District of Maryland

Greenbelt, Maryland – Sultana Siddiqui, aka “Sultana Ahmad,” age 56, of North Potomac, Maryland, pleaded guilty today to conspiring to commit wire and mail fraud arising from an investment fraud scheme.  Siddiqui has agreed to the entry of an order to forfeit and pay restitution of at least $405,000, the minimum amount of actual loss resulting from the scheme.

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; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; and Montgomery County State’s Attorney John McCarthy.

According to her plea, Siddiqui was a mortgage broker who falsely represented to individual victims that co-conspirator Alexander Matthews was an investor or developer who could secure substantial returns on the victims' investments in a short time period. Siddiqui solicited investments from each of the victims, vouched for Matthews's trustworthiness and business acumen, and received money from the victims. She deposited most of the money from the victims into her personal bank account. Then she and/or Matthews would provide each victim with a post-dated check in the amount of the victim's investment plus the promised return. None of the post-dated checks were negotiable on the promised return date. After the victims discovered that the post-dated checks were not negotiable, Siddiqui and/or Matthews sent lulling payments and/or email communications to the victims.

For example, in 2008, a real estate agent and her husband agreed to invest $300,000, which they would draw on their home equity line of credit, to renovate a home in Clifton, Virginia, which would then be leased by the FBI.  Siddiqui, however, deposited the money in her personal bank account, and no lease agreement existed with the FBI.  Siddiqui and Matthews used the money for their own benefit, other than providing a small number of lulling payments to the victims. 

In November 2010, at Siddiqui’s urging another victim agreed to invest $50,000 with Matthews and give Siddiqui a $5,000 personal loan. In return, Siddiqui gave the victim a promissory note for the investment signed by Matthews, and two post-dated checks: one for $6,000 from a bank account held by Siddiqui; and one for $60,000 from an account held by Matthews. When the victim attempted to cash the checks, a bank official told her they were not negotiable.  Siddiqui sent several lulling emails to the victim, claiming that she would be repaid, but the victim has not received any payment.

Siddiqui and Matthews defrauded the victims of approximately $355,000.

Siddiqui admitted to defrauding another individual of $50,000 in a transaction in 2014.

Siddiqui faces a maximum sentence of 20 years in prison.  U.S. District Judge Theodore D. Chuang scheduled her sentencing for July 25, 2016, at 2:30 p.m.

Alexander Matthews, age 50, of Dunn Loring, Virginia, pleaded guilty in 2011 in federal court in the Eastern District of Virginia to his participation in the conspiracy and was sentenced to 10 years in prison.

The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.

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

United States Attorney Rod J. Rosenstein commended the FBI, Federal Housing Finance Agency Office of Inspector General, and Montgomery County State’s Attorney’s Office for their work in the investigation and thanked Assistant U.S. Attorney Ray D. McKenzie, who is prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Malcomb C. Cork, age 55, of South Carolina today to 15 months in prison, followed by two years of supervised release, for causing more than $187,000 to be diverted from his employer’s bank account.     

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.

According to his plea agreement, from 2004 until mid-2012, Cork was the President of a company headquartered in Baltimore, that distributed lawn and garden supplies.  Under the terms of his contract with the company, Cork also was permitted to operate a business he established called Medical Solutions, Inc. (MSI).  MSI executed a licensing agreement with Chemence LLC, a company that manufactured and distributed products, including a medical grade adhesive.  Under the agreement, MSI was required to pay Chemence $187,500 by July 1, 2011.  On that date, Cork wrote a check to Chemence for $187,500 drawn on his investment account, which was returned due to insufficient funds.

Cork admitted that on July 15, 2011, he directed subordinates to transfer $187,500 from the lawn and garden supply company’s operating account to an account in the name of Chemence LLC.  When the Chief Financial Officer (CFO) for the company, who was on vacation at the time of the funds transfer, returned and asked about the expenditure, Cork told the CFO that the funds were transferred to a trade show vendor with which the company was doing business.  Cork advised the CFO that he would obtain an invoice in support of the money transfer.  Despite repeated requests from the CFO, Cork never supplied an invoice to support the charge.  Eventually the company discovered that the payment was unrelated to its business and attempted – unsuccessfully – to recover the money.  Cork admitted that he knew he was not authorized to direct the funds transfer, but did so anyway for his own benefit.

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys P. Michael Cunningham and Aaron S. J. Zelinsky, who prosecuted the case.

Greenbelt, Maryland – A federal grand jury today returned an indictment charging Deonte Carraway, age 22, of Glenarden, Maryland, with thirteen counts of sexual exploitation of a minor to produce child pornography, involving 11 minor victims ranging in age from nine to 12 years old.  According to court documents, Carraway was an assistant for Judge Sylvania Woods Elementary School in Prince George’s County.  This indictment replaces the criminal complaint filed last week, which included eight counts involving six victims.

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; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

“Federal authorities will continue to work with Prince George’s County police and prosecutors to identify additional victims, provide appropriate counseling, and hold the perpetrator accountable,” said U.S. Attorney Rod J. Rosenstein.

According to the 13-count indictment, from October 11, 2015 through February 1, 2016, Carraway coerced and persuaded multiple children to engage in sexually explicit conduct in order to produce videos of that conduct.  According to the indictment, the images produced include Carraway engaging in sexual activity with victims, as well as the victims engaging in sexually explicit conduct at Carraway’s direction. 

According to court documents, Carraway met several of the victims at the school where he worked and other victims reported that Carraway recruited them from his choir group. Prince George’s County Police arrested Carraway on February 4, 2016, and he remains detained on related state charges.

Carraway faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for each of the 13 counts of production of child pornography.  Carraway has an initial appearance scheduled in U.S. District Court in Greenbelt on Friday, March 4, 2016 at 2:00 p.m. before U.S. Magistrate Judge Jillyn K Schulze.  Carraway remains detained on the related state charges.

The investigation is ongoing and investigators are asking anyone with information about possible victims or details about Mr. Carraway to call 1-800-CALL-FBI (1-800-225-5324).

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

The case is being investigated by the FBI Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat sex crimes involving children, made up of members from ten state and federal law enforcement agencies.

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

United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, and Prince George’s County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Daniel C. Gardner and Kristi N. O’Malley, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Micheal Jordon, age 35, formerly of Elkton, Maryland, to nine years in prison, followed by lifetime supervised release, for distribution of child pornography. Judge Hollander also ordered that Jordon must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.

According to his plea agreement, on January 21, 2014, Jordon engaged in a private chat with an undercover FBI agent who was working in a chat room known to promote incest.  Jordon and the undercover agent discussed Jordon’s interest in young girls, and continued their conversation on an instant messaging application and through text messages. Jordon ultimately sent the undercover officer videos and images of prepubescent females engaged in sexually explicit conduct with adult men.                                

On February 10, 2014, a search warrant was executed at Jordon’s residence and seized two laptop computers and two external hard drives, as well as other digital media. A forensic examination of the seized material showed Jordon to be in possession of more than 600 images of child pornography.

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Alberic Okou Agodio, age 31, of Bethesda, Maryland, today to 61 months in prison followed by five years of supervised release for conspiracy, wire fraud, and aggravated identity theft, arising from a mortgage fraud scheme in which he used the names of immigrants and students, along with false financial information, to obtain $3.8 million in home mortgage loans to buy approximately three dozen row houses in Baltimore, all but one of which are in default or foreclosure. Judge Bredar also entered an order that Agodio pay restitution of $3,356,581.78.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.

According to his plea agreement, Agodio agreed to purchase row houses in Baltimore City from co-conspirator Kevin Campbell, who had acquired the houses as part of his real estate business.  Agodio purchased the houses at prices far in excess of their actual market value.  In return, Campbell kicked back a substantial portion of the purchase price to Agodio, which Agodio used to pay for the down payments and closing costs for most of the properties; to pay a commission to the individuals whom he persuaded to allow him to use their names to purchase the properties (“the straw purchasers”); to pay referral fees to individuals who referred other straw purchasers to him; and to compensate himself for his participation in the scheme.  In all, from June 2009 to November 2010, Agodio purchased 35 row houses from Campbell.  The financing received on these transactions totaled approximately $3.8 million and Agodio received commission payments from Campbell in excess of $1.2 million. 

To perpetrate the scheme, Agodio persuaded approximately three dozen immigrants and students to purchase the row houses under their names.  Although none of these “straw purchasers” had any experience in real estate transactions, nor the funds needed to buy the properties, Agodio told each straw purchaser that he would prepare the loan application; manage the property after its purchase by finding renters, collecting the rent and paying the mortgage; and would pay the straw purchaser $7,000 to $8,000 after the transaction closed.  He further promised to sell the property in three years and give the individual up to 80% of the sale proceeds.  Agodio also paid thousands of dollars in additional commissions to those straw purchasers who referred other individuals to him as potential buyers for similar transactions.

Agodio admitted that he falsely represented in the loan applications the straw purchasers’ assets and earnings, and that the property would be the primary residence of the purchaser.  Agodio also provided fraudulent earnings and bank statements for the purchasers, to document the false information provided in the loan application.  Agodio provided the necessary funds for the down payment and the buyer’s share of the closing costs, causing the settlement statement form to inaccurately reflect that the down payments and closing costs had been paid by the straw purchasers.

Following the closings, Agodio retained the keys to each property and assumed the responsibility for finding renters and making the required monthly mortgage payments.  The named purchasers never lived in the properties.  Agodio eventually allowed all of the mortgages to go into default.

After a fire occurred at one of the row house properties purchased through a straw purchaser Agodio falsely identified himself as the straw purchaser to the insurance company in order to collect $106,500 in insurance paid for the repair the property.  Agodio cashed the check, which was made out to the straw purchaser and the bank holding the mortgage, and used the funds for his own purposes.  Agodio did not notify the bank that the funds to make the repairs to the property had been received, nor did he arrange to make or pay for any repairs to the property.

Kevin Campbell, age 53, of Baltimore, previously pleaded guilty to conspiring to commit mail, wire and bank fraud arising from mortgage fraud schemes resulting in losses totaling approximately $1.2 million.  Campbell was sentenced to 19 months in prison and ordered to pay restitution of $1,182,822.  In a related case, Judge Bredar sentenced co-conspirator Jonathan L. Miles, age 45, of Perry Hall, Maryland to 18 months in prison for conspiring to commit bank fraud, and ordered Miles to pay restitution of $1,182,822.

The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

United States Attorney Rod J. Rosenstein commended HUD- OIG, FDIC – OIG, FHFA - OIG and the FBI for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Derek Lamar Tompkins, age 20, of Upper Marlboro, Maryland today to 17 years in prison, followed by five years of supervised release, for bank robbery and forcing a bank employee to accompany him without the employee’s consent; and to brandishing a firearm during a crime of violence. Judge Bredar also ordered Tompkins to pay restitution of $85,695.05.

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 Timothy Bozman of the Princess Anne Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; and Chief James W. Johnson of the Baltimore County Police Department.

According to Tompkins’ plea agreement, from February through August 2014, Tompkins robbed three banks, stealing a total of $164,615.05. 

Specifically, on February 11, 2014, Tompkins entered the BB&T Bank in Princess Anne, Maryland, and passed the teller a note that read, “I have been watching you, I know you have $10,000 in cash.  Give me the money or I will shoot you or kill you.”  Fearing for her safety, the teller emptied her drawer, handing $1,539.05 to Tompkins who fled the bank.

On May 21, 2014, Tompkins and a second robber entered the M&T Bank located in Largo, Maryland.  The robbers went to the victim employee’s office and demanded money and told her that they had a weapon.  After the victim told them that she did not have any money, they ordered her to open the door to the teller line.  Tompkins and the other robber demanded money from two victim tellers, and ordered them to open a small safe. Tompkins and the second robber took approximately $84,120, and fled the bank. 

On August 18, 2014, Tompkins and a second robber entered the First Mariner Bank in Owings Mills, Maryland, wearing masks and hoods.  Tompkins was wielding a 9 mm handgun, which he and the second robber passed brandished as they passed the gun back and forth between them.  The robbers ordered the tellers to open their drawers, and Tompkins ordered one of the employees, at gun point, to get the key and move to the area where the vault was located.  Once at the vault, Tompkins ordered her to open the vault and then he removed cash from the vault.  Tompkins and the second robber then ordered the bank employees into the vault and closed the door.  The robbers fled the bank in two separate vehicles with $78,956 of the bank’s money.

Police in the area were able to identify and stop the vehicle Tompkins had fled in on August 18.  From the vehicle, officers located a large amount of cash (with First Mariner straps), the 9 mm handgun used during the robbery, as well as clothes, a pair of gloves, a mask, and two hooded sweatshirts, all of which matched the description of the items worn during the armed bank robbery.  After being advised of his rights, Tompkins admitted that he participated in the armed robbery of the First Mariner, that he had entered with the handgun, and that he was the one who had entered the vault with the victim employee to get the money.  

A subsequent trace of the 9 mm handgun showed that it had been stolen from an off duty Metropolitan (DC) Police Officer in Washington, DC, on May 6, 2014. 

United States Attorney Rod J. Rosenstein commended the FBI, Princess Anne Police Department, Prince George’s County Police Department, and the Baltimore County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok and Aaron S. J. Zelinsky, who prosecuted the case.

Baltimore, Maryland – Jonathan E. Rosenberg, age 47, of West Orange, New Jersey, pleaded guilty today to conspiring to commit wire fraud in connection with a complex scheme to defraud investors and lenders by selling fraudulent investment portfolios of debts purportedly owed by hospital patients. Rosenberg has agreed to the entry of an order to pay restitution of $148,251,859, the amount of the investors’ losses. 

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

“Jonathan Rosenberg and his co-conspirators perpetrated a brazen and complex Ponzi scheme that defrauded investors of more than $148 million,” said U.S. Attorney Rod J. Rosenstein. “The conspirators pretended that they were repaying investors with revenue earned by collecting patient debts, but they were really using the money of new victims to repay previous investors.”

Rosenberg and co-conspirator Douglas Kuber operated Account Receivable Services, LLC (ARS) in New York, New York.  Beginning in February 2007, they entered into an agreement with International Portfolio, Inc. (IPI), which was operated by co-defendant Robert Feldman and Feldman’s business partner, to promote the sale of IPI debt portfolio.  Pursuant to their agreement, IPI acquired accounts receivables from hospitals (past due patient accounts), bundled them 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.  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

According to his plea agreement, 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 concealed price. 

IPI 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, Rosenberg and Kuber made kickbacks of investor loan proceeds to themselves 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. 

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, Rosenberg, Feldman and Kuber wired or caused to be 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, Rosenberg, Feldman, and Kuber 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.

Rosenberg Owned Three Other Companies that Purchased IPI Debt Portfolios

Finally, Rosenberg owned and controlled three other companies that recruited investors for medical accounts receivable portfolios purchased from IPI: JER Receivables, LLC (JER); International Portfolio Access, LLC (IPA); and Receivable Partners, LLC.  

A wealth management company owner (Owner) invested with JER under an agreement which was structured as a loan but provided a guaranteed 30% rate of return over 16 months.  From July 2008 to February 2010, the wealth management company invested $18.7 million in nine transactions with JER to purchase portfolios of health care accounts receivable from IPI. JER used all of the proceeds to purchase medical debt portfolios from IPI, and the wealth management company made a $930,000 profit from two of the transactions. In October 2010, however, the wealth management company issued demand notices to JER on a number of the outstanding transactions due to JER failing to make required payments. 

The Owner formed a new wealth management company which entered into a $750,000 loan agreement with IPA in October 2009.  The loan was to be used to secure a larger credit line to purchase additional healthcare accounts receivable portfolios.  The credit line never materialized. From February 2011 to January 2012, this new company made a series of loans totaling $18.6 to Receivable Partners.  These loans were used to pay back some of the investors of the original wealth management company who purchased portfolios through JER.           

Rosenberg faces a maximum sentence of 20 years in prison.  U.S. District Judge James K. Bredar scheduled sentencing for June 14, 2016, at 9:30 a.m.

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

Co-defendant Richard Shusterman, age 53, of Highland Beach, Florida, has pleaded not guilty to charges filed against him relating to the scheme. 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 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.

Baltimore, Maryland – Cornell Harvey, a/k/a “Little Head,” age 28, of Baltimore, pleaded guilty today to conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.  Harvey also admitted his participation in a murder.

The guilty plea 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; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.

“Disputes between rival drug gangs lead to many shootings and murders in Baltimore City,” said U.S. Attorney Rod J. Rosenstein.  “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.” 

According to his plea agreement, from at least 2007 to 2013 Harvey was a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.”  UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.

Harvey admitted that as a member of UDH he sold crack cocaine, heroin and other narcotics with UDH members.  In addition to selling drugs, Harvey admitted that on October 5, 2010, he and co-defendant Dominic Evans committed an armed robbery of two individuals who were selling marijuana in the area, but who were not UDH members.  After stealing $150 from one of the victims, Harvey began to shoot at the two individuals.  One of the victims was shot once and survived his wound, but the other victim, who was shot at least three times, died from her wounds.  The murder was captured on CCTV.  A Baltimore City jury acquitted Harvey and Evans of this murder.

Finally, on January 29, 2011, at approximately 1:30 am, Harvey, and other gang members were arrested riding around Cherry Hill in a 1997 green Cadillac Seville stolen just over 24 hours earlier.  Upon trying to stop the vehicle, a chase ensued, and all four occupants bailed out in the rear of the 2800 block of Bookert.   Harvey was chased by an officer who saw him toss a fully loaded 9mm .357 Glock firearm.  Officers also recovered from the vehicle: a box containing 39 rounds of .38 special ammunition; a plastic bag containing 33 rounds of 9mm ammunition; a ski mask; and a glove.

According to Harvey’s plea agreement, the green Cadillac Seville was stolen late on January 27, 2011, after the victim was approached by three men as he was filling the vehicle at a gas station at North Avenue and McCulloh Street, in Baltimore City, Maryland.  The three men asked the victim for a ride.  Shortly thereafter in the 1800 block of Eutaw Place, the men donned masks and the victim was ordered out of the vehicle at gunpoint where he was shot and left for dead. 

Throughout the course of Harvey’s involvement in the UDH drug conspiracy Harvey knew that the conspiracy involved between 840 grams and 2.8 kilograms of crack cocaine and between 3 and 10 kilograms of heroin

Harvey and the government have agreed that if the Court accepts the plea agreement Harvey will be sentenced to 262 months in prison.  U.S. District Judge George L. Russell, III has scheduled sentencing for June 17, 2016, at 11:00 a.m.

Co-defendant Dominic Evans, a/k/a “FlatLine,” age 25, of Baltimore, previously pleaded guilty to his role in the racketeering conspiracy and was sentenced to 30 years in prison.

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – A federal grand jury indicted Salah Eldean Sood, age 34, of Baltimore, today on charges arising from a scheme to open credit card accounts using the stolen identity information of elderly persons who were in Sood’s care at Holland Manor Eldercare, an assisted living facility in Towson, Maryland.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS); Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division (SSA).

According to the four count indictment, Sood managed Holland Manor Eldercare. From July 2014 to January 2016, Sood used the names and social security numbers of three elderly persons who resided at the assisted living facility to apply for and receive six credit cards from a bank. Sood falsely represented himself to the bank as the resident in whose name he applied for the credit card. Sood added himself as an authorized user on those accounts and made over $75,000 in purchases using the accounts. 

Sood faces a maximum sentence of 30 years in prison and a $1 million fine for bank fraud, and a mandatory minimum of two years in prison consecutive to any other sentence imposed on each of three counts for aggravated identity theft.  An initial appearance has not yet been scheduled.  Sood is detained in federal custody.

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

The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.

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

United States Attorney Rod J. Rosenstein commended HHS, the Baltimore County Police Department, Baltimore County State’s Attorney’s Office and SSA for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Lauren E. Perry and Roann Nichols, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Michael Williams, age 41, of Baltimore, Maryland, today to 10 years in prison followed by five years of supervised release for conspiring to distribute 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; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.

According to his plea agreement and court documents, from September 2012 until his arrest in October 2014, Kedrick Jenifer was the head of a drug organization (Jenifer DTO) that transported cocaine and cash between Baltimore and Houston, Texas.  Jenifer supplied kilograms of cocaine to Michael Williams and others for distribution in and around the Baltimore-Washington area.  The Jenifer DTO obtained its cocaine from sources of supply in and around Houston. The Jenifer DTO would hide money in secret compartments in “courier vehicles” that were transported from Baltimore to Houston.  The cocaine was then transported from Houston to Baltimore hidden in the courier vehicles.

In September 2012, Texas State Police stopped a courier vehicle in Chambers County, Texas.  Law enforcement officers discovered approximately 30 kilograms of cocaine hidden in secret compartments within the vehicle. Between August 2013 and October 2014, approximately 30 shipments of cocaine concealed in secret compartments in the courier vehicles were made to the Jenifer DTO.  During this time, Williams was frequently seen meeting with Jenifer and providing Jenifer with money in exchange for cocaine. In addition, during a separate joint FBI and Baltimore City Police Department investigation in 2014, law enforcement learned that Williams was supplying street level drug shops in Baltimore City with cocaine.

Williams admitted that during his participation in the conspiracy, the Jenifer DTO was responsible for the distribution of at least 750 kilograms of cocaine between August 2013 and October 2014.

Kedrick Arnold Jenifer, a/k/a “Ricky Jenifer,” “James Howard Collier, Jr.” and “Rick,” age 44, of Bowie, Maryland, pleaded guilty to conspiring to distribute cocaine and is scheduled to be sentenced on March 4, 2016.  Eight other co-conspirators have pleaded guilty.  Andre Brewer, age 36, of Jessup, Maryland; Brooke Renee Lunn, a/k/a “Brooke Thomas” and “Brooke Renee,” age 49; William Hegie, age 55; Kermit Clark, age 45; and Elroy Johnson, age 49, all of Baltimore; and Tyrone Allen, age 44, of Bowie, Maryland, and Thomas Simmons, age 38, of Hampton, Virginia, were sentenced to between 10 and 16 years in prison.   

United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation, Baltimore City and County Police Departments, and the FBI for their work in the investigation, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance.  Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr., who is prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – Stanislav “Steven” Yelizarov, age 26, of Pikesville, Maryland, pleaded guilty today to 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.

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; 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, having been there as a guest on a number of occasions.  Zilberman knew that the residents of the home owned firearms and he 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, 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.  S. Yelizarov was armed with a handgun when they entered the residence.  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. 

Stanislav Yelizarov and the government have agreed that if the Court accepts the plea agreement Yelizarov will be sentenced to 30 years in prison.  U.S. District Judge J. Frederick Motz has scheduled sentencing for April 13, 2016 at 10:30 a.m. 

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

United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.

Baltimore, Maryland – A federal grand jury returned a superseding indictment late yesterday against Joseph R. Dominici, age 29, of Annapolis, Maryland, on wire fraud charges arising from a telemarketing scheme to defraud real estate professionals around the country who paid to advertise on websites owned by Dominici. The superseding indictment also re-alleges previous charges arising from a counterfeit credit card scheme.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Anne Arundel County Police Chief Tim Altomare; Anne Arundel County State’s Attorney Wes Adams; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Henry P. Stawinski of the Prince George’s County Police Department.

Dominici owned and operated JJ&M Enterprises, LLC, an on-line business based in Annapolis, Maryland, operating to provide leads to real estate professionals concerning potential homebuyers. Dominici registered two websites which he and JJ&M used to conduct business: BuyerHomeSite.com and FreeHomeFind.com 

According to the 14 count indictment, the websites purported to contain active listings of homes for sale, and allowed potential homebuyers to browse home listings in a selected geographic area.  The websites also represented to realtors or loan officers that they could pay to become a “preferred expert” in each of the geographic regions that they chose.  If a prospective home buyer (user) searched the websites for properties in an area where a real estate professional had paid to become the “preferred expert,” the websites displayed an ad that included the real estate professional’s photograph and contact information.  For a monthly fee of approximately $299, the websites would grant a real estate professional exclusive access to all leads generated on the websites associated with the real estate professional’s assigned geographic area. 

The indictment alleges that from on or before March 6, 2014 to October 20, 2015, Dominici represented to real estate professionals that such leads included personal information provided by a potential homebuyer, where in fact, the leads sent to the real estate professionals contained fictitious information created by Dominici and individuals employed by JJ&M. Dominici created fictitious identities, including names, email addresses and cell phone numbers.  He provided cell phones to a JJ&M employee which had the name and phone number of a fictitious identity taped to the back.  Dominici also posted false and duplicative “testimonials” from “satisfied” customers on the websites. 

Dominici allegedly caused employees to make unsolicited telephone sales calls to many thousands of real estate professionals located all over the United States.  Dominici provided JJ&M employees with scripts and talking points to use in soliciting real estate professionals to pay to become the “preferred expert” for their area on the websites. As a result of these sales calls, more than 1,000 real estate professionals agreed to pay approximately $299 per month to be advertised as preferred experts. 

As a result of this telemarketing fraud scheme, Dominici allegedly obtained and attempted to obtain more than $895,568.31 from real estate professionals.  The indictment seeks forfeiture of this amount.

Dominici faces a maximum sentence of 30 years in prison on each of 11 counts of wire fraud in the telemarketing fraud scheme.  An initial appearance for Dominici is expected to be scheduled for next week.

The superseding indictment re-alleges a separate counterfeit credit card scheme in which Dominici obtained stolen or otherwise compromised credit card numbers from several sources. Co-conspirator Christina Price, a server at a restaurant in Gambrills, Maryland, used electronic devices known as skimmers to fraudulently obtain the credit card information of restaurant customers who paid by credit card.  Price then provided this stolen customer information to Dominici for use in producing fraudulently re-encoded credit cards.  Dominici and co-conspirator Carlos Ledbetter, an employee of JJ&M, used special equipment to encode the stolen account information onto stored value cards and then used the fraudulently re-encoded credit and stored value cards to obtain extensions of credit from banks and credit unions.

Dominici faces a maximum sentence of 30 years in prison for conspiring to commit bank fraud; 10 years in prison for access device fraud; and a mandatory minimum sentence of two years in prison consecutive to any other sentence for aggravated identity theft, arising from the credit card fraud scheme. 

Carlos M. Ledbetter, age 29, of District Heights, Maryland, and Christina O. Price, age 22, of Bowie, Maryland, previously pleaded guilty to their participation in the credit card fraud scheme.  U.S. District Judge J. Frederick Motz sentenced Ledbetter to six months in prison, and scheduled Price’s sentencing for May 2, 2016 at 9:30 a.m.  Dominici has pleaded not guilty to charges arising from the credit card fraud scheme.

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 U.S. Secret Service, Anne Arundel County Police Department, HSI Baltimore, Prince George’s County Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers and Special Assistant U.S. Attorney Angela Tang, who are prosecuting the case.

Greenbelt, Maryland – Deonte Carraway, age 22, of Glenarden, Maryland, was charged by federal criminal complaint today with eight counts of producing child pornography, involving six minor victims ranging in age from nine to 11 years old. An indictment was also returned today in Prince George’s County Circuit Court charging Carraway with child sexual abuse; second degree sex offense; attempted second degree sex offense; third degree sex offense; fourth degree sex offense; and second degree assault.  Carraway was a “Dedicated Assistant” for Judge Sylvania Woods Elementary School in Prince George’s County. 

The investigation is ongoing and investigators are asking anyone with information about possible victims or details about Mr. Carraway to call 1-800-CALL-FBI (1-800-225-5324).

The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Prince George’s County State’s Attorney Angela D. Alsobrooks; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.

“Many criminals take advantage of anonymous internet messaging services to transmit child pornography,” said U.S. Attorney Rod J. Rosenstein. “One alert relative checked a child’s smartphone, found a naked photo and called the police. That call may have prevented more children from being abused.”

“Today’s indictment is for one victim, but we will continue to work with our law enforcement partners to ensure that Mr. Carraway is held accountable for his actions, said Prince George’s County State’s Attorney Angela D. Alsobrooks.  “It is my hope that we will be able to do this with as minimal impact as possible to the children so that we can help them and their families begin the healing process from these unspeakable incidents.”

“We are asking the public to continue coming forward in this case because there could be additional victims out there.  We need people to call 1800-CALL-FBI.  No matter how insignificant you think your information may be, please call,” said Kevin Perkins, Special Agent in Charge, FBI- Maryland.  “Parents and primary caregivers are the first and most important line of defense against such terrible crimes.  You know your child better than anyone else.  Continue to be part of their lives and know who else is.”

“The manpower devoted to this case is on par with some of the most complex cases this police department has ever worked. Investigators have already spent more than 3,000 hours talking with victims, witnesses and family members and examining evidence. The ultimate goal is to ensure justice is served for each and every affected child and his or her loved ones,” said Chief Hank Stawinski of the Prince George’s County Police Department.

The affidavit filed in support of the federal criminal complaint alleges that from October 11, 2015 through January 8, 2016, on at least eight separate occasions Carraway coerced and persuaded multiple children to engage in sexually explicit conduct in order to produce videos of that conduct.  Carraway met several of the victims at the school where he worked and other victims reported that Carraway recruited them from his choir group.

According to the affidavit, Prince George’s County Police arrested Carraway on February 4, 2016, after the family member of one of Carraway’s victims found a sexually explicit photo the victim had sent to Carraway using the Kik messenger application on his phone. Kik lets users send text, pictures, and videos within the Kik app. Kik users are identified by usernames rather than phone numbers. According to the affidavit, Carraway also used Kik to communicate with other victims. On February 11, 2016, a federal search warrant was signed authorizing a search of Carraway’s cellular phones and other digital items.  A subsequent forensic analysis of one of Carraway’s cellular phones revealed approximately 38 videos depicting children engaged in sexually explicit conduct, including the videos that are the basis of these federal charges. The videos were taken using Carraway’s cell phone and were recorded at the homes of some of the victims and in the basement of a residence. The videos include Carraway engaging in sexual activity with victims, as well as directing the victims to engage in sexually explicit conduct. 

According to the affidavit, law enforcement interviewed the victims who reported that Carraway engaged in, and directed other instances of sexually explicit conduct involving the victims, some of which Carraway allegedly videotaped, including at the school where he worked.   

Carraway faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for each of the eight counts of production of child pornography.  No court appearance has been scheduled in U.S. District Court in Greenbelt.  Carraway remains detained on the related state charges.

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

The case is being investigated by the FBI Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat sex crimes involving children, made up of members from ten state and federal law enforcement agencies.

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

United States Attorney Rod J. Rosenstein and Prince George’s County State’s Attorney Angela D. Alsobrooks commended the FBI and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Daniel C. Gardner and Kristi N. O’Malley, who are prosecuting the federal case.

Baltimore, Maryland – A federal jury convicted physician William Crittenden III, age 52, of Kensington, Maryland late Friday of conspiring to distribute oxycodone and alprazolam, and eight separate counts of unlawfully distributing oxycodone.

The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

“William Crittenden prescribed opioid drugs to people who had no medical need for the drugs,” said U.S. Attorney Rod J. Rosenstein. “Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper oversight.”

According to evidence presented at the 11 day trial and court documents, in March 2011, co-defendants Michael Resnick, Alina Margulis and Gerald Wiseberg opened Healthy Life in Owings Mills, Maryland as a purported pain management clinic.  Healthy Life later moved to a larger space in Timonium, Maryland, until it closed on May 15, 2012.  Both Healthy Life locations attracted large and unruly crowds.  Customers caused disturbances outside the locations, used narcotics inside the clinic itself, and engaged in narcotics transactions in the parking lot.  Over 80% of the customers of Healthy Life were from out of state.

Wiseberg interviewed and hired Crittenden to serve as one of the first medical directors at Healthy Life because Wiseberg believed that Crittenden would write prescriptions for narcotics to customers without a legitimate medical need.  Customers to Healthy Life paid at least $300 for an initial visit and at least $250 for all subsequent visits and the fees were collected upfront. Crittenden was paid $1,500 a day by the managers of Healthy Life, and received a total of $104,500 over just four months while he was engaged in the scheme.  During this time, Crittenden knowingly provided prescriptions to individuals who were addicted to oxycodone and only wanted more pills to feed their addictions.  Crittenden also knowingly provided prescriptions to individuals who wanted to sell the narcotic pills on the street.  Finally, Crittenden knowingly provided prescriptions to Healthy Life customers even after their urinalysis results showed the presence of illicit substances such as cocaine and marijuana.

Crittenden was the medical director of Healthy Life until his resignation in August 2011 when the Maryland Board of Physicians - the agency authorized to issue licenses to practice medicine in Maryland and to discipline licensees - initiated an investigation into Crittenden’s prescribing practices.  This investigation ultimately led the Maryland Board of Physicians to suspend Crittenden’s medical license.

Wiseberg, who was not a doctor, established the standard operating procedures for Healthy Life, including which drugs the prescribing physician could prescribe and the maximum dosage amounts of these drugs.  Healthy Life also accepted cash payments in exchange for providing prescriptions for large amounts of oxycodone, alprazolam and other drugs, to customers who did not have a legitimate medical need for the drugs.

To maximize profits, they also encouraged the prescribing physicians, including Crittenden, to prescribe the maximum amount of oxycodone to each customer; and established that prescriptions would be written for 28-day cycles as opposed to 30-day cycles. Additionally, Margulis and Resnick handled complaints by Healthy Life customers who were unhappy with the prescriptions they received, particularly when a medical provider might prescribe less oxycodone than the customer wanted.  In those instances, Margulis and Resnick would intervene and ask the prescribing medical provider to reconsider, knowing it would lead the provider to give the customer what the customer wanted. 

Crittenden was acquitted on 15 of the drug distribution counts.

Crittenden faces a maximum sentence of 20 years in prison.  A sentencing date will be scheduled in the near future. 

Michael Resnick, a/k/a Michael Reznikov, age 54, and his wife, Alina Margulis, age 49, both of Brooklyn, New York; Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 82, of Boca Raton, Florida; along with Daniel Alexander, age 53, of Pikesville, Maryland, who served as a medical director at Healthy Life after Crittenden resigned, previously pleaded guilty to conspiracy to distribute oxycodone and alprazolam. Margulis also pleaded guilty to money laundering, and Resnick also pleaded guilty to structuring currency deposits. Resnick and Margulis have agreed to the entry of an order to forfeit $280,000, the amount of illicit profits they received from the scheme.  Alexander has agreed to the entry of an order to forfeit $30,000, the amount he was paid for his activities at Healthy Life. Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for Wiseberg on March 7, Resnick and Margulis on March 18, and Alexander on March 25.

United States Attorney Rod J. Rosenstein commended DEA, IRS-CI, Baltimore County Police Department and Baltimore County State’s Attorneys’ Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Peter J. Martinez, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – Government contractor Paige Industrial Services, Inc. has agreed to pay the United States between $450,000 and $675,000 to resolve allegations under the False Claims Act that the company submitted false claims to the Department of Health and Human Services. In a related parallel criminal proceeding involving a Paige subcontracting company, construction company owner Luis Alonso Valle, age 46, of Silver Spring, Maryland, pleaded guilty on February 11, 2016 to an illegal pattern and practice of hiring unauthorized aliens.

The settlement and guilty plea were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (DHHS); Acting Special Agent in Charge John Dolce, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL); Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; 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).

This settlement resolves allegations that Paige Industrial Services submitted claims from 2006 to 2013 falsely certifying that it had complied with the Davis-Bacon Act.  The Davis-Bacon Act required Paige to pay certain prevailing wages and fringe benefits to its employees, or the employees of its subcontractors, while working under a government contract performing construction at the National Institute of Health (NIH) campus in Bethesda, Maryland.  Paige, which provided construction and maintenance services to government agencies, allegedly failed to meet the requirements of the statute while certifying that it had.  Paige denies the allegations. 

“Contractors are required be truthful in their certifications to federal agencies,” said U.S. Attorney Rod J. Rosenstein. 

“This office is committed to investigating allegations of fraud involving the Davis-Bacon Act, which requires that contractors and subcontractors pay prevailing wages to their workers on government projects,” stated Acting SAC John Dolce, U.S. Department of Labor’s Office of Inspector General - Washington Regional Office. “The joint criminal and civil resolutions announced today reflect the seriousness with which our agency and its law enforcement partners pursue allegations of wrongdoing that affect the American workforce.”

As part of the settlement, Paige has agreed to make additional payments above a minimum settlement payment of $450,000, depending on the financial performance of the company over the next five years.

The civil settlement resolves a lawsuit filed in the District of Maryland under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government's recovery. (U.S. ex rel. Brandon Owens and Stevan Reba v. Gilbane, Inc, Gilbane Building Company, Inc, and Paige Industrial Services, Inc.) The claims resolved by this settlement are allegations only, and there has been no determination of liability.  

In a related parallel criminal proceeding, Valle Services, LLC., was a subcontractor to Paige at the NIH campus in Bethesda.  According to his plea agreement, Luis Valle owned and operated Valle Services, a construction company that provided unskilled laborers to clean up after demolition projects.  From at least January 2010 to June 2013, Valle paid some of his employees by handwritten checks without withholding required payroll taxes of at least $54,641.  Additionally, Valle failed to pay a matching employer share of the payroll tax of at least $54,641.  These wages were not included on W-2 forms distributed to the employees at the end of the year.

Furthermore, from March 2008 to August 2013, Valle hired at least 19 illegal aliens to work in the United States, and paid them weekly through checks that he typically distributed in person from his vehicle at a parking lot.  Valle approved the hiring of at least five of the illegal aliens to work on a federal contract at the Bethesda NIH campus, which contract was subject to the provisions of the Davis-Bacon Act.

U.S. District Judge Paul W. Grimm sentenced Valle on February 11, 2016 to three years’ probation and imposed the condition that Valle not employ any unauthorized aliens.  Judge Grimm also entered an order that Valle forfeit $57,000, which represents a $3,000 fine for each of the 19 unauthorized aliens that he illegally hired. 

The settlement was a result of an investigation by the U.S. Attorney's Office for the District of Maryland, DHHS, DOL-OIG, IRS-CI, FBI and HSI Baltimore.  The investigation was handled by Assistant U.S. Attorneys Thomas Barnard and Sujit Raman.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Michael L. Montague, age 66, formerly of Gwynn Oak, Maryland, Friday, February 19, 2016 to 262 months in prison followed by a lifetime of supervised release for using a mobile phone to entice a minor to engage in sexual activity and for receipt of child pornography.  Judge Bredar also ordered that upon his release from prison, Montague will be required to continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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 Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to Montague’s plea agreement, from February 16 through March 26, 2014, Montague used his mobile phone to contact the victim. Montague knew the victim, and knew that he was 12 years old at the time of their communications. Montague used a mobile application to contact the victim using a number different from the telephone number assigned to Montague’s phone. Using this disguised phone number Montague contacted the victim and claimed to be “Gail,” a classmate of victim’s. Posing as “Gail,” Montague engaged in sexually explicit text and email communications with the victim.

Montague, posing as “Gail” wrote to the victim that she knew Montague, and that the victim should send pictures of himself to Montague, and Montague would send the victim pictures of “Gail.” “Gail” told the victim that Montague had very nice pictures of “Gail” that the victim should ask to see. “Gail” suggested that the victim seek permission to stay with Montague for a weekend so that “Gail” and the victim could meet for a sexual encounter. “Gail” also told the victim that she could get Montague to make a sexual video of her, and that then the victim should let Montague make a sexual video with him.  Montague also sent messages to the victim posing as a male classmate of the victim who also knew Montague and “Gail.”

Forensic examination of Montague’s phone revealed sexually explicit communications with the victim, sexually explicit images and videos Montague sent to the victim, and a sexually explicit image that the victim sent to Montague.

On May 19, 2009, Montague was convicted in the Circuit Court for Baltimore County, Maryland, of child abuse and a third degree sex offense, for his sexual abuse of two girls, and was sentenced to three years in prison. 

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, Maryland State Police Internet Crimes Against Children Task Force, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Judson T. Mihok, who prosecuted the case.

Greenbelt, Maryland – A federal grand jury returned an indictment late yesterday against Rene de Jesus de Leon, age 47, and his wife, Pedrina Rodriguez Bonilla, age 37, both of Silver Spring, Maryland, and Ana Maritza Gomez, age 43, of Hyattsville, Maryland, on charges arising from a residential mortgage fraud scheme.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG); Chief Henry P. Stawinski of the Prince George’s County Police Department; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.

According to the 10-count indictment and court documents, from at least January 2011 to August 2015, the defendants told homeowners who wanted to modify their mortgage loans and prevent foreclosure of their homes that -- for an upfront fee, which was usually between $2,000 and $6,000, subsequent monthly payments and a back-end consulting fee -- the defendants could lower the homeowners’ monthly payments and allow them to pay off their loans more quickly. The defendants told the victims to make monthly payments to the defendants and to companies they controlled, in lieu of to the homeowners’ lenders, as part of a “principal reduction consulting program.” The companies controlled by defendants were named Marketing Multiservices LLC and Innovative Solutions Services LLC.

 According to the indictment and court documents, the conspirators mailed monthly invoices to the homeowner victims. Some of the victims paid Gomez in person each month at her residence, or a co-conspirator would go to the home of the victim to pick up the monthly payment. The defendants told the victims not to open any mail from their lenders and instead provide it to the conspirators. The indictment alleges, however, that the defendants did not negotiate with lenders of behalf of the homeowners. 

According to the affidavit supporting the complaint against Bonilla and Gomez, one victim who was actually current on his mortgage made payments to the program, in lieu of his lender, totaling approximately $50,000, including the initial fee. The victim stopped making payments when he received a foreclosure notice from his lender. Another victim told investigators that she made payments to the program totaling at least $20,000, but nevertheless was evicted from her house, had her cars towed, her dogs boarded and her belongings put on the front lawn.

The defendants face a maximum sentence of 20 years in prison for conspiring to commit mail and wire fraud, and 20 years in prison for each of nine counts of mail fraud.  De Leon and Bonilla are currently detained.  Initial appearances for the three defendants have not yet been scheduled.

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

The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.

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

United States Attorney Rod J. Rosenstein commended the FHFA-OIG, HUD-OIG, Prince George’s County and Montgomery County Police Departments, U.S. Postal Inspection Service and the Prince George’s County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant United States Attorney Jolie F. Zimmerman, who are prosecuting the case.

 

Greenbelt, Maryland –Christopher C. Camut, age 53, of Baltimore, Maryland, pleaded guilty today to  conspiracy to commit wire fraud arising from a scheme to fraudulently obtain at least $1.6 million from three companies at which he was employed as the chief financial officer. 

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.        

At various times between January 2007 and August 2014, Camut was the chief financial officer for three companies. Company A is a non-profit organization that develops microbicides that can provide women in developing countries with protection against HIV infection.  Company B manufactures products for the medical industry, and Company C develops medical countermeasures against biological and chemical threats.

According to his plea agreement, from January 2008 to May 2014, Camut created false emails, engagement letters, agreements and invoices to make it appear as if financial institutions had provided services to the companies.  He caused the companies to issue checks payable to the financial institutions, which Camut then deposited into his personal bank accounts.  Over the period of six years, Camut stole at least $1,618,951 from the three companies.

Camut created agreements between coconspirator Kaitlyn Jones and Companies A, B and C, which falsely represented Jones’ profession.  Camut caused the three companies to transfer by wire and issue checks payable to Jones, although Jones performed no work for the companies.  Camut and Jones shared the proceeds received from the companies.

To facilitate the fraud, Camut repeatedly forged on documents the name and signature of a bank employee, to make it appear as if the bank had performed work for Companies A and C, when it had not.  Camut forged the victim’s name over 15 times.

Camut has agreed to forfeit and pay restitution of $1,618,951. 

Camut and the government have agreed that if the Court accepts the plea agreement, Camut will be sentenced to 80 months in prison.  U.S. District Judge Peter J. Messite has scheduled sentencing for May 19, 2016 at 9:30 a.m.   

Kaitlyn Jones, age 48, of Reisterstown, Maryland, pleaded guilty to her participation in the conspiracy and awaits sentencing.

United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Leah Jo Bressack and David I. Salem, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Carlos Arnulfo Chacon Chacon, age 42, of Laurel, Maryland today to three years in prison followed by one year of supervised release for manslaughter by vehicle – criminal negligence, driving under the influence of alcohol, driving an uninsured vehicle, reckless driving, and failure to drive in a single lane charges. 

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 his plea agreement, at about midnight on February 1, 2014, Chacon Chacon, who was in the United States illegally, was driving a Toyota Celica northbound on the Baltimore-Washington Parkway. Two motorists noticed that he was driving erratically, weaving across the road and leaving the travel lanes as he went onto the shoulder.  They called 911.  As one of the witnesses was speaking with the 911 operator, Chacon Chacon crashed his car into a Mitsubishi traveling northbound in the right lane, on a straight area of the highway. 

The Mitsubishi went over a stone wall and then went airborne, striking a tree and causing its roof to collapse down into the passenger compartment.  Chacon Chacon’s car struck the stone wall, spun around, and struck the stone wall a second time, finally coming to rest partially in the highway, perpendicular to oncoming traffic.

At the accident scene, Chacon Chacon was able to walk away from his vehicle and spoke with police and emergency medical technicians.  He twice declined medical treatment and admitted to drinking six beers shortly before driving.  He was under the influence of alcohol, with a blood-alcohol level of .17 percent. A case of beer was in the back seat of his car. His car was not insured.

Emergency medical services cut open the Mitsubishi and extracted the driver, Yolanda Michelle Holt, age 36, of Columbia, Maryland, who sustained extreme head trauma and experienced cardiac arrest.  Ms. Holt remained hospitalized in a coma for nearly eight months and died on September 22, 2014.  Ms. Holt, a District of Columbia public school employee, left behind three children.

United States Attorney Rod J. Rosenstein commended the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant United States Attorney Gustav William Eyler, of the U.S. Justice Department, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge George L. Russell III, sentenced Kieron Matthew Williams, age 39, of Baltimore, today to 13 years in prison, followed by three years of supervised release, for five robberies of retail establishments and displaying what appeared to be a handgun in each robbery. 

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; Baltimore Police Commissioner Kevin Davis; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn Mosby.

According to Williams’ plea agreement, between August 13 and September 21, 2014, Williams committed five robberies of stores in Baltimore City and Baltimore County.  In each robbery Williams entered the store and displayed what appeared to be a black semi-automatic handgun to the store employee and demanded money.  Williams stole a more than $1,000 in the five robberies.  Williams also admitted that he committed more than 10 other robberies in Baltimore City and County during that same time period.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Baltimore County Police Department, 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 Attorneys Matthew C. Sullivan and James G. Warwick, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Stewart Mark Twayne Harris, age 39, of Silver Spring, Maryland, today to two years in prison followed by five years of supervised release for bank fraud, money laundering and aggravated identity theft. Judge Motz also entered an order that Harris pay restitution of $1,666,700, and forfeit residential property located in Brandywine, Maryland.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.

According to his plea, in April 2009, Harris applied for a $1,666,700 loan from a commercial lender for the purported purpose of using loan proceeds to purchase a commercial glass company.  The loan was to be guaranteed by the Small Business Administration (SBA).  To secure the business loan, Harris submitted a loan application and purported tax returns in which he falsely represented the social security number of another individual to be his own.  He also submitted false bank statements in which he used the stolen identity of a second victim, and an equity statement which falsely represented the amount of paid receipts and other cash injection into the business he was to purchase.

Based on this false documentation, the SBA and the lender approved the loan, with the SBA guaranteeing 89.99% of the loan amount.  On June 26, 2009, the lender disbursed $1,591,666 to Harris. From June to October, 2009, in order to conceal the loan proceeds, Harris deposited and withdrew the proceeds into different bank accounts he controlled.  On October 1, 2009, Harris withdrew part of the funds to make a deposit and down payment on the purchase of a home in Brandywine, Maryland.

Harris defaulted on the loan on January 5, 2011.  SBA paid the lender approximately $1,515,918.90 in satisfaction of its loan guarantee.

In April 2012, Harris filed a voluntary petition for bankruptcy.  In his petition to the bankruptcy court, Harris failed to declare the commercial lender as a creditor, and failed to disclose that he was an officer or director, and owner of five percent or more, of the glass company.

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 efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

United States Attorney Rod J. Rosenstein commended the SBA-OIG and SSA–OIG for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.

Baltimore, Maryland - A federal jury today convicted the owner of Alpha Diagnostics, Rafael Chikvashvili, age 67, of Baltimore, Maryland, of health care fraud and wire fraud conspiracy, healthcare fraud, including two counts of health care fraud resulting in death, as well as wire fraud, false statements and aggravated identity theft, related to a scheme to defraud Medicare and Medicaid of more than $7.5 million.  Judge Bredar ordered that Mr. Chikvashvili be immediately taken into custody.  A detention hearing will be held on Thursday, February 18, 2016 at 2:00 p.m. to determine whether he will remain in custody pending his sentencing.

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.           

“The evidence showed that Rafael Chikvashvili failed to provide medical services to patients who needed them, and billed for services that he did not provide,” said U.S. Attorney Rod J. Rosenstein. “The jury found that two patients died because their X-rays were not reviewed by a qualified radiologist. Health care fraud has consequences, in money wasted and lives lost.”

According to the evidence presented at the two-and-a-half week trial, Chikvashvili formed Alpha Diagnostics Services, Inc., which later became Alpha Diagnostics, LLC, in 1993, and was the Managing Member, Authorized Official, Managing Employee, President and Chief Executive Officer for Alpha Diagnostics. Chikvashvili holds a PhD in mathematics, but was never a medical doctor or licensed physician. Timothy Emeigh was the Vice President in charge of Operations at Alpha Diagnostics and was a licensed radiologic technologist.

Alpha Diagnostics was a portable diagnostic services provider, principally of X-rays, but also provided ultrasound tests, and cardiologic examinations.  Alpha Diagnostics’ clients included nursing homes whose patients were covered by Medicare and Medicaid. Alpha Diagnostics operated in Maryland, Delaware, Pennsylvania, Virginia and the District of Columbia, but was headquartered in Owings Mills, Maryland, where Chikvashvili worked full time.

Based on the evidence, the jury found that from 1997 through October 2013, Chikvashvili conspired with others to defraud Medicare and Medicaid by: creating false radiology, ultrasound and cardiologic interpretation reports; by submitting insurance claims for medical examination interpretations that were never completed by licensed physicians; by falsely representing to Medicare and Medicaid, as well as to treating physicians, that the interpretations had, in fact, been completed by actual licensed physicians; by submitting insurance claims for radiology, ultrasound and cardiologic examinations (and their associated costs) that were never performed and/or were not ordered by the treating physician; and by submitting claims for transportation and other charges that Alpha Diagnostics was not entitled to receive.

According to witness testimony, Chikvashvili instructed his non-physician employees, including Emeigh, to interpret X-rays, ultrasounds and cardiologic examinations instead of licensed radiologists. For example, in June 2012, Emeigh traveled to Jamaica for a vacation.  The evidence showed that Chikvashvili directed Emeigh, through text messages and telephone calls, to view medical images using his personal laptop in his hotel room and then draft false physician interpretation reports.  Alpha Diagnostics personnel subsequently submitted false claims to Medicare for these images and fraudulent physician reports.

The evidence showed that Chikvashvili also caused employees to draft licensed physician’s examination reports.  Chikvashvili, in turn, caused a copy of the handwritten signature of the actual physician to be affixed to the report, or forged the physician’s signature himself, creating the appearance that a licensed physician had performed the medical interpretation.

According to the testimony provided at trial, two patients died because their X-rays were not interpreted by a qualified radiologist.  Instead, non-physician Alpha Diagnostics employees reviewed the images and failed to detect congestive heart failure. As a result of the incorrect reading the her chest X-ray, the first patient with congestive heart failure was not transferred to an acute care facility for treatment, as is standard medical practice, but remained in a rehabilitative nursing home. The patient died four days after unqualified Alpha Diagnostics personnel misinterpreted her chest X-ray.  Witnesses testified that had the patient been transferred, her symptoms could have been addressed. The second patient was scheduled to undergo elective surgery and the chest X-ray was a pre-operation test to determine if the patient could safely have surgery.  According to the evidence presented at trial, although the patient’s X-ray revealed mild congestive heart failure, the non-physician Alpha Diagnostics employee failed to detect it.  A patient in congestive heart failure is at an increased risk of bleeding during and after surgery. As a result of the incorrect reading of the chest X-ray, the patient was cleared for elective surgery and experienced significant bleeding during and after the elective surgery, and the worsening of her congestive heart failure.  Six days after unqualified Alpha Diagnostics personnel misinterpreted her chest X-ray, the patient died. 

Subsequently, Alpha Diagnostics submitted claims to Medicare falsely representing that licensed radiologists had interpreted both patients’ chest X-rays.  Medicare paid Alpha Diagnostics $8.87 for the first claim and $218.36 for the second claim. 

Chikvashvili faces a maximum sentence of life in prison for each of the two counts of healthcare fraud resulting in death; 10 years in prison for each of nine counts of health care fraud; 20 years in prison for each of eight counts of wire fraud and for the conspiracy count; a maximum of five years in prison for each of 11 counts of false statements relating to health care matters; and a mandatory two years, consecutive to any other sentence imposed, for two counts of aggravated identity theft. 

Timothy Emeigh, age 51, of York Springs, Pennsylvania previously pleaded guilty to health care fraud and is awaiting sentencing.

United States Attorney Rod J. Rosenstein praised the HHS-OIG and the FBI for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and P. Michael Cunningham, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced James Davis, age 57, formerly of Washington, D.C., today to 16 years in prison followed by three years of supervised release for conspiring to commit robbery, robbery of money belonging to the United States, carrying and brandishing a firearm during a robbery, and being a felon in possession of a firearm.

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 - Washington Field Office; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; Chief Henry P. Stawinski of the Prince George’s County Police Department and Chief Douglas Holland of the Hyattsville Police Department.

“Today’s sentencing is the result of the U.S. Postal Inspection Service working diligently with our law enforcement partners to make sure that U.S. Postal Service customers, employees and facilities are protected,” stated Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division.

According to his plea agreement, on August 8, 2013, Davis and co-conspirator Recardo Beatty drove to the Hyattsville Post Office.  Beatty first entered the post office to scout the inside.  Davis then entered, while Beatty waited outside in their getaway vehicle.  Davis pointed a long black paintball gun at an employee.  The employee and another employee fled from their cash registers, while Davis grabbed money and money orders out of the register.  Davis and Beatty fled in their vehicle.

On August 15, 2013, the pair traveled to the Glut Food Co-Op in Mt. Rainer, Maryland.  As Beatty waited outside in the vehicle, Davis entered the store, walked behind a counter where an employee was working and displayed a paintball gun.  Davis ordered the employee to open the cash register and Davis removed money.  Davis and Beatty fled in their vehicle.

On September 17, 2013, Davis and Beatty traveled to the Dollars and Sense store in Brentwood, Maryland and entered the store together.  Davis demanded that an employee open a cash register, from which he took money and a cash box.  Beatty, who was armed with a firearm, saw another employee approach a store exit door.  A fight ensued, and the employee was hit on the head.  Davis and Beatty fled the store in their vehicle.

On the same day as the Dollars and Sense robbery, officers recovered the firearm from Beatty that was used in the robbery.  The next day, September 18, 2013, officers executed a search warrant at Beatty’s residence where Davis was staying, and recovered a paintball gun and clothing used in the robberies.

Davis had previously been convicted of a felony and was thus prohibited from possessing a firearm. 

Recardo Beatty, age 50, of Washington, D.C., previously pleaded guilty to his participation in the robberies and is scheduled to be sentenced on February 29, 2016 at 9:00 a.m.

United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service and the Prince George’s County and Hyattsville Police Departments for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Leah Jo Bressack and Special Assistant United States Attorney Matthew L. Paeffgen, who prosecuted the case.

Baltimore, Maryland – CVS Pharmacy, Inc. (CVS) has agreed to pay $8 million to the United States to resolve allegations that its Maryland pharmacies violated the Controlled Substances Act (CSA) by dispensing controlled substances pursuant to prescriptions that were not issued for a legitimate medical purpose.

The settlement agreement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division.

“Pharmacies that dispense controlled substances have a duty ensure that prescriptions they fill were issued for legitimate medical purposes,” said U.S. Attorney for the District of Maryland Rod J. Rosenstein. “Doctors and pharmacists are the gatekeepers of the effort to prevent the abuse and diversion of pharmaceutical drugs for non-medical purposes.”

“The abuse of prescription drugs has rampantly spread throughout our communities,” stated DEA Special Agent in Charge Karl C. Colder.  “This abuse has directly resulted in the escalation of heroin addiction and related overdoses. Today’s settlement sends a clear message to all pharmacies that it is essential to dispense controlled substances in compliance with DEA’s record keeping requirements. DEA is dedicated to combat the prescription drug abuse problem in Maryland and throughout the country and to hold nationwide chains, like CVS, accountable.”

The CSA authorizes the United States to seek civil penalties for a pharmacy’s failure to fulfill its corresponding responsibility to dispense only those prescriptions that have been issued for a legitimate medical purpose by a health care provider acting in the usual course of professional practice.  Knowingly filling an illegitimate prescription subjects a pharmacy to civil penalties under the CSA. 

According to the settlement agreement, CVS acknowledged that between 2008 and 2012 certain CVS pharmacy stores in Maryland dispensed controlled substances, including oxycodone, fentanyl and hydrocodone, in a manner not fully consistent with their compliance obligations under the CSA and related regulations.  This included failing to comply with a pharmacist’s liability to ensure the controlled substance prescriptions were issued for a legitimate medical purpose. This settlement caps off an investigation that began as part of the DEA’s crackdown on prescription drug abuse in Maryland. 

U.S. Attorney Rod J. Rosenstein commended the DEA’s Office of Diversion Control, Baltimore Division for its work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Thomas F. Corcoran, who handled the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz, sentenced Tony Linn Smith, age 56, of Silver Spring, Maryland, today to seven years in prison, followed by three years of supervised release, immediately after Smith entered his guilty plea to bank robbery.  Judge Motz also entered a forfeiture order requiring Smith to pay a money judgment in the amount of $4,775.

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; and Captain Paul “Joey” Kifer, Acting Chief of the Hagerstown Police Department.  

According to his plea agreement, Smith committed three bank robberies between July 17 and July 25, 2015.  In each robbery Smith entered the bank, presented the teller with a note demanding money and stating that he had a gun.  Specifically, Smith robbed the M&T Bank on North Potomac Street in Hagerstown, Maryland on July 17th; the Sun Trust Bank located at 8700  Georgia Avenue in Silver Spring, Maryland on July 23rd; and the M&T Bank at 51 W. Edmonston Drive in Rockville, Maryland on July 25th.  Smith stole a total of $5,100 from the three robberies.

In December 2001, Smith pleaded guilty to bank robbery and was sentenced to five years in prison, followed by three years of supervised release. After serving his prison term in federal custody, Smith served approximately eight years in state custody in connection with a Virginia bank robbery.  Smith was released from state custody on June 30, 2014 and was required to be on federal supervised release until June 29, 2017.  As a result, Smith was on supervised release at the time of the bank robberies described above.

United States Attorney Rod J. Rosenstein praised the FBI, Montgomery County Police Department, and Hagerstown Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.

Greenbelt, Maryland – Philadelphia attorney James Michael Farrell, age 63, of Wenonah, New Jersey, had his initial appearance and arraignment today in U.S. District Court in Greenbelt, Maryland, on charges related to his activities on behalf of members of an extensive drug trafficking operation. Mr. Farrell pleaded not guilty to the charges and was released under the supervision of U.S. Pretrial Services. On October 26, 2015, a federal grand jury returned a sealed indictment charging Farrell with conspiracy, money laundering, tampering with an official proceeding, and witness tampering. The indictment was unsealed on January 28, 2016.                                 

The initial appearance and indictment 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; 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; Interim 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 the 12-count indictment, Farrell was admitted to practice law in Pennsylvania and New Jersey, and maintained a law office in Philadelphia, Pennsylvania. Matthew Nicka, his wife Gretchen Peterson, David D’Amico, and others 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, and tally sheets showing over $14.5 million in marijuana sales, among other items. 

The indictment alleges that beginning in 2009 and continuing through at least April 2013, Farrell conspired with Nicka, D’Amico, Peterson and others to conduct financial transactions using the proceeds of the Nicka Organization in order to conceal the source, location, ownership and control of the drug proceeds.  Specifically, the indictment alleges that the drug conspirators would deliver funds, usually in the form of cash to Farrell.  Farrell deposited some of the cash into his commercial bank accounts, recording the deposits as payments in the names of individuals who had not retained Farrell as their attorney.  In addition, Farrell wrote checks and disbursed cash to pay for the legal representation of grand jury witnesses or individuals charged or under investigation in Maryland in connection with the activities of the Nicka Organization, including legal representation by two Baltimore area attorneys. According to the indictment, Farrell also used drug proceeds to obtain money orders and deposit them into the inmate accounts of incarcerated individuals with knowledge of the drug conspiracy.  Farrell and his co-conspirators structured financial transactions to evade IRS filing requirements for transactions involving $10,000 or more in cash, thereby further concealing from the government large cash transactions by members of the Nicka Organization and it suppliers and customers.

The indictment further alleges that in February 2011, Farrell met with a drug dealer to discuss filing a claim with the DEA to seek the return of certain property DEA had seized from the drug dealer.  Farrell allegedly advised that individual not to disclose to DEA who had given the drug dealer the property.  On February 28, 2011, Farrell caused affidavits in support of the forfeiture of the property to be filed with DEA that contained the purported notarized signature of the drug dealer, when in fact the drug dealer had not appeared before the notary public.

On July 11, 2012, Farrell allegedly met with another drug dealer, knowing that person was represented by other counsel, and agreed to contact the Nicka Organization to obtain funds to assist with the drug dealer’s legal expenses.  Farrell directed the drug dealer to meet with federal law enforcement officers and federal prosecutors, but to only tell them what they already knew, rather than sharing all the information the drug dealer knew about the drug and money laundering conspiracy charged in the Nicka indictment.  On July 31, 2011, Farrell again met with the drug dealer and allegedly paid him $19,800 in cash.

If convicted, Farrell faces a maximum sentence of 20 years in prison for conspiracy to engage in money laundering and each of six counts of money laundering; a maximum of 20 years in prison for each of three counts of tampering with an official proceeding; and a maximum of 20 years in prison for each of two counts of tampering with a witness.   

David D’Amico, age 49, of Baltimore, Matthew Nicka, age 43, of Baltimore and his wife, Gretchen Peterson, age 34, of Kennett Square, Pennsylvania, pleaded guilty on January13, 2016, to conspiracy to distribute at least 1,000 kilograms of marijuana and conspiracy to commit money laundering.  D’Amico, Nicka and 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.  U.S. District Judge Roger W. Titus has scheduled sentencing for D’Amico and Peterson on May 2, 2016, and for Nicka on May 9, 2016.

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

United States Attorney Rod J. Rosenstein praised the 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 is prosecuting this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Donnell Williamson, a/k/a “Anthony Thomas,” age 25, of Landover, Maryland, today to 198 months in prison followed by five years of supervised release for conspiracy to possess with the intent to distribute five kilograms or more of cocaine, and for possession of a firearm in furtherance of a drug trafficking crime and during and in relation to a crime of violence. 

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 (ATF); and Interim Chief Henry P. Stawinski of the Prince George’s County Police Department.

According to his plea agreement, between September 2013 and October 29, 2013, Williamson conspired with Ted Duckett and others to rob certain drug dealers operating in Maryland, and conspired to possess with the intent to distribute five kilograms or more of cocaine.

On October 10, 2013, Duckett met an ATF undercover agent (UC) posing as a disgruntled drug courier to discuss robbing a drug stash house.  During this meeting, the UC explained how he would be transporting 2 to 3 kilograms of cocaine from a narcotics “stash house,” which would contain approximately 12 to 15 kilograms of cocaine.  The UC further explained that he planned to rob the cocaine stash house, which was protected by armed guards, and would split the stolen cocaine (12 to 15 kilograms) with whoever helped him commit the robbery.  Duckett agreed to commit the robbery and discussed how he and his crew planned to execute the robbery and obtain the cocaine.  Duckett assured the UC that he had the equipment necessary to rob a stash house protected by armed guards.  Duckett also told the UC that he would bring his robbery crew to future meetings with the UC.  While Duckett was meeting with the UC, Williamson was waiting for Duckett in a car parked nearby.

On October 23, 2013, Duckett and Williamson met the UC at a location in Maryland.  During this meeting, Williamson advised the UC that the robbery crew would execute the robbery inside the stash house.  Williamson then asked the UC “do you want it to be clean? Do you want them to stay alive?”  When the UC indicated it doesn’t matter, Williamson replied “enough said, enough said.”  During the conversation, Williamson confirmed the particulars of the robbery by repeating the quantity of cocaine that would be located in the stash house and that two guards would be protecting the drugs.  Williamson assured the UC that the robbery crew would remove the firearm from the armed guard stationed at the entrance of the stash house.  All of the meetings with the UC were audio and video recorded.

On October 29, 2013, the UC and Duckett spoke on the telephone and Duckett confirmed that they were ready to commit the robbery.  Duckett and Williamson drove together and met the UC in Laurel, Maryland.  The UC told Ducket that the rental car which they were going to use to commit the robbery was at a nearby location.  The UC asked Williamson and Duckett if they wanted to put their “straps,” which is code for firearms, in the UC’s vehicle before driving to the rental car location.  Williamson removed a duffel bag from his vehicle, and placed it in the trunk of the UC’s vehicle.  Duckett and Williamson then followed the UC in their own vehicle to the location where the conspirators believed they would pick up the rental car and receive the location of the cocaine stash house.  Shortly after they arrived at the location, the law enforcement arrest team placed Williamson and Duckett under arrest.

A search of the duffel bag that Williamson had placed in the UC’s vehicle revealed three firearms and ammunition and clear plastic gloves.  From the conspirators and their vehicle, officers recovered black skull caps, a black balaclava, and a black ski mask.

Ted Duckett, age 31, of Landover, pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on February 16, 2016, at 9:00 a.m. 

Duckett and Williamson have been detained since their arrest.    

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 Attorney Thomas M. Sullivan and Leah J. Bressack, who prosecuted the case.

Baltimore, Maryland – A federal jury today convicted Pedro Antonio Del Granado, age 49, of Fort Meade, Maryland, for enticing a minor to engage in sexual activity. After the jury returned its verdict, U.S. District Judge George L. Russell ordered that the defendant be immediately taken into custody and detained pending sentencing.

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; 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.

Del Granado faces a minimum mandatory sentence of 10 years in prison and a maximum of life in prison for enticing a minor to engage in sexual activity. Judge Russell has scheduled sentencing for May 13, 2016 at 9:30 a.m.

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

United States Attorney Rod J. Rosenstein commended the FBI, 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.

A private contractor pleaded guilty today to paying bribes to a U.S. Postal Service (USPS) contracting official in order to receive contracts to deliver the mail.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and USPS Inspector General David C. Williams made the announcement.

Barbara Murphy, 52, of Rocky Mount, North Carolina, pleaded guilty before U.S. District Judge George Jarrod Hazel of the District of Maryland, who set sentencing for June 13, 2016.

According to a factual stipulation filed with the court, Murphy was the sole owner of ER&R Transportation and MC&G Trucking LLC, which she used to bid for and perform on transportation contracts with USPS.  Murphy admitted that from January 2011 to July 2012, she bribed Gregory Cooper, a former USPS contracting officer representative.  These bribes included cash paid directly into Cooper’s bank accounts, automobile loan payments, college tuition for Cooper’s daughter, five cell phone bill payments, an airline ticket and fitness equipment, Murphy admitted.

According to the plea agreement, Murphy gave all of these benefits in exchange for Cooper’s favorable treatment of her companies when contracting opportunities with the USPS arose, in violation of Cooper’s lawful duty to the USPS.  Specifically, Cooper recommended to his superiors that 10 USPS contracts on which Murphy bid during the relevant time period be awarded to Murphy’s companies, she admitted.  Additionally, Murphy admitted that Cooper provided her with advice on how to address specific issues that arose from her contract performance and drafted documents that Murphy provided to the USPS.

On Nov. 15, 2015, Judge Hazel sentenced Cooper to 15 months in prison for bribery.

The USPS Office of the Inspector General investigated the case.  Trial Attorneys Mark Cipolletti and Monique Abrishami of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney David Salem of the District of Maryland are prosecuting the case.     

Greenbelt, Maryland – Barbara Murphy, 52, of Rocky Mount, North Carolina, pleaded guilty today to bribing a former contracting officer with the U.S. Postal Service in exchange for favorable treatment in connection with the awarding of contracts to deliver the mail.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General.

According to a factual stipulation filed with the court, Murphy was the sole owner of ER&R Transportation and MC&G Trucking LLC, which she used to bid for and perform on transportation contracts with USPS.  Murphy admitted that from January 2011 to July 2012, she bribed Gregory Cooper, a former USPS contracting officer representative.  These bribes included cash paid directly into Cooper’s bank accounts, automobile loan payments, college tuition for Cooper’s daughter, five cell phone bill payments, an airline ticket and fitness equipment, Murphy admitted.

Murphy admitted that she gave all of these benefits in exchange for Cooper’s favorable treatment of her companies when contracting opportunities with the USPS arose, in violation of Cooper’s lawful duty to the USPS.  Specifically, Cooper recommended to his superiors that 10 USPS contracts on which Murphy bid during the relevant time period be awarded to Murphy’s companies, she admitted.  Additionally, Murphy admitted that Cooper provided her with advice on how to address specific issues that arose from her contract performance and drafted documents that Murphy provided to the USPS.

Murphy faces a maximum sentence of 15 years in prison for bribing a public official in order to influence the official’s performance of his lawful duties.  U.S. District Judge George J. Hazel has scheduled sentencing for June 13, 2016.

On November 15, 2015, Gregory Cooper, 60, of Glenn Dale, Maryland, was sentenced to 15 months in prison for receiving bribes in connection with the awarding of mail delivery contracts. Judge Hazel also entered an order that Cooper forfeit $25,931.76.

U.S. Attorney Rosenstein and Assistant Attorney General Caldwell commended the U.S. Postal Service Office of the Inspector General for its work in the investigation.  The case is being prosecuted by Assistant U.S. Attorney David I. Salem and Trial Attorneys Mark Cipolletti and Monique Abrishami of the Criminal Division’s Public Integrity Section.    

Baltimore, Maryland – Salah Sood, age 34, of Lutherville, Maryland, faces federal charges of aggravated identity theft and bank fraud.  Sood has also been indicted in Baltimore County with four counts of abuse of vulnerable adults and one count of operating an unlicensed assisted living home.  The state and federal charges arise from an investigation of Holland Manor Eldercare where, on December 3, 2015, two elderly residents were found alone when Baltimore County police and the fire department personnel responded to a fire alarm at that location.

The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Baltimore County State’s Attorney Scott Shellenberger, Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.

According to the criminal complaint affidavit, on December 3, 2015, at 9:10 p.m. (BCoFD) and Baltimore County Police Department (BCoPD) personnel responded to a fire alarm at Holland Manor Eldercare, a formerly licensed Assisted Living Program located at 1812 Landrake Road in Towson, Maryland. Maryland health officials had revoked the Assisted Living Program License of Holland Manor Eldercare on September 25, 2015, after an investigation revealed deficiencies in care and staffing. The responding officers located two residents inside the facility without any staff present.  An 80 year old male resident spoke with the officers and told them that no caretaker was present at the facility overnight.  The man told the officers that if there was an emergency, he would call facility manager Salah Sood.  BCoPD officers attempted to call Sood, but the call immediately went to voicemail.  The second resident, a woman who was 82 years old, was located in a bed in a second floor bedroom.  The resident was comatose and unable to communicate.  BCoFD personnel who attempted to render aid to her discovered that she was restrained by a blanket that was tied to the bedrails across her body.  In addition to the unattended residents, the conditions inside the facility were found to be unsanitary and unsafe.  The locks on doors inside the facility had also been reversed so that residents could be locked into rooms from the outside.  Both residents were transported to medical facilities to be evaluated.  Salah Sood later called police and stated that he was the manager of Holland Manor Eldercare and had left the facility to go home and take a shower and get something to eat.  Sood refused to provide police with his location while speaking with them on the phone

In December 2015, a criminal investigation was initiated by BCoPD detectives regarding the possible abuse and/or neglect of residents at Holland Manor Eldercare.  During that investigation, it was discovered that the personal information of at least three Holland Manor Eldercare residents had been used to open multiple credit card accounts in their names without their knowledge or permission.  In each instance, Salah Sood had been added as an authorized user of the credit card account.  

For example, according to the affidavit, on November 10, 2015, November 30, 2015, and January 8, 2016, three credit card accounts were opened using the name, date of birth, and Social Security Number of the 80 year old resident of Holland Manor Eldercare who was removed by BCoFD personnel responding to the December 3, 2015 fire alarm.  Each of the applications was submitted electronically and used the address of Holland Manor Eldercare, as the man’s home address.  On the same day that each account was opened, an authorized user name of Salah Sood was added to the account. Between December 21, 2015 and January 27, 2016, a total of $59,094.39 in purchases were made using the accounts. 

Sood faces a maximum sentence of 30 years in prison for bank fraud; and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft.  Sood was arrested today and is scheduled to have initial appearance in Baltimore County Circuit Court on the state charges at 9:00 a.m. on Thursday, February 11, 2016.  No court appearance has been scheduled yet in U.S. District Court in Baltimore on the federal charges.

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. 

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 and Baltimore County State’s Attorney Scott Shellenberger commended the Baltimore County Police Department and HHS-Office of Inspector General for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Roann Nichols and Special Assistant U.S. Attorney Lauren E. Perry, who are prosecuting the federal case.

Greenbelt, Maryland - David DiPaolo, age 33, of Bristow, Virginia, pleaded guilty today to voluntary manslaughter in connection with the death of a person in Carderock, a popular rock climbing area within the Chesapeake and Ohio Canal National Historical Park. 

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

According to DiPaolo’s plea agreement, on December 28, 2013, DiPaolo had an argument with the victim in the parking area at Carderock Recreation Area (Carderock), located in Bethesda, Maryland, within the Chesapeake and Ohio Canal National Historical Park. Immediately following this altercation, the victim went to the base of the rock climbing area and DiPaolo returned to his parked vehicle. Shortly thereafter, DiPaolo found the victim and used a claw hammer to hit the victim multiple times on his head.  DiPaolo then fled first from Carderock and subsequently drove to New York State, where he remained until his arrest on January 8, 2014.

Following DiPaolo’s attack, other rock climbers in the area discovered the victim at the base of the rock face.  The victim was suffering from massive head trauma, but was still alive.  Emergency personnel were called, and the victim was airlifted to a hospital in Bethesda, Maryland, where he later died of his injuries.

DiPaolo and the government have agreed that if the Court accepts the plea agreement DiPaolo will be sentenced to between 10 and 15 years in prison.  U.S. District Judge Deborah K. Chasanow has scheduled sentencing for May 9, 2016 at 10:00 a.m. 

United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation and thanked the New York State Police, U.S. Attorney’s Office for the Northern District of New York, and the U.S. Marshals Service for their assistance.  Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan, who is prosecuting the case.

Greenbelt, Maryland – A federal jury today convicted Andracos Marshall, a/k/a “Draco,” age 41, of Bowie, Maryland, for conspiracy to distribute cocaine, possession with intent to distribute cocaine, and for money laundering conspiracy.

The conviction 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; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Interim Chief Henry P. Stawinski of the Prince George’s County Police Department; Chief of Police Robert D. MacLean of the U.S. Park Police; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas Jankowski the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police;.

According to evidence presented at his 13-day trial, from at least January 2011 through January 2015, Marshall conspired with Anthony Torrell Tatum, Ishmael Ford-Bey and others to distribute cocaine and heroin in Prince George’s County, including Oxon Hill, Maryland, and Washington, D.C. 

Testimony showed that in from January 2011 until August 2012, Ford-Bey, assisted by Marshall, received multiple kilogram shipments of cocaine from a source in California.

According to witness testimony and court documents, on August 15, 2012, the Texas Department of Public Safety stopped a refrigerated box truck that was transporting 13 boxes, each containing approximately 10 kilograms of cocaine.  The boxes were to be delivered to Ford-Bey in Temple Hills, Maryland.  A controlled delivery of the boxes was arranged.  On August 17, 2012, law enforcement established surveillance at the meeting location in Marlow Heights, Maryland.  A few minutes after the truck arrived, a vehicle registered to Ford-Bey at a Mitchellville address arrived at the location.  Law enforcement observed the truck driver and Ford-Bey unloading the drugs into Ford-Bey’s vehicle. As Ford-Bey left the area, he was followed by another vehicle being driven by Marshall.  As law enforcement officers pursued Ford-Bey, Marshall drove his vehicle in a manner to thwart law enforcement efforts to stop him. Ford-Bey and Marshall eventually abandoned their vehicles after a high-speed chase on I-495 and ran away.  Agents recovered the vehicles, the cocaine, cell phones, and other evidence.  Marshall remained a fugitive until he was arrested in January 2015.

In an effort to disguise and hide their drug proceeds, Marshall and his co-conspirators used aliases and false identifications and created numerous business entities, which had little, if any, legitimate business. Evidence showed that the co-conspirators used the aliases and false identifications to rent facilities used to further their drug trafficking activities.  According to information presented at trial, Marshall and his co-conspirators also rented storage facilities and apartments that were used in furtherance of the drug conspiracy.  For example, on February 22, 2013, a third party leased an apartment for Marshall in the 3800 block of Tunlaw Road in Washington, D.C.  Investigation revealed that Tatum and Ford-Bey were visitors to the apartment.  On October 1, 2013, a search warrant was executed at the apartment.  Agents located a safe which contained $823,640 in cash, several expensive watches, and jewelry. In addition, agents recovered scales, three heat sealers, a coffee grinder, a currency counter, and other drug paraphernalia, as well as approximately 150 grams of cocaine base. 

Marshall faces a mandatory minimum sentence of five years in prison and a maximum of life in prison for the conspiracy, and for possession with intent to distribute controlled substances; and a maximum of 20 years in prison for money laundering conspiracy.  U.S. District Judge Deborah K. Chasanow has scheduled sentencing for June 6, 2016, at 11 a.m.

Five defendants, including Marshall, were convicted federally for their participation in the conspiracy.  Co-conspirators Anthony Torrell Tatum, age 37, of Arlington, Virginia; Ishmael Ford-Bey, age 40, of Mitchellville, Maryland; Terrin Tamal Anderson, age 29, of Waldorf, Maryland; and David Allen Jones, age 40, of District Heights, Maryland; previously pleaded guilty and were sentenced to 27 years in prison, 33 years in prison, 12 years in prison and 45 months in prison, respectively. Judge Chasanow also entered an order requiring Tatum and Ford-Bey to pay a $108 million money judgment, and a forfeiture order for personal property, including luxury vehicles, jewelry and cash.

United States Attorney Rod J. Rosenstein commended the DEA, FBI, Prince George’s County Police Department, U.S. Park Police, U.S. Postal Inspection Service, IRS-CI, ATF and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston, Ray D. McKenzie, and Thomas P. Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – A federal jury convicted Alfred Patterson, age 50, of Baltimore, Maryland, late last Friday, February 5, 2016, for robbing a drug dealer and using a gun during the robbery.   

The conviction 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 observing the 3600 and 3700 blocks of Beehler Avenue, a known high-crime area.  The officers saw a vehicle pull up.  Patterson was in the passenger seat.  The victim got into the rear side of the car and left the door open, providing officers with an unobstructed view into the car.  They saw a brief struggle between the victim, the driver of the car, and Patterson.  The officers saw Patterson pull out a handgun and point it at the victim, who jumped out of the car and ran away.  The car then drove off at high speed. 

The officers radioed to stop the car.  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. 

Under an initiative by the Baltimore City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Baltimore City State’s Attorney’s Office and the United States Attorney’s Office, prosecutors and police review cases of defendants arrested for firearms violations and evaluate whether the case should be considered for federal prosecution. Prosecutors evaluate each defendant’s criminal record, the circumstances of the arrest and other relevant information. 

Patterson faces a maximum penalty of 20 years in prison for the robbery and life in prison for using and brandishing a gun during a crime of violence.  There is no probation or parole in the federal criminal justice system. U.S. District Judge Richard D. Bennett scheduled Patterson’s sentencing for April 12, 2016, at 3:00 p.m.

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 are prosecuting the case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Dominic Evans, a/k/a “FlatLine,” age 25, of Baltimore, today to 30 years in prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.

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; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.

“Many of the shootings and murders in Baltimore City result from disputes between rival drug gangs,” said U.S. Attorney Rod J. Rosenstein.  “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”  

According to his plea agreement, from at least 2007 to 2013 Evans was a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.”  UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.

Evans admitted that as a member of UDH he sold crack cocaine, heroin and other narcotics with UDH members.  In addition to selling drugs, Evans admitted that he participated in a robbery on January 15, 2007, in which the victim was stabbed.  Evan also admitted that on October 5, 2010, he and a co-defendant committed an armed robbery of two individuals who were selling marijuana in the area, but who were not UDH members.  After stealing $150 from one of the victims, Evans’ co-defendant began to shoot at the two individuals.  One of the victims was shot once and survived his wound, but the other victim, who was shot at least three times, died from her wounds.  The murder was captured on CCTV.  A Baltimore City jury acquitted Evans and his co-defendant of this murder.

Finally, Evans admitted that November 11, 2013, in the 100 block of South Monroe Street in Baltimore, he started a fight with another individual, produced a large 10 inch kitchen knife and began stabbing and slicing at the victim.  Evans took $50 from the victim.  The victim was taken to Shock Trauma with stab wounds to his head, upper back and hands.   The knife was recovered at the scene.  CCTV captured the assault. Approximately seven minutes later, Evans walked into a hospital four blocks away, complaining of a slice wound to the palm of his left hand.  Evans pleaded guilty to this first degree assault in Baltimore City Circuit Court and was sentenced to 12 years in prison.

Throughout the course of Evans’ involvement in the UDH drug conspiracy Evans knew that the conspiracy involved between 840 grams and 2.8 kilograms of crack cocaine and between three and 10 kilograms of heroin

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Bertrand Awah Essem, age 27, of Beltsville, Maryland today to 27 months in prison followed by two years of supervised release for conspiring to commit bank fraud.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge 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, from October 2010 to July 2012, Essem recruited college students at the University of Maryland Eastern Shore, promising that they could make some easy money.  Essem told the recruits to open a bank account, obtain a debit card and PIN number associated with that debit card, and provide that information to Essem. After the recruits opened the bank accounts, Essem collected the debit cards and PIN numbers and gave them to another co-conspirator.

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 stolen credit card number that was obtained through other means.  Within a few days, a conspirator canceled the order and requested that the refund be placed on the co-conspirator’s debit card, including the debit cards of co-conspirators recruited by Essem.

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

During the course of the fraud scheme, Essem collected $264,757.29 from the co-conspirators he recruited.  From December 13, 2010, to March 2011, a total of 69 refunds from The Home Depot were credited to bank accounts of individuals recruited by Essem.

Co-defendants Godfred Obeng, age 38, of Glen Allen, Virginia; Stanley Nmesirionye, age 24, of Owings Mills, Maryland; Dosis Feludu, age 25, of Salisbury, Maryland; and Gideon Turkson age 24, of Burtonsville, Maryland previously pleaded guilty to their participation in the fraud scheme and 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 – U.S. District Judge George L. Russell III sentenced Randy Jones, age 39, of Baltimore, today to nine years in prison followed by three years of supervised release for robbing five stores. 

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Kevin Davis of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn J. Mosby.

According to his plea agreement and court documents, on September 24, 2014, Jones, co-conspirator Daryl Norris and another individual entered the Game Stop on Liberty Road in Baltimore, pointing fake guns, which appeared to be real, at an employee. The robbers demanded that the employee open the register, from which they took money.  The robbers forced the employee to show them a safe and game systems, and then bound him with zip ties. The robbers took the employee’s cell phone as well as cash and merchandise.

Jones admitted to committing four other robberies from August 26 to December 15, 2014 with Norris and/or others, using a similar modus operandi: Rainbow Clothing on Maiden Choice Lane in Baltimore; 7-Eleven on Pleasant Plains Road in Towson, Maryland; Metro PCS in Baltimore; and the same Game Stop store. 

The total loss from the five robberies was $15,312.51. 

Darryl Norris, age 37, of Baltimore, previously pleaded guilty to robbing the video game store, and admitted to six other robberies.  Judge Russell sentenced Norris on October 16, 2015 to nine years in prison. 

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and City Police Departments and Baltimore County and City State’s Attorney’s Offices for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys James T. Wallner and Bonnie S. Greenberg, who prosecuted the case.

Baltimore, Maryland – A federal indictment charging 13 Florida residents with a bank fraud conspiracy involving over $1 million in losses was unsealed today.  According to statements made at previous court proceedings, the defendants are alleged to be members of a nationwide group of fraudsters known as the “Felony Lane Gang.” The indictment alleges that the defendants traveled from Florida to Maryland and other states, broke into vehicles parked at recreation areas, sports fields, gyms, fitness centers, and other locations, and stole wallets, purses and other items left in the vehicles. The defendants then allegedly used the victims’ stolen checks, credit cards and identifications to conduct fraudulent financial transactions.  The indictment was returned on October 27, 2015, and charges the following defendants:

            Theodore L. Pittman, a/k/a Teddy, Tony, and Bear, age 32, of Lauderhill, Florida;             Courtney B. Walker, a/k/a Wayne Leo Walker, age 28, of Ft. Lauderdale, Florida;             James J. Blakey, a/k/a Jamal, age 29, of Ft. Lauderdale;             Vincent Lee Sands, a/k/a Young SP, and Chad, age 26, of Lauderhill;             Heather Brooke Roberts, age 45, of Perry, Ohio;             Michael J. Walker, age 44, of Pompano Beach, Florida, and Perry, Ohio;             Tara Kathleen Whyte, age 29, of Hollywood, Florida, and Gambrills, Maryland;             Tracy Lee Whyte, a/k/a Nikki, age 34, also of Hollywood, and Gambrills;             Shannon Elise Isley, age 29, of Sunrise, Florida;             Lauren Anne Bole, age 28, of Miramar, Florida;             Felicia Kaye Waybright, a/k/a Felicia Kaye Phillips, age 25, of Daytona Beach, Florida;             Ronald Jason Rhoda, a/k/a Jason Rhoda, age 43, of Hollywood, Florida; and 
           Amie Nicole Carter, age 32, of Casselberry, Florida.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Antonio DeVaul of the Maryland National Capital Park Police, Montgomery County Division; Acting Chief Stanley Johnson of the Maryland National Capital Park Police, Prince George’s County Division; Chief Gary Gardner of the Howard County Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Tim Altomare.

According to the 27-count indictment, from September 2012 through July 2015, the defendants and their co-conspirators used the checks, credit cards, identifications and other items they stole from breaking into unattended vehicles to pose as the victims or to access the financial accounts of the victims. The defendants recruited prostitutes, drug addicts and other vulnerable individuals to travel with them to conduct financial transactions using the stolen checks, driver’s licenses and other materials, and paid them with drugs, food, and small amounts of cash amounting to a fraction of the total value of the checks they cashed.

The indictment alleges that checks drawn on one victim’s account were made payable to a second victim and cashed by a member of the conspiracy at a financial institution where the second victim had an open account, allowing the conspirators to freely cash checks for large amounts of money.  The transactions were generally conducted at a drive through teller lane, often the furthest lane from the window, and the conspirator posing as the victim sat in the passenger seat, all to obscure the bank teller’s view of the individual posing as the victim.  The conspirators often wore wigs and glasses to more closely resemble the victims whose stolen driver’s licenses they used to conduct the transactions.

According to the indictment, the conspirators traveled throughout Maryland and other states conducting these thefts and financial transactions in one location for several days or weeks until the banks or law enforcement began thwarting their activities.  Then they returned to Florida or moved on to another location, burying or hiding for future use the checks, credit cards, identification cards and other items they had stolen from vehicles, but had not yet used.  A few weeks or months later, after scrutiny of their activities had faded, the defendants would return to Maryland, retrieve the hidden items and use them to continue their financial fraud scheme.

The indictment alleges that over the course of the scheme the defendants fraudulently obtained and attempted to obtain over $1 million from more than a dozen financial institutions using the identification of hundreds of individual victims.

Each of the defendants faces a maximum sentence of 30 years in prison for the bank fraud conspiracy, and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft.  All the defendants except Blakey and Sands also face a maximum of 30 years in prison for bank fraud. Lauren Boyle and Shannon Isley are still being sought by law enforcement, but the remaining defendants are expected to appear before a U.S. Magistrate Judge in U.S. District Court in Baltimore in the next several weeks.

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

The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.

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

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Maryland National Capital Park Police - Montgomery and Prince George’s County Divisions, and the Howard County, Baltimore County and Anne Arundel County Police Departments for their work in the Maryland portion of this multi-state, multi-agency investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine and Ayn B. Ducao, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Richard Michael Mathisen, age 29, of Rockville, Maryland today to nine years in prison followed by three years of supervised release for conspiring to distribute oxycodone and ordered him to pay a $60,000 fine. 

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; and Chief J. Thomas Manger of the Montgomery County Police Department.  

According to court documents and evidence presented at the sentencing hearing, from at least 2013 through at least September 25, 2014, Mathisen arranged for co-conspirators to obtain magnetic resonance imaging scans (MRIs), and take them to another co-conspirator to manipulate the MRIs to make them appear as though the co-conspirators required prescriptions for pain medication.   After the co-conspirators used the altered MRIs to obtain prescriptions for oxycodone, they either gave or sold oxycodone to Mathisen who used some of the oxycodone for himself and distributed some of the oxycodone to others. 

During the two day sentencing hearing, the court determined that Mathisen was a manager or supervisor of the conspiracy, which included between 60,000 and 105,000 grams of oxycodone.  The court also determined that Mathisen had possessed a firearm during drug trafficking.

The government also introduced evidence relating to the death of a young woman on July 12, 2014 at Mathisen’s residence as a result of oxycodone and alcohol intoxication after ingesting oxycodone at Mathisen’s residence.  The court found that the woman died as a result of the drug conspiracy.

Philip Rice D’Avanzo, age 29, of Bethesda, Maryland, pleaded guilty to his participation in the drug conspiracy and is scheduled to be sentenced on March 14, 2016 at 2:00 p.m.

United States Attorney Rod J. Rosenstein praised ATF and Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Mara Zusman Greenberg, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Rasheed Adedokun, age 26, of Lanham, Maryland, today to 54 months in prison, followed by three years of supervised release, for use of unauthorized access devices, aggravated identity theft, and possession of device making equipment, arising from a scheme to use the personal identifying information, credit card and debit card numbers of victims to purchase goods and services worth more than $100,000.  Judge Messitte also entered an order requiring Adedokun to pay restitution of $107,403.61.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office; Interim Chief Henry P. Stawinski of the Prince George’s County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Chief Murray “Jay” Farr of the Arlington County, Virginia Police Department.

According to Adedokun’s plea agreement, on May 14, 2009, he used the credit/debit card of Victim 1 to make over $1,200 in unauthorized purchases in just a few days.  On July 11, 2009, Adedokun and three co-conspirators were captured on store surveillance cameras making unauthorized purchases totaling $7,799.10 using the credit/debit cards of nine other victims.  On August 5, 2009, Adedokun was arrested by Maryland State Police.  Troopers recovered 17 debit cards in Adedokun’s pants pockets and an additional 63 debit cards were found at his residence.  Examination of the cards revealed that 18 of the cards’ magnetic strips had been re-encoded with victims’ credit card account information.  During a search of Adedokun’s residence, law enforcement also recovered four pages of Social Security Administration screen printouts containing the names and Social Security numbers of 34 individuals, a credit card encoding machine and a computer. A forensic examination of the computer revealed a software program designed to check the validity of a given credit card number, and additional files that contained the names and credit/debit card account numbers that appeared to be assigned to other co-conspirators.

Adedokun was responsible for losses of $107,403.61. Four other co-conspirators have pleaded guilty to their roles in the scheme and are awaiting sentencing. Adetokunbo Babatunde was sentenced to 30 months incarceration and restitution in the amount of $107,403.61.  Ridwan Kekere-Ekun was sentenced to one year and one day and restitution in the amount of $107,403.61. Two others are awaiting sentencing. A fifth co-conspirator also pleaded guilty and was sentenced to time served and ordered to pay restitution of $35,000.

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, Prince George’s County Police Department, Maryland State Police, and the Arlington County, Virginia Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman and Special Assistant U.S. Attorney Jennifer L. Wine, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced William Charles Nemec, Sr., age 56, of Baltimore, today to 78 months in prison followed by three years of supervised release for conspiracy and bribery in connection with two schemes: one in which Department of Public Works (DPW) employees sought and accepted cash payments from commercial haulers in return for allowing the haulers to deposit trash at the Quarantine Road Landfill without paying the required disposal fees (bribery scheme); and a second scheme in which DPW employees stole scrap metal from the landfill for personal gain (the junking scheme). Judge Garbis also entered an order that Nemec pay restitution of $6 million.

On February 1, 2016, Judge Garbis sentenced two commercial haulers for their participation in the bribery scheme: Adam Williams, Jr., age 52, of Randallstown, to one year in prison followed by two years of community confinement with work release; and Larry Lowry, age 61, of Orchard Beach, Maryland, to 30 months in prison.  Judge Garbis also entered an order that Williams pay restitution of $900,000, and Lowry pay restitution of $180,000.

Yesterday, Judge Garbis sentenced Michael Theodore Bennett, age 46, of Baltimore, an employee at the Baltimore City Landfill, to 46 months in prison and entered an order that Bennett pay restitution of $400,000. Bennett had previously pleaded guilty to conspiracy to steal from a program receiving federal funds, wire fraud and failure to file a tax return in connection with the junking scheme.

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

Bribery Scheme    

Individuals or companies commercially hauling trash that have registered their vehicles with Baltimore City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located within the Landfill.  Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill. DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system.  The scale house operators reweigh each truck as it leaves the Landfill. 

According to the defendants’ plea agreements, Nemec started working in 1984 for the DPW as a scale house cashier at the Cold Spring Lane Landfill. Back then, Nemec and other cashiers would regularly accept bribes from small and large haulers in lieu of charging disposal fees and then split the bribe money among all the cashiers.  That same year, Nemec was transferred to the Quarantine Road Landfill (Landfill) where he engaged in the same type of bribery scheme.  Except for short periods of time over the years since 1984, and despite the comings and goings of new scale house employees and supervisors at the Landfill, Nemec and other scale house operators continued to execute the bribery scheme, even after Nemec was promoted to a supervisory position at the Landfill in 2006, and until his arrest on May 12, 2015.       

Beginning around 2002, Nemec executed the bribery scheme in tandem with two scale house operators.  Nemec and the scale house operators accepted $100 bribe payments from large haulers for each truckload of trash dumped at the Landfill, which saved the haulers many hundreds of dollars per trip to the Landfill.  Nemec and others concealed the bribery scheme by not entering a truck’s registration number into the computerized scale system, which meant the transaction was not recorded.  Consequently, the transaction would not appear on the scale house’s daily logs and the commercial hauler would not be billed for using the Landfill on that particular occasion.

To maintain the pretense that the trucks had been weighed and the disposal fee paid, Nemec and others would hand the truck drivers fake or blank receipts when they crossed the outbound scale.  In return, the commercial haulers, including Larry Lowry and Adam Williams, either paid the $100 bribe through the outbound window at the scale house or met with Nemec or another scale house operator at an off-site location to pay a week’s worth of bribes or more.  The commercial haulers always paid the $100 bribes in cash. Nemec and the two scale house operators split the bribes three ways until Nemec became a supervisor, after which they agreed that Nemec would collect and keep Lowry’s bribes as Nemec’s share of the scheme, and Washington and the other employee would collect and keep the bribes paid by the other haulers as their share of the scheme.

By paying the $100 bribes in lieu of the disposal fees to Nemec and other scale house operators, the commercial haulers saved their businesses thousands of dollars each month, which, in turn, cost the City of Baltimore more than $6 million in revenue. For example, from July 1, 2014 through May 1, 2015 alone, Nemec, while working as a landfill supervisor, accepted more than $15,000 in bribe payments from Larry Lowry in return for not charging Lowry approximately $55,000 in required waste disposal fees. Similarly, during the same time period, Adam Williams paid more than $42,000 in bribe payments in lieu of paying $120,000 in required waste disposal fees.

Illegal Junking Scheme

In addition to the revenue generated by the collection of disposal fees, Baltimore City’s waste management system generates revenue by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities, including household appliances, steel cables, copper wires, car parts, computer parts, door and window frames. The City awards contracts to private salvage companies to purchase and remove such scrap metal from its trash collection facilities.   

DPW employees at the Landfill and other trash collection sites are required to segregate the recyclable scrap metal from general refuse and place it in separate bins provided by the salvage companies.  The companies regularly pick up the scrap metal, weigh it and send a tonnage report to the City.  Based on predetermined prices per ton, the City sends an invoice to the companies requesting payment for the value of the scrap metal the companies removed during a given period of time. Salvaging by employees, also referred to as “junking,” was strictly prohibited and employees were put on notice that any salvaging of metal constituted theft of City property.

From about 2005 to May 2015, Nemec and other Landfill employees falsely represented to the DPW that they were performing their jobs when in fact they unlawfully collected and sold scrap metal for personal gain during work hours.

Nemec knew that laborers at the Landfill, including Michael Bennett, used their personal cell phones during work shifts to let each other know when and where recyclable scrap metals were being dumped at the Landfill.  After collecting and creating piles of the scrap metal, the laborers would transport the scrap metal using their personal pick-up trucks to a private salvage company, frequently making multiple trips during an eight-hour work shift.  Bennett and other employees paid other DPW employees to help locate, collect and load the scrap metal onto their trucks. 

During 2011 and 2012, Bennett paid Nemec approximately $20 every day to allow them to collect and transport the stolen scrap metal.  In addition to not reporting Bennett’s daily trips to the salvage company to sell the stolen metal, which some days could take a total of 3 - 4 hours, Nemec would authorize and submit false time and attendance records to conceal the scheme, so that Bennett and other laborers were able to be paid for work they did not perform while stealing the metal.   

Bennett prepared and submitted false time and attendance records, which claimed he had been working, when he was instead illegally collecting and selling the scrap metal, resulting in wages being paid to Bennett for work he did not perform. 

The loss to the City of Baltimore as a result of the junking scheme was approximately $1 million.

Bennett also failed to report approximately $479,468 of income for tax years 2011 through 2013, the majority of which was obtained from the illegal junking scheme, resulting in a tax loss to the government of $126,273.

To date, five DPW employees and six commercial haulers have been convicted in the schemes.

United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke and Leo J. Wise, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Robin McClosky Andrews, age 51, of Glen Burnie, Maryland today to a year and a day in prison followed by three years of supervised release for conspiring to distribute and possess with intent to distribute oxycodone.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.

According to her plea agreement, from 2009 until 2012, Andrews stole prescription slips from a doctor she worked for, and wrote fraudulent prescriptions for oxycodone in a number of different names.   Her husband had individuals fill the prescriptions at pharmacies and provide him with the pills. The individuals were generally paid $100 for each prescription they filled.  The oxycodone pills were then sold to co-defendant Michael Cudnik and others.

More than 350 fraudulent prescriptions were written.  Most of the prescriptions were for 90 Percocet 10 milligram pills, totaling 300,000 milligrams of oxycodone. Accordingly, Robin Andrews was responsible for the distribution of at least 300,000 milligrams of oxycodone.

Michael Joseph Cudnik, age 57, of Baltimore, has pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on February 12, 2016 at 10:00 a.m.  Robin Andrews’ husband passed away on October 21, 2015.

United States Attorney Rod J. Rosenstein commended the HHS Office of Inspector General, DEA and FBI for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced former attorney Saundra Lucille White, a/k/a Lucille Parrish-White and six variations of those names, age 57, of Lothian, Maryland, today to 11 years in prison, followed by three years of supervised release, for mail fraud, wire fraud, money laundering, and aggravated identity theft in connection with a scheme to defraud clients of $841,908.57. Judge Grimm also entered an order requiring White to pay restitution of $841,908.57, and to forfeit that same amount, along with property and several vehicles.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Geary of the Treasury Inspector General for Tax Administration; Anne Arundel County Police Chief Tim Altomare; and Interim Chief Henry P. Stawinski of the Prince George’s County Police Department.

According to the evidence presented at White’s seven day trial, in March 2010, White agreed to assist Victim H to obtain guardianship for a relative (Victim M) who had been incapacitated by a stroke.  At White’s request Victim H provided White with an accounting of Victim M’s assets.  With White’s assistance, Victim H obtained guardianship of Victim M a short time later. Victim M died on January 7, 2011.  White was disbarred from the practice of law in the District of Columbia on January 20, 2011 and disbarred in Maryland on September 9, 2011.  White did not inform Victim H of her pending disbarment, nor did she tell Victim H that she was no longer a licensed attorney.

According to trial evidence, from March 2010 through May 2013, White created fraudulent tax notices that purported to be from the Internal Revenue Service, and demanded payment of taxes purportedly owed by Victim M and by a deceased relative of Victim M.  The notices required that payments be sent to an entity called Intel Realty Financial Services (IRFS) at a mailbox in Annapolis, Maryland, controlled by White.  White then mailed and faxed the fraudulent tax notices to Victim H, advising Victim H that in her role as legal guardian of Victim M, she was required to remit payments for these taxes to the address in the notice.  Once White obtained the checks sent by Victim H in response to the fraudulent tax notices, totaling $750,000, she deposited them in the bank accounts she opened in the names of IRFS and Victim M.  White withdrew the funds from the bank accounts, forging Victim M’s signature on checks made out to White, other entities controlled by White, a family member, or otherwise for White’s benefit.  White also obtained debit cards in Victim M’s name and attempted to obtain a Maryland driver’s license in the name of Victim M, but bearing White’s photograph. White used some of the money to purchase luxury items, including a $20,500 check used as a down payment for a 2011 Silver Volvo C70 hard-top convertible.

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 TIGTA, the Anne Arundel County Police Department, and Prince George’s 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 James I. Pearce of the U.S. Department of Justice, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Nathaniel Wright, Jr., age 58, of Gaithersburg, Maryland today to four years in prison followed by three 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 William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.

According to his plea agreement, from at least June 2013 until his arrest in April 2015, Wright distributed heroin to heroin addicts.  Wright had many customers who would purchase between one-half to two grams from him a week.

On June 14, 2013, Wright sold an individual a gram of heroin for $100.  Later that evening and after ingesting the heroin, the individual died as a result of alcohol and narcotic intoxication.

Wright also admitted that on 16 occasions he sold a total of 22 grams of heroin to two confidential sources.

During his participation in the drug conspiracy, Wright was responsible for distributing between 400 and 700 grams of heroin.

Ronald Bryant, a/k/a “Dean,” age 46, of Montgomery Village, Maryland; Carlos Brandon Peoples, a/k/a “Los,” age 29, of Washington, D.C., and Carlisle Sampson Pipkin II, age 32, of Hanover, Maryland previously pleaded guilty to their participation in the conspiracy. Bryant was sentenced to 46 months in prison.  Peoples and Pipkin are scheduled to be sentenced on February 8, 2016 at 10:30 a.m. and March 21, 2016 at 10:00 a.m., respectively.

United States Attorney Rod J. Rosenstein commended the ATF and Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Mara Z. Greenberg, who prosecuted the case.

The Justice Department announced today that Robert C. Nalley, a former judge in Charles County, Maryland, pleaded guilty to one count of the deprivation of rights under color of law for ordering a deputy sheriff to activate a stun-cuff worn by a pro se criminal defendant during a pre-trial court proceeding.

From 1988 to September 2014, Nalley was a judge of the Circuit Court for Charles County.  According to his guilty plea, on July 23, 2014, Judge Nalley presided over the jury selection for the victim, who was representing himself in a criminal proceeding in Charles County court.  Before the proceedings began, a deputy sheriff informed Judge Nalley that the victim was wearing a stun-cuff.  Nalley was aware that when activated, the stun-cuff would administer an electrical shock to the victim, thereby incapacitating him and causing him pain.

Several minutes after the proceedings had begun, Judge Nalley asked the victim whether he had any questions for the potential jurors.  The victim repeatedly ignored Nalley and instead read from a prepared statement, objecting to Judge Nalley’s authority to preside over the proceedings, while standing calmly behind a table in the courtroom.  The victim did not make any aggressive movements, did not attempt to flee the courtroom and did not pose a threat to himself or to any other person at any point during the proceedings.  Judge Nalley twice ordered the victim to stop reading his statement, but the victim continued to speak.

Judge Nalley then ordered the deputy sheriff to activate the stun-cuff, which administered an electric shock to the victim for approximately five seconds.  The electric shock caused the victim to fall to the ground and scream in pain.  Judge Nalley recessed the proceedings.

“Under our constitution, judges serve as the guardians and arbitrators of justice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “When government officials – including judges – violate the rights we entrust them to defend and break the laws we expect them to uphold, they undermine the legitimacy of our justice system.”

“Disruptive defendants may be excluded from the courtroom and prosecuted for obstruction of justice and contempt of court, but force may not be used in the absence of danger,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland.

Sentencing for Judge Nalley is scheduled for March 31, 2016.

The case was investigated by the FBI’s Baltimore Division.  The case is being prosecuted by Assistant U.S. Attorneys Kristi C. O’Malley and Daniel N. Gardner of the District of Maryland, and Trial Attorney Mary J. Hahn of the Civil Rights Division's Criminal Section.

Nalley Plea Agreement

Greenbelt, Maryland – Former Charles County Judge Robert C. Nalley, of La Plata, Maryland, pleaded guilty today to deprivation of rights under color of law for ordering a deputy sheriff to activate a stun-cuff worn by a pro se criminal defendant during a pre-trial court proceeding. 

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Principal Deputy Assistant Attorney General for the Department of Justice Civil Rights Division Vanita Gupta; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.

"Disruptive defendants may be excluded from the courtroom and prosecuted for obstruction of justice and contempt of court, but force may not be used in the absence of danger," said U.S. Attorney Rod J. Rosenstein.

“Under our constitution, judges serve as the guardians and arbitrators of justice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “When government officials – including judges – violate the rights we entrust them to defend and break the laws we expect them to uphold, they undermine the legitimacy of our justice system.”

From 1988 to September 2014, Nalley was a judge of the Circuit Court for Charles County, Maryland.  According to his guilty plea, on July 23, 2014, Judge Nalley presided over the jury selection for the victim, who was representing himself in a criminal proceeding in Charles County court.  Before the proceedings began, a deputy sheriff informed Judge Nalley that the victim was wearing a stun-cuff.  Judge Nalley was aware that when activated, the stun-cuff would administer an electrical shock to the victim, thereby incapacitating him and causing him pain.

Several minutes after the proceedings had begun, Judge Nalley asked the victim whether he had any questions for the potential jurors.  The victim repeatedly ignored Judge Nalley and instead read from a prepared statement, objecting to Judge Nalley’s authority to preside over the proceedings, while standing calmly behind a table in the courtroom.  The victim did not make any aggressive movements, did not attempt to flee the courtroom, and did not pose a threat to himself or to any other person at any point during the proceedings. Judge Nalley twice ordered the victim to stop reading his statement, but the victim continued to speak.

Judge Nalley then ordered the deputy sheriff to activate the stun-cuff, which administered an electric shock to the victim for approximately five seconds.  The electric shock caused the victim to fall to the ground and scream in pain.  Judge Nalley recessed the proceedings.

Nalley faces a maximum sentence of one year in prison followed by one year of supervised release and a fine of up to $100,000.   U.S. Magistrate Judge William Connolly has scheduled sentencing for March 31, 2016 at 10:00 a.m.

United States Attorney Rod J. Rosenstein and Principal Deputy Assistant Attorney General Vanita Gupta commended the FBI for its work in the investigation, and thanked Assistant U.S. Attorneys Kristi N. O’Malley and Daniel C. Gardner of the District of Maryland, and Trial Attorney Mary J. Hahn of the Civil Rights Division, who are prosecuting the case.

 

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced William Sylvia, age 71, of Hagerstown, Maryland, today to 10 years in prison, followed by lifetime supervised release, for possession of child pornography. Judge Russell ordered that Sylvia must continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.

According to Sylvia’s plea agreement, in approximately 1995, Sylvia was convicted of raping a child in Massachusetts, and sentenced to seven to 10 years’ incarceration.  On September 3, 2004, in the Circuit Court of Berkeley County, West Virginia, Sylvia was convicted of sexual abuse by a parent, custodian or guardian, and of third degree sexual abuse, and was sentenced to one to five years in prison. 

Sylvia admitted that from April 1, 2013 through July 13, 2014, he used a computer to send, receive and collect child pornography.  For example, on April 1, 2013, Sylvia sent another user six visual depictions of minors engaging in sexually explicit conduct. On September 4, 2014, law enforcement obtained a search warrant for Sylvia’s email account which revealed emails sent and received by Sylvia that included attachments of child pornography.

During the time of this investigation, Sylvia was a registered sex offender living at a motel in Hagerstown.  On February 20, 2015, a search warrant was executed at Sylvia’s residence at the motel and law enforcement seized a desktop computer, camera, flash drive and other digital media.  A forensic examination of the desktop computer and the flash drive recovered additional images of minors – including prepubescent minors – engaged in sexually explicit conduct.

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Michael Parry, age 59, of Windermere, Florida today to four years in prison, followed by two years of supervised release and 150 hours of community service, for wire fraud and money laundering.

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; and Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.

According to his plea agreement, in 1998 Parry was hired by the American Registry of Pathology (ARP) as its director of operations, and was promoted to executive director in 2014, a role he had been acting in since October 2011.  The ARP is a non-profit organization that supports pathology services in the armed forces, and also engages in non-governmental work, including the funding of fellowships and research studies in pathology. ARP has administrative offices in Rockville, Maryland and Camden, Delaware.    

The International Registry of Pathology (IRP) is a non-profit organization that promotes the study of pathology on an international scale, by supporting pathologists and pathology students in less-developed countries.  Parry served as treasurer of IRP.  By October 2011, Parry was in control of IRP bank accounts.

From February 17, 2010 to April 21, 2014, Parry directed the payment of money from an ARP account to an IRP account by wire transfers.  Parry falsely described the wire transfers as related to medical studies, research grants or other activities normally funded by ARP.  Parry fabricated documents including: falsified invoices from a legitimate ARP vendor related to medical research studies; emails from himself to others purporting to memorialize conversations in which Parry sought and was granted approval for funding fictional research fellowships; and wire transfer documents purportedly showing that payments were made directly from ARP’s accounts to legitimate ARP vendors or educational institutions.

Parry then transferred funds from the IRP account to a personal account he controlled.  The total loss to ARP as a result of the fraud scheme was $2,199,504.09.  Parry has paid restitution in full.

United States Attorney Rod J. Rosenstein commended the FBI and Army CID for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Joseph R. Baldwin and David L. Salem, who prosecuted the case.

Greenbelt, Maryland – Arthur Charles Clements, age 57, of Temple Hills, Maryland, pleaded guilty today to receiving child pornography.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

According to Clements’ plea agreement, on April 8, 2015, the National Center for Missing and Exploited Children (NCMEC) received a report of suspected child pornography from Microsoft after Clements uploaded an image depicting children engaged in sexually explicit conduct to his One Drive account. NCMEC referred the report to the Maryland State Police and on July 24, 2015, Maryland State Police Troopers and Special Agents from HSI executed a search warrant at Clements’ residence.  Law enforcement seized a laptop computer that contained from than 1,900 videos and 1,100 images of child pornography, including images and videos depicting sadistic or masochistic conduct and other depictions of violence performed on prepubescent children.  Forensic analysis of Clements’ digital media revealed that Clements received child pornography via Skype, including a video received on March 25, 2015.

Clements waived his rights and agreed to be interviewed by law enforcement.  During the interview Clements admitted that he downloaded and distributed child pornography and had been watching child pornography for approximately seven years.  Clements also admitted chatting via Skype for at least six months with an adult male living in another state who was sexually abusing a nine year old girl.  Clements admitted to watching live sexual conduct between the adult male and girl.  Clements had at least 34 videos and 25 images documenting the sexual abuse of the minor female saved on his laptop computer, including the video received on March 25, 2015, described above.

Within 12 days, Special Agents with HSI identified and arrested the individual with whom Clements chatted via Skype, Joshua Logan Thornton, age 31, of Wynne, Arkansas.  The child was rescued.  Thornton pleaded guilty to one count of production of child pornography in the Eastern District of Arkansas on November 28, 2015, and is scheduled to be sentenced on February 18, 2016, in U.S. District Court in Little Rock, Arkansas.

In 2007, Clements was convicted of indecent exposure in St. Mary’s County Circuit Court stemming from images and videos he sent to teenaged girl.

As part of his plea agreement, Clements 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).

Clements faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison for receiving child pornography.   U.S. District Judge George J. Hazel has scheduled sentencing for June 1, 2016 at 9:00 a.m.

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Sumon Dantiki, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Charles Brian Curtin, age 46, of Mechanicsville, Maryland today to 200 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine, and for being a felon in possession of a firearm.

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; Interim Chief Henry P. Stawinski of the Prince George’s County Police Department; and St. Mary’s County Sheriff Tim Cameron.

According to his plea agreement, from at least February through September 4, 2014, Curtin conspired with others to distribute cocaine in and around Prince George’s County, Maryland.  Curtin obtained cocaine from suppliers in Tennessee and Maryland.  During the investigation, Curtin was overheard by law enforcement discussing the distribution of cocaine using coded language.  Curtin stored cocaine, drug proceeds and firearms in multiple residences in Maryland. 

On August 22, 2014, law enforcement executed a search warrant at a stash house in District Heights, Maryland used by Curtin and seized cocaine packaging material, a digital scale used to measure cocaine for distribution, and $178,020 in cash.  Later that day, a second search warrant was executed at Curtin’s home in Mechanicsville.  Law enforcement seized drug paraphernalia, a scale, a .45 caliber handgun and a PLR-16 handgun.  Curtin had previously been convicted of a felony and was prohibited from possessing firearms or ammunition.

Curtin admitted that during the course of the conspiracy he was responsible for distributing between five and 15 kilograms of cocaine.

United States Attorney Rod J. Rosenstein praised the DEA, Prince George’s County Police Department, and St. Mary’s County Sheriff’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Leah J. Bressack and Joseph R. Baldwin, who prosecuted this Organized Crime Drug Enforcement Task Force case.