District of Maryland

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Kaushik Kanti Modi, age 43, of Glen Burnie, Maryland, a native of India living illegally in the United States, today to time served, which has been approximately 13 and half months, for a money laundering conspiracy arising from a scheme to launder millions of dollars of fraud proceeds obtained from individual victims through a variety of scams. Judge Motz also ordered Modi to forfeit and/or pay restitution of $857,597.02, the amount involved in the money laundering offense that the government has seized or restrained.

The sentence was 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; Special Agent in Charge Rodney A. Davis of the Treasury Inspector General for Tax Administration; and Chief James W. Johnson of the Baltimore County Police Department.

“Modi’s involvement in this scheme is just another unfortunate example of criminals willing to enrich themselves at the expense of their victims,”said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.  “Today’s sentence should serve as a reminder that these criminals will bear the consequences of their actions and be sent to prison for their crimes.”

“Crimes such as these prey on honest American taxpayers and today’s sentence serves notice to those committing these crimes that we in the law enforcement community will continue to identify, investigate and prosecute them,” said Special Agent in Charge Rodney A. Davis of the Treasury Inspector General for Tax Administration.

According to his plea agreement, Modi received text messages from conspirators instructing him to buy large numbers of stored value cards, principally GreenDot cards, and to forward the PIN numbers of the cards to other unidentified co-conspirators.

Modi’s co-conspirators loaded money onto the stored value cards using a variety of scams.  Some of the money came from calls made by persons impersonating IRS employees who convinced innocent taxpayers that they owed taxes to the IRS, and needed to send money to the co-conspirators to avoid arrest and incarceration.  On at least two occasions, victims of the IRS impersonation fraud deposited money directly into accounts held in Modi’s name.  Other money was derived by offering merchandise for sale on the internet and then failing to provide the merchandise once money was received from the victim-purchaser.

After money was loaded on the stored value cards, Modi was instructed to use the cards to buy money orders, principally MoneyGram money orders at Walmart stores, and then to deposit those money orders into bank accounts either in Modi’s name or the names of others.  From January 1, 2014 to March 24, 2015, Modi deposited 241 money orders totaling $2,077,308.20 into his bank accounts.  Moreover, Modi frequently bought the money orders using stored value cards that were activated using the identification of identity theft victims.

At the time of his arrest, Modi admitted that he knew that something was not right about the source of the money involved in the transactions, and accordingly, knew that the purpose of those transactions was to conceal the proceeds of unlawful activity.

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 IRS – Criminal Investigation, Treasury Inspector General for Tax Administration, and Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Evan T. Shea, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge George L. Russell sentenced Pedro Antonio Del Granado, age 49, of Fort Meade, Maryland, today to 10 years in prison, followed by 10 years of supervised release, for enticing a minor to engage in sexual activity. A federal jury convicted Del Granado on February 11, 2016 and he has been detained since that date, after Judge Russell ordered that he be immediately taken into custody and held pending sentencing.

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; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.

According to the evidence presented at his four day trial, from October 23 through October 30, 2014, Del Granado used email messages to attempt to entice a person whom he believed to be a 13 year old girl to engage in sexual activity.  In fact, Del Granado was communicating with an undercover Baltimore County Police detective posing as a 13 year old girl.  Witnesses testified that Del Granado responded to an advertisement the undercover detective placed on an internet website.  The undercover detective and Del Granado continued communicating over the next several days.  During their conversations, the undercover detective posing as a 13 year old girl mentioned several times that she was 13 years old.  Despite that, Del Granado asked about meeting the 13 year old girl and discussed what they would do at that time, including having oral sex.

On October 30, 2014, Del Granado and the undercover detective agreed to meet and the undercover detective provided a location.  Del Granado advised the undercover detective that he would be driving a black SUV.  Members of the Baltimore County Police Department set up surveillance at the address.  When Del Granado arrived at the location he was arrested. A cellular phone containing most of the emails between the Del Granado and the undercover detective was found in his vehicle.  Del Granado told law enforcement officers that he was there to meet a 20-year old woman even though the emails from the undercover detective said the girl was 13 years old.

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, HSI Baltimore, and Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao and Special Assistant U.S. Attorney Angela Tang, who prosecuted the case.

Greenbelt, Maryland – A federal grand jury indicted Sidney J. Charles, Jr., age 49, of Raceland, Louisiana, formerly of Bowie, Maryland, on mail and wire fraud charges arising from an investment fraud scheme. The indictment was returned on April 27, 2016 and unsealed on May 10, 2016, after Charles was arrested late on May 9, 2016, in Levelland, Texas.

The indictment 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 the three-count indictment, in August 2009 Charles founded The Borrowing Station, a Nevada limited liability company with its principal place of business in Bowie. From October 2009 through July 2011 Charles served as the president and chief executive officer of the business.  Charles marketed The Borrowing Station as an established investment firm that offered significant returns on investments.

The indictment alleges that from at least October 2009 through July 2011, The Borrowing Station, acting through Charles and others, orchestrated and operated a scheme to solicit investors with false promises of high rates of guaranteed return on their investments.  Specifically, The Borrowing Station, through Charles and others, solicited investors directly and through its website to participate in a pooled investment plan that traded off-exchange leveraged or margined foreign currency contracts (“forex” or “foreign currency”).  The solicitation included false promises, including: that investors could earn substantial investment returns such as 25% per year or 10% per month; that The Borrowing Station was an established, successful, and safe investment firm; and that pool participant funds were guaranteed against trading losses. For example, The Borrowing Station website stated:  “If for any reason we do not reach a return of 25%, we will subsidize your account with our money.”  The indictment alleges that as a result, The Borrowing Station obtained at least $368,628.37 from at least 17 individuals.

The indictment alleges that The Borrowing Station, through Charles: paid pool participants with other pool participants’ funds rather than from any funds generated by trading forex, and deposited only a portion of pool participant funds into actual trading accounts; hid trading losses from pool participants, including substantial losses resulting from unsuccessful forex trades; and used pool participant funds to pay for Charles’s personal expenses, and to fund The Borrowing Station’s operations. 

According to the indictment, to conceal the scheme Charles communicated false information to pool participants in response to their requests for the return of their funds.  In addition, Charles and others allegedly issued lulling payments to pool participants that typically approximated the return of 10% per month that Charles, directly and through others, had promised pool participants. 

If convicted, Charles faces a sentence of 20 years in prison for each of two counts of wire fraud and for mail fraud.  An initial appearance was held on May 10, 2016, in U.S. District Court for the Northern District of Texas.  Charles is scheduled to have an initial appearance U.S. District Court in Greenbelt on June 8, 2016, at 1:30 p.m. before U.S. Magistrate Judge Timothy J. Sullivan. 

An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. 

Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and recognized the U.S. Commodity Futures Trading Commission for its assistance.  Mr. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, and Special Assistant U.S. Attorney Mara Senn, of the U.S. Justice Department’s Asset Forfeiture and Money Laundering Section, who are prosecuting the case.

Baltimore, Maryland – A criminal complaint was filed charging Brian Keith Wallen, age 52, of Lutherville, Maryland with mail fraud arising from a nationwide fraudulent telemarketing scheme designed to ship unwanted and vastly over-priced light bulbs and cleaning supplies to thousands of businesses and non-profit organizations, including churches, schools and homeless shelters.  The complaint was filed on May 4, 2016 and unsealed today.

The criminal complaint 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 Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division.

“We are asking for the public’s help in finding Brian Wallen,” said U.S. Attorney Rod J. Rosenstein. “Mr. Wallen reportedly left a note referencing his death, but law enforcement is still searching for him.” 

According to the affidavit supporting the complaint, Wallen and others operated principally operated out of Maryland and Florida, and used a variety of company names to disguise the existence of the scheme and confuse victims.  The conspirators used a company dubbed Midway Industries, as well as other related companies (collectively, the shell entities) to distribute products and collect the money from victims through fraud.  Wallen owned and/or managed in part all of the shell entities, and oversaw the Reisterstown-based operations.  Wallen, along with others, personally handled the accounts of large, repeat victims.

The affidavit alleges that from about 2010 to 2014, Wallen and others in the shell entities (collectively, the conspirators) telephoned authorized representatives of businesses and non-profit organizations, purportedly on behalf of individual shell entities. The authorized representatives were often maintenance employees. During these phone calls, the conspirators falsely stated that: the victim businesses had an existing business relationship with the shell entities; the purpose of the call was to provide an updated phone number or to send catalogues; and that the shell entities would send a “half box” of light bulbs, when in fact there were never any half boxes.  The “half box” was a deceptive technique used to understate the volume and price of shipments, and disguise unwanted future shipments. 

According to the affidavit, during the initial calls, conspirators regularly promised national store gift cards to the authorized representatives to induce them to place initial orders, or to provide to the shell entities additional company information or personal information, like the authorized representatives’ home address and personal phone number.  The conspirators used the cell phone numbers and/or birthdays of the authorized representatives as “purchase order” numbers in order to lend legitimacy to later collections efforts.  If the maintenance employee inquired about price, the caller falsely stated that he or she did not have the price in front of them, but that it would be at the corporate discount.  In fact, the shell entities did not offer a corporate discount. 

As long as the victims continued paying the shell entities’ invoices, the conspirators misrepresented in subsequent calls that the balance of the victim’s order or “regular seasonal order” had recently been shipped, despite no order having been made by the victim business, and no actual shipment having yet been sent. The conspirators called authorized representatives under the guise of different shell entities in order to repeat the process using a product other than light bulbs, often cleaning supplies. The conspirators often denied the relationship between the shell entities when questioned by victims.

The affidavit further alleges that on multiple occasions, when the authorized representative could not be reached by phone, the conspirators would simply send the product to the victim, without the victim placing an order.  The conspirators referred to this practice as “just shipping.”  Wallen was such a prolific user of the “just ship” method, his nickname within the shell entities was “Ship.” If the authorized representative had quit, been fired, or even passed away, they sent a product to the victim knowing that the victim would be unable to dispute the validity of the order.

According to the affidavit, Wallen and his co-conspirators ordered light bulbs and cleaning supplies from a company located in New Jersey (supplier).  They instructed the supplier to ship the products to the victim without an invoice, and to send the invoices directly to the shell entities.  The conspirators sent inflated invoices to the billing departments of the victims, which were often different departments from those of the authorized representatives.

The price billed to victims allegedly had no correlation to the product being sent.  Rather, the price was determined and/or approved by a supervisor based on what they suspected the victim would pay without detecting the scheme. The invoices were regularly 900% above the prices the shell entities paid the supplier. After a victim had paid one invoice, the conspirators sent invoices to the victim that were sometimes greater than 8,000% above the supplier’s prices. 

When victims did not remit payment, the shell entities repeatedly called the victims’ collection departments in order to force them to pay the inflated invoices.  If the victim company continued to protest, they were told that the authorized representative was recorded ordering the product. The shell entities insisted that the fact that the authorized representative had provided his home address to receive a gift card indicated that the authorized representative had actually placed an order with Midway. Conspirators recorded the serial numbers of gift cards before they were sent to victims in order to track the balance and use the expenditures by the maintenance employee against the victim companies. 

If the victim threatened to contact law enforcement or the Better Business Bureau, the conspirators offered to take back a product at either a discounted rate or for a re-stocking fee that was still substantially greater than the cost of the products purchased from the supplier.

From January 1, 2011 through June 2, 2014, a Federal Trade Commission (FTC) consumer protection database documented more than 500 complaints regarding the shell entities.  On July 21, 2014, the FTC filed a civil complaint in federal court in Baltimore, Maryland alleging telemarketing and consumer fraud.  The court temporarily enjoined the shell entities, and Wallen individually, from operating the businesses, and froze assets.  Business operations were halted on July 23, 2014.

As a result of the fraud scheme, Midway and the shell entities allegedly sent fraudulent invoices to victim companies for more than $100 million and received more than $50 million in payments on those invoices.

Wallen faces a sentence of 20 years in prison. 

On April 28, 2016, Wallen was reported missing.  The Baltimore County Police Department is currently conducting a missing person investigation. Anyone with information concerning Wallen’s whereabouts is urged to call police at 410-307-2020. http://www.baltimorecountymd.gov/News/PoliceNews/iWatch/PoliceNeedHelpFindingMissingLuthervilleMan

A criminal complaint is not a finding of guilt.  A defendant charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings. 

United States Attorney Rod J. Rosenstein commended the FBI and U.S. Postal Inspection Service for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Sean R. Delaney and Harry M. Gruber, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Gavin Burns Smith, age 45, of New Port Richey, Florida, today to six months of home confinement followed by three years of probation for selling peptides to bodybuilders which were not approved by the FDA for human use. Judge Hazel also entered an order requiring Smith to forfeit $2,102,684.06, the value of the misbranded drugs subject to seizure.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Mark McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office.

“Non-FDA approved drugs may be dangerous and contain unknown and harmful ingredients.” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Office. “As we did in this case, we will continue to protect the public by bringing these peddlers of dangerous unapproved drugs to justice.”

According to his plea agreement, from 2010 to April 2012, Smith owned and operated Precision Peptides, located in Lutz, Florida; and from April 2012 to May 2015, he owned and operated DNA Peptides, located in New Port Richey, Florida.  Smith placed advertisements on the companies’ websites and sold body-enhancing injectable drugs to individuals seeking to enhance their physiques.  These drugs were not approved by the FDA for human use.

On August 22, 2012, law enforcement executed federal search warrants at Precision Peptides and DNA Peptides.  At some time thereafter, Smith began operating DNA Peptides out of his residence and continuing to sell drugs using a different website to avoid detection by law enforcement.

Smith caused DNA Peptides and Precision websites to display numerous disclaimers stating that all products sold were for “research/laboratory use only.”  Additionally, prior to purchasing the products from the website, each customer was asked to certify that he or she read the disclaimer that the “chemicals/materials for sale here are . . . not intended for human ingestion.”  Smith used these disclaimers as a ruse to avoid FDA scrutiny.

He advertised his products and website extensively in bodybuilding magazines and conventions.  Smith hired professional bodybuilders to promote his products and to claim that they personally experienced results from taking certain products he sold.  He also provided information to customers, via the company websites and Facebook pages, on how to self-administer drugs, including recommended dosages and placement of the injections, in order to best produce the desired bodily enhancements.

The drugs Smith sold included Growth Hormone Releasing Peptide-2, Growth Hormone Releasing Peptide-6, Melanotan II, Growth Hormone Releasing Hormone, Ipamorelin, Human Growth Hormone Fragment, Mechano Growth Factor, and Dehydroepiandrosterone, none of which the FDA has approved for use in humans.

On seven occasions from November 21, 2011 to March 12, 2015, Smith sold misbranded drugs to an undercover officer and shipped those drugs from Florida to locations in Laurel, Columbia and Beltsville, Maryland. None of the drug shipments included any directions for use of the products.  Additionally, although the labels stated that the products were for research only, Smith intended that the products be consumed by humans.

United States Attorney Rod J. Rosenstein commended the FDA Office of Criminal Investigations for its work in the investigation and thanked Assistant U.S. Attorneys James A. Crowell IV and Kelly O'Connell Hayes, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Matthew Nicka, age 43, of Baltimore today to 188 months in prison, followed by five years of supervised release, for conspiracy to distribute at least 1,000 kilograms of marijuana and conspiracy to commit money laundering.  Judge Titus also entered a forfeiture order requiring Nicka to pay a money judgment of $15 million, which represents the proceeds of the offense. 

Nicka, his wife, Gretchen Peterson, and co-conspirator David D’Amico, had been fugitives since the indictment was returned in December 2010.  Nicka and Peterson were arrested in Canada in early August 2013, and D’Amico was extradited from Colombia, South America.   

The sentence 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 Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.

According to Nicka’s plea agreement and other court documents, Nicka, Peterson and D’Amico were part of an extensive drug trafficking operation which was discovered by the DEA when they executed a search warrant at a residence in the 3500 block of Hickory Avenue in Baltimore on March 18, 2009.  The residence was a center of operation for the group. Agents seized more than 80 pounds of marijuana, $20,000 in cash, 31 cell phones, documents regarding a plane purchased for $450,000, tally sheets showing over $14.5 million in marijuana sales, four money counters and false identifications. 

As part of the conspiracy, Nicka, D’Amico and their co-conspirators obtained large quantities of marijuana grown in Canada and northern California, which they transported by plane and tractor trailer, to warehouses in Maryland.  The marijuana was then divided for distribution in Maryland, Pennsylvania, Louisiana, Kansas, Florida, Ohio, North Carolina, Georgia and elsewhere. The defendants used multiple cellular telephones to avoid detection by law enforcement, as well as aliases and false identifications to conceal their activities.  Nicka supervised and directed the conspirators’ activities, recruited conspirators and obtained marijuana in exchange for bulk cash payments, while D’Amico oversaw the day-to-day operations, received orders for marijuana, collected money, arranged for the purchase, operation and rental of planes used to transport marijuana and cash, arranged for the transportation and storage of marijuana, and transported bulk cash payments to marijuana suppliers. Gretchen Peterson received orders for marijuana, transported currency, delivered marijuana, and arranged for deliveries of marijuana to mid-level dealers.  Nicka, D’Amico and Peterson also counted drug proceeds with other conspirators at a stash house in Baltimore. 

From 2007 through June 2009, Nicka, D’Amico, and Peterson used aliases and false identifications, and created and used shell corporations to hold and hide assets, conduct financial transactions, title vehicles, convert assets, and to conceal the source, ownership and control of the proceeds from the marijuana distribution. The defendants structured financial transactions to avoid IRS filing requirements for transactions involving more than $10,000 in cash payments in a single transaction, and further conceal from the government large cash transactions using drug proceeds.

A total of 15 defendants, including D’Amico, Nicka and Peterson, have been convicted in this case.  The other 12 defendants have already been sentenced to up to 121 months in prison. 

David D’Amico, age 49, of Baltimore, and Gretchen Peterson, age 34, of Kennett Square, Pennsylvania, previously pleaded guilty to their roles in the conspiracy.  D’Amico was sentenced to 10 years in prison, and ordered to pay a money judgment of $1 million.  Peterson and the government have agreed that if the Court accepts her plea agreement, she will be sentenced to between 84 months and 144 months in prison.  Judge Titus has scheduled sentencing for Peterson on September 8, 2016.

United States Attorney Rod J. Rosenstein praised the DEA, IRS-CI, and the Montgomery County, Prince George’s County, Baltimore County and Baltimore City Police Departments for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Mara Zusman Greenberg, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Anthony Niles, age 37, of Bowie, Maryland today to 10 years in prison followed by eight years of supervised release for conspiring to distribute and possession with intent to distribute heroin. 

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 J. Thomas Manger of the Montgomery County Police Department; Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service, Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Chief T. N. Treschuk of the Rockville City Police Department; Captain Timothy Lloyd of the Hackensack (New Jersey) Police Department; and Montgomery County State’s Attorney John McCarthy.  

According to his plea agreement, from February to June 8, 2015, Niles supplied co-defendants Vincent Collins, Sierra Lynch, Abdul Sauda and others with large quantities of heroin for re-distribution.  Niles used a music studio known as “Crooked House Entertainment,” located at 7922 and 7924 Cryden Way, District Heights, Maryland as a “stash” house to store and distribute drugs.

After monitoring numerous cell phone calls pursuant to a court order in which Niles and his co-defendants discussed drug transactions, on June 8, 2015, law enforcement officers executed a search warrant at Nile’s residence.  Before law enforcement entered the residence, Niles attempted to flush several ounces of heroin down the toilet.  Officers subsequently recovered approximately 107 grams of heroin from the toilet. Officers also discovered a trail of heroin on the floor leading from Niles’ bedroom to the bathroom.  Niles was storing the heroin in a vent beside his bed.  Officers also seized approximately $6,156, and items used for the packing and distribution of drugs, such as digital scales and a heavy-duty industrial press.

Niles admitted that during the conspiracy he distributed between 700 and 1,000 grams of heroin.

On May 17, 1999, Niles pled guilty to distributing cocaine in the Circuit Court of Maryland for Prince George’s County, Maryland.  He was sentenced to two years imprisonment, with all but six months suspended.

Vincent Collins, age 37, of Oxon Hill, Maryland; Sierra Lynch, age 38, of Beltsville, Maryland; and Abdul Hakim Sauda, age 30, of Laurel, Maryland all pleaded guilty to their participation in the drug conspiracy.  Sauda was sentenced on May 2, 2016 to one year and one day in prison.  Collins and Lynch await sentencing.

United States Attorney Rod J. Rosenstein praised the FBI, the Montgomery County Police Department, NCIS, Prince George’s County Police Department and the Rockville and Hackensack (New Jersey) Police Departments for their work in the investigation.  Mr. Rosenstein commended the Bergen County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their assistance, and thanked Assistant United States Attorneys Daniel C. Gardner and Joseph R. Baldwin, who prosecuted the case.

Baltimore, Maryland – 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 arising from a scheme to use stolen credit information of more than 200 victims to defraud financial institutions.

The guilty pleas were 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 their plea agreements, from at least June 2013, through December 18, 2013, Hicks, Carey, Cason, and others, conspired 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 and 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 Cason, who used them and provided the bulk of the proceeds to Hicks. 

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.  Using the information from the credit reports, Hicks sent co-conspirators 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.  The co-conspirators, including Carey and Cason, 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 Carey, Cason and other co-conspirators into those stores with the same personal identity information.  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.  Hicks or a co-defendant would often provide a cheat sheet with the necessary personal identity and account information so that the 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. 

Carey assisted Hicks by conducting wire transfers of money in payment for the stolen credit card numbers and personal profiles.  Carey always used a victim identity, provided by Hicks, to wire the money, usually between $2,000 and $3,000, to an individual in the Ukraine.  As one of the few men participating in the conspiracy, Carey was often involved in the exploitation of any male victim’s identity and account information.  He used the counterfeit cards both to purchase merchandise and to rent cars for use by members of the conspiracy.

Hicks instructed Carey and others to travel to other states to engage in the fraud.  Carey frequently traveled north to Pennsylvania and south as far as Georgia to engage in fraud, including North and South Carolina, West Virginia, and Virginia.  As they traveled, Carey used counterfeit cards in victims’ names to rent hotel rooms and automobiles. Cason, who was on probation at the time and not allowed to travel outside of Maryland, conducted her fraudulent activities in Maryland.

On December 18, 2013, a search warrant was executed at Hicks’ residence, where he lived with Carey and another co-defendant.  Located on the dining table in the kitchen area was a complete set up for the fraud scheme, including a computer with the credit profiles and credit reports on it, 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 Hicks’ bedroom was a receipt for a storage unit which was rented in a false identity used by a co-defendant.  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 their plea agreements, the defendants will be required to pay restitution in the full amount of the victims’ losses.

The defendants each face 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 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.

Greenbelt, Maryland – A federal jury convicted Evans Appiah, a/k/a Sean Carter, age 27, of Silver Spring, Maryland today for conspiracy, mail and wire fraud, and aggravated identity theft arising from an internet romance scheme in which the victims were defrauded of more than $600,000.  Following the verdict, U.S. District Judge George J. Hazel ordered that Appiah be immediately taken into custody and detained pending sentencing, which is scheduled for August 29, 2016, at 2:00 p.m.

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.

According to testimony at his six day trial, Appiah and his co-conspirators searched online dating websites and initiated romantic relationships with male and female victims in order to obtain money from them.  The relationships began with emails and instant messaging and escalated to telephone calls and primarily text messages.  After gaining the victims trust, Appiah and his co-conspirators began asking for money for a variety of reasons, often invoking false stories and promises to convince the victims to send them money. 

According to evidence presented at trial, from December 2013 through June 2015, Appiah opened and maintained accounts in order to receive money from the victims.  Once the victims had deposited the funds requested by Appiah and the co-conspirators into the accounts controlled by Appiah, he disbursed the money by transferring it to other accounts, withdrawing cash, and by purchasing goods for shipment to co-conspirators outside of the United States.  At least seven confirmed victims were defrauded of more than $600,000.

Appiah also used the name and identifying information of one victim in particular, while depositing one of the victim cashier’s checks into his own bank account.

Appiah faces a maximum sentence of 20 years in prison for the conspiracy, and for each of two counts of wire fraud and for mail fraud.  In addition, he faces a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated 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, the U.S. Secret Service and Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom and Special Assistant U.S. Attorney Jennifer L. Wine, who are prosecuting the case.

Baltimore, Maryland – William Kyndall Francis, age 39, of Elkridge, Maryland pleaded guilty today to wire fraud.

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.

Francis owned and operated Legacy Investment and Management, Inc. (Legacy Inc.) and Legacy Investment and Management, LLC (Legacy LLC), which were both located at 10015 Old Columbia Rd. in Columbia, Maryland.  Legacy Inc. and Legacy LLC (collectively Legacy) were both management firms that provided financial and property services primarily to homeowner and condominium associations (HOAs) in Maryland, Washington D.C. and Virginia in exchange for a monthly fee. One of the services that Legacy provided was management of the HOAs’ reserve funds, which were typically held in savings or money market accounts and were to be used to cover long term and unexpected capital expenses.

According to his plea agreement, from October 2011 to August 2012, Francis defrauded at least 51 of Legacy’s HOA clients by taking reserve funds that belonged to the HOAs.  For many of the HOAs, Francis created false bank statements that he gave to the HOA representatives that falsely reflected that their reserve funds were intact and earning returns.  In fact, Francis had spent the funds for his own personal and business benefit, including: $7,165.70 to Dogtopia, a dog grooming service; $2,339 to Delicate Touch Nails, a nail salon; $8,244.42 to the Washington Wizards; $1,000.01 to Bare Exposure and $3,848.67 to Pure Gold, adult entertainment clubs; $2,088.50 to A Platinum Plus Limousines; $3,700 to Shadow Room, a Washington D.C. night club; thousands of dollars for the purchase of clothing, liquor, restaurant meals, groceries and other living expenses; $40,025.07 for payroll for Legacy Inc. employees; and payment to AT&T.

The total loss caused by the fraudulent scheme was at least $2,573,753.92. Francis has agreed to the entry of a money judgment forfeiting $2.5 million.

Francis faces a maximum sentence of 20 years in prison and a fine of $250,000 for wire fraud.  U.S. District Judge Ellen L. Hollander scheduled his sentencing for September 13, 2016, at 10:00 a.m.

Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case.

Baltimore, Maryland – Tyesha Towanda Roberts, age 37, of Baltimore, Maryland pleaded guilty today to attempting to obstruct a federal investigation.

The guilty plea 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; Commissioner Kevin Davis of the Baltimore Police Department; Maryland State Fire Marshal Brian Geraci; and Anne Arundel County Fire Department Chief Allan C. Graves.

According to Roberts’ plea agreement, in September 2015, a co-conspirator told an individual that Roberts would be willing to offer false testimony concerning the whereabouts of that individual in a federal investigation involving insurance fraud and a series of arsons. On October 27, 2015, a confidential source met with the co-conspirator and Roberts to confirm that Roberts was willing to offer false testimony.  After discussing the proposed false testimony, Roberts agreed that she was willing to lie and took a $1,000 down payment from the confidential source.    

At a meeting on November 6, 2015, Roberts and her co-conspirator solicited $10,000 from the confidential source and an undercover officer, in order to commit the murder of a witness in the case.  Roberts said that she had a person who would carry out the murder.  The undercover officer offered a $2,000 down payment with the remaining $8,000 to be paid upon the completion of the murder.  Roberts and the co-conspirator agreed to accept that payment.  Roberts and the co-conspirator did not receive money at that time, but agreed to wait for the undercover officer to contact them to set up a meeting with them and the shooter. A few days later the co-conspirator told the undercover officer that he didn’t trust the person Roberts had found to commit the murder and that they (the co-conspirator and the undercover officer) should commit the murder themselves.

Roberts faces a maximum sentence of 20 years in prison. U.S. District Judge George L. Russell has scheduled sentencing for August 26, 2016 at 2:15 p.m.

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, Maryland State Fire Marshal’s Office and Anne Arundel County Fire Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Zachary A. Myers, who are prosecuting the case.

Baltimore, Maryland – A federal jury convicted Richard Shusterman, age 53, of Highland Beach, Florida late on May 2, 2016, of conspiring to commit wire fraud and nine counts of wire fraud in connection with a complex scheme to defraud investors and lenders of $278 million by selling fraudulent investment portfolios of debts purportedly owed by hospital patients. U.S. District Judge James K. Bredar detained Shusterman pending a detention hearing scheduled for today at 11:00 a.m.  Shusterman is the fourth and final conspirator to be convicted in the scheme.

The conviction 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 Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

“Richard Shusterman and his co-conspirators perpetrated a brazen and complex Ponzi scheme that defrauded investors of more than $278 million,” said U.S. Attorney Rod J. Rosenstein. “The conspirators pretended that they were repaying investors with revenue earned by collecting debts, but they were really using the money of new victims to repay previous investors.”

According to trial evidence, Shusterman was a shareholder and president of International Portfolio, Inc. (IPI), located in Pennsylvania.  Co-conspirator Robert Feldman was part owner of IPI, and president of United Consulting, Inc.  Shusterman and Feldman represented that IPI had experience in the purchase, valuation, collection and resale of medical accounts receivable, comprising of past due patient accounts which the hospitals and other entities selling the accounts had been unsuccessful in collecting. Beginning on June 21, 2006, Shusterman and Feldman, through United Consulting and IPI, bought and sold consumer debt, including medical debt portfolios.  From December 2006 through June 2008, IPI paid more than $25 million to purchase over $4.1 billion in medical accounts receivable, comprising more than 3,872,514 past due patient accounts.  

Jonathan Rosenberg and Douglas Kuber operated Account Receivable Services, LLC (ARS) in New York, New York.  They agreed to promote the sale of IPI debt portfolio.  Pursuant to their agreement, Shusterman, through IPI, bundled the past due patient accounts from IPI’s inventory into investment portfolios, and then sold the portfolios to ARS at a discounted rate.  ARS’s purchases of the medical debt portfolios from IPI came from investors who agreed to lend money to ARS on a fixed-term basis in return for a high, fixed interest rate.  Shusterman and IPI agreed to manage the collection activity for each debt portfolio that IPI sold.  Any funds collected by IPI were to be forwarded to escrow accounts opened and maintained by ARS, which, in turn, would use the funds to cover the periodic interest payments and outstanding balances owed to the investors.

Fraudulent Inflation of Purchase Prices for IPI Debt Portfolios to Obtain Larger Investor Loans

Rosenberg and Kuber misrepresented to investors that a loan secured by IPI debt portfolios would not be used to pay up-front fees and commissions associated with the investment offering.  In fact, however, ARS and IPI devised an elaborate process involving the use of multiple escrow accounts and independent accountants to feign a transparent tracking of the deposit of the loan proceeds, the revenue from collection activity, the repayment of interest, and the sale of portfolios.  Funds to pay a 5% to 10% fee would come from the investor’s loan proceeds.  Pursuant to this undisclosed fee arrangement, ARS and IPI would agree to a concealed purchase price for a debt portfolio.  Then they would tell the investor that the portfolio price was 5% to 10% higher than the concealed price.

Shusterman agreed to kickback the loan proceeds in excess of the true purchase prices to Rosenberg and Kuber. The kickbacks were characterized as a refund or a rebate. In so doing, ARS and IPI avoided the intricate escrow arrangement they had created to convince investors to finance the joint venture. From June 2007 to March 2009, Shusterman paid Kuber and Rosenberg kickbacks totaling in excess of $8 million.  

In reliance on those misrepresentations, investors provided loans to ARS of approximately $145 million to purchase IPI debt portfolios, which IPI managed.  Other investors purchased approximately $122,500,000 worth of IPI debt portfolios, which IPI also managed.

Fraudulent Inflation of Collection Results

In order to induce existing investors to maintain and increase their participation in the investment scheme and to persuade new investors to join, ARS and IPI falsely represented the amount of income being generated from the collection activity for the medical debt portfolios.   It became apparent almost from the start that collections were significantly inadequate, not only in their failure to cover periodic interest payments that ARS owed its investors, but also to repay the investors’ principal.

Shusterman and Rosenberg agreed that IPI would advance ARS the money needed to make ARS’s periodic interest payments to the investors.  From July 2008 to December 2009, and without the investors’ knowledge, Shusterman and his conspirators wired approximately 209 advances from IPI into the bank accounts of the ARS debt portfolios, which were subsequently used to pay periodic interest payments due to an investor and/or inflate the collection history of the respective investor debt portfolios.  Misleading collection reports were created to deceive the investors.

After their plan to subsidize ARS with monthly advances was implemented, an investor was induced to fund the purchase of 12 more portfolios between July and November 2008, totaling approximately $65 million in new investments.  Another investor representative living in West River, Maryland was induced to fund the purchase of a portfolio on November 8, 2008 for $10 million, and another portfolio on May 26, 2009 for $5 million.

To conceal poor collection results and artificial resale prices for IPI debt portfolios, and to assure a continuing flow of new funding into the investment scheme, Shusterman and his conspirators continued to solicit existing and prospective investors to purchase or finance IPI debt portfolios.  In so doing, they fraudulently used new investor funds to make interest and resale payments in order to meet the investment benchmarks of prior investors.

As a result of the scheme, the loss to investors was $278 million.

Shusterman faces a maximum sentence of 20 years in prison. Judge Bredar scheduled his sentencing for October 11, 2016, at 11:00 a.m.

New Jersey residents Robert Feldman, age 68, of Beach Haven; Jonathan E. Rosenberg, age 47, of West Orange; and Douglas A. Kuber, age 55, of Livingston, previously pleaded guilty to their participation in the conspiracy and face a maximum sentence of 20 years in prison.  Feldman, Rosenberg and Kuber are scheduled to be sentenced on June 2, 14 and 30, 2016, respectively.

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 thanked the FBI and HSI Baltimore for their work in the investigation.  Mr. Rosenstein praised Assistant U.S. Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Colbert Juan Jones, Jr., age 33, of St. Leonard, Maryland today to 10 years in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute powder cocaine and for being a felon in possession of a firearm.  Judge Chasanow also issued an order requiring Jones to forfeit over $20,000 in drug proceeds, two cars, two shotguns, and ammunition.

On April 29, 2016, Judge Chasanow sentenced co-conspirator Vincent Leo Fletcher, age 29, of Clinton, Maryland to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute powder and crack cocaine.

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; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington 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; Charles County Sheriff Troy Berry; St. Mary’s County Sheriff Tim Cameron; and Calvert County Sheriff Mike Evans.

According to their plea agreements and other court documents, from January through July 2015, Jones and Fletcher conspired with Troy Taishon Swann, Antoine Dewayne Savoy, and James Devwan Pixley, to distribute cocaine.  Jones obtained cocaine from Fletcher and other sources.  Fletcher obtained two to 20 ounces of cocaine several times a month from Swann and other suppliers.  Fletcher distributed the cocaine to his customers for further distribution, and used some of the powder cocaine to manufacture crack cocaine, which he also distributed. 

Jones sold cocaine to his customers, which included Savoy and Pixley.  Jones often distributed the cocaine from the home of a female friend in Prince Frederick, Maryland, which Jones used as a stash house.  Savoy and Pixley generally purchased cocaine from Jones several times a month and used at least half of that cocaine to manufacture crack cocaine, which they sold. On August 6, 2015, a search of Jones’ stash house in Prince Frederick recovered: approximately 100 grams of cocaine and drug processing paraphernalia, which Jones had attempted to hide inside an audio speaker in the basement of the residence; a 20 gauge shotgun; and 14 rounds of ammunition.  A search of Jones’ residence on that same day recovered a 12 gauge shotgun and two boxes of ammunition, as well as $22,704 in cash, proceeds of Jones’ drug distribution.  Jones had been previously convicted of a felony and was prohibited from possessing firearms or ammunition.

Troy Taishon Swann, age 39, of Waldorf; Antoine Dewayne Savoy, age 35, of Lusby, Maryland; and James Devwan Pixley, age 25, of Waldorf, Maryland, have pleaded guilty to their participation in this drug trafficking conspiracy. In addition, Pixley admitted to possessing a firearm in furtherance of a drug trafficking crime and Swann admitted to being a felon in possession of ammunition.

Pixley and the government have agreed that if the Court accepts his plea agreement Pixley will be sentenced to between 10 and 14 years in prison.  Judge Chasanow has scheduled sentencing for Pixley on June 6, 2016 at 9:30 a.m. 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, Prince George’s County Police Department, Maryland National Capital Park Police, Prince George’s County Division, and the Charles, 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.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Quintin A. Bell, age 51, of Riverdale, Maryland, today to 40 years in prison followed by five years of supervised release for possession with intent to distribute heroin and crack cocaine; possession of a firearm in furtherance of a drug trafficking crime; and for being a felon in possession of a firearm.  A jury convicted Bell of those charges on November 18, 2015. 

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 Chief Henry P. Stawinski of the Prince George’s County Police Department.

According to evidence presented at his five day trial, on April 10, 2014, law enforcement executed a search warrant at Bell’s residence.  They located Bell in the basement of the home, along with over 100 grams of heroin and drug paraphernalia, including cutting agents, scales, grinders, empty pill capsules, a pill capsule filler, and small ziplock baggies.  Also found in the basement was a Ruger Mini magazine loaded with 13 rounds of 7.62x39mm ammunition and a box containing nine additional rounds of ammunition.  

Witnesses testified that Bell was brought in to the living room of the home where he told officers that there was a gun under a couch in that room.  Law enforcement officers looked under the couch and located a black gun case containing a Ruger Mini-14 .223 caliber semi-automatic rifle, which was compatible with the magazine located in the basement.  Bell told the officers that a friend had given him the gun after someone tried to rob the residence. Officers also seized: over $12,000 in cash; jewelry; a magazine for a .40 caliber handgun; 4.5 grams of heroin; and six rounds of 9mm ammunition.

According to testimony at trial, five months later, officers executed another search warrant at the home and found more heroin in the basement, more drug paraphernalia, and crack cocaine.  Five days before the second search, Bell was arrested in Washington, D.C., after he was found behind the wheel of his car with a loaded .40 caliber semi-automatic handgun.  The gun was tucked next to Bell’s seat, between Bell and the center console.  In the center console law enforcement recovered three baggies each of heroin and crack cocaine, as well as a small baggie of marijuana, all packaged for distribution.  From Bell’s front left pants pocket, officers seized $1,054. Bell made a videotaped statement to the Metropolitan Police Department officers after his arrest, which was played at trial, in which he admitted to having been out “hustling,” trying to buy cocaine and two “Rugers,” so that he would have a firearm for his exclusive use.

Bell had several previous felony convictions, including violent crimes committed in both Maryland and Washington, D.C., and was prohibited from possessing firearms or ammunition.

United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Michael T. Packard and Daniel C. Gardner, who prosecuted the case.

Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced David D’Amico, age 49, of Baltimore, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute at least 1,000 kilograms of marijuana and conspiracy to commit money laundering.  Judge Titus also ordered D’Amico to pay a money judgment of $1 million.

D’Amico, and his co-conspirators Matthew Nicka and Gretchen Peterson had been fugitives since the indictment was returned in December 2010.  Nicka and Peterson were arrested in Canada in early August 2013, and D’Amico was extradited from Colombia, South America.  All three pleaded guilty on January 13, 2016. 

The sentence 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 Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Henry P. Stawinski of the Prince George’s County Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.

According to D’Amico’s plea agreement and other court documents, D’Amico was part of an extensive drug trafficking operation which was discovered by the DEA when they executed a search warrant at a residence in the 3500 block of Hickory Avenue in Baltimore on March 18, 2009.  The residence was a center of operation for the group. Agents seized more than 80 pounds of marijuana, $20,000 in cash, 31 cell phones, documents regarding a plane purchased for $450,000, tally sheets showing over $14.5 million in marijuana sales, four money counters and false identifications. 

As part of the conspiracy, D’Amico and his co-conspirators obtained large quantities of marijuana grown in Canada and northern California, which they transported by plane, tractor trailer and trains, to warehouses in Maryland.  The marijuana was then divided for distribution in Maryland, Pennsylvania, Louisiana, Kansas, Florida, Ohio, North Carolina, Georgia and elsewhere. The conspirators used multiple cellular telephones to avoid detection by law enforcement, as well as aliases and false identifications to conceal their activities.  D’Amico oversaw the day-to-day operations, received orders for marijuana, collected money, arranged for the purchase, operation and rental of planes used to transport marijuana and cash, arranged for the transportation and storage of marijuana, and transported bulk cash payments to marijuana suppliers. D’Amico also counted drug proceeds with other conspirators at a stash house in Baltimore. 

From 2007 through June 2009, D’Amico used aliases and false identifications, and created and used shell corporations to hold and hide assets, conduct financial transactions, title vehicles, convert assets, and to conceal the source, ownership and control of the proceeds from the marijuana distribution. D’Amico and his co-conspirators structured financial transactions to avoid IRS filing requirements for transactions involving more than $10,000 in cash payments in a single transaction, and further conceal from the government large cash transactions using drug proceeds.

A total of 15 defendants, including D’Amico, Nicka and Peterson, have been convicted in this case.  The other 12 defendants have already been sentenced to up to 121 months in prison. 

Matthew Nicka, age 43, of Baltimore, his wife, Gretchen Peterson, age 34, of Kennett Square, Pennsylvania, and the government have agreed that if the Court accepts their plea agreements, Nicka will be sentenced to between 168 months and 228 months in prison; and Peterson will be sentenced to between 84 months and 144 months in prison.  Judge Titus has scheduled sentencing for Nicka on May 9, 2016, and for Peterson on September 8, 2016.

United States Attorney Rod J. Rosenstein praised the DEA, IRS-CI, and the Montgomery County, Prince George’s County, Baltimore County and Baltimore City Police Departments for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – Darius Raymond Stewart, age 22, of Baltimore, pleaded guilty today to malicious destruction of property by fire, arising from the arson of a liquor store on April 27, 2015, during the riots following the death of Freddie Gray. One victim was seriously injured inside the store, and another escaped with minor injuries.

“Surveillance cameras recorded while Darius Stewart maliciously set fire to a store with people inside, and other rioters viciously attacked the store owner,” said U.S. Attorney Rod J. Rosenstein. “Citizens deserve to know that the rule of law will be upheld, and criminals who destroy property and jeopardize lives will be held accountable.”

The plea agreement 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 (ATF) - Baltimore Field Division; and Commissioner Kevin Davis of the Baltimore Police Department.

According to his plea agreement, on April 27, 2015, during civil unrest in the wake of the funeral for Freddie Gray, there was widespread looting, and multiple structure and vehicle fires were set in Baltimore.  The two owners of a liquor store located on West North Avenue were inside their store when the first wave of approximately 20 to 30 people entered the business and began banging on the bulletproof plexiglass window with pipes and crow bars.  The group was chased off by a community member.

Shortly thereafter, a second wave of approximately 150 people entered the business and began ransacking and looting the store.  One of the business owners was assaulted, resulting in a head injury requiring stitches, and was eventually rescued by police.  Baltimore CitiWatch surveillance footage captured individuals robbing and repeatedly assaulting the owner as he was outside his store while it was being looted. 

The second owner fled upstairs and was able to hide on an enclosed balcony as the looters broke down the door and looted the second floor. 

At approximately 8:30 p.m. that night, Stewart set three fires inside the store.  Surveillance footage clearly captured Stewart starting the fires and then going out to the street to get paper and cardboard to feed the fires he had set.

Smoke from the fires spread upstairs where the second owner was hiding. He was able to escape the burning building by using the gutter in an effort to slow his fall as he jumped to the ground.  He suffered head trauma and injured his ankle.  He was able to escape in his vehicle.

Baltimore City Fire Department responded to the scene.  While extinguishing the fire, fire department personnel discovered an unconscious victim in the basement of the building.  The victim suffered smoke inhalation and carbon monoxide poisoning, and was hospitalized for five days.

The damage caused by the fire was extensive and it is estimated that it will cost approximately $350,000 to repair and restore the building.  Stewart has agreed to the entry of an order to pay restitution of at least $350,000.

Stewart and the government have agreed that if the Court accepts the plea agreement, Stewart will be sentenced to five years in prison followed by three years of supervised release.  U.S. District Judge Marvin J. Garbis has scheduled sentencing for July 21, 2016 at 10:00 a.m.

United States Attorney Rod J. Rosenstein commended ATF and the Baltimore City Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.

(MINNEAPOLIS) – Federal and local officials today in Minneapolis hosted a prescription drug take back event as part of the DEA’s National Prescription Drug Take Back Day. Minnesotans disposed of more than 5,000 pounds of unwanted medication at the Hennepin County Sheriff’s Office in Downtown Minneapolis. On hand to participate in the take back event were federal and local officials and local advocates.

Today in Minneapolis, Michael Botticelli, Director of National Drug Control Policy at the White House was joined by DEA Special Agent in Charge Dennis A. Wichern, U.S. Attorney Andrew Luger, Hennepin County Sheriff Rich Stanek, elected officials and a representative of the Hazelden Betty Ford Institute for Recovery Advocacy.

“Take back events, along with year-round safe disposal programs, are an important part of our efforts to decrease prescription drug misuse and overdose deaths because we know the majority of people who misuse prescription drugs obtain them from family or friends,” said Michael Botticelli, Director of National Drug Control Policy.

“April 30 is National Prescription Drug Take Back Day,” said Dennis A. Wichern, DEA Special Agent in Charge of the Chicago Field Division. “This year will be the eleventh DEA sponsored event to join with the community to empty our medicine cabinets of unwanted, unneeded, expired medications. Misused medications can cause great harm. Safely disposing of these prescription drugs will save lives. Preventing one pill from being used for the wrong reasons is the starting point for a safer, healthier Minnesota.”

“Opioid abuse is a public health and law enforcement problem in Minnesota,” said U.S. Attorney Andrew M. Luger. “Events like today’s DEA drug take back help to prevent abuse and addiction by providing a free opportunity for the disposal of unused and unwanted medicines.”

“The tragic consequences of opioid addiction have been devastating across Minnesota and nationwide,” said Hennepin County Sheriff Rich Stanek. “I urge all residents to help the Hennepin County Sheriff’s Office raise awareness about reducing the risk of painkiller abuse. Clean out your medicine cabinet and routinely dispose of unwanted painkillers and medications by bringing them to a disposal box at a Sheriff’s Office facility.”

“These efforts to remove unused prescriptions from our medicine cabinets will save lives,” said Senator Chris Eaton. “If you have a prescription of any kind, keep it locked up where guests and family can't access it. We have had too many deaths from opioids in Minnesota and in the country. This simple step can make a huge difference.”

“National Prescription Drug Take-Back Day, and similar events throughout the year, are very important to help get dangerous drugs out of our homes and workplaces and to shine a spotlight on the huge problems we are seeing around prescription drug addiction and overdoses,” said Nick Motu, Vice President of the Hazelden Betty Ford Institute for Recovery Advocacy.

Last September, Americans turned in 350 tons (over 702,000 pounds) of prescription drugs at more than 5,000 sites operated by the DEA and more than 3,800 state and local law enforcement partners. Overall, in its 10 previous Take Back events, DEA and its partners have taken in over 5.5 million pounds—more than 2,750 tons—of pills. 

The National Prescription Drug Take-Back addresses a vital public safety and public health issue. Many Americans are not aware that medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are at alarming rates, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that many abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, many Americans do not know how to properly dispose of their unused medicine, often flushing them down the toilet or throwing them away – both potential safety and health hazards.

Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. The removal from homes of unwanted prescription pills that can be abused, stolen or resold is an easy way to help fight the epidemic of substance abuse and addiction. That is why local communities are also establishing ongoing drug take back programs.

Baltimore, Maryland - Sixteen employees of the United States Attorney’s Office and five law enforcement officers were honored today with the Office’s most prestigious awards. At a ceremony held to announce the awards this morning at the U.S. Courthouse in Baltimore, the United States Attorney also welcomed eight new Assistant U.S. Attorney and other employees who have joined the Office since last year.                        

Maryland U.S. District Judge George Jarrod Hazel served as the keynote speaker for the event. Judge Hazel was a Maryland Assistant U.S. Attorney from 2008 to 2010.

“These award recipients accomplished superb results while respecting our high ethical and professional standards,” commented U.S. Attorney Rod J. Rosenstein.  “As the U.S. Attorney’s Office works with our partners to promote the rule of law, punish criminals, deter crime and protect government property, it is essential to maintain our commitment to excellence, integrity and achievement.”

During the annual ceremony, the U.S. Attorney encourages prosecutors to heed the advice of Robert H. Jackson, while serving as Attorney General in 1940: “’A sensitiveness to fair play and sportsmanship is perhaps the best protection against the abuse of power, and the citizen’s safety lies in the prosecutor who tempers zeal with human kindness, who seeks truth and not victims, who serves the law and not factional purposes, and who approaches his task with humility.’”

Annual Awards

The following awards were announced for accomplishments over the past year:

Gary Jordan Award

Recipient:        Evelyn Germani

Gary P. Jordan served with distinction for many years as an Assistant U.S. Attorney, as First Assistant from March 29, 1987 until his death on October 25, 1996, and as interim U.S. Attorney in 1993. This is an honorary award presented annually to an employee for exemplary performance that demonstrates the highest traditions of the office: integrity, ingenuity, dedication to public service and fairness.

Barnet D. Skolnik Award

Recipients:      Harry M. Gruber
                       Joyce K. McDonald

Barnet D. (Barney) Skolnik was an Assistant U.S. Attorney who led teams that prosecuted numerous white collar criminals and corrupt public officials in the 1970s, including Vice President Spiro T. Agnew. This is an honorary award presented annually to one or more Assistant U.S. Attorneys who demonstrate outstanding professionalism, determination and creativity in a case of unusual public significance.

Employee of the Year Award

Recipient:        Jeremy M. Warga

The Employee of the Year Award recognizes sustained superior performance and outstanding achievements by a non-attorney employee. The award also recognizes the recipient's professionalism, dedication and comprehensive knowledge in their area of expertise.

Pete Twardowicz Award

Recipients:      Jason Bender
                        Cam Costello
                        Jennifer Perry
                        Kalliopi Tserkis-Mullins
                        Michael Shao             

The Pete Twardowicz Award was established in honor of Eugene P. (Pete) Twardowicz, who rendered many years of outstanding service to the U.S. Attorney’s Office as an IRS criminal investigator and a Special Investigator for this Office. This award recognizes law enforcement agents or officers for outstanding cooperation and achievement while working with the U.S. Attorney’s Office on a significant case.

Excellence in Civil Advocacy

Recipient:        Thomas H. Barnard
                        Roann Nichols

The U.S. Attorney’s Award for Excellence in Civil Advocacy, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding advocacy in civil litigation.

Excellence in Prosecution of Fraud

Recipients:      Martin J. Clarke
                        Leo J. Wise

The U.S. Attorney’s Award for Excellence in Prosecution of Fraud, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting fraud.

Excellence in Prosecution of Violent Crime

Recipient:        Patricia C. McLane
                        Seema Mittal
                        Andrea L. Smith

The U.S. Attorney’s Award for Excellence in Prosecution of Violent Crime, established in 2007, is presented annually an Assistant U.S. Attorney for outstanding work in prosecuting violent crime.

Excellence in Prosecution of Organized Crime

Recipient:        Paul E. Budlow
                        John W. Sippel, Jr.
                        Aaron S.J. Zelinsky

The U.S. Attorney’s Award for Excellence in Prosecution of Organized Crime, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting organized criminal activity.

Excellence in Legal Support

Recipient:        Damaris Weeks

The U.S. Attorney’s Award for Excellence in Legal Support, established in 2007, is presented annually to one or more non-attorney employees for outstanding work in support of the mission of the U.S. Attorney’s Office.

Outstanding Contributions to a Law Enforcement Initiative

Recipient:        Vincent DeVivo

The U.S. Attorney’s Award for Outstanding Contributions to a Law Enforcement Initiative, established in 2007, is presented annually to one or more employees for outstanding work in support of an initiative of the U.S. Attorney’s Office.

Carl S. Lackl Award

Recipient:        Minor who testified at trial.

The Carl S. Lackl Award for Exemplary Perseverance and Fortitude in Pursuit of Justice was established in 2008 in honor of Carl Stanley Lackl, Jr. Mr. Lackl witnessed a murder in Baltimore in 2006 and agreed to testify against the suspect he identified. After the suspect was arrested by police and charged in state court with the murder, he used a contraband cellular telephone to contact co-conspirators and arranged to murder Mr. Lackl, who was shot to death outside his house in front of his daughter. All of the conspirators were convicted on federal charges.

New Employees

In addition, the U.S. Attorney welcomed new employees who joined the office last year. Assistant U.S. Attorneys: Dana Brusca, Derek Hines, Christina Hoffman, Menaka Kalaskar, Matthew Maddox, David Metcalf, Philip Selden and Jennifer Sykes.  Special Assistant U.S. Attorneys: Keri Borzilleri, John Hanley, Amanda Harris, Francesca Liquori, Mara Senn, Angela Tang, and Rachel Timm. Non-Attorney Staff: Stephanie Alley, Amna Aslam, Chikiera Cephas, Jordan Cook, Bailey Drumm, Hasina Griffiths, Joshua Ingles, Shantal Kelly and Schneyder Mettelus. 

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Eric Christopher Smallwood, a/k/a “Big Baby” and “E,” age 40, of Hagerstown, Maryland today to five years in prison followed by four years of supervised release for conspiring to distribute and possession with intent to distribute cocaine in the Hagerstown area. 

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; Captain Paul “Joey” Kifer, Acting Chief of the Hagerstown Police Department; Washington County Sheriff Douglas W. Mullendore; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.  

According to his plea agreement, Smallwood regularly obtained bulk quantities of cocaine from Abdul Smith, which he re-sold to customers in the Hagerstown area.  Smallwood provided the proceeds of these sales to Smith to pay for prior supplies of cocaine. Agents obtained a wiretap on phone lines used by Smith and Smallwood, and intercepted numerous calls between them discussing the distribution of cocaine.

Over the course of the conspiracy, Smallwood obtained at least 400 grams of cocaine from Smith, which he then re-distributed to customers in Maryland.

Co-defendants Abdul Jamel Smith, age 40; Rory Slade Jenkins, a/k/a/”Malik,” age 56; Altonia Sylvester Henderson, age 40; and Johnathan Woodley, a/k/a “Ming”: age 39, all from Hagerstown, previously pleaded guilty to their participation in the drug conspiracy and were sentenced from five years of probation to 51 months in prison.

United States Attorney Rod J. Rosenstein praised the FBI, DEA, Hagerstown Police Department and Washington County Sheriff’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark and Matthew C. Sullivan, who prosecuted the case.

Baltimore, Maryland – A federal grand jury returned an indictment yesterday charging Darryl Wesley Clements, age 50, of Detroit, Michigan, and Rodney Patrick Dunn, age 40, of Elkridge, Maryland, with conspiring to commit wire fraud and four counts of wire fraud, arising from a scheme to defraud lenders from February to August 2011 in order to obtain financing for a movie.

The indictment 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 Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).

“Rodney Dunn is charged with using his employment at a TARP bank to defraud lenders in a movie production financing scheme,” said Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).  “Co-conspirator Darryl Clements allegedly created fake documents showing that $13 million in financing had been secured for the movie. Dunn then allegedly confirmed to the lenders that the non-existent funding was held in escrow accounts at the TARP bank; on that same day the lenders wired $2.5 million for the movie.”

According to the five count indictment, CityScope Productions, LLC had contractual rights to buy the script for a movie to be produced called “Season Tickets.”  Clements created documents falsely stating that CityScope had permanent financing of $13 million for the movie from Bridge Capital and The Shah Group, and that the funds were held in escrow at a bank in Baltimore. Dunn was employed at such bank, which received funds through the Troubled Asset Relief Program (TARP).  In fact, there was no such financing, and there were no escrow funds held at the bank. The false documents further stated that CityScope needed a $2.5 million bridge loan to complete the financing for the movie.

The indictment alleges that in order to carry out the fraud scheme, Clements created email accounts which appeared to belong to Dunn and The Shah Group, but which Clements actually controlled.  In February 2011, Clements caused Dunn to purchase five cashiers’ checks from his employer bank, made payable to Clements, each for $20, which Clements then altered by amount and payee and furnished to CityScope.  Clements fraudulently placed Dunn’s forged signature on escrow agreements and proof of funds statements which Clements wired to CityScope, in order to cause CityScope to furnish those fraudulent documents to prospective lenders.

According to the indictment, Dunn communicated by telephone with Clements when a prospective lender called Dunn at the bank to verify the funds in the escrow accounts, so that Clements could return the telephone call, pose as Dunn, and verify the existence of the escrow accounts and their balances.  In April 2011, Clements caused a corporation owned by a friend to change its name to The Shah Group and attempted to have Dunn open a bank account at his employer’s bank for The Shah Group.

The indictment alleges that in a telephone call on May 9, 2011, Dunn fraudulently verified the account numbers and balances of the phony escrow accounts to an official of a California company which specialized in providing bridge financing for movies (California finance company); and that Dunn later provided such verification to the California finance company and to an official of its bank in a conference call.  On the same day, the California finance company loaned $2.5 million to CityScope and transmitted the funds by wire.

Both defendants face a maximum sentence of 20 years in prison.  An initial appearance is scheduled for May 6, 2016 before in U.S. District Court in Baltimore.

An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

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 and SIGTARP for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting the case.

Greenbelt, Maryland – A federal grand jury indicted Mehlek Dawveed, age 49, of Olney, Maryland, on charges arising from a scheme to fraudulently obtain federal tax refunds. The indictment was returned on March 30, 2016 and unsealed today upon Dawveed’s arrest.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

“The investigation and indictment of Mr. Dawveed serves as another example of IRS- CI's commitment to ensuring the integrity of our tax system for the American taxpayer,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. 

According to the four count indictment, on March 27, 2011, Dawveed filed an individual income tax return for the tax year 2010 wherein he falsely claimed a tax refund of $977,558.  He falsely reported taxable interest of $1,486,902 and federal income taxes withheld of $1,496,400. Dawveed caused the Department of Treasury to wire $977,558 on April 22, 2011 to a bank account he controlled.  From April 22, 2011 to June 1, 2014, Dawveed withdrew and caused to be withdrawn a total of $788,991 obtained from the fraudulent tax return by using these funds to pay off his mortgage and other personal expenses, and by causing funds to be transferred to bank accounts controlled by him or his family members.

The indictment alleges that on May 19, 2011, Dawveed had attempted to deposit a check for $115,000 drawn from the fraudulently obtained tax refund into another account controlled by an associate. However, the check was rejected due to insufficient funds because the previous day, the bank returned the remaining $188,567 of the fraudulently obtained tax refund to the IRS at their request.

The indictment further alleges that on February 18, 2012, Dawveed filed another individual income tax return for the year 2011, this time falsely claiming a refund of $1,324,961.  On February 27, 2012, Dawveed also filed a 2010 amended tax return wherein he changed his taxable interest income from $1,486,902 to $0.  The amended return was accompanied by correspondence falsely stating, “In ‘Good Faith’ we submitted a Payment of $5,000,000 Million Dollars” to the Ogden branch of the IRS on January 31, 2012 “in hopes of settling the remaining ‘Debt’ from our 1040 Tax Filing for Year 2010.”

Dawveed faces a sentence of 20 years in prison for wire fraud; three years in prison for corruptly impeding the Internal Revenue laws; and five years in prison on each of two counts for filing false claims.  Dawveed had his initial appearance today in U.S. District Court in Greenbelt and was released on pretrial supervision. 

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 IRS-Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorneys Sean R. Delaney and Kelly O'Connell Hayes, who are prosecuting the case.

Baltimore, Maryland – Mark Darnell Peeples, age 31, of Baltimore, pleaded guilty today to conspiracy to commit bank fraud and to aggravated identity theft. Peeples is the fourth defendant to plead guilty to a 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.

Lead defendant Monika Michelle Hill, age 36, of Baltimore and Cockeysville, Maryland, pleaded guilty on April 19, 2016, 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.  Alysia Samon Rascoe, age 26, of Baltimore pleaded guilty on April 18, 2016 to two counts of conspiracy to commit bank fraud and to aggravated identity theft.  Christopher Vance McKoy, age 24, of Baltimore, pleaded guilty April 20, 2016, to two counts of conspiracy to commit bank fraud.

The guilty pleas were 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 their plea agreements, between March 2013 and July 2014, Hill, Rascoe, McKoy, Peeples, and others opened 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 and Kersey’s Recovery, LLC were registered with the State of Maryland Department of Labor, Licensing and Regulation as businesses on March 12, 2014 and May 19, 2014, respectively.  Each of the businesses listed an identity theft victim as the managing member/owner, and used that person’s social security number and date of birth to open online bank accounts for the business.  The bank accounts listed the identity theft victim as the sole authorized signer on the account.  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 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 deposited three of the counterfeit checks and Peeples deposited four counterfeit checks, each bearing the forged signature of a victim account owner.  Once the counterfeit checks were deposited, Hill provided checks to Rascoe, Peeples, and others from 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. Rascoe and Peeples 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.

Similarly, between June 3 and 5, 2014, eight counterfeit checks totaling $13,810 were deposited into the Kersey’s Recovery bank accounts. Hill deposited four counterfeit checks, including on June 4, 2014, immediately after entering her guilty plea in a separate federal fraud case, and while she was on pretrial release.  Hill then provided McKoy and others checks from the Kersey’s Recovery accounts that were made out to them in amounts ranging from $1,200 to $1,400, and bore the forged signature of the purported managing member/owner of Kersey’s Recovery.  After cashing the checks, McKoy and others received between $150 and $400, and provided the balance to Hill.

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.

Peeples and Rascoe each face a maximum sentence of 30 years in prison for conspiracy to commit ban 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 Peeples on August 23, 2016 and for Rascoe on July 20, 2016, both at 2:30 p.m.

Hill, McKoy and the government have agreed that if the Court accepts their plea agreements Hill will be sentenced to 10 years in prison and McKoy will be sentenced to between 21 and 27 months in prison.  Judge Hollander has scheduled sentencing for Hill on June 24, 2016 at 10:00 a.m. and for McKoy on July 19, 2016 at 10:00 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 Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.

Maryland U.S. Attorney J. Rosenstein and three other members of the U.S. Attorney’s Office will enter FCI Cumberland in Allegany County, Maryland on Tuesday, April 26. Operated by the Federal Bureau of Prisons, FCI Cumberland includes a medium security federal correctional institution and an adjacent minimum security satellite prison camp. Approximately 1,100 inmates re held at the FCI and 250 at the camp. The federal prosecutors will meet with two groups of inmates: 30 inmates who participate in the Release Preparation Program at the FCI and approximately 30 inmates held at the Camp.  These returning citizens face many challenges, including employment, housing, child support, drug counseling and educational opportunities, and obtaining critical documentation such as a driver’s license and social security card.

“Our mission is preventing crime, not just sending people to prison,” said U.S. Attorney Rod J. Rosenstein. “Most former prisoners face strong temptations to return to a life of crime. We will emphasize that there are programs available to help them, and that they need to make constructive decisions in order to succeed.”

The U.S. Justice Department designated the week of April 24 as “Reentry Week,” recognizing that supporting successful reentry is an essential part of the Department’s mission to promote public safety.

Under the Release Preparation Program, designated inmates who are approaching their release dates are encouraged to enroll in a job skills class and participate in a mock job fair. The programs teach participants how to obtain jobs after their release. Inmates learn how to prepare a resume and complete an employment application. FCI Cumberland also has a Reentry Center that assists inmates with social security cards, driver’s licenses, identification, credit histories, child support and a variety of other issues that returning offenders may need to address.

Greenbelt, Maryland – U.S. District Judge Theodore J. Chuang sentenced Anthony Lamont Payne, age 27, of District Heights, Maryland, today to five years in prison, followed by three years of supervised release, for involuntary manslaughter in connection with a fatal car crash that occurred on the Baltimore-Washington Parkway on March 20, 2015.  A federal jury convicted Payne on January 19, 2016.

“The evidence proved that Anthony Lamont Payne threatened the victim with a gun, then chased his car on the Baltimore-Washington Parkway at speeds of up to 115 miles per hour,” said U.S. Attorney Rod J. Rosenstein. “Payne’s atrocious criminal conduct caused the tragic death of Terrance Terrelle Lagrue, a 19 year old man.”

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.    

According to evidence presented at the four day trial, Payne caused the death of the victim on March 20, 2015, following a high-speed chase on the Baltimore-Washington Parkway. Two eyewitnesses testified that Payne pointed a gun at the victim both before and during the chase on the Parkway. According to trial testimony, the victim’s car was hit by Payne’s vehicle, causing the victim’s vehicle to roll over and burst into flame. Scientific evidence presented at trial from the airbag module in Payne’s vehicle showed that Payne was driving 115 miles per hour at the time of the collision. The victim died at the scene.

Payne has been detained since his arrest on April 28, 2015.

United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Hollis Raphael Weisman and Special Assistant United States Attorney Conor Mulroe, who prosecuted the case.

Baltimore, Maryland – Derrel Pitts, a/k/a “Foolish,” age 27, of Baltimore, pleaded guilty today to conspiracy to commit sex trafficking in connection with his prostituting of a minor female.

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, 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 court documents and statements at today’s plea hearing, from November 2014 through February 19, 2015, Pitts conspired with his “bottom” girl, a prostitute who also worked for Pitts, and others to commit sex trafficking of a 17 year old minor.  Specifically, Pitts admitted that he instructed the minor victim on pricing for different sexual activities and that he received a portion of the money the victim received from sex customers for performing commercial sex acts.

On February 18 through February 19, 2015, Pitts transported and arranged for the transportation of the minor victim to a motel on Joppa Road in Towson, Maryland, where he directed the victim to engage in commercial sex acts with customers.  Pitts rented the motel room and used, or allowed the victim to use, his cell phone to post photographs of the minor victim on an online website advertising her for prostitution and providing a telephone number where the victim could be reached for a “date,” or a commercial sex act.

On February 19, 2015, members of the Maryland Child Exploitation Task Force (MCETF), which included officers/agents from the Baltimore County Police and the Maryland State Police (MSP), rescued the victim at the motel in Towson after undercover officers made a “date” for prostitution with the victim, who directed them to her location.  Prior to entering the motel room, law enforcement observed Pitts walking away from the room and towards the front of the motel.

As a result of his guilty plea, Pitts will be required 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).

Pitts and the government have agreed that if the Court accepts the plea agreement Pitts will be sentenced to between 78 and 96 months in prison followed by up to a lifetime of supervised release.  U.S. District Judge George L. Russell III has scheduled sentencing for August 18, 2016 at 9:30 a.m.

The case was investigated by the FBI-led Maryland Child Exploitation Task Force, 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 Baltimore County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Luis Lugo-Santiago, a/k/a “Papi,” and “Andres Galvez,” age 41, of New York, New York today to seven years in prison followed by a year of supervised release for conspiring to distribute and possess with intent to distribute a kilogram or more of heroin, in connection with a drug distribution ring. 

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 Gary Tuggle, Philadelphia Division of the DEA; Cecil County Sheriff Scott Adams; Chief William Ryan of the Elkton Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Cecil County State’s Attorney Ellis Rollins; and Colonel Nathaniel McQueen, Jr. of the Delaware State Police.             

According to his plea agreement, since at least December 2012, Lugo-Santiago obtained bulk quantities of heroin from a supplier in Pennsylvania and others.  Lugo-Santiago and his associates took this bulk heroin to an apartment they rented in New York. Lugo-Santiago employed approximately six people at the apartment to cut and re-package the heroin for further distribution in Maryland and Delaware.

Co-defendant Rachine Garnett generally purchased the heroin in quantities of 1.4 grams for $260. Beginning in January 2013, the Cecil County (Maryland) Drug Enforcement Task Force and DEA had a wiretap on phones used by Lugo-Santiago and Garnett, pursuant to a court order.  On several occasions, Garnett and Lugo-Santiago were overheard disputing the amount of money owed.  Over the course of the seven-month wiretap, investigators identified 59 money deliveries from Garnett totaling $1,668,510.  At a rate of $260 per 1.4 grams of heroin, Garnett was intercepted obtaining approximately 8.98 kilograms of heroin during the course of the wiretap.

Investigators also intercepted numerous calls between Lugo-Santiago and: customers in Maryland and Delaware about providing new supplies of heroin, obtaining payment for prior supplies of heroin, and the quality of the heroin; his suppliers; individuals he employed to cut and package the heroin.

On August 15, 2013, investigators executed a search warrant at the New York apartment used to process the heroin, and seized more than a kilogram of heroin, some of which was in the process of being packaged by several individuals.

Over the course of the conspiracy, Lugo-Santiago distributed more than 10 kilograms of heroin to customers in Maryland and Delaware, which were then re-distributed to local customers. 

Six defendants have pleaded guilty to their participation in the heroin conspiracy and have been sentenced to between two and 10 years in prison, including Rachine Huron Garnett, a/k/a “Sheen,” “Red,” “Ray,” and “Blockhead,” age 40, of Elkton, Maryland who was sentenced to 10 years in prison.  

United States Attorney Rod J. Rosenstein praised the DEA, Cecil County Drug Task Force, and Delaware State Police for their work in the investigation. Mr. Rosenstein also recognized the U.S. Attorney’s Offices in the District of Delaware, Southern District of New York and the Eastern District of Pennsylvania, the Office of the Special Narcotics Prosecutor for the City of New York and the New York Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and James G. Warwick, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – Carlos Rodgers, age 23, of Baltimore, pleaded guilty late yesterday to robbing three stores in Baltimore.

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; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn J. Mosby.

According to his plea agreement, on March 14, 2015 at approximately 11:12 p.m., Rodgers walked into a convenience store on 41st Street in Baltimore and pointed what appeared to be a handgun at the cashier.  After demanding and receiving money from two cash registers, he fled.

A few minutes later Rodgers entered another convenience store on Falls Road and placed the apparent handgun on the counter, demanding money from the cashier.  Rodgers took money from two cash registers and cigarettes before fleeing the store.

At approximately 12:38 a.m. on March 15, Rodgers walked into a restaurant on 36th Street and pointed what appeared to be a handgun at the cashier, demanding money.  As Rodgers began to walk around the front counter, another employee confronted him with a large kitchen knife, causing him to flee.

Based on physical descriptions of the suspect provided by the victims, Rodgers was quickly apprehended.

Rodgers faces a maximum sentence of 20 years in prison on each of the three counts of robbery.   U.S. District Judge James K. Bredar has scheduled sentencing for August 18, 2016 at 10:00 a.m.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation.  Mr. Rosenstein thanked Special Assistant United States Attorney Piper F. McKeithen, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Romeo Joseph Hillman, age 29, of Rockville, Maryland, today to 114 months in prison, followed by lifetime supervised release, for distribution of child pornography. Judge Hazel also ordered that upon his release from prison Hillman 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 Kevin Perkins of the Federal Bureau of Investigation; and Chief J. Thomas Manger of the Montgomery County Police Department.

According to Hillman’s plea agreement, on October 22, 2014, an undercover FBI Task Force Officer downloaded 82 image and video files depicting child pornography from a computer using an IP address associated with Hillman’s residence.  The images and videos depicted children from approximately ages three to 13 engaged in sexually explicit conduct.  On February 11, 2015, a search warrant was executed at Hillman’s residence and law enforcement seized two laptop computers, four USB drives and a cellular telephone. 

A subsequent forensic examination of the seized media revealed at least 12,765 images and 600 videos of child pornography, including the images previously downloaded by the FBI Task Force Officer.  At least 125 files recovered from the seized media depict children previously identified as victims of child pornography by the National Center for Missing and Exploited Children.  The images included depictions of sexual acts and/or bondage with boys and girls from infancy through pre-pubescence.  The forensic analysis also confirmed that Hillman had a file sharing program loaded on his computer.  Investigation showed that, in addition to the file sharing program, Hillman used Skype to exchange messages regarding the sexual exploitation of children and to trade pictures and videos depicting child pornography.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.              

United States Attorney Rod J. Rosenstein commended the FBI and Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Joseph R. Baldwin and Kristi N. O’Malley, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced John Edward Hayes, age 46, formerly of Baltimore, today to 209 months in prison followed by five years of supervised release for armed bank robbery, use of a firearm during the commission of a crime of violence and illegal possession of a firearm.  Judge Bennett ordered Hayes to pay restitution of $17,697.11, the amount of the banks’ losses.

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; Commissioner Kevin Davis of the Baltimore Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County (Virginia) Police Department.

According to his plea agreement, from February to May 2014, Hayes robbed a string of banks in the Baltimore and Washington, D.C. metropolitan areas.  On several occasions Hayes presented the teller with a note stating that he had a gun, or told the teller that he had a gun.

Specifically, Hayes robbed the PNC Bank on North Charles Street in Baltimore on February 3; the Wells Fargo Bank on North Rolling Road in Catonsville on February 18 and again on March 14, the Capitol One Bank on New Hampshire Avenue in Silver Spring on April 21, and the Capitol One Bank on Georgia Avenue in Wheaton on April 28.

On May 1, Hayes robbed the SunTrust Bank located on Baltimore National Pike in Columbia using a handgun.  The handgun was seized when he was taken into custody on May 6, 2014.  A security officer encountered Hayes in the restroom of a McDonald’s.  Hayes was seriously injured by a gunshot from the security guard.

The total amount Hayes stole in the six bank robberies was $17,697.11.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and City Police Departments, Montgomery County Police Department and the Fairfax County (Virginia) Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham and Special Assistant United States Attorney Lauren Perry, who prosecuted the case.

Baltimore, Maryland – A federal grand jury indicted Jason David Young, a/k/a “J Bird,” “Bird,” and “Chris,”, age 32, of New Carrollton, Maryland today on charges arising from sex trafficking. The original indictment was returned on August 25, 2015 charging Young with being a felon in possession of firearms.  Today’s superseding indictment adds charges of sex trafficking and coercion.

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); Chief J. Thomas Manger of the Montgomery County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Chief Gary Gardner of the Howard County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Howard County State’s Attorney Dario Broccolino.

According to the seven count superseding indictment, Young was a pimp who trafficked at least four women who were Maryland residents to engage in sex for money. Young directed three of the women to deliver drugs to individuals, including customers, and also provided drugs to women who worked for him, including crack cocaine and opioids.  Young used violence to force at least three of the women to engage in sex for money, and directed women working for him to also use violence.

The indictment alleges that Young and another individual transported the women working for him to hotel rooms and residences occupied by customers.  Young persuaded and coerced one woman to travel from Maryland to Virginia on February 27, 2014, and persuaded and coerced two women to travel from Maryland to Tennessee from January 18 to 21, 2014.

The indictment further alleges that from August to December 15, 2014, two of the women stole handguns from an individual and gave them to Young.  Young had previously been convicted of felonies and was prohibited from possessing the firearms. 

Young faces a mandatory minimum of 15 years and a maximum of life in prison on each of two counts of being a felon in possession of a firearm, and on each of three counts for sex trafficking; and 20 years in prison on each of two counts for coercion and enticement.  An initial appearance is expected later this week in U.S. District Court in Baltimore.

An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders.  Members include federal, state and local law enforcement, as well as victim service providers and local community members.  For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.

Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.

United States Attorney Rod J. Rosenstein commended HSI Baltimore; Montgomery County, Prince George’s County and Howard County Police Departments, and Prince George’s County and Howard County State’s Attorney’s Offices for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Patricia C. McLane, who are prosecuting the case.

Baltimore, Maryland – Friday James, age 43, of Laurel, Maryland, pleaded guilty today to conspiracies to commit bank fraud and make false claims, and to aggravated identity theft arising from schemes to defraud financial institutions and make false claims for tax refunds.

The guilty plea 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 Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office.

According to his plea agreement, from approximately 2007 through November, 2013, James conspired with others to defraud various financial institutions by depositing counterfeit and stolen checks and withdrawing the funds before the deposits were identified as fraudulent.  James became involved in the scheme through an individual he worked with buying and selling cars. James and this individual were originally from Nigeria and the individual had loaned James money.  Initially James accompanied the individual (the co-conspirator) to the State Office Building to complete paperwork and register businesses.  The two men would then obtain post office box addresses and open bank accounts for the businesses.  They would then deposit stolen, altered, and counterfeit checks into the accounts and withdraw the funds before the checks could bounce. 

The men used other individuals to conduct many of the transactions, including LaKeisha Butler, Kesa Baker, Carlvester Davis and others.  According to the plea, all of these individuals opened post office boxes for businesses, in most cases using the identities of other people, including fake identifications bearing the picture of the co-conspirator and the personal information of an identity theft victim.  These same individuals also opened bank accounts for the businesses, again often using stolen identities and fake identifications.  The paperwork for these transactions was prepared by James or the co-conspirator, and the mailbox keys, checkbooks and debit cards were provided back to them.  Only James or the co-conspirator picked up the mail from the post office boxes.

Additional co-conspirators were recruited to deposit the counterfeit checks and to withdraw the money, including Naimah Okail, Isaac Kusimo, and others.  James and the co-conspirator would pick up the individuals and provide them with a check to deposit, or a check to cash, usually completing the checks in front of the cashers and obviously signing a name which was not theirs.  James and/or the co-conspirator would transport the recruited individual to a bank, where that person used his or her own identification and the checks provided.   The checks often had a telephone number written on the checks, which would be answered by James or his co-conspirator if the bank called to confirm that the check was genuine.  Once the check was cashed, the money would be given to the James or the co-conspirator, and a portion (usually 5-10%) paid to the recruit.

During James’ participation in the bank fraud conspiracy, he and his co-conspirators obtained extensions of credit from federal insured financial institutions of $1,519,429.52 and attempted to obtain extensions of credit of $3,149,616.10.  More than 10 financial institutions and individuals were victimized by this scheme. 

From March, 2011 through in or around October 2013, James knew that electronic tax refunds were being deposited into the business bank accounts, and that since the business was fraudulent, no legitimate tax refunds would be due the business.  He repeatedly withdrew these funds immediately after they were deposited.  James and his co-conspirators obtained $389,592.05 in false claims for stolen identity tax refunds, and another $957,377.05 in false claims for tax refunds were submitted but not paid.  The total loss foreseeable to James was between $550,000 and $1,500,000.

As part of his plea agreement, James has agreed to the entry of a restitution order for the full amount of the victims’ actual losses during the time James was participating in the scheme, currently computed to be approximately $1,909,021.57.  That restitution shall be due and payable immediately upon sentencing.

Co-defendants LaKeisha Butler, age 33, of Columbia, Maryland; Kesa Baker, age 43, of Baltimore; Naimah Okail, age 35, of Baltimore; and Isaac Kusimo, age 30, of Takoma Park, Maryland have all pleaded guilty to their roles in the scheme and are awaiting sentencing.  The remaining defendants are scheduled for trial on June 6, 2016.

James faces a maximum of 30 years in prison and a $1,000,000.00 fine for bank fraud conspiracy; 10 years in prison and a $250,000.00 fine for the false claims conspiracy; and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft.  Chief U.S. District Judge Catherine C. Blake scheduled his sentencing for August 2, 2016, at 9:00 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. Postal Inspection Service and IRS – CI for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.

Greenbelt, Maryland – Stefon Janey, a/k/a “Stef,” and “Stef Luva,” age 23, of Marlow Heights, Maryland pleaded guilty today to conspiring to participate in the activities of the Simple City Criminal Organization (SCCO), a racketeering enterprise engaged in fraud and related activity in connection with access devices, wire fraud, bank fraud and interstate transportation of stolen property.

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; Chief Hank Stawinski of the Prince George’s County Police Department; and Chief J. Thomas Manger of the Montgomery County Police Department.

According to his plea agreement, from at least 2009 to July 2015, the conspirators met on a regular basis, and planned criminal activity, including vehicle theft, the interstate transportation of stolen property, identity theft and access device fraud.  The SCCO received money and income from criminal activities, including the sale of motor vehicles and stolen property by other SCCO members, as well as bank fraud, wire fraud and access device fraud.

More specifically, on March 30, 2015, Janey and a coconspirator attempted to steal money from two ATMs located on Piney Orchard Parkway in Odenton, Maryland.

On April 18, 2015, Janey and another coconspirator robbed a gas station located on Baltimore Avenue in Beltsville, Maryland.  They used a crowbar to forcibly enter the employee vestibule area, and took an employee’s cell phone and money from the cash register.  Janey and the coconspirator also forced opened an ATM in the gas station.  They fled in an Acura MDX that had previously been stolen in Prince George’s County.

On May 14, 2014, Janey and two coconspirators attempted to steal money from an ATM located in a furniture warehouse in College Park, Maryland.

Janey faces a maximum sentence of 20 years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for July 26, 2016 at 9:30 a.m.

Co-defendant Jessica Rubio, age 38, of Washington, D.C. previously pleaded guilty to her participation in the racketeering conspiracy and to aggravated identity theft.  Judge Hazel has scheduled her sentencing for June 3, 2016.

United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department, Montgomery County Police Department and the members of the Washington Area Vehicle Enforcement Unit for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Nicolas A. Mitchell, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Cory Allen Kline, age 32, of Hagerstown, Maryland today to eight years in prison, followed by three years of supervised release, for conspiracy to distribute heroin.

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; Washington County Sheriff Douglas Mullendore; and Acting Hagerstown Police Chief Paul Kifer.

Assistant Special Agent in Charge Don A. Hibbert stated, “ A successful prosecution in cases like this one, where the distribution of heroin is directly linked to a fatality, shows that DEA is not only committed to investigating large scale traffickers, but is also dedicated to working with our local counterparts to make sure that dealers in death are held accountable.”

According to Kline’s plea agreement, early on April 13, 2015 Kline and a co-defendant went to a residence in Hagerstown, Maryland with a 19-year old woman from Clear Spring, Maryland. The woman was a recovering heroin addict who had recently been released from jail. While at the residence, Kline and his co-defendant agreed to provide heroin to the woman. After injecting the heroin, the woman became very high. Kline left the residence sometime before 6:00 a.m. The woman left the residence in her car at about 6:15a.m. and spoke to another individual on her cell phone from that time until approximately 7:06 a.m. on April 13. According to this individual, the victim stated she was very high and did not feel right, and the individual could hear the victim throwing up. The victim reported driving to a convenience store parking lot, and then to a nearby church. Toward the end of the call, the victim began nodding off and then stopped speaking.  The victim’s body was discovered the following day in her car in a church parking lot in Hagerstown. The medical examiner reported that the cause of death was heroin intoxication. There were no drugs or drug paraphernalia found inside the vehicle, nor does the victim’s cell phone reflect any completed calls or outgoing messages after 7:06 a.m. on April 13.  Kline admitted that his distribution of heroin resulted in the victim’s death.

United States Attorney Rod J. Rosenstein commended the DEA and the Washington County Narcotics Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Christina Hoffman and Robert R. Harding, who prosecuted the case.

Greenbelt, Maryland – Jesus Coca, age 35, and his wife Caroline Coca, age 36, both of Hawthorne, California, pleaded guilty today to producing child pornography.

The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Claude Arnold of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Hawthorne (California) Police Chief Robert Fager; Los Angeles County Sheriff Jim McDonnell; Los Angeles County District Attorney Jackie Lacey; and St. Mary’s County Sheriff Tim Cameron.

According to their plea agreements, on December 3, 2014, a 14 year old child reported to a school counselor in Hawthorne, California that Jesus Coca was sexually abusing the child.

More than once from the summer 2012 to early 2013, Jesus directed Caroline to perform sexual acts on the victim while Jesus watched a live transmission on his cell phone over FaceTime.  Jesus also had FaceTime chats with the victim in which he directed the victim to engage in sexually explicit conduct.  Jesus screen captured numerous images of the live transmissions of the victim engaged in such conduct, and on numerous occasions sent the screen captures by text message to Caroline.

Caroline provided the victim access to her cell phone and encouraged the victim to engage in these FaceTime sessions with Jesus.

On December 3, 2014, Hawthorne, California police officers executed a search warrant at a residence located in Hawthorne, California, and seized computer hard drives containing cell phone backups for cell phones belonging to Jesus and Caroline. These backups contained numerous text messages between them regarding the sexual abuse and exploitation of the victim.

As part of their plea agreements, Jesus and Caroline Coca must register as a sex offender in the place where they reside, where they are an employee, and where they are a student, under the Sex Offender Registration and Notification Act (SORNA).

Jesus and Caroline Coca and the government have agreed that if the Court accepts their plea agreements, Jesus will be sentenced to 20 years in prison, and Caroline will be sentenced to 10 years in prison, followed by a lifetime of supervised release for both defendants.  U.S. District Judge Paul W. Grimm has scheduled sentencing for Jesus Coca on July 7, 2016 at 1:30 p.m., and sentencing for Caroline Coca on July 8, 2016 at 2:30 p.m. Both defendants are detained.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.

United States Attorney Rod J. Rosenstein commended HSI Baltimore and HSI Los Angeles, Hawthorne Police Department, Los Angeles County Sheriff’s Department, Los Angeles County District Attorney’s Office and St. Mary’s County Sheriff’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who is prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Terry James Morris, age 79, of West Rancho Dominguez, California, today to eight years in prison followed by four years of supervised release for conspiring to distribute and possession with intent to distribute cocaine and heroin, and obstruction of justice.  Chief Judge Blake also sentenced co-defendant Charlie Williams, a/k/a/ “Pee Wee,” age 69, formerly of Los Angeles, California today to eight years in prison followed by four years of supervised release for conspiring to distribute and possession with intent to distribute cocaine.

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; Special Agent in Charge Jeffrey S. Sallet of the Federal Bureau of Investigation, New Orleans Division; Special Agent in Charge John S. Comer of the Drug Enforcement Administration – Los Angeles, California Division; and Special Agent in Charge Laura A. Bucheit of the Drug Enforcement Administration – Las Vegas, Nevada Division.

Following four days of trial, the defendants entered their guilty pleas to the offenses described above.  According to stipulated facts agreed upon by the defendants, from November 2013 to August 2014, Morris was responsible for shipments of kilogram quantities of cocaine and heroin from California to Maryland.  The initial two loads of cocaine were transported by tractor trailer and delivered to a coconspirator in Maryland.  Thereafter, in January 2014, Morris purchased a recreational vehicle (RV) for more than $50,000 in cash, which was then used to transport the drugs from California to a restaurant in Harford County, Maryland.

Morris arranged to have at least three different drivers, including Williams, transport the drugs in the RV to a coconspirator in Maryland.  The drivers would also transport drug proceeds from the sale of the narcotics back in the same RV.  For example, in the spring of 2014, Williams drove the RV from Compton, California to Belcamp, Maryland. There, he met the coconspirator and delivered more than five kilograms of cocaine. Morris paid Williams $15,000 to drive the RV loaded with the drugs from California to Maryland.

On August 6, 2014, one of Morris’ couriers was arrested after having driven the RV from California to Maryland.  Inside the RV, concealed in hidden traps, were 25 kilograms of cocaine and six kilograms of heroin which were supposed to be delivered to the coconspirator in Maryland.

The FBI developed a confidential source (CS) who consensually recorded Morris in phone calls and on video.  The FBI also obtained a wiretap on Morris’ cell phone. Numerous phone calls and videos captured Morris discussing his drug activities.

After the courier had been arrested, Morris made a series of phone calls to the CS in whose name Morris had registered the RV.  In order to conceal Morris’ involvement, Morris told the CS to first say to law enforcement that he had leased the RV to the courier, then to say that the CS had merely lent the RV to the courier. Morris also provided the CS with the courier’s name, a physical description and a phone number, in the event that the CS was questioned by law enforcement, unaware that the CS had been cooperating with law enforcement.

United States Attorney Rod J. Rosenstein praised the FBI and DEA for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Seema Mittal and Christopher J. Romano, who prosecuted the case.

Greenbelt, Maryland –Michael Andrew Davila, age 27, of Berwyn Heights, Maryland, pleaded guilty on April 14, 2016, to transportation of a minor for prostitution.  His mother, Maria Elena Davila, age 51, of Germantown, Maryland, pleaded guilty to conspiracy to commit evidence tampering in connection with the case.

The guilty pleas 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; and Chief Hank Stawinski of the Prince George’s County Police Department.

According to Michael Davila’s plea agreement, in early January 2015, Michael Davila recruited a 15 year old female through Instagram to engage in prostitution.  Later in January, the victim turned 16 years old.  Between January and March 2015, Davila arranged for the victim to engage in acts of prostitution, advertised the victim online for sexual services in Maryland, Washington, D.C., and Virginia, using a false name and age for the victim, and transported or arranged for transportation of the victim throughout Maryland, DC. and Virginia to engage in commercial sex acts.  Davila kept a portion of the proceeds earned by the victim for engaging in commercial sex acts.

According to their plea agreements, Davila and co-defendant Elsie Pazmino answered text messages and calls from clients seeking to engage in sexual acts with the victim and arranged “dates” for the victim with those clients.  Davila educated the victim on how to arrange dates with customers for sexual services and set the prices that Victim 1 would charge for such services. On at least one occasion in January 2015, Pazmino admitted that she answered a telephone call from a potential customer in front of the victim, so that the victim could learn how to talk to potential customers and set up dates.  According to their plea agreements, Davila and Pazmino arranged and paid for hotel rooms in which the victim engaged in prostitution. 

Davila and co-defendant John Hamlett transported the victim, and other females Davila was prostituting, to locations within and outside Maryland to engage in prostitution.  Davila paid Hamlett $50 to $100 per night of driving females working for Davila, including the victim.

During the time that the victim engaged in acts of prostitution, Davila provided her with a cellular phone to communicate with Davila and potential customers.  Law enforcement’s review of the contents of the victim’s cellular phone revealed numerous text messages between Davila and the victim regarding proceeds earned by the victim from prostitution, locations where she was engaging in acts of prostitution, and the posting of ads online to advertise the victim for prostitution. Davila communicated with the victim through the use of cellular phone chat applications KIK and Pinger. 

According to their plea agreements, Davila was arrested on April 20, 2015, on federal charges relating to the sex trafficking of a minor, at a motel in Laurel, Maryland, where he was staying with his mother, Maria Davila,.  After his arrest, Maria Davila admitted that she accessed and erased the contents of Michael Davila’s KIK account, which he had used to communicate with the victim.  Maria Davila also repeatedly tried to access and delete Michael Davila’s Pinger account, which he had also used to communicate with the victim while he was prostituting her. On April 21, 2015, Michael Davila had several phone calls with Maria Davila, while he was in pretrial detention at the Chesapeake Detention Facility in Baltimore, Maryland.  During those calls, Michael and Maria Davila discussed the need to erase the KIK and Pinger accounts and Maria Davila’s efforts to delete the accounts.  Michael Davila provided multiple passwords for Maria Davila to try to access his Pinger account so that it could be erased.  Davila also sent a letter to Maria Davila, which stated in part, “Please keep tryna log into the Kik and Pinger” and then listed multiple passwords, many of which were the same as the passwords that Davila provided to his mother over the phone as captured in recorded jail calls.

As part of his plea agreement, Michael Davila 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).

Michael and Maria Davila and the government have agreed that if the Court accepts their plea agreements Michael Davila will be sentenced to between 120 and 175 months in prison and Maria Davila will be sentenced two years in prison.  U.S. District Judge George J. Hazel has scheduled sentencing for Michael Davila on August 29, 2016, at 2:30 p.m. and for Maria Davila on August 1, 2016 at 9:30 a.m.  Michael and Maria Davila remain detained.

Elsie Liseth Pazmino, age 29, of Berwyn Heights, and John David Hamlett, age 33, of Laurel, Maryland, previously pleaded guilty to their roles in the sex trafficking. Hamlett was sentenced to 30 months in prison. Pazmino faces a maximum sentence of five years in prison. U.S. District Judge George J. Hazel has scheduled Pazmino’s sentencing on June 2, 2016 at 2:30 p.m.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.  

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 and Prince George’s County Police Department for their work in the investigation and thanked the Anne Arundel County Police Department for its assistance.  Mr. Rosenstein thanked Assistant U.S. Attorneys Kristi N. O’Malley and Nicolas A. Mitchell, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Alex Raymond Valerio, age 36, of Glen Burnie, Maryland, today to 51 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute crack cocaine. 

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; and Anne Arundel County Police Chief Tim Altomare.

According to Valerio’s plea agreement, from at least May 2013 through July 23, 2014, he was the leader of a conspiracy to distribute crack cocaine, heroin, and powder cocaine in Baltimore and Anne Arundel County, Maryland.  His co-conspirators included Joseph Melendez, Marc Gaston, Moises Rosario, Eddie Eusebio Mateo, Ronald Francis Wosk Jr., James Maurice McCants, Keith Joseph Herring, Robert James Bookhamer, Dartanon Antione Gaines, Marvin Michael Desormeaux, and others. 

Valerio obtained heroin and cocaine from Melendez, Gaston, and others in the New York area.  Valerio either met with these suppliers personally or directed Rosario or Mateo to meet with them on his behalf.  Valerio coordinated the quantity and price of the drugs to be purchased directly with the suppliers.  Valerio converted some of the cocaine obtained from these suppliers into crack cocaine at his residence in Glen Burnie.  Valerio’s customers, including Wosk, McCants, Herring, Bookhamer, Gaines, Desormeaux, and others, were in direct contact with Valerio to coordinate the purchase of heroin, cocaine, or crack cocaine.  Valerio arranged for the price and quantity of these drug transactions and either met with the customers personally or directed Rosario or Mateo to conduct the transactions.

From March through July 2014, Valerio and his co-conspirators were intercepted in telephone calls and text messages discussing their drug trafficking activities.  Law enforcement also observed Valerio meeting with his co-conspirators to conduct drug transactions.

On July 23, 2014, investigators executed search warrants at residences of the co-conspirators and other locations connected with the conspiracy.  From Valerio’s home law enforcement recovered: two hydraulic presses; spoons with cocaine residue; drug paraphernalia including cutting agent and packaging material; a hand press; approximately 30.9 grams of cocaine; and $24,000 in cash.  From Bookhamer’s home in Baltimore law enforcement recovered: $7,108 in cash; plastic bags with approximately 22 grams of cocaine; drug paraphernalia and packaging materials; a .45 caliber handgun with two magazines; a rifle with a large capacity magazine; a box of .45 caliber ammunition; and multiple cell phones. Investigators recovered from Mateo and Rosario’s home in Pikesville: a six ton shop press, a dye press, five bundles of heroin (totaling approximately 11.7 grams), scales with cocaine reside, marijuana seeds, and twenty marijuana plants.

James Maurice McCants, age 43, of Baltimore, was sentenced to 92 months in prison; Joseph Melendez, age 28, of Brooklyn, New York, and Marc Gaston, age 37, of New York, New York, were each sentenced to five years in prison; Moises Rosario, age 33, and Eddie Eusebio Mateo, age 31,both of Pikesville, Maryland, were sentenced to two years in prison and 18 months in prison, respectively; Keith Joseph Herring, age 27, of White Marsh, Maryland, was sentenced to 21 months in prison; and Robert Bookhamer, age 37, of Baltimore, was sentenced to time served.  

Dartanon Antione Gaines, age 36, of Owings Mills, Maryland, Ronald Francis Wosk, Jr., age 29, of Baltimore, and Marvin Michael Desormeaux, age 41, of Aberdeen, Maryland, also pleaded guilty to their roles in the drug conspiracy and are awaiting sentencing. 

United States Attorney Rod J. Rosenstein commended the DEA and Anne Arundel County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who is prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Trevin Montrez Sampson, a/k/a “Bucket,” age 30, of Frederick, Maryland, today to eight years in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine. Sampson was the third member of the conspiracy to be sentenced for distributing cocaine in and around Frederick.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Frederick Police Department Chief Edward G. Hargis.

According to their plea agreements, from October 2014 through December 6, 2014, Trevin Sampson, his brother, Jacoby Sampson, and Peter Nicholson participated in a conspiracy to distribute cocaine in and around Frederick. During the investigation, Frederick Police initiated wiretaps on the Sampson brothers’ telephones and intercepted a series of calls in which the brothers arranged for Nicholson to transport a large amount of cocaine from Baltimore County to Frederick.  On November 24, 2014, Nicholson was stopped in his vehicle by law enforcement as he was en route to deliver cocaine to Trevin and Jacoby Sampson, as well as other customers.  Nicholson attempted to run away and in the course of his flight, placed a white cloth bag into an empty recycling bin.  Nicholson was arrested and the white cloth bag was recovered by law enforcement.  The bag contained multiple smaller bags which contained a total of 609.5 grams of cocaine.  Two of the smaller bags were labeled “T,” for Trevin Sampson, and “Luv,” for Jacoby Sampson.

The Sampsons and Nicholson spent the evening of November 25, 2014 and the following morning attempting to locate the white cloth bag, finally concluding, in a series of intercepted phone calls, that the bag had probably been seized by law enforcement.  Later on November 26, 2014, Trevin Sampson persuaded Nicholson to transport additional cocaine to Frederick, which Nicholson agreed to deliver the next day.  On November 27, 2014, officers conducted surveillance as Nicholson traveled from Baltimore County to Frederick in a taxi.  The officers initiated a traffic stop and as the taxi was coming to a stop, Nicholson ran from the car towards the nearby woods, tossing one package as he ran and throwing another package over a fence before he was taken into custody.  The packages were retrieved and found to contain a total of 60.48 grams of cocaine, which Trevin Sampson admits was intended for him.

On December 1, 2014, Trevin Sampson exchanged a series of text messages with one of his customers and arranged to meet the customer at a residence in Frederick. Officers conducting surveillance saw the customer enter the residence and leave a short time later with Trevin Sampson.  Officers subsequently stopped the customer at a parking lot in Hagerstown, Maryland and recovered 125.8 grams of cocaine, which the customer had purchased from Trevin Sampson.

During their participation in the drug conspiracy, Trevin Sampson and his co-conspirators admitted to distributing at least 500 grams of cocaine.

Peter Andrew Nicholson, a/k/a “White Boy Pete,” age 32, of Rosedale, Maryland, previously pleaded guilty and on December 23, 2015, was sentenced to nine years in prison for conspiracy to distribute and possess with intent to distribute cocaine.  Jacoby Olajuwon Sampson, a/k/a “Luv/Luva,” and “Coby,” age 27, of Frederick, pleaded guilty to the same charge and was sentenced to five years in prison.

United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Frederick Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted the case.

Baltimore, Maryland – Raymond Mykale Goodridge, age 21, of Baldwin, Maryland, pleaded guilty late yesterday to producing child pornography in connection with images and videos he made of a four year old boy and a 13 year old boy engaged in sexually explicit conduct.

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; Harford County Sheriff Jeffrey R. Gahler; Chief James W. Johnson of the Baltimore County Police Department; Harford County State’s Attorney Joseph I. Cassilly; and Baltimore County State’s Attorney Scott Shellenberger.

According to his plea agreement, Goodridge was friends with the mother of a toddler.   Goodridge spent time alone with the boy, spending the night at the boy’s home in Dundalk, Maryland.  The boy also spent the night at Goodridge’s home. In May 2014, when Goodridge was alone with the boy at the boy’s house, Goodridge used his cell phone to produce four photos which depict the boy, who was then four years old, partially naked.  The photos focused on the boy’s genitals.

Goodridge was also friends with the mother of a 13 year old boy, who lived in Harford County. Goodridge and the 13 year old boy spent time together alone.  In May 2014, Goodridge used a camera phone to surreptitiously take a video of the boy, intending to capture images of the boy engaging in sexually explicit conduct.  The video captured the boy changing clothes and in various states of undress, included fully naked, and his genitals. 

In February 2015, law enforcement seized digital devices belonging to Goodridge from his former residence, including a laptop and hard drive, which contained more than 600 images and videos of minors engaged in sexually explicit conduct.  Numerous files portrayed prepubescent children engaged in sex acts with adults.  The hard drive also contained the images and videos Goodridge produced of the two boys.

As part of his plea agreement, Goodridge 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).

Goodridge and the government have agreed that if the Court accepts the plea agreement, Goodridge will be sentenced to 210 months in prison followed by 25 years of supervised release.  U.S. District Judge Marvin J. Garbis has scheduled sentencing for June 23, 2016 at 9:00 a.m. Goodridge is in federal custody.

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, Baltimore County Police Department, and the Harford County and Baltimore County State’s Attorney’s Offices for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Robert John Wiseman, Jr., age 56, of Essex, Maryland, today to 17 years in prison, followed by lifetime supervised release, for distribution of child pornography. Chief Judge Blake also ordered that upon his release from prison, Wiseman 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; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

Judge Blake enhanced Wiseman’s sentence upon finding that Wiseman had a pattern of sexually abusing minors. Testimony concerning the abuse of minors, who came forward in 1990 and 2013, was presented at today’s sentencing hearing. The victims from 1990 and from 2013 each alleged that Wiseman began sexually abusing them beginning when they were two years old until they were approximately eight or nine years old.  The victim from 2013 further stated that Wiseman took pornographic photographs of the victim. Wiseman was never charged or convicted of these allegations.

According to Wiseman’s plea agreement, on July 17, 2014, an undercover Baltimore County Police detective was conducting an online investigation into the sharing of child pornography using file sharing networks.   The detective located an IP address on one of the file sharing programs that was sharing at least one video file that the detective knew from previous investigations depicted children engaged in sexually explicit conduct.  The detective downloaded the video file and tracked the IP address to the subscriber, a woman who lived in Essex.  The detective obtained a search warrant for that address and on September 9, 2014, the search warrant was executed.  The subscriber was at the residence along with Wiseman and two others, including a minor child.

During an audio recorded interview, Wiseman told the detective that he used a file sharing program on his desktop computer to search for and download child pornography.  Wiseman also acknowledged that he was aware that other people were able to download files from him using the file sharing network.  During the execution of the search warrant, a forensic review was conducted on Wiseman’s desktop computer.  The detective located the video he had downloaded, as well as numerous other video and image files depicting children engaged in sexually explicit conduct, including prepubescent children and images of sadistic and masochistic conduct, or other depictions of violence.  Law enforcement seized the desktop computer, two laptop computers, and 17 external hard drives, among other items.  A subsequent forensic examination of the desktop computer found approximately 20 video files and over 10,000 image files of child pornography.  Wiseman must forfeit the computers, hard drives and other digital media seized during the search. 

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 Baltimore County Police Department, FBI and HSI Baltimore for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Godfred Obeng, age 38, of Glen Allen, Virginia today to three years 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 Obeng to pay restitution of $338,548.45.

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, Obeng was an account services specialist at Capital One Bank, which issued credit card accounts to individuals.  Beginning in June 2012, Obeng accessed customer accounts to steal the account numbers, cardholders’ names and addresses.  Obeng shared this information with coconspirator Leslie Okyere in return for payment.  From at least January 2012 to March 2013, other coconspirators used these credit card numbers, belonging to over 50 victims, to make fraudulent purchases by phone with The Home Depot.

For example, coconspirator Awah Essem recruited college students, promising that they could make some easy money.  Essem directed the recruits to open a bank account and provide the bank account information to him. Essem told the recruits that money would be transferred into these accounts from The Home Depot.  A conspirator would order materials with Home Depot stores, supplying a victim’s credit card information stolen by Obeng.  Within a few days, a conspirator canceled the order and requested that the refund be placed on the coconspirator’s debit card, including the debit cards of coconspirators recruited by Essem.

The recruits, including Stanley Nmesirionye, Dosis Feludu and Gideon Turkson, would be required to withdraw the majority of the money from the bank account to give to Essem.  The recruit could keep a portion, in some cases as much as $300.

During the course of the fraud scheme, the total loss attributable to Obeng’s conduct was at least $338,548.45. 

Bertrand Awah Essem, age 27, of Beltsville, Maryland; Stanley Nmesirionye, age 24, of Owings Mills, Maryland; Dosis Feludu, age 25, of Salisbury, Maryland; Gideon Turkson age 24, of Burtonsville, Maryland and Leslie Okyere, age 33, of Hyattsville, previously pleaded guilty to their participation in the fraud scheme.  Essem was sentenced on February 5, 2016 to 27 months in prison and ordered to pay restitution of $264,757.29.  The remaining defendants await sentencing.

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.

Baltimore, Maryland – Gregory George Branch age 42, of Essex, Maryland, pleaded guilty today to three armed commercial robberies and three bank robberies.    

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; Baltimore Police Commissioner Kevin Davis; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Tim Altomare; Anne Arundel County State’s Attorney Wes Adams; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn Mosby.

According to his plea agreement, on June 23 and July 3, 2015, Branch robbed a grocery store in Baltimore and convenience store in Essex, respectively.  In each robbery, Branch approached the cashier, pretending to make a purchase, before raising his shirt to display what appeared to be the handle of a black handgun.  Branch then demanded money from the cashier, who gave him money from the register and Branch left the store.  On July 4, 2015, Branch robbed a discount store in Brooklyn Park, Maryland, displaying what appeared to be a black handgun.  Branch ordered the security guard to place guard’s weapon in a trash can, then ordered the security guard and the store manager to open the safe.  The manager gave Branch approximately $300 from the safe and Branch ran away.

Branch also admitted that on July 1, July 14 and July 17, 2015, he robbed three banks, stealing a total of approximately $4,402.  In each robbery, Branch presented the teller with a note demanding money.  In the note presented in the July 14, 2015, robbery Branch claimed to have a gun and in the robbery on July 17, 2015, Branch pointed what appeared to be a handgun at the teller.

When Branch was arrested, he was in possession of a black pellet gun that was used in all three of the store robberies and the bank robbery on July 17, 2015.

Branch also admitted that he committed nine other robberies or attempted robberies of businesses in Baltimore City and Baltimore County during June and July of 2015.

Branch and the government have agreed that if the Court accepts the plea agreement Branch will be sentenced to 130 months in prison followed by five years of supervised release.  U.S. District Judge Marvin J. Garbis has scheduled sentencing for July 18, 2016 at 10:00 a.m.   

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Baltimore County Police Department; Anne Arundel County Police Department; Anne Arundel County State’s Attorney’s Office, Baltimore County State’s Attorney’s Office and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Matthew C. Sullivan, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Taofeeq Ogunlana, age 39, of Chicago, Illinois today to 13 years in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute heroin.

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; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.

According to his plea agreement, from January to July 2015, Ogunlana met with Vladimir Lumelsky and supplied him with bulk quantities of heroin.  Lumelsky would travel from the Baltimore area to the Chicago area, where he and Ogunlana would meet.  Most recently, on July 12, 2015, Ogunlana met with Lumelsky at a hotel and supplied him with more than two kilograms of heroin.  While Lumelsky and a companion were driving back from Chicago to the Baltimore area, they were stopped by law enforcement on Interstate 70 in western Maryland.  Law enforcement seized more than two kilograms of heroin, which was intended to be redistributed to customers in the Baltimore area.

Ogunlana agreed that he and other co-conspirators distributed and possessed with intent to distribute more than three kilograms of heroin during the conspiracy.

Co-defendants Vladimir Lumelsky, age 41, of Pikesville, Maryland; Lawrence Bibbs, age 68, of Baltimore and Rodell Womack, age 49, of Baltimore previously pleaded guilty to their participation in the drug conspiracy.  Lumelsky and Bibbs are scheduled to be sentenced on June 10, 2016 at 11:00 a.m. and May 20, 2016 at 12:30 p.m., respectively.  Judge Motz sentenced Womack to four years in prison on April 11, 2016.

United States Attorney Rod J. Rosenstein praised DEA and the Baltimore City and County Police Departments for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew C. Sullivan and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Stanislav “Steven” Yelizarov, age 26, of Pikesville, Maryland, today to 30 years in prison, followed by five years of supervised release, for a robbery conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence, in connection with the robbery of a jewelry store, including a carjacking and kidnapping.  Judge Motz also entered an order requiring Yelizarov 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, Yelizarov was the leader of a conspiracy to rob an Owings Mills jewelry store, and was also the leader of an armed home invasion robbery designed to obtain firearms, which were subsequently used in the robbery of the jewelry store. 

Specifically, on July 22, 2012, Yelizarov, his brother MaratYelizarov, Aleksy Sosonko, and Grigory Zilberman robbed a home in Reisterstown, Maryland.  Zilberman was familiar with the layout of the home, and knew that the residents owned firearms, having been there as a guest on a number of occasions.  Zilberman had handled and fired some of the weapons.  After conducting surveillance of the home for several days prior to the robbery, at 2:30 a.m. on July 22, 2012, S. Yelizarov, who was armed with a handgun, Sosonko, M. Yelizarov, and Zilberman traveled to the home in Reisterstown.  Dressed all in black and wearing ski masks and latex gloves, the co-conspirators entered the home through the unlocked garage door.  Sosonko, M. Yelizarov, and Zilberman grabbed long guns from the residence and carried them throughout the home.  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.  For approximately one hour the robbers ransacked the home 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.

In the fall of 2012, Yelizarov devised a plan to commit an armed robbery of a jewelry store, known to be owned and operated by members of the Russian community of Northwest Baltimore.  Yelizarov was the leader of the conspiracy and had final decision making authority over the execution of the scheme. Yelizarov recruited Zilberman, Sosonko, Igor Yasinov, Peter Magnis, M. Yelizarov, Sorhib Omonov, and others to participate in the robbery.  In preparation for the robbery, on December 25, 2012, S. Yelizarov, Yasinov, and others committed a burglary of a residence in Baltimore, during which they stole a shotgun and semiautomatic handgun. The handgun was used in the robbery of the jewelry store on January 16, 2013. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance.  S. Yelizarov purchased and attached 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 S. Yelizarov’s plea agreement, 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 conspirators met at 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 driving in a rental car obtained by Yasinov, 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.

According to the plea agreement, once at the location, S. Yelizarov and the co-conspirators 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., S. Yelizarov and Sosonko drove the employee’s vehicle from the remote location to the jewelry store, while Yasinov and Magnis stayed with the employee, holding him bound and blindfolded at gunpoint.  M. Yelizarov and Omonov were stationed near the jewelry store to act as “look-outs.”  S. Yelizarov and Sosonko entered the store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was 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 federal misuse of passport charges.  From January 25 through February 2, 2013, S. Yelizarov placed calls directing his brother, M. Yelizarov, 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. 

Grigoriy (Greg) Zilberman, age 25, and Aleksey Sosonko, age 35, both of Owings Mills, Maryland; Igor Yasinov, age 26, of Baltimore; and Marat Yelizarov, age 27, of Pikesville, previously pleaded guilty to their roles in the robbery conspiracy and are awaiting sentencing. Peter Aleksandrov Magnis, age 28, of Hydes, Maryland, and Sorhib Omonov, age 27, of Baltimore, also pleaded guilty and were sentenced to seven years in prison and four years in prison, respectively.

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 Attorney Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Alfred Patterson, age 50, of Baltimore, Maryland, today to 17 years in prison, followed by five years of supervised release, for robbing a drug dealer and using a gun during the robbery. A federal jury convicted Patterson on February 5, 2016. 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.

According to the evidence presented at his five day trial, on January 28, 2015, Baltimore City Police officers were conducting surveillance in the 3600 and 3700 blocks of Beehler Avenue, a known high-crime area.  The officers saw a vehicle pull up and an individual got into the rear of the car, leaving the door open.  With an unobstructed view into the car, the officers saw a brief struggle between the individual, the driver of the car, and Patterson, who was in the passenger seat.  The officers saw Patterson pull out a handgun and point it at the individual, who jumped out of the car and ran away.  The car then drove off at high speed. 

Alerted by the surveillance team, two officers pulled the car over several blocks away and removed the driver and Patterson from the car.  A loaded .38 caliber revolver and two ziplock bags of heroin were on the passenger seat where Patterson had been sitting.  The officers recovered the gun and the heroin, and arrested Patterson and the driver. 

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the Drug Enforcement Administration for its assistance.  Mr. Rosenstein thanked Assistant United States Attorney Aaron S. J. Zelinsky and Special Assistant U.S. Attorney Lauren E. Perry, who prosecuted the case.

Baltimore, Maryland – A federal grand jury indicted Richard Dane Small, age 31, of Hagerstown, Maryland, today on charges of transporting a minor to engage in sex, and sex trafficking of a minor.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Frederick County Sheriff Charles A. “Chuck” Jenkins; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Frederick County State’s Attorney J. Charles Smith.

According to the indictment, and affidavit in support of the previously filed complaint, on June 22, 2015, the Frederick County Sheriff’s Office received a tip concerning possible prostitution at a hotel room in Frederick.  During subsequent surveillance of the hotel, Small was seen leaving the hotel room with two girls and driving away.  Police stopped the vehicle in Frederick for an expired vehicle registration.  Small and the girls initially identified themselves using false names.  The girls were 15 and 17 years old.

The indictment alleges that in June 2015 Small traveled to Johnstown, Pennsylvania with the 15 year old girl to pick up the 17 year old girl, and transported the girls to hotels and other locations in Maryland.  Small recruited and enticed the girls to engage in prostitution for him.

According to the indictment, Small persuaded the 15 year old girl to make herself available for prostitution by posting ads on a website. Small directed the 15 year old girl to take calls from clients responding to the ads.  Small received the money that she made from prostituting. 

Small faces a minimum mandatory sentence of 10 years in prison and a maximum of life  in prison followed by up to lifetime of supervised release for both charges.  Small is currently detained.

An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. 

This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders.  Members include federal, state and local law enforcement, as well as victim service providers and local community members.  For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.

Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.

United States Attorney Rod J. Rosenstein commended the Frederick County Sheriff’s Office, HSI Frederick and Frederick County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew J. Maddox and Seema Mittal, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced David Nathaniel Peebles, age 32, of Washington, D.C., late Friday, April 8, 2016 to eight years in prison followed by three years of supervised release for carjacking and being a felon in possession of a gun. 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation’s Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; Maryland Attorney General Brian E. Frosh; Chief Alan Goldberg of the Takoma Park Police Department; Chief Ronald A. Pavlik Jr.of the Metro Transit Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Chief Earl L. Cook of the Alexandria (City) Police Department.

According to his plea agreement, on February 8, 2012, Peebles, Jeffrey Franklin and another co-conspirator drove to the Manchester Road area of Silver Spring, Maryland, where they spotted an individual parking a 2008 Infiniti.  As the individual got out of the vehicle, Peebles remained in the car while his co-conspirators approached the individual.  At gunpoint, the co-conspirators demanded the keys to the car.  The co-conspirators took the victim’s purse and keys, and then drove away in the Infiniti, with Peebles following behind. 

On February 12, 2012, Peebles and two co-conspirators drove to the Russell Avenue area of Mount Rainier, Maryland, looking for carjacking targets. Again, Peebles remained in the car while the two co-conspirators approached victims in a 2004 Acura TL.  One co-conspirator pointed a gun at the driver’s head and demanded that the driver get out of the car.  The driver complied.  The second co-conspirator approached the passenger in the Acura and demanded the passenger’s purse.  When the victim did not immediately comply, the co-conspirator struck the victim in the face several times.  During the assault, the other co-conspirator took the victim’s property.  The co-conspirators then drove away in the Acura while Peebles followed. 

During the course of the conspiracy, Peebles or a co-conspirator possessed a pistol with an obliterated serial number to use in the carjackings.  Peebles had at least one previous felony conviction and therefore was prohibited from possessing a firearm or ammunition.

Jeffrey Carl Franklin, age 29, of Greenbelt, Maryland, previously pleaded guilty to his role in the carjacking conspiracy and is scheduled to be sentenced on June 21, 2016 at 9:00 a.m.  Another member of the conspiracy, Samuel Damien Bynum, age 25, of Washington, D.C., pleaded guilty and was sentenced to 207 months in prison for conspiring to use a gun during carjackings, using a gun during a carjacking, carjacking and being a felon in possession of a gun and ammunition. 

United States Attorney Rod J. Rosenstein commended the FBI; the Prince George’s County, Montgomery County, Takoma Park, Metro Transit, Alexandria and Metropolitan Police Departments; the Prince George’s County and Montgomery County State’s Attorney’s Offices; and  Maryland Attorney General’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant Matthew L. Paeffgen, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Deon Thornton, age 32, of Suitland, Maryland, today to eight years in prison, followed by four years of supervised release, for distribution of crack cocaine and for possession of a firearm by a convicted felon. 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael B. Boxler of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief M. Jay Farr of the Arlington County, Virginia Police Department; and Chief Earl L. Cook of the Alexandria, Virginia Police Department.

According to his plea agreement, on May 28 and June 10, 2015, the ATF and DEA used a confidential source to purchase 56 grams and 62 grams of crack cocaine, respectively, from Thornton.  On June 9, 2015, ATF and DEA used an undercover officer to purchase a .357 caliber revolver from Thornton.  On June 23, 2015, a confidential source for ATF and DEA purchased two guns, a 9mm pistol and a .22 caliber pistol, both with obliterated serial numbers, from Thornton.

Thornton has previous felony drug and gun convictions and is therefore prohibited from possessing a gun or ammunition.

United States Attorney Rod J. Rosenstein commended the ATF, DEA, Alexandria Police Department and Arlington Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Lindsay Eyler Kaplan, who prosecuted the case.

Baltimore, Maryland – A federal criminal complaint has been filed charging four individuals for a conspiracy to possess with intent to distribute cocaine. The criminal complaint was filed this afternoon, following the defendants’ arrests on Friday evening, April 8, 2016.  Charged in the criminal complaint are:

Hector M. Hernandez-Villapando, age 63, of Hanover, Maryland; Enixae Hernandez-Barba, age 33, of Linthicum Heights, Maryland; Hector L. Hernandez-Barba, age 39, of Las Vegas, Nevada; and
William Frederick Cornish, age 52, of Abingdon, Maryland.

The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Tim Altomare; Chief Michael A. Pristoop of the Annapolis Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Richard McLaughlin of the Laurel Police Department; Harford County Sheriff Jeffrey R. Gahler; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to the affidavit filed in support of the criminal complaint, in August 2015, DEA received information about a group that was trafficking large amounts of cocaine into Maryland and utilizing a warehouse on Golden Ring Road in Baltimore. Investigation showed that the business using that location, KMKJ Trucking, LLC, had been evicted by July 31, 2015.  Over the next six months, investigators identified Hernandez-Villapando and his sons, E. Hernandez-Barba and H. Hernandez-Barba as the individuals believed to have been using the Golden Ring Road warehouse.  The investigation subsequently identified a warehouse on Hammonds Ferry Road in Linthicum Heights, Maryland, as the new location being used by those individuals.

According to the affidavit, on April 6, 2016, a tractor trailer with the KMKJ logo arrived at the Hammonds Ferry Road warehouse and backed up to the rear bay door of the unit. Investigators observed items being unloaded from the tractor trailer into the warehouse.  A short time later, law enforcement observed a van occupied by E. Hernandez-Barba and H. Hernandez-Barba traveling around the parking lot and warehouse building, conducting counter-surveillance of the area.  The Hernandez-Barba brothers then entered the warehouse, where they remained for approximately two hours before returning to E. Hernandez-Barba’s residence.

On the evening of April 8, 2016, investigators saw H. Hernandez-Barba, E. Hernandez-Barba and Hernandez-Villapando arrive at the Linthicum Heights warehouse.  E. Hernandez-Barba then left in a black Honda, followed by a silver F-150 pickup truck.  After a conversation on a nearby street between E. Hernandez-Barba and the driver of the pickup truck, they returned to the warehouse.  E. Hernandez Barba went into the warehouse and the F-150 entered the warehouse through the bay door, which was then closed.  A few minutes later, the bay door re-opened and the F-150 drove out of the warehouse.  The truck, driven William Cornish, was stopped by law enforcement shortly after leaving the warehouse area.  A narcotics detection dog was brought to the scene.  The dog scanned the truck resulting in a positive response for the presence of illegal drugs.  Law enforcement recovered 31 kilograms of cocaine from a box in the back seat of the truck.  Law enforcement also stopped Hernandez-Villapando, H. Hernandez-Barba and E. Hernandez-Barba as they left the warehouse. 

Search warrants were obtained and executed at the warehouse and at the residences of E. Hernandez-Barba, Hernandez-Villapando, and Cornish.  Law enforcement recovered three large duffel bags in the basement of Hernandez-Barba’s home containing large amounts of cash.  The money was vacuum sealed in plastic bags marked with the amount of cash on the outside of each plastic bag.  Based on those amounts, law enforcement believes the duffel bags contain approximately $2.4 million.  Investigators also recovered a drug/money ledger in the home documenting just over $2.4 million in receipts from the sale of illegal drugs. From Cornish’s home, law enforcement recovered a money counter, colored rubber bands, latex gloves and a digital scale, typically used in the narcotics trade to count and package money and to weigh drugs prior to distribution.  Investigators also recovered a radio frequency detector that is commonly used by drug traffickers to “sweep” cars, people, and other items for hidden transmitters and electronic devices that are often used by law enforcement while investigating the distribution of illegal drugs.

The defendants face a minimum mandatory sentence of ten years and up to life in prison.  The defendants are expected to have initial appearances today beginning at 4:00 p.m. before U.S. Magistrate Judge Beth P. Gesner in U.S. District Court in Baltimore. 

A criminal complaint is not a finding of guilt.  An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings. 

United States Attorney Rod J. Rosenstein commended DEA, the Maryland Transportation Authority Police, Baltimore Police Department, Baltimore County Police Department, Anne Arundel County Police Department, Annapolis Police Department, Maryland State Police, Laurel Police Department, Harford County Task Force, and IRS Criminal Investigation for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Joshua T. Ferrentino, who are prosecuting the case.

Greenbelt, Maryland - U.S. District Judge Deborah K. Chasanow sentenced physician Paramjit Singh Ajrawat, age 60, Potomac, Maryland, today to 111 months in prison, followed by three years of supervised release for health care fraud, two counts of making a false statement related to a health care program, one count of obstruction of justice, four counts of wire fraud, and one count of aggravated identity theft related to a health care fraud scheme in connection with the pain clinic he owned and operated with his wife.  Judge Chasanow also entered an order requiring Ajrawat to forfeit and pay restitution of $3,103,874.58.

The sentence was 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; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Norbert E. Vint, Acting Inspector General of the U.S. Office of Personnel Management; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Special Agent in Charge Robin Blake, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General.   

“This lengthy sentence sends a powerful message that doctors who defraud health insurance programs will be held accountable,” said U.S. Attorney Rod J. Rosenstein.

Ajrawat was a licensed physician in Maryland who specialized in interventional pain management.  He and his wife owned and operated Washington Pain Management Center (WPMC) located in Greenbelt. A federal jury convicted Ajrawat and his wife, Sukhveen Kaur Ajrawat, age 57, also a medical doctor, on September 4, 2015.  The government moved to dismiss the charges against Sukhveen Ajrawat after her death on February 1, 2016.

According to evidence presented at the eight day trial, from at least January 2011 through May 2014, the Ajrawats defrauded federal health benefit programs including: Medicare, Medicaid, TRICARE, Federal Employees Health Benefits Program and the Office of Workers’ Compensation Programs.  The Ajrawats filed claims for procedures that were not performed.  Specifically, the Ajrawats performed less expensive procedures but falsely billed for procedures that provided higher reimbursement amounts.  The Ajrawats also submitted claims indicating that they had met the requirements for reimbursement, when in fact, they had not met those requirements.  Finally, the Ajrawats submitted claims for procedures that had not been performed at all.  

For example, the Ajrawats submitted claims that P. Ajrawat had performed nerve block injections with the use of an imaging guidance machine, but P. Ajrawat neither owned nor used such a machine. The Ajrawats also falsely documented patient files to indicate that an imaging guidance machine had been used to verify needle placement and caused the alteration or destruction of patient files to conceal the scheme from auditors and law enforcement.

United States Attorney Rod J. Rosenstein praised DCIS, HHS-Office of Inspector General, OPM-Office of Inspector General, FBI, U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Service-Office of Inspector General for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Kelly O’Connell Hayes, who prosecuted the case.