and murder resulting from the brandishing/discharge of a firearm during a crime of violence. Perez-Chach was also convicted of unlawful possession of a firearm and ammunition by an alien, and unlawful possession of a firearm and ammunition by a felon.
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 the three-week 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. Moreno-Aguilar and Ortiz-Orellana were members and associates of the MS-13 Sailors Locotes Salvatrucha Westside (SLSW) Clique and Perez-Chach was a member of the MS-13 Langley Park Salvatrucha (LPS) Clique.
In January 2013, defendants Moreno-Aguilar and Ortiz-Orellana targeted an individual associated with the rival 18th Street gang, obtaining photographs of the victim from Facebook and conspiring to murder him with other members of MS-13. On March 12, 2013, Moreno-Aguilar and Ortiz-Orellana went to Capitol Heights, Maryland and Ortiz-Orellana shot the victim multiple times outside his home, killing him.
In the early morning hours of February 23, 2013, Perez-Chach met a man in a restaurant whom he believed to be a member of MS-13 who had previously testified against MS-13 members in federal trials in Greenbelt, Maryland. 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, Maryland where he stabbed the victim to death while another member of MS-13 attacked the victim with a machete. During his arrest on May 20, 2013, Perez-Chach was found in illegal possession of a firearm and ammunition.
All three defendants face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise, and a mandatory sentence of life in prison for murder in aid of racketeering. Moreno-Aguilar and Ortiz-Orellana face a maximum of 10 years imprisonment for conspiracy to commit murder in aid of racketeering. Ortiz-Orellana also faces a mandatory sentence of life in prison for murder resulting from the use and discharge of a firearm during a crime of violence; and a minimum of ten years for discharging of a firearm during a crime of violence. Perez-Chach also faces a maximum sentence of 10 years in prison for being a felon in possession of firearm and ammunition, and 10 years for being an alien in possession of firearm or ammunition. Moreno-Aguilar was acquitted of brandishing/discharge of a firearm during a crime of violence, and murder resulting from the brandishing/discharge of a firearm during a crime of violence.
U.S. District Judge Roger W. Titus has scheduled sentencing for all three defendants on October 12, 2016.
In addition to these convictions, 8 of the other 13 defendants charged in this investigation have pleaded guilty to their roles in the racketeering conspiracy.
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 Attorneys Kevin Rosenberg and Catherine K. Dick with the Justice Department’s Organized Crime and Gang Section.
Sheppard Pratt Director and Her Husband Sentenced to Prison in Illegal $2.7 Million Billing SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar today sentenced Lyneth Nyabiosi, age 50, to 48 months in prison, and her husband, Willie Evans III, a/k/a “James Davies” and “James Davis,” age 54, both of Bear, Delaware, to 41 months in prison, both followed by three years of supervised release. The defendants had previously pleaded guilty to conspiring to commit mail fraud arising from a scheme to falsely bill Nyabiosi’s employer, Sheppard Pratt Health Systems, for approximately $2.7 million for work purportedly performed by a company that the defendants secretly controlled. Judge Bredar also ordered the defendants to forfeit and pay restitution of $2,742,791, and to forfeit two residences located in Bear and Newark, Delaware and three vehicles.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
Sheppard Pratt Health System is a private, non-profit health system in Maryland which offers mental health, substance use and special education services. Sheppard Pratt’s main campus is located in Towson, Maryland. From November 2005 to September 2014, Nyabiosi was the director of the Health Information Management Department (HIM Department) of Sheppard Pratt. The department was responsible for maintaining patient medical records. As the director, Nyabsiosi was the highest ranking employee in the HIM Department.
According to their plea agreements, Nyabiosi and Evans controlled and operated an entity named Information Management Solutions Technology (IMST), which was designed to appear as an independent third party contractor, but was in fact created by the defendants to execute the fraud scheme. On March 7, 2007, Nyabiosi, on behalf of Sheppard Pratt, entered into a contract with IMST to manage medical records for Sheppard Pratt. Nyabiosi never informed Sheppard Pratt that she and her husband were affiliated with IMST, in violation of Sheppard Pratt’s conflict of interest policy. To further hide their affiliation with IMST, Evans signed the contract on behalf of IMST as “James Davies,” a purported regional account representative at IMST. Thereafter, Evans continued to represent himself to Sheppard Pratt staff as “James Davis,” an account representative, even though no such person was ever affiliated with IMST.
From 2007 to 2014, the defendants submitted over 180 false invoices requesting that Sheppard Pratt pay IMST for work which was never performed, or for excessively inflated amounts for the work that was actually performed. For example, IMST picked up approximately 2,863 boxes of patient records from Sheppard Pratt for short-term storage, yet the invoices falsely represented that IMST had picked up over 500,000 boxes of patient records. Other invoices and documents provided to Sheppard Pratt falsely represented that IMST had picked up and was storing 20,270 boxes of records from the company Iron Mountain, when in fact, IMST never picked up a single box. And on two separate occasions in 2009, the defendants sent invoices to Sheppard Pratt for purported work on a project to digitize older patient records. The defendants paid a third party company $26,395 to complete the work, but they billed Sheppard Pratt $546,510.
Nyabiosi personally approved all of the false invoices, causing Sheppard Pratt to mail checks to IMST totaling $2,742,791. The defendants deposited the money in their bank account for their personal use.
In September 2014, the law firm representing Sheppard Pratt contacted “James Davis” using IMST contact information provided by the defendants. On September 4, 2014 and September 14, 2014, counsel for Sheppard Pratt met with Evans, who falsely represented himself to be “James Davis” and never revealed himself to be Nyabiosi’s husband. Evans falsely told the law firm that he, “James Davis,” alone owned IMST and was in charge of running the business.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein also commended Sheppard Pratt for its internal investigation and for bringing the matter to the attention of law enforcement. Mr. Rosenstein thanked Assistant United States Attorney Rachel M. Yasser, who prosecuted the case.
Owings Mills Man Sentenced to Prison for the Robbery of an Owings Mills Jewelry Store Including Kidnapping and Brandishing a GunRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Grigoriy (Greg) Zilberman, age 25, of Owings Mills, Maryland, today to three years in prison, followed by five years of supervised release, for conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence, in connection with the robbery of a jewelry store, including a home invasion robbery, carjacking and kidnapping. Judge Motz also entered an order requiring Zilberman to pay restitution of $500,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Zilberman was part of a conspiracy, led by Stanislav “Steven” Yelizarov, to rob an Owings Mills jewelry store. In the course of the conspiracy, Zilberman participated in an armed home invasion robbery designed to obtain firearms for use in the later robbery of the jewelry store.
Specifically, on July 22, 2012, S. Yelizarov, his brother, MaratYelizarov, Zilberman and Aleksey Sosonko, robbed a home in Reisterstown, Maryland. Zilberman had been a guest in the home on a number of occasions and knew that the residents of the home owned firearms. After conducting surveillance of the home for several days prior to the robbery, at 2:30 a.m. on July 22, 2012, the conspirators, dressed all in black and wearing ski masks and latex gloves, entered the home through the garage door. S. Yelizarov was armed with a handgun when they entered the residence. The other three men grabbed long guns as they entered the home and carried them with them. A resident of the home was asleep when the four robbers entered his bedroom and woke him up, pointing guns at him and shining flashlights in his eyes. S. Yelizarov beat the resident when he tried to resist while M. Yelizarov tied up the resident with a belt and a cord. The robbers ransacked the home for about an hour, looking for firearms and other valuables. After the robbers left, the resident was able to free himself and call police. The resident was taken to the hospital for treatment of his injuries. Among the items stolen from the house were 10 long guns (rifles and shotguns), a crossbow, a laptop computer, and jewelry. Numerous electronic devices including computers and televisions were destroyed during the robbery. The value of the items stolen was approximately $10,000.
S. Yelizarov also devised a plan to commit the jewelry store robbery and recruited Zilberman, Sosonko, M. Yelizarov, Igor Yasinov, Peter Magnis, Sorhib Omonov and others to participate in the robbery. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee.
According to their plea agreements, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts. While the employee was at Zilberman’s home, the other conspirators met at S. Yelizarov’s residence to prepare for the kidnapping and robbery, including preparing the firearms and donning masks and gloves. Early in the morning on January 16, 2013, M. Yelizarov and Omonov followed the employee from Zilberman’s home and notified the other conspirators of the employee’s location so they could follow the employee. S. Yelizarov, Sosonko, Yasinov, and Magnis used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms which were supplied by S. Yelizarov, the conspirators removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location. Once at the location, Sosonko, Yasinov, Magnis, and S. Yelizarov continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., Sosonko and S. Yelizarov drove the employee’s vehicle from the remote location to the jewelry store. Yasinov and Magnis stayed with the employee. M. Yelizarov and Omonov were stationed near the jewelry store to act as look-outs. S. Yelizarov and Sosonko entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was then placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car.
On January 18, 2013, S. Yelizarov sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, S. Yelizarov traveled to Brooklyn, New York to sell some of the jewelry and stones taken during the robbery, receiving over $100,000. On January 21, 2013, he returned to Maryland and divided the cash proceeds among the members of the conspiracy and others. S. Yelizarov determined how much each participant received based on his perception of the risk and the conduct of each participant.
On January 25, 2013, S. Yelizarov was arrested in Buffalo, New York, on charges of federal misuse of a passport. From January 25 through February 2, 2013, S. Yelizarov placed calls directing M. Yelizarov, Sosonko, and others, to remove from his residence and dispose of evidence related to the jewelry store robbery, including cash from the sale of the jewelry, firearms used during the conspiracy, the law enforcement light bar, the GPS device, a laptop computer, and other evidence of the crimes.
Stanislav “Steven” Yelizarov, age 26, of Pikesville, Maryland, was sentenced to 30 years in prison, after he pleaded guilty to a robbery conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence. Marat Yelizarov, age 27, of Pikesville, and Aleksey Sosonko, age 35, of Owings Mills, were sentenced to 18 years and 14 years in prison, respectively. Peter Aleksandrov Magnis, age 28, of Hydes, Maryland, and Sorhib Omonov, age 27, of Baltimore, were sentenced to seven years in prison and four years in prison, respectively. Judge Motz also entered an order requiring all of the sentenced defendants to pay restitution of $500,000. Igor Yasinov, age 26, of Baltimore, also pleaded guilty and is awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Former Talbot County Attorney Sentenced to Prison for Real Estate Investment Fraud Scheme with over $768,000 in LossesRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Aaron G. Seltzer, age 39, of Trappe, Maryland, today to five years in prison, followed by three years of supervised release, for wire fraud in connection with a scheme in which he converted funds intended for real estate investments to his personal use.
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 Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement and court documents, Seltzer was a licensed Maryland attorney who handled real estate transactions and maintained an office in Crofton, Maryland. From January 2008, through 2010, Seltzer offered victims fraudulent investment opportunities then diverted the money intended for the investments for his own benefit. Seltzer obtained a total of $768,242 through seven fraudulent transactions. As part of his plea agreement, Seltzer is required to pay restitution in that amount.
For example, Seltzer offered to sell an investor 45% of an Anne Arundel County real estate company, claiming that he owned 100% of the stock, assets and liabilities of the company, when in fact, he did not. The investor sent a total of $92,000 to Seltzer, which Seltzer used for his own benefit. During the summer of 2009, Seltzer contacted a lawyer in New York and represented that a client of Seltzer’s was seeking a business loan. Seltzer proposed that the loan be secured by a mortgage on three commercial properties located in Virginia, purportedly owned by Seltzer’s client. The New York attorney assembled a group of investors to fund the loan. Seltzer presented the attorney with a fraudulent promissory note, which Seltzer falsely claimed was signed by a representative of his client. Seltzer further falsely represented that he had conducted the closing for the loan and presented the attorney with fabricated closing documents. On behalf of the investors, the attorney wired Seltzer $497,527 to fund the loan, which Seltzer diverted to his own benefit.
Seltzer was investigated by the Maryland Attorney Grievance Commission for his conduct in the scheme and was subsequently disbarred.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, and the FBI and for their work in the investigation and recognized the Maryland Attorney Grievance Commission and Bar Counsel Glenn Grossman for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Leo J. Wise, who prosecuted the case.
Baltimore City Police Officer Sentenced to Federal Prison for TheftRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Baltimore City Police officer Maurice Lamar Jeffers, age 47, of Savage, Maryland, today to a year and a day in prison, followed by three years of supervised release, for theft of government property and stealing property as a federal officer. Judge Motz also ordered Jeffers to forfeit $3,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Maryland U.S. Marshal Johnny Hughes.
“The agents carried out an undercover operation and obtained a video recording of the defendant stealing cash while he believed he was executing a search warrant,” said U.S. Attorney Rod J. Rosenstein. “I want to thank the officers of the Baltimore Police Department and other agencies that assisted in this investigation.”
Jeffers has been a sworn member of the Baltimore Police Department for the last 12 years, and was assigned as a Task Force Officer (TFO) to the U.S. Marshals’ Capital Area Regional Fugitive Task Force (CARFTF). As a TFO, Jeffers received special deputation to execute arrest and search warrants supporting the federal task force. Jeffers was responsible for locating and arresting offenders who had active local and federal arrest warrants and assisting in locating individuals for other jurisdictions and agencies upon request.
According to court documents and information provided to the court at his plea hearing, acting on information provided by a confidential source, law enforcement conducted a covert operation in which Jeffers was recorded stealing approximately $3,000 in cash. The cash belonged to the FBI.
Jeffers was told to secure a location with another investigator so that a local law enforcement agency could later execute a search warrant. Jeffers entered the location and conducted a brief protective sweep with the other investigator. Jeffers then told the other investigator to go tell other CARFTF members that no one was located inside the location. After the other investigator left the room, Jeffers conducted an illegal search and located the cash hidden by law enforcement, which he placed into his pants pockets. Jeffers kept the money for his own personal gain. On May 7, 2015, Jeffers was arrested and searched incident to the arrest. Law enforcement located $220 (eleven $20 bills) on Jeffers that he stole on March 10, 2015.
United States Attorney Rod J. Rosenstein praised the Baltimore FBI Public Corruption Task Force, which includes Agents and law enforcement officers from the FBI, IRS, the Baltimore Police Department, the Prince George’s County Police Department and the U.S. Marshals’ Capital Area Regional Fugitive Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Rachel M. Yasser, who prosecuted the case.
Waldorf Man Indicted for Illegal Transport of Explosives, Illegal Possession of a Machine Gun and Child Pornography OffensesRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Caleb Andrew Bailey, age 30, of Waldorf, Maryland late yesterday on various charges.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; and Charles County Sheriff Troy Berry.
According to the four count indictment and court documents, on February 18, 2016, postal police and postal inspectors responded to a postal facility in Capital Heights, Maryland and recovered ammunition and explosives from a package that had ruptured open. ATF was notified by the postal inspectors and responded to evaluate the contents of the package. The contents of the package included 119 rounds of reloaded .50 caliber cartridges with M48A1 incendiary projectiles, and 200 rounds of 14.5mm M183A1 spotting projectiles which contain an explosive charge. The package was addressed to an individual in Wisconsin.
According to court documents, on February 25 and March 3, 2016, the U.S. Postal Service customer service received calls from a person who identified himself by a false name in the first call, and then identified himself as Caleb Bailey in the second call. The caller provided the tracking number for the package recovered by ATF, and advised that the package had not yet been delivered. Neither Bailey nor the individual to whom the package was addressed had a federal explosives license to transport the explosives contained in the package.
According to court documents, law enforcement arranged to meet with Bailey at a postal facility on May 5, 2016, for the stated purpose of having Bailey provide information regarding the missing package in person. Bailey did not appear at the agreed meeting time and place. That day, law enforcement executed federal search warrants at adjoining properties associated with Bailey, including his residence, and seized a machine gun. The indictment alleges that Bailey illegally possessed a machine gun on May 5.
The indictment further alleges that from March 2015 to January 2016, Bailey attempted to use and did use a minor to engage in sexually explicit conduct to produce child pornography. The indictment also alleges that Bailey possessed child pornography.
Bailey faces a maximum sentence of 10 years in prison for unlawful transport of explosives by a non-licensee and for illegal possession of a machine gun; a mandatory minimum of 15 years and a maximum of 30 years in prison for production and attempted production of child pornography; and a maximum sentence of 10 years in prison for possessing child pornography. A criminal complaint was filed on May 6, 2016 charging Bailey with unlawful transport of explosives. Bailey is detained pending a detention hearing on May 24, 2016 at 10:00 a.m. in U.S. District Court in Greenbelt, at which time his initial appearance is also scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended ATF- Arson and Explosives Group for the Baltimore Field Division, HSI Baltimore, U.S. Postal Inspection Service - Washington Division and Charles County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jennifer R. Sykes and Thomas P. Windom, who are prosecuting the case.
Serial Armed Robber Pleads GuiltyRead the Press Release
Baltimore, Maryland – Michael Toliver, age 40, of Baltimore, pleaded guilty today to robbery.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins 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; and Chief Gary Gardner of the Howard County Police Department.
According to his plea agreement and court documents, from May 17 to June 4, 2014, Toliver and others robbed commercial businesses located in Baltimore, Baltimore County and Howard County at gunpoint. In several of the robberies co-defendant Marcus Gray stood at the door and acted as the lookout, while Toliver pointed a gun at employees and demanded money. Toliver admitted to robbing the following stores in Maryland:
Exxon gas station, Forest Rd., Columbia, on May 17;
Burger King, Rolling Mills Road, Dundalk, on May 17;
Bob Evans, Wholesale Club Dr., Nottingham, on May 19;
Safeway Food Stores, Harford Rd., Baltimore, on May 23;
Dunkin Donuts, Reisterstown Rd., Baltimore on May 23;
Sprint, Baltimore National Pike, Baltimore, on May 24;
Royal Farms, Pulaski Highway, Baltimore, on May 31;
BP gas station, Park Heights Ave., Baltimore, on May 31;
Royal Farms, Southwick Dr., Baltimore, on May 31; and
Royal Farms, Edmondson Ave., Baltimore, on June 4.
During the Dunkin Donuts robbery, Toliver struck the manager in the head with a handgun, causing injury. During the Sprint store and BP gas station robberies, Toliver fired his gun into the floor or ceiling, when the managers of each store did not open the store’s safe.
Law enforcement reviewed video recordings of the robberies and identified Toliver as one of the robbers. On June 4, 2014, law enforcement arrested Toliver and executed a search warrant on his car. They seized a handgun and ammunition, along with a BB gun, a SWAT vest and gloves. Gray was arrested the following day. Law enforcement executed additional search warrants and seized from Toliver’s residence another handgun, ammunition, $3,780 in coins or cash, and clothing worn by Toliver during several robberies. Subsequent investigation revealed that the gun seized from Toliver’s vehicle was the gun fired during the BP Gas station robbery.
Toliver and the government have agreed that if the Court accepts the plea agreement, Toliver will be sentenced to 15 years in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for August 25, 2016 at 11:00 a.m.
Marcus Gray, age 42, of Baltimore, previously pleaded guilty to his participation in several of the robberies and awaits sentencing.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department, Howard County Police Department and Baltimore County, City and Howard County State’s Attorney=s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
Former Chief Financial Officer Sentenced to 80 Months in Prison for Stealing $1.6 Million from Three EmployersRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Christopher C. Camut, age 53, of Baltimore, Maryland, today to 80 months in prison followed by three years of supervised release for conspiring to commit wire fraud arising from a scheme to fraudulently obtain at least $1.6 million from three companies at which he was employed as the chief financial officer. Judge Messitte also ordered Camut to forfeit and pay restitution of $1,618,951.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
At various times between January 2007 and August 2014, Camut was the chief financial officer for three companies. Company A is a non-profit organization that develops microbicides which can provide women in developing countries with protection against HIV infection. Company B manufactures products for the medical industry, and Company C develops medical countermeasures against biological and chemical threats.
According to his plea agreement, from January 2008 to May 2014, Camut created false emails, engagement letters, agreements and invoices to make it appear as if financial institutions had provided services to the companies. He caused the companies to issue checks payable to the financial institutions, which Camut then deposited into his personal bank accounts. Over the period of six years, Camut stole at least $1,618,951 from the three companies.
Camut created agreements between coconspirator Kaitlyn Jones and Companies A, B and C, which falsely represented Jones’ profession. Camut caused the three companies to transfer by wire and issue checks payable to Jones, although Jones performed no work for the companies. Camut and Jones shared the proceeds received from the companies.
To facilitate the fraud, Camut repeatedly forged on documents the name and signature of a bank employee, to make it appear as if the bank had performed work for Companies A and C, when it had not. Camut forged the victim’s name over 15 times.
Kaitlyn Jones, age 48, of Reisterstown, Maryland, pleaded guilty to her participation in the conspiracy and is scheduled to be sentenced on June 29, 2016 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Leah Jo Bressack and David I. Salem, who prosecuted the case.
Defendant Sentenced to 14 Years in Prison for Sex Trafficking of a Child in MarylandRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Rayvon O. Archibald, a/k/a “P Money,” “Keyvon M. Malone,” “Keyvon Smith,” and “Scoobie,” age 26, of Boston, Massachusetts, today to 14 years in prison followed by five years of supervised release for sex trafficking of a child. Judge Russell also ordered that upon his release from prison, Archibald 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 announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.
According to his guilty plea, for several years Archibald was involved in recruiting, harboring and transporting individuals to engage in commercial sex acts. From April 2012 to March 2014, Archibald used the internet to buy and post advertisements for commercial sex in several states.
On March 5, 2014, Rayvon O. Archibald encountered a 13 year old girl in New York City. He provided her with alcohol and drugs. The next day, Archibald transported the girl by bus from New York to the Baltimore area, then by taxi to co-defendant Jonathan Went’s apartment in Gwynn Oak, Maryland. Archibald did not inform the girl before she left New York that she would be caused to engage in commercial sex.
On March 6, Archibald and Went posted an ad on a commercial sex website soliciting customers for the girl, which listed the number for a phone used by Archibald and Went, and an email controlled by Archibald. They also instructed the girl on pricing for commercial sex acts and provided her with a document that included prices.
After the ad was posted, numerous customers responded to the ad and they were directed to come to Went’s apartment. Archibald and Went caused the girl to meet clients in the living room. Multiple potential clients arrived at the apartment seeking sex for pay. At least one customer engaged in a sex act with the girl. The money paid by customers was given to Archibald and Went.
On the morning of March 7, 2014, the girl left Went’s apartment while Archibald and Went were asleep. According to court documents, the girl called 911 from Went’s phone. The police found the girl at a nearby intersection. The girl gave police the address of Went’s apartment and told police that there were two men and a woman inside the location. The girl reported that she was held against her will inside Went’s apartment building. The girl identified Archibald as her captor and stated that he had assaulted her.
According to court documents, police went to the apartment and arrested Went, Archibald and a woman. Both the girl and the woman who was arrested independently told police that one customer who came to the apartment demanded his money back because the girl was too young. The woman and the girl gave the money back to the customer, and when they told Archibald what happened, he slapped them both.
Archibald and Went remain detained.
Jonathan M. Went, a/k/a “Jon Maxx,” and “Max Out,” age 31, of Massachusetts and Gwynn Oak, Maryland, previously pleaded guilty to conspiring to commit sex trafficking of a child. He faces up to life in prison at his sentencing scheduled for July 5, 2016, at 9:30 a.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Sandra Wilkinson, who prosecuted the case.
Payroll Service Company Owners Sentenced to Prison for Stealing Money Set Aside by Clients to Pay Federal and State TaxesRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced today payroll company owners Kevin Carden, age 56, to six years in prison for wire fraud, and his wife Beverly Carden, age 54, both formerly of Bel Air, Maryland, to five years in prison for mail fraud, both followed by three years of supervised release, arising from a scheme to steal money from their clients, the IRS and the Maryland State Comptroller.
The Cardens also each previously pleaded guilty to filing a false tax return. Judge Garbis announced that he will sentence the Cardens tomorrow for the tax offenses, which he indicated will run concurrent with the fraud sentences, adding no additional prison time. Judge Garbis also announced that after hearing additional evidence and argument tomorrow, he will determine the specific amount of losses arising from the fraud and tax schemes for which the Cardens are responsible for paying restitution.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
“When customers realized that the money they entrusted to AccuPay was not being used as intended to pay their taxes, Kevin Carden misled them with false cover stories,” said U.S. Attorney Rod J. Rosenstein. “What really happened was that Kevin and Beverly Carden took money intended for the IRS and spent it themselves, causing millions of dollars in losses to their customers.”
“It is unacceptable to help yourself to other people’s money and violate their trust,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s sentencings serve as reminders that this criminal behavior was inexcusable and IRS-CI is committed to bringing culpable individuals to justice.”
According to their plea agreements, until its closure in March 2013, Kevin and Beverly Carden owned and operated AccuPay, Inc., which provided payroll and payroll tax services to small and medium businesses. Kevin Carden ran the company’s “tax department,” which was responsible for handling the employment tax portion of the business. AccuPay received funds from its clients that it held in trust to pay over to the IRS and the Comptroller of Maryland for AccuPay’s clients’ employment taxes. Kevin Carden was responsible for transferring the client funds to make the required tax payments.
During the course of the fraud scheme, which lasted from 2010 to March 2013, AccuPay withdrew from the clients’ funds the full amount of payroll taxes owed, but then paid the taxing authorities only a portion of the funds. While AccuPay falsely represented to its clients that it paid all of the taxes owed, in fact, Beverly Carden diverted some of those funds to a joint personal bank account that she and her husband maintained which the couple then used to pay personal expenses.
Because of the Cardens’ failure to fully pay existing tax obligations owed by their clients, both the federal and state taxing authorities imposed interest and penalties on AccuPay’s clients, thereby further increasing the magnitude of their tax obligations. Thus, the payments that the Cardens did make to the taxing authorities in part were being applied to pay interest charges and penalties imposed as a result of underpayments earlier in the scheme.
The Cardens used various methods to cover up their diversion of funds and to allay their clients’ concerns when the clients learned that the taxing authorities had apparently not been paid the full amounts they were supposed to receive. For example, in the instances in which AccuPay’s clients confronted employees at AccuPay about the underpayment of their taxes, Kevin Carden either told those clients that the underpayment would be addressed or (in some cases) avoided their inquiries. Kevin Carden further represented to those clients with whom he spoke that the underpayment was due to (1) a mistake by the taxing authority; (2) an error made by AccuPay employees; and/or (3) problems with the software AccuPay used to file tax returns. These representations were often untrue.
In addition, as a further means of covering up their diversion of funds and allaying their clients’ concerns, in late 2011 AccuPay sent a letter to their clients stating that they had hired a chief financial officer (CFO) to audit tax deposits and filings for all tax clients back to 2009 “for correctness, compliance, and completeness.” In fact, that individual was not AccuPay’s CFO, but rather was an independent tax preparer the Cardens had hired to prepare their own personal taxes and the corporate taxes of AccuPay, rather than those of the clients.
In 2012, a client of AccuPay confronted representatives of AccuPay with the fact that the company had failed to pay over $300,000 in taxes owed from 2008 to 2012. In response, AccuPay paid the client’s tax deficiencies.
The Cardens also admitted that they filed a false individual tax return for 2011 in which they did not report the amount of payroll taxes that had been diverted from AccuPay’s clients to the Cardens’ personal account. Beverly Cardin also admitted that she did not file a 2012 individual tax return.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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 the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the IRS - Criminal Investigation and FBI for their work in the investigation. Mr. Rosenstein praised the Bel Air Police Department for their assistance in the investigation, and thanked Assistant U.S. Attorneys Evan T. Shea and Jefferson M. Gray, who prosecuted the case.
Two Brothers Sentenced for Filing 46 Fraudulent Tax Returns Seeking Refunds of over $224 MillionRead the Press Release
Greenbelt, Maryland - Two brothers were sentenced to prison today for filing 46 fraudulent tax returns seeking refunds of over $224 million. U.S. District Judge Paul W. Grimm sentenced Sean Aude Gallman, age 39, of Upper Marlboro, Maryland to 11 years in prison, and Eric Maurice Gallman, age 42, of Huntersville, North Carolina, to four years in prison, both followed by three years of supervised release. The Gallmans previously pleaded guilty to conspiring to commit mail and wire fraud, mail fraud, and conspiring to commit money laundering. Sean Gallman also pleaded guilty to money laundering and aggravated identity theft.
Judge Grimm also ordered Sean and Eric Gallman to pay restitution to the IRS of $16,512,492; and forfeit the amount of the refunds paid by the IRS, including $11,529,954 seized from numerous bank accounts; foreign currency and gold and silver coins seized from a residence in Upper Marlboro; nine residential properties located in Upper Marlboro and Laurel, Maryland, North Carolina and South Carolina; and two Mercedes-Benz vehicles and a Hyundai vehicle.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division of the Department of Justice; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“These two criminals filed bogus tax returns claiming ‘refunds’ that were not owed, and stole over $16 million from the IRS,” said U.S. Attorney Rod J. Rosenstein. “Federal agents and prosecutors have a duty to pursue perpetrators of such fraud schemes and try to recover money stolen from the United States Treasury.”
“The Gallman brothers engaged in a willful and deliberate scheme to steal from the U.S. Treasury and in turn, U.S. taxpayers,” said Acting Assistant Attorney General Ciraolo. “The Department will continue to aggressively investigate and prosecute individuals and entities engaged in this criminal conduct, and will seek substantial prison terms, fines and full restitution to hold defendants accountable and send a strong message to potential offenders.”
"Using the U.S. Treasury as a personal piggy bank to obtain millions of dollars in fraudulent refunds, the Gallman’s not only showed their blatant disregard of the law, but also for the American taxpayer," said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s sentencing’s emphasize that such greed based criminal behavior comes with a cost.”
According to court documents and evidence presented at the sentencing hearing, Sean and Eric Gallman established trusts and business entities, and used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the trusts and business entities. The defendants, acting as trustees and agents, mailed fraudulent tax returns to the IRS in the names of the trusts and businesses requesting refunds.
For example, in January 2013, Sean Gallman mailed to the IRS a fraudulent 2012 tax return in the name of the Gallman Charitable Trust, requesting a refund of $8,218,930. Also around this time, the defendants mailed to the IRS a fraudulent 2012 tax return in the name of LEA Group Holdings Trust, requesting a refund of $8,293,562. The defendants knew that the trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on February 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled. To hide their receipt of these refunds, the defendants used cashier’s checks and other financial instruments to transfer a portion of the money to third parties and other bank accounts.
Altogether, the Gallman brothers filed approximately 46 fraudulent tax returns seeking refunds totaling $224,676,998, for which the IRS paid two refunds totaling $16,512,492.
United States Attorney Rosenstein and Acting Assistant Attorney General Ciraolo praised IRS-Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney Thomas P. Windom and Trial Attorney Erin Pulice of the Department of Justice Tax Division, who prosecuted the case.