District of Maryland
Press releases recorded for this federal judicial district.
Garrett County Developer Pleads Guilty in $5.7 Million Bank Fraud SchemeRead the Press Release
Baltimore, Maryland - Samuel R. VanSickle, age 51, of Accident, Maryland, pleaded guilty today to conspiring to commit bank fraud arising from three fraudulent bank loans in which VanSickle received proceeds from the sale of real property in Garrett County, Maryland, and Cheat Lake, West Virginia, totaling over $5.7 million.
The plea agreement 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.
VanSickle and co-defendant Louis Strosnider owned and developed property in Garrett County, Maryland. VanSickle used a number of different business names, including Freedom Church, Gospel Church, Equity Exchange, Unity Mortgage, Impartial Lenders, and Noble Forest Consultants, and aliases including “Donald Blunt,” “Jacob Aiken,” “Allen Helms,” and “Paul Walsh.” Strosnider operated Stony Brook Development Company, located in McHenry, Maryland.
According to his plea agreement, from December 2001 to May 2005, VanSickle conspired with Louis Strosnider for Strosnider to fraudulently obtain real estate loans from banks in connection with the purchase of properties controlled through aliases by VanSickle. VanSickle concealed from the lenders his role as seller of the properties and recipient of the sales proceeds through fictitious identities such as “Donald Blunt, Trustee for Gospel Church,” “Donald Blunt, Trustee for Freedom Church,” “Equity Exchange,” “Unity Mortgage,” “Jacob Aiken” and “Allen Helms.” The scheme also involved fictitious down payments, inflated collateral, and false contracts.
For example, in 2002, VanSickle provided $600,000 for the purchase of Red Run, a restaurant and bed and breakfast which bordered on Deep Creek Lake in Garrett County, Maryland. In April 2003, VanSickle caused Red Run to be transferred for $0 to “Donald Blunt, Trustee for Gospel Church” - a fictitious church with a fictitious trustee. In February 2004, Strosnider signed a contract to buy Red Run from Gospel Church for $3 million. The contract recited a fictitious $750,000 down payment. Strosnider applied to a bank for a loan to complete the purchase of Red Run. When the bank required additional collateral, VanSickle supplied a timber contract for land in Garrett County with a valuation signed by “Paul Walsh” of “Noble Forest Consultants.” Both “Noble Forest Consultants” and “Paul Walsh” were fictitious. The settlement for the sale of the property was conducted by attorney Angela Blythe. Blythe failed to collect Strosnider’s funds to close the loan. At VanSickle’s direction, Blythe paid over the sales proceeds of $1.6 million to “Unity Mortgage,” which was VanSickle. “Unity Mortgage” did not, in fact, have a mortgage on Red Run.Strosnider and VanSickle used similar fraudulent methods in Strosnider’s purchase from VanSickle of 5.87 acres on State Park Road, bordering Deep Creek Lake, and 116 acres of undeveloped land on Cheat Lake, West Virginia.
VanSickle received over $5.7 million in sales proceeds from the fraudulent transactions. Strosnider defaulted on all three loans. As a result of the scheme, the loss to the financial institutions was $2,755,102.50, the amount of the loans minus the recovery from foreclosure and sale of the collateral. VanSickle has agreed to forfeit and pay restitution in that amount, and forfeit his interest in 40 properties held in VanSickle’s name or in the names of nominees in Maryland, West Virginia and Pennsylvania, up to the value of $2,755,102.50.
VanSickle faces a maximum sentence of 30 years in prison for the conspiracy. U.S. District Judge Marvin J. Garbis scheduled sentencing for March 17, 2016, at 9:30 a.m.
Louis W. Strosnider, III, age 49, of Oakland, Maryland, previously pleaded guilty to his participation in the conspiracy and awaits sentencing. In a related case, Angela M. Blythe, age 52, of Oakland, Maryland, was convicted by a federal jury on October 9, 2015, after a nine day trial, of conspiring with VanSickle to commit bank fraud, bank fraud, and two counts of making a false statement to a bank. U.S. District Judge William D. Quarles sentenced Blythe to a year and a day in prison, and entered an order requiring Blythe to forfeit $696,517 and pay restitution of $948,203.25.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorney Joyce K. McDonald and Philip A. Selden, who are prosecuting the case.
Accountant Pleads Guilty in $1.4 Million Mortgage Fraud Scheme Involving Baltimore City PropertiesRead the Press Release
Baltimore, Maryland – Cecil Sylvester Chester, age 68, of Mitchellville, Maryland pleaded guilty today to charges arising from the fraudulent purchase of seven properties in Baltimore, using fraudulent loan documentation and straw purchasers, resulting in losses of over $1.7 million.
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; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
“Mortgage fraud perpetrators steal by inducing lenders to make loans that will never be repaid, and they harm neighborhoods when the inevitable foreclosures drive down property values,” stated U.S. Attorney Rod J. Rosenstein.
Chester worked as an accountant from an office located on New Hampshire Avenue in Hyattsville, Maryland. Co-conspirator Andreas Tamaris purchased, renovated, and then resold distressed row houses in Baltimore City, primarily in the Highlandtown.
According to his guilty plea, from February 2008 to July 2009, Chester and his co-conspirators, including Alexander Sivels, found buyers for Tamaris’ properties and for other property owners. Chester persuaded individuals, who were inexperienced with residential real estate transactions and who lacked the funds needed to pay the down payment and closing costs, to purchase Baltimore row houses owned by Tamaris or otherwise located by the conspirators. Chester advised these “straw purchasers” that they didn’t need to contribute funds for the down payment or closing costs to buy these properties. Chester also advised that he would place tenants in the properties whose rent payments would cover the monthly mortgage payments after the transactions closed, and that Chester would collect the rent and make the mortgage payments.
Chester and his co-conspirators set the purchase price for the properties to exceed their actual fair market value, thereby generating excess proceeds from the transactions from which they could profit.
The conspirators provided false information about the straw purchasers’ employment, income and financial assets, as well as fraudulent supporting documentation to the mortgage loan brokers to enable the straw purchasers to qualify for home mortgage loans. The conspirators falsely indicated to the mortgage loan brokers that the straw purchasers each intended to use the property as their primary residence following the purchase. Tamaris and other individuals supplied the funds needed for the down payment and closing costs on each of the transactions, and were in turn reimbursed from the loan proceeds at settlement.
Chester brought the straw purchasers to the closing, and then caused the straw purchasers to falsely sign certifications in the closing documents affirming that they intended to use the properties as their primary residence and that no portion of the down payment and closing costs were borrowed. Following the settlement on each transaction in which they participated, Chester and the other conspirators received substantial payments drawn from the proceeds of the loan.
Few, if any, payments were made towards the mortgages. All of the seven properties which Chester was involved in went into foreclosure, resulting in a loss of at least $1,482,207.
Chester faces a maximum sentence of 30 years in prison and a $250,000 fine for conspiring to commit wire and mail fraud, and for wire fraud. U.S. District Judge James K. Bredar has scheduled sentencing for March 23, 2016 at 2:00 p.m.
In a related proceeding involving two of the properties at issue in the instant case, co-conspirator Andreas E. Tamaris, age 44, of Bel Air, Maryland, previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. Alexander Sivels, II, age 32, of Baltimore, previously pleaded guilty to wire fraud involving the fraudulent purchase of at least nine properties in Baltimore. Both Tamaris and Sivels are scheduled to be sentenced on September 27, 2016.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available at http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI , HUD OIG - Office of Investigations and the U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
Previously Convicted St. Mary’s County Sex Offender Sentenced to 15 Years in Prison for Attempting to Induce a Minor to Have SexRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Nicholas Edward Seskar, Sr., age 41, of Lusby, Maryland, today to 15 years in prison, followed by lifetime supervised release, for attempting to induce a minor to engage in sex. Judge Grimm also ordered that upon his release from prison, Seskar must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); St. Mary’s County Sheriff Tim Cameron; and St. Mary’s County State’s Attorney Richard Fritz.
In 2006, Seskar admitted to having sex with a 15 year old when he was 30 years old. He pleaded guilty in the Circuit Court for St. Mary’s County to one count of sex offense in the third degree and was sentenced to three years in prison, with all but 18 months suspended.
According to his plea agreement, from March 23 to April 2, 2015, Seskar communicated on Facebook with an individual named “Tiffany” who he believed was 15 years old. “Tiffany” was in fact an undercover law enforcement officer with the St. Mary’s County Sheriff’s Office. Over time, Seskar’s Facebook conversations became extremely graphic regarding the sexual acts he wanted to perform on “Tiffany.” Seskar told the undercover police officer that he wanted to meet to have sex, and that he had slept with a 15 year old when he was 30 years old.
On April 2, 2015, Seskar arrived at a pre-arranged meeting place and was arrested by officers with the St. Mary’s County Sheriff’s Office.
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 St. Mary’s County Sheriff’s Office, HSI Baltimore and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley and Special Assistant U.S. Attorney Jennifer Wine of the U.S. Department of Justice, who prosecuted the case.
Final Defendant in Bank Fraud Conspiracy Pleads GuiltyRead the Press Release
Baltimore, Maryland – Ronnie Mejia, age 26, of Bronx, New York, pleaded guilty today to a bank fraud conspiracy and to aggravated identity theft in connection to a credit card fraud scheme.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea, from February 2014, through October 2014, Mejia conspired with his co-defendants, Steven Harris, Marquis Johnson, Zachary O’Brien, Steven Tejeda and Jerry Anderson, as well as others, to use stolen credit card and other personal information of customers of victim financial institutions to purchase items, including Apple iPhones, at retail locations in Maryland and elsewhere.
For example, on April 10, 2014, the Baltimore County Police Department (BCPD) responded to a fraud in progress at an Apple Store in Towson, Maryland, where Johnson and Harris purchased iPhones with Visa Vanilla gift cards. Johnson and Harris were arrested and the Visa Vanilla gift cards they used to purchase the phones were recovered and determined to be re-encoded with stolen credit information.
On April 17, 2014, a search warrant was executed at Anderson’s home in Towson. Several items were recovered including: five Blackberry cell phones; two Apple iPhones; two apple iPads; an Apple computer; a shipping box and packaging for a credit card embossing machine; and miscellaneous gift cards. Anderson was at the residence at the time the search warrant was executed and a room keycard for a nearby hotel was recovered from his wallet. Later that day, a search warrant was executed at the hotel room. Tejeda and O’Brien were in the room when the search warrant was executed. The items recovered from the hotel room included: 30 counterfeit credit cards (re-encoded with stolen credit information); three Apple iPhone 5s; 43 blank counterfeit credit cards; eight pre-paid gift cards (unopened/in packaging); a credit card embossing machine; an Acer laptop computer; a credit card encoder; and over 50 credit cards embossed with the names of either Anderson, Tejeda or O’Brien.
Forensic examinations of the computers and other digital media seized during the searches recovered emails containing personal identifying information (PII) of victims, including name, date of birth, and social security number; compromised bank credit card numbers and corresponding customers’ names; and a document containing over 25 credit card numbers and other PII. Further examination of records recovered during forensic examinations revealed that at least two of the credit card numbers were purchased from a known “carding site” where perpetrators of identity theft and related crimes can purchase stolen credit card numbers and other PII. A forensic examination of Tejeda’s phone recovered during the search of the hotel room, revealed texts between Mejia and Tejeda that contained exchanges of stolen personal information of victims and instructions for fraudulent transactions and purchases.
On April 10, 2015, at the direction of the United States Secret Service (Secret Service), a cooperating witness made three consensually monitored phone calls to Mejia. Mejia wanted the cooperating witness to use stolen PII to fraudulently purchase Apple iPhones and asked for an email account so Mejia could send the cooperating witness the stolen PII. The cooperating witness provided Mejia with an email address and password, which had been set up by Secret Service. On April 13, 2015, a Secret Service agent observed that PII, including PII belonging to 16 known victims, had been put in the “drafts” folder of the provided email account. On May 19, 2015, during recorded calls between Mejia and the cooperating witness, Mejia agreed to buy the fraudulently purchased iPhones from the cooperating witness, and asked the cooperating witness to provide him with a credit card in order to pay the first phone bills from the phones. Historical cell site records show that Mejia was in New York during these phone calls.
The total actual loss caused by the conspiracy to the more than 2450 victims was $419,807.14 and the potential loss caused by the conspiracy to the victims was $1,830,030.
Mejia faces a maximum sentence of 30 years in prison for bank fraud and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. Steven Harris, age 23, of Bronx, New York; Marquis Johnson, age 21, of Severna Park, Maryland; Zachary O’Brien, age 31, of Bronx, New York; and Jerry Anderson, age 29, of Towson, have also pleaded guilty to their roles in the scheme. All are awaiting sentencing.
Steven Tejeda, age 23, of Richmond, Virginia, pleaded guilty and was sentenced to four years in prison.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Zachary A. Myers, who are prosecuting the case.
Baltimore Man Exiled to 8 Years in Prison on Gun ChargeRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Richard Barksdale, age 45, of Baltimore, today to eight years in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition. Barksdale was convicted by a federal jury on August 25, 2015, and has been detained since his arrest.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore Police Commissioner Kevin Davis.
According to evidence presented during the two day trial, in the evening of September 11, 2014, security officers from Johns Hopkins Hospital saw a man firing a gun at other men on the 800 block of N. Washington Street near the hospital. The shooter was described as wearing a blue or gray sweatshirt and gray shorts, and was heading west on foot on E. Madison Street. Johns Hopkins personnel provided Baltimore Police with a street-by-street description of the suspected shooter’s movements as they followed Barksdale in a vehicle to the 900 block of N. Bond Street.
Baltimore Police officers encountered Barksdale on Bond Street. He was wearing a blue or gray sweatshirt and gray shorts. The officers identified themselves as police, patted Barksdale down, found a loaded handgun in his waistband and arrested him.
Baltimore Police recovered expelled ammunition shell casings from the scene of the shooting on N. Washington Street. Further investigation revealed that the shells were expelled from Barksdale’s handgun. A bullet projectile also found on the street was determined to have been fired from the same handgun taken from Barksdale.
Barksdale had previously been convicted of a felony and was thus prohibited from possessing a gun and ammunition.
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 Johns Hopkins Hospital security personnel for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Michael C. Hanlon and Patricia C. McLane, who prosecuted the case.
Baltimore Drug Trafficker Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III, sentenced Raymond Comegys, age 31, of Baltimore, today to 12 years in prison, followed by five years of supervised release, for conspiring to distribute and possess with intent to distribute crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from December 2013 through May 2014, Comegys, Stephon Lowery and other co-defendants operated a street-level drug shop in the southwest area of Baltimore City that sold crack cocaine daily to customers. Multiple times a day, they ordered crack cocaine from suppliers, ranging in quantities up to 28 grams, which they then sold in user-quantity amounts to street level users.
On April 4, 2014, law enforcement executed a search warrant at Comegys’ residence in Baltimore. Inside the residence, law enforcement recovered 16 vials containing crack cocaine, a sandwich bag containing approximately 6.88 grams of cocaine, drug packaging material, Mannitol (a commonly used cutting agent), a digital scale, 17.7 grams of marijuana, and two loaded .32 caliber handguns.
Comegys admitted that he and his conspirators distributed more than 112 grams of crack cocaine.
Nine defendants, including Comegys, have been convicted for their participation in the conspiracy. Stephon Lowery, age 30, of Baltimore, was sentenced to 10 years in prison and four other co-defendants have received sentences of between 36 and 78 months. The remaining three defendants are awaiting sentencing
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Leo J. Wise, who prosecuted the case.
Rockville Man Pleads Guilty to Scheme to Steal over $120,000 from Non-Profit Where He WorkedRead the Press Release
Greenbelt, Maryland – Lowell Meredith Sherman, age 49, of Rockville, Maryland, pleaded guilty today to a wire fraud conspiracy in connection with a scheme defraud a non-profit organization.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief J. Thomas Manger of the Montgomery County Police Department; and Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division.
According to this plea agreement, from 2005 through January 2010, and again from June 2013 through October 2014, Sherman was an employee at a non-profit organization in Montgomery County, Maryland. Between April 2011 and August 2014, Sherman and his co-conspirator, who was also employed at the organization, without authorization, caused the company to purchase unneeded electronic devices, including hard drives and memory tapes, which Sherman and his co-conspirator then sold on-line. Sherman and his co-conspirator used email to communicate with potential buyers and used online payment companies to accept payment for the items and to distribute the payments amongst themselves.
The government believes that the total loss as a result of Sherman’s conduct is $292,593.75. Sherman admits that the amount of loss reasonably foreseeable to him is at least $120,000. The exact amount of loss will be determined at sentencing and as part of his plea agreement Sherman has agreed to the entry of a restitution order in that amount.
Sherman faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud. U.S. District Judge Theodore D. Chuang has scheduled sentencing for February 29, 2016, at 11:00 am.
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 Montgomery County Police Department and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom and Joseph R. Baldwin, who are prosecuting the case.
Baltimore Man Indicted for Insurance Fraud Scheme Involving Arson and for His Efforts to Cover up the Scheme, Including Attempted Witness TamperingRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Greg Ramsey, age 54, of Baltimore, with conspiracy to commit wire fraud, use of a fire to commit a federal felony, malicious destruction of property by fire, attempted witness tampering, and related gun charges. Ramsey and his niece, Tyesha Towanda Roberts, age 37, also of Baltimore, are charged with attempting to obstruct a federal investigation. The indictment was returned late on December 17, 2015.
The indictment 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; Maryland State Fire Marshal Brian Geraci; and Anne Arundel County Fire Department Deputy Chief Scott Hoglander.
According to the 12-count indictment, Ramsey and a co-conspirator, J.R., agreed to commit a series of arsons. On October 28, 2012, Ramsey and J.R. traveled to the Pennsylvania residence of J.R.’s business associate, with whom J.R. was having a dispute, and set the residence on fire. At the time, the residence was occupied. The fire caused extensive damage to the residence.
Further, the indictment alleges that Ramsey agreed to set fire to residences on Clifton Avenue and Walbrook Avenue, as well as two vehicles, all of which were owned by J.R., in order to obtain money on the insurance policies. The indictment alleges that on February 17, 2013, Ramsey deliberately set the Clifton Avenue residence on fire. At the time the fire was set, the residence was occupied by tenants. The fire caused extensive damage to the residence.
On August 26, 2013, after Ramsey and J.R. moved the vehicles to the 2700 block of Walbrook Avenue, Ramsey and J.R. allegedly set the Walbrook Avenue property and the vehicles on fire. The fire at the Walbrook Avenue property not only caused extensive damage to the building, but spread to the neighboring homes. Both vehicles were completely destroyed and those fires spread to a nearby church, located at 1925 N. Dukeland Street in Baltimore, causing extensive damage to that building.
On February 19, 2013, J.R. reported the loss due to fire damage at the Clifton Avenue residence to the insurance company, which issued a check for $50,000 to J.R. and the mortgage holder. After the mortgage and other debts were paid off, the mortgage holder wrote J.R. a check for the balance, approximately $10,000. After the fires on August 26, 2013, J.R. contacted the insurance companies for the vehicles and the Walbrook Avenue property to begin the insurance claims process, which continued by telephone and email, although neither insurer paid the claims.
Unbeknownst to Ramsey, on May 29, 2015, J.R. pleaded guilty to the insurance fraud scheme and the arsons. According to the indictment, on September 14, 2015, Ramsey and J.R. had a detailed discussion about certain evidence at the co-conspirator’s upcoming trial. Ramsey offered to have his “sister,” Roberts, falsely testify that J.R. was visiting her at her house in the vicinity of Walbrook Avenue as an explanation for why J.R. was in the area near the date and time the fires were set. During that discussion, Ramsey also allegedly offered to have someone to kill a witness who would testify for the prosecution. Ramsey and J.R. had additional discussions regarding Ramsey’s offer for Roberts to falsely testify on behalf of J.R. The indictment alleges that Roberts confirmed that she was willing to offer false testimony, and took $1,000 from a confidential source as an initial payment. After that meeting Ramsey again brought up with the confidential source the possibility of getting money to pay an individual who was willing to murder a witness who was prepared to testify for the prosecution. On November 2, 2015, Ramsey and Roberts met with J.R. to discuss the particulars of Roberts’ false testimony. During a discussion about possibly killing any witness testifying for the prosecution, Roberts offered that she knew people who would be willing to commit such a murder.
The indictment alleges that on November 6, 2015, the confidential source introduced Ramsey to an undercover law enforcement officer (UC) to discuss Ramsey’s offer involving murdering a witness for a fee. On November 13, 2014, Ramsey allegedly met with the UC and accepted $2,000 towards the $10,000 total fee that had been agreed upon for murdering a witness. Ramsey then directed the UC to his residence where he retrieved a loaded .357 revolver, to be used to murder the witness.
Ramsey faces a maximum of 20 years in prison for the wire fraud conspiracy; a maximum of 10 years in prison for one count of use of a fire to commit a federal felony and 20 years in prison, consecutive to any other sentence, for each of the two other counts; a mandatory minimum sentence of five years and up to 20 years in prison for each of four counts of malicious destruction of property by fire; a maximum of 30 years in prison for attempted witness tampering; a mandatory minimum of five years and up to life in prison for possession of a firearm in furtherance of a crime of violence; and a maximum of 10 years in prison for being a felon in possession of a firearm and ammunition. Ramsey and Roberts each face a maximum sentence of 20 years in prison for attempting to obstruct a federal investigation. Ramsey and Roberts were both arrested on related charges on November 13 and November 18, 2015, respectively. Ramsey remains detained. Roberts is under the supervision of U.S. Pretrial Services. An initial appearance on this indictment has not 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.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, Maryland State Fire Marshal’s Office and Anne Arundel County Fire Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Zachary A. Myers, who are prosecuting the case.
Anne Arundel County Man Sentenced to 188 Months in Prison for Production of Child PornographyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jason Carpenski, age 28, of Brooklyn, Maryland, today to 188 months in prison, followed by lifetime supervised release, for production of child pornography. Chief Judge Blake ordered that upon his release from prison, Carpenski must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation - Baltimore; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; and Anne Arundel County Police Chief Tim Altomare.
According to Carpenski’s plea agreement, on July 28, 2014, Carpenski responded to an internet advertisement placed by an undercover FBI Task Force Officer in Washington, D.C.. Over the next two days Carpenski discussed with the undercover officer in on-line and telephone communications his interest in images and activities involving sexual contact between adult males and their young, prepubescent daughters. Carpenski told the undercover officer that he had access to two prepubescent girls and described sexual contact he had with both of them. Carpenski sent the undercover officer a sexually explicit image that Carpenski had taken documenting his sexual abuse of one of the girls.
On August 5, 2015, a search warrant was executed at Carpenski’s residence. Carpenski admitted that he utilized his cell phone to access the internet and communicate online. Carpenski admitted taking sexually explicit images and inappropriately touching Victim One, who was younger than eight years old at the time of the conduct. Carpenski also admitted sending some of the images he had taken of Victim One to individuals in other states and countries. A search of Carpenski’s email account and forensic examination of his phone recovered over 500 images and four video files depicting prepubescent children engaged in sexually explicit conduct. Some of those images had also been emailed to others.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify children who are being sexually exploited, and missing children being advertised online for prostitution.
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’s Baltimore and Washington Field Offices, and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Three Conspirators in Baltimore Heroin Distribution Organization Sentenced to PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Brian Nettles, age 24, of Baltimore, today to 78 months in prison, followed by three years of supervised release, for conspiracy to distribute and possess with the intent to distribute heroin.
On December 15 and 16, 2015, Judge Quarles sentenced Bruce Jeffries, age 37, of Baltimore was sentenced to seven years in prison, followed by five years of supervised release, and Kevin Gray, age 32, also of Baltimore, was sentenced to 77 months in prison, followed by three years of supervised release, for the same charge.
The sentences were 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 J. Mosby.
According to their plea agreements, Jeffries, Nettles and Gray conspired with others to distribute heroin in Baltimore. Nettles joined the conspiracy in June 2014, Jeffries joined in August 2014, Gray joined in October 2014. During the conspiracy, Jeffries met with a co-conspirator to provide heroin for distribution by members of the conspiracy. Between September and November of 2014, law enforcement intercepted communications on the cellular phones of Jeffries and other conspirators. During this time Nettles, Gray, Jeffries and others were heard discussing the distribution and payment for various amounts of heroin. Jeffries was also intercepted giving members of the conspiracy instructions regarding the distribution of narcotics. On November 14, 2014, law enforcement executed a search warrant at a “stash” house used by members of the conspiracy. During the search, law enforcement recovered 400 gel capsules of heroin from inside the stash house, along with another 100 gel capsules of heroin from a co-conspirator. This seizure precipitated intercepted phone conversations between Jeffries and other co-conspirators regarding the seizure.
Jeffries and Nettles agree that during their participation in the conspiracy, they were responsible for the distribution of between one and three kilograms of heroin. Gray admits that he was responsible for between 100 and 400 grams of heroin.
Ten other co-conspirators have pleaded guilty to their roles in the heroin distribution conspiracy. Brian Carr, age 26; Walter Timmons, age 27; Darrell Randolph, age 27; Pernell Randolph, age 28; Marvin Germany, age 26; and Vincent Jones, age 52, all of Baltimore, have been sentenced to between 70 and 84 months in prison. The remaining defendants are awaiting sentencing.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore City Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Matthew Hoff, a cross-designated Baltimore City Assistant State’s Attorney, part of the Baltimore initiative to combat violent crime, who is prosecuting the case.
Fifth Conspirator Admits to the Robbery of an Owings Mills Jewelry Store Including Kidnapping and Brandishing a GunRead the Press Release
Baltimore, Maryland – Aleksey Sosonko, age 35, of Owings Mills, Maryland, pleaded guilty today to conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence, in connection with the robbery of a jewelry store, including a home invasion robbery, carjacking and kidnapping.
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, Sosonko was part of a conspiracy to rob an Owings Mills, Maryland, jewelry store. In the course of the conspiracy, Sosonko participated in an armed home invasion robbery designed to obtain firearms for use in the later robbery of the jewelry store.
Specifically, on July 22, 2012, Sosonko, MaratYelizarov, Grigory Zilberman and another conspirator 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, Sosonko, Yelizarov, Zilberman and the co-conspirator 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. The co-conspirator was armed with a handgun when they entered the residence. Sosonko, Yelizarov, and Zilberman grabbed long guns 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. One of the co-conspirators beat the resident when he tried to resist while another conspirator 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.
A co-conspirator devised a plan to commit an armed robbery of a jewelry store, and recruited Sosonko, Yelizarov, Zilberman, Igor Yasinov, Peter Magnis and others to participate in the robbery. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee.
According to Sosonko’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, Sosonko, Yelizarov, Yasinov, Magnis and another conspirator met at the residence of a sixth conspirator to prepare for the kidnapping and robbery, including handling the firearms and donning masks and gloves. Yelizarov and one of the conspirators then drove to Zilberman’s home in order to alert the others of the employee’s departure. Early in the morning on January 16, 2013, Yelizarov and the other conspirator followed the employee from Zilberman’s home for a while, and then stopped. Meanwhile, Sosonko,Yasinov, Magnis and another co-conspirator, 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, Sosonko, Yasinov, Magnis and the other co-conspirator removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location. Once at the location, Sosonko,Yasinov, Magnis, and the co-conspirator continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., Sosonko and a co-conspirator drove the employee’s vehicle from the remote location to the jewelry store. Yasinov and Magnis stayed with the employee. Yelizarov and another co-conspirator were stationed near the jewelry store to act as “look-outs.” Sosonko and a co-conspirator entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was then placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car. Throughout the kidnapping and robbery, Sosonko and the other conspirators used their cell phones to communicate with each other.
On January 18, 2013, one of the conspirators sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, the conspirator 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, the conspirator returned to Maryland and divided the cash proceeds among the members of the conspiracy and others. Sosonko received at least $60,000 for his role in the crimes.
Sosonko faces a maximum sentence of 20 years in prison for the robbery conspiracy; a maximum of life in prison for kidnapping; and a minimum mandatory sentence of seven years, and a maximum of life in prison for brandishing a firearm in relation to a crime of violence. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 2, 2016.
Grigoriy (Greg) Zilberman, age 24, of Owings Mills, Maryland, and Peter Aleksandrov Magnis, age 27, of Hydes, Maryland, Igor Yasinov, age 26, of Baltimore, and Marat Yelizarov, age 28, 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 Attorneys Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Washington DC Man Pleads Guilty to Carjacking and Gun ChargesRead the Press Release
Greenbelt, Maryland – David Nathaniel Peebles, age 31, of Washington, D.C., pleaded guilty today to carjacking and to being a felon in possession of a gun.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation’s Washington Field Office; Interim Chief Henry P. Stawinski of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; and Maryland Attorney General Brian E. Frosh.
According to his plea agreement, between January 2011 and April 1, 2012, Peebles conspired with others to commit armed carjackings and other crimes of violence. Peebles and his co-conspirators communicated among themselves about committing carjackings, traveled together in search of potential carjacking targets, and armed themselves with firearms to be used while committing the carjacking.
Specifically, on February 8, 2012, Peebles, Jeffrey Carl Franklin, and another co-conspirator traveled by car to the Manchester Road area of Silver Spring, Maryland, where they spotted a victim parking a 2008 Infiniti. As the victim exited the vehicle, the two co-conspirators approached the victim while Peebles remained in the car. The co-conspirators confronted the victim and at gunpoint, demanded the keys to the car. The co-conspirators took the victim’s purse, which contained the keys to the Infiniti, then entered the Infiniti and drove away, with Peebles following behind in their vehicle.
On February 12, 2012, Peebles and two co-conspirators drove to the Russell Avenue area of Mount Rainier, Maryland, looking for carjacking targets. Again, Peebles remained in the car to act as the getaway driver, while the two co-conspirators approached victims in a 2004 Acura TL. One co-conspirator pointed a gun at the driver’s head and demanded that the driver get out of the car. The driver complied and the co-conspirator then stole the driver’s personal property. The second co-conspirator approached the passenger in the Acura and demanded the passenger’s purse. When the victim did not immediately comply, the co-conspirator struck the victim in the face several times. During the assault the other co-conspirator took the victim’s property. The co-conspirators then got into the Acura and drove away while Peebles followed in their vehicle.
During the course of the conspiracy, Peebles or a co-conspirator knowingly possessed 9 millimeter pistol, with an obliterated serial number, to use in the carjackings. Peebles has at least one previous felony conviction and therefore is prohibited from possessing a firearm or ammunition.
Peebles and the government have agreed that if the Court accepts the plea agreement Peebles will be sentenced to between seven and 15 years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for April 8, 2016 at 2:00 p.m.
Jeffrey Carl Franklin, age 29, of Greenbelt, Maryland, previously pleaded guilty to his role in the carjacking conspiracy and is awaiting sentencing. Another member of the conspiracy, Samuel Damien Bynum, age 25, of Washington, D.C., pleaded guilty and was sentenced to 207 months in prison, for conspiring to use a gun during carjackings, using a gun during a carjacking, carjacking and being a felon in possession of a gun and ammunition.
United States Attorney Rod J. Rosenstein commended the FBI, the Prince George’s and Montgomery Counties Police Departments and State’s Attorney’s Offices, and Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant Matthew L. Paeffgen, who are prosecuting the case.
Waldorf Man Pleads Guilty to Stealing Guns from a Federally Licensed Firearms Dealer and Setting the Store on FireRead the Press Release
Greenbelt, Maryland – Edward White, age 46, of Waldorf, Maryland, pleaded guilty today to theft of firearms and use of fire during the commission of a felony, in connection with the robbery and arson of a federally licensed firearms dealer.
The 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; and Charles County Sheriff Troy Berry.
According to his plea agreement, in February 2014, White planned to burglarize Fred’s Sports and Furniture, a federally licensed firearms dealer in Waldorf, Maryland. In preparation for the burglary White took photographs outside and inside the store, including the fence, gate, the padlock used to secure the gate, guns, and display cases containing the guns. White also accessed the roof of the store by climbing the HVAC system at the rear of the building, and took photos of the roof and the HVAC system. White’s DNA was recovered from a beam next to the HVAC system. White shared the photos with at least one co-conspirator.
On October 13, 2014, co-conspirators robbed Fred’s Sports and set it on fire. Specifically, co-conspirators cut the chain and padlock previously photographed by White, using bolt cutters provided by White. At least one co-conspirator climbed onto the roof of the building and cut a hole in the roof at the same location photographed by White. A co-conspirator, wearing a mask and gloves, entered the store and gathered more than 70 handguns from display cases throughout the store. After more than an hour, the co-conspirators poured an accelerant on the floor throughout the interior of the store, exited through the hole in the roof and ignited the accelerant. The fire destroyed Fred’s Sports and rendered the building uninhabitable. After the burglary, one of the co-conspirators gave White at least two of the stolen firearms.
Law enforcement officers recovered White’s cell phone near the rear of the store. The phone contained the photos of Fred’s Sports taken by White.
On November 6, 2014, law enforcement executed a search warrant at White’s home and recovered a .380 handgun stolen from Fred’s Sports and five .40 caliber rounds of ammunition. White’s DNA was on the trigger guard. White agreed to go with law enforcement officers to the Charles County Sheriff’s Office, where he requested to use the rest room. While in the toilet stall, White placed a black cloth object in the trash can next to the toilet. Law enforcement subsequently searched the trash can and discovered a black cloth belly band holster containing a .40 caliber semi-automatic handgun, loaded with a magazine and 10 rounds of ammunition. This firearm was also stolen from Fred’s Sports on October 13, 2014. The next day, law enforcement searched White’s car and recovered the bolt cutters used during the robbery.
White and the government have agreed that if the Court accepts the plea agreement White will be sentenced to between 13 and 17 years in prison. U.S. District Judge Theodore Chuang has scheduled sentencing for April 11, 2016.
United States Attorney Rod J. Rosenstein commended the ATF and Charles County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Daniel C. Gardner, who prosecuted the case.
Payroll Service Company Owner Admits to Stealing Money Set Aside by Clients to Pay Federal and State TaxesRead the Press Release
Baltimore, Maryland – Beverly Carden, age 53, formerly of Bel Air, Maryland, pleaded guilty today to mail fraud and filing a false tax return, arising from a scheme to steal money from her clients and the IRS.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
“Beverly Carden falsely told clients that their money was being used to pay their taxes, when in fact she was stealing it,” said U.S. Attorney Rod J. Rosenstein. “Customers who hire payroll services companies expect that they will not have to worry, but this case is a reminder that people always need to be vigilant when they trust someone with their money.”
According to her plea agreement, until its closure in March 2013, Beverly Carden owned and operated AccuPay, Inc. which provided payroll and payroll tax services to small and medium businesses. Her husband, Kevin Carden, ran the company’s “tax department,” which was responsible for handling the employment tax portion of the business. AccuPay received funds from its clients that it held in trust to pay over to the IRS and the Comptroller of Maryland for AccuPay’s clients’ employment taxes.
During the course of the fraud scheme, AccuPay withdrew from the clients’ funds the full amount of payroll taxes owed, but then paid the taxing authorities only a portion of such funds. While AccuPay falsely represented to its clients that it paid all of the taxes owed, in fact, Beverly Carden diverted a large portion of those funds to a personal bank account for her personal use.
In 2012, a client of AccuPay confronted representatives of AccuPay with the fact that the company had failed to pay over $300,000 in taxes owed from 2008 to 2012. In response, AccuPay paid the client’s tax deficiencies.
AccuPay sent a letter to their clients stating that they had hired a CFO to audit all tax deposits and filings for all tax clients back to 2009. In fact, that individual was not AccuPay’s CFO, but rather was an independent tax preparer who Beverly Carden had hired primarily to prepare personal taxes and the corporate taxes of AccuPay, rather than those of the clients. Additionally, in order to contact the IRS about her clients’ employment tax issues without her clients’ knowledge, Beverly Carden copied client signatures on IRS power of attorney forms onto forms for more recent periods without the clients’ permission.
Carden admits that the amount of loss reasonably foreseeable to her arising from this scheme is between $380,000 and $600,000.
Carden also admits that she filed a false individual tax return for 2011 in which she did not report the amount of payroll taxes that she had diverted from AccuPay’s clients to her personal account. She also failed to file a tax return for 2012. Beverly Carden admits that the amount of loss reasonably foreseeable to her arising from this tax fraud scheme is between $40,000 and $100,000.
Beverly Carden faces a maximum penalty of 20 years in prison for mail fraud, and a maximum of three years in prison for filing a false tax return. U.S. District Judge Marvin J. Garbis scheduled sentencing for March 23, 2016, at 10:00 a.m.
A federal grand jury indicted co-defendant Kevin Carden, age 55, of Bel Air on charges arising the schemes. Kevin Carden has pleaded not guilty. 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 efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the IRS - Criminal Investigation and FBI for their work in the investigation. Mr. Rosenstein praised the Bel Air Police Department for their assistance in the investigation, and thanked Assistant U.S. Attorneys Evan T. Shea and Jefferson M. Gray, who are prosecuting the case.
Former Russian Nuclear Energy Official Sentenced to Four Years in Prison for Money Laundering Conspiracy Involving Violations of the Foreign Corrupt Practices ActRead the Press Release
Greenbelt, Maryland - U.S. District Judge Theodore D. Chuang sentenced Vadim Mikerin, age 56, a Russian official residing in Chevy Chase, Maryland, today to four years in prison for conspiracy to commit money laundering in connection with his role in arranging over $2 million in corrupt payments to influence the awarding of contracts with the Russian state-owned nuclear energy corporation. Judge Chuang also entered an order requiring Mikerin to forfeit $2,126,622.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the U.S. Department of Justice Criminal Division; John R. Hartman, Deputy Inspector General for Investigations, Office of Inspector General at the U.S. Department of Energy; and Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office.
According to court documents, Mikerin was the director of the Pan American Department of JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide, and the president of TENAM Corporation, a wholly owned subsidiary and the official representative of TENEX. Court documents show that between 2004 and October 2014, conspirators agreed to make corrupt payments to influence Mikerin and to secure improper business advantages for U.S. companies that did business with TENEX, in violation of the Foreign Corrupt Practices Act (FCPA). Mikerin admitted that he conspired with Daren Condrey, Boris Rubizhevsky and others to transmit approximately $2,126,622 from Maryland and elsewhere in the United States to offshore shell company bank accounts located in Cyprus, Latvia and Switzerland with the intent to promote the FCPA violations. Mikerin further admitted that the conspirators used consulting agreements and code words to disguise the corrupt payments.
Daren Condrey, 50, of Glenwood, Maryland, previously pleaded guilty to conspiring to violate the Foreign Corrupt Practices Act (FCPA) and conspiring to commit wire fraud. Boris Rubizhevsky, 64, of Closter, New Jersey, has pleaded guilty to conspiracy to commit money laundering. Both are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the DOE-OIG and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Michael T. Packard, Special Assistant United States Attorney Meghan A. Leibold, and Trial Attorneys Christopher Cestaro, Ephraim Wernick, and Derek Ettinger of the U.S. Department of Justice Fraud Section, who prosecuted the case.
Former Russian Nuclear Energy Official Sentenced to 48 Months in Prison for Money Laundering Conspiracy Involving Foreign Corrupt Practices Act ViolationsRead the Press Release
U.S. Conspirators Paid More Than $2 Million to Influence Russian Nuclear Energy Official and to Secure Business with State-Owned Russian Nuclear Energy Company
A former Russian official residing in Maryland was sentenced today to 48 months in prison for conspiracy to commit money laundering in connection with his role in arranging more than $2 million in corrupt payments to influence the awarding of contracts with a Russian state-owned nuclear energy corporation.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Deputy Inspector General for Investigations John R. Hartman of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG) and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.
Vadim Mikerin, 56, of Chevy Chase, Maryland, was also ordered to forfeit $2,126,622.36 by U.S. District Judge Theodore D. Chuang of the District of Maryland.
According to court documents, Mikerin was the director of the Pan American Department of JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide, and the president of TENAM Corporation, a wholly owned subsidiary and the official representative of TENEX. Court documents show that between 2004 and October 2014, conspirators agreed to make corrupt payments to influence Mikerin and to secure improper business advantages for U.S. companies that did business with TENEX, in violation of the Foreign Corrupt Practices Act (FCPA). Mikerin admitted that he conspired with Daren Condrey, Boris Rubizhevsky and others to transmit approximately $2,126,622 from Maryland and elsewhere in the United States to offshore shell company bank accounts located in Cyprus, Latvia and Switzerland with the intent to promote the FCPA violations. Mikerin further admitted that the conspirators used consulting agreements and code words to disguise the corrupt payments.
Condrey, 50, of Glenwood, Maryland, pleaded guilty on June 17, 2015, to conspiracy to violate the FCPA and conspiracy to commit wire fraud. Rubizhevsky, 64, of Closter, New Jersey, pleaded guilty on June 15, 2015, to conspiracy to commit money laundering. Condrey and Rubizhevsky await sentencing.
The DOE-OIG and FBI investigated the case. Trial Attorneys Christopher Cestaro, Ephraim Wernick and Derek Ettinger of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David I. Salem and Michael T. Packard and Special Assistant U.S. Attorney Meghan A. Leibold of the District of Maryland prosecuted the case.
Cocaine Supplier Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Lincoln Normando Moquete, age 44, of Fort Lauderdale, Florida today to 12 years in prison, followed by five years of supervised release, for conspiracy and for possession with intent to distribute five kilograms or more of cocaine. Moquete was convicted by a federal jury on September 18, 2015, after a five day trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.
According to trial testimony, on March 9, 2010, a Maryland State Police trooper stopped a vehicle on Interstate 95 in Cecil County for excessive speed and making an unsafe lane change. The driver was extremely nervous. A K-9 was called and alerted for the presence of narcotics. Troopers seized 13 kilogram size bricks of cocaine from the trunk.
Subsequent investigation revealed that Moquete had supplied the cocaine recovered from the car. Moquete’s fingerprints were recovered on the cocaine’s plastic wrappings and a plastic bag containing the cocaine. Evidence was also presented that Moquete had numerous phone contacts with a man to whom Moquete had supplied the cocaine, who in turn had provided the drugs to the driver. The driver was transporting the cocaine to New York.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, DEA, and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Christopher J. Romano and Seema Mittal, who prosecuted the case.
Maryland Man Charged for Alleged Support of the ISIL Terrorist OrganizationRead the Press Release
Baltimore, Maryland – Mohamed Elshinawy, 30, of Edgewood, Maryland, was arrested on Friday, December 11, 2015, on a federal criminal complaint charging him with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization; obstruction of agency proceedings; and making false statements and falsifying or concealing material facts. Elshinawy is scheduled to have his initial appearance at 2:45 p.m. today before U.S. Magistrate Judge Beth P. Gesner of the District of Maryland in Baltimore.
The criminal complaint was announced by U.S. Attorney Rod J. Rosenstein of the District of Maryland; Assistant Attorney General for National Security John P. Carlin; and Special Agent in Charge Kevin Perkins of the FBI’s Baltimore Division.
“This case demonstrates how terrorists exploit modern technology to inculcate sympathizers and build hidden networks, but federal agents and prosecutors are working tirelessly and using every available lawful tool to disrupt their evil schemes,” said U.S. Attorney Rosenstein. “The affidavit alleges that Mr. Elshinawy initially told the FBI that he was defrauding the terrorists, but further investigation showed that Mr. Elshinawy was supporting the terrorists and misleading the FBI.”
“According to the allegations in the complaint, Mohamed Elshinawy received money he believed was provided by ISIL in order to conduct an attack on U.S. soil,” said Assistant Attorney General Carlin. “When confronted by the FBI, he lied in order to conceal his support for ISIL and the steps he took to provide material support to the deadly foreign terrorist organization. He will now be held accountable for these crimes. The National Security Division’s highest priority is counterterrorism and we will continue to pursue and disrupt those who seek to provide material support to ISIL.”
The affidavit filed in federal court alleges that in June 2015, the FBI became aware of an individual located in Egypt who was attempting to send money to the United States, possibly for nefarious purposes. The investigation revealed that on June 28, 2015, that individual wire transferred $1,000 to Elshinawy. The FBI interviewed Elshinawy on July 17, 2015. The affidavit alleges that Elshinawy first claimed that his mother had sent him the money, and then that the money was to purchase an iPhone for a friend. Later, he admitted that a childhood friend had contacted him a few months earlier to connect him, through social media, with an unidentified member of ISIL (referred to in the complaint as the “unidentified ISIL operative”). Elshinawy began communicating with the unidentified ISIL operative through a method of communication used by ISIL. The defendant also admitted that he understood the individual in Egypt who wire transferred the money on June 28, 2015, also to be an ISIL operative (referred to in the complaint as the “Egyptian ISIL operative”).
Elshinawy said that he had received a total of $4,000 in two payments –$1,000 through Western Union and $3,000 through PayPal – and that the ISIL operative instructed Elshinawy to use the monies for “operational purposes,” which Elshinawy understood to mean causing destruction or conducting a terrorist attack in the United States. Elshinawy stated that ISIL instructed him that if he ever came under surveillance by law enforcement, he should stop whatever activities he was doing in connection with executing an attack. Elshinawy claimed, however, that he never intended to carry out an attack and was only trying to get money from ISIL.
The affidavit further alleges that during a second interview with the FBI on July 20, 2015, Elshinawy stated emphatically that he received no other funds from ISIL other than the $4,000 he had previously disclosed. Later, however, Elshinawy said that he remembered receiving another payment of $1,200 from ISIL through Paypal, from the same unidentified ISIL operative, by order of a man in Syria. In this instance, Elshinawy explained that in order to receive the transfers from the unidentified ISIL operative, he engaged in a scheme by which he pretended to sell printers on eBay that would serve as a cover for the payments he received from ISIL.
A review of PayPal records indicates that Elshinawy allegedly concealed at least $3,500 of $7,700 that he received from ISIL operatives through his PayPal account between March and June 2015, specifically, $1,500 on March 23; $1,000 on April 16; $1,000 on May 1; $3,000 on May 14; and $1,200 on June 7. In total, Elshinawy allegedly received at least $8,700 from individuals he understood to be associated with ISIL.
According to the affidavit, Elshinawy used social media, multiple email accounts and “pay as you go” phones subscribed to him under various aliases to communicate with the individuals he understood to be associated with ISIL.
The social media communications between Elshinawy and his childhood friend were in Arabic, and many contained jihadist rhetoric found in ISIL- and other terrorist-related propaganda.
The investigation revealed that on Feb. 17, 2015, Elshinawy pledged his allegiance to ISIL and asked his childhood friend to deliver his message of loyalty. He stated that he was a soldier of the state, a common reference to ISIL, but temporarily away. Elshinawy also stated that his soul was over there with the jihadists and that every time he saw the news, he smiled. At the time of this conversation, ISIL recently had conducted a series of attacks and gained territory in Iraq. On Feb. 16, 2015, a video was publicly released showing the execution of 21 Egyptian nationals in Libya by ISIL extremists.
Also on Feb. 17, 2015, the childhood friend told Elshinawy to seek God’s help and not tell anyone his plans for a terrorist attack. Elshinawy agreed and acknowledged that it is a crime in the United States. He further declared his allegiance to committing jihad.
The investigation also revealed that on April 27, 2015, Elshinawy told his brother that he had pledged allegiance to ISIL and that he had received money from ISIL and expected to receive even more. In further communications with his brother in May 2015, Elshinawy stated his desire to die as a martyr for the Islamic State (ISIL), and in August 2015, he directed his brother to take steps to conceal their communications and any communications with the childhood friend, because Elshinawy believed his relationship with ISIL had been compromised.
Elshinawy’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation. The maximum sentence of imprisonment for attempting to provide material support to a designated foreign terrorist organization is 15 years; for obstruction of agency proceedings is eight years; and for making material false statements is eight years.
A criminal complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Christine Manuelian who is prosecuting the case, with the assistance John Gibbs of the National Security Division’s Counterterrorism Section.
Maryland Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
Defendant Allegedly Received Money from Individuals Overseas to be used for “Operational Purposes” in the United States
When Confronted by the FBI the Defendant Allegedly Lied to the FBI and Concealed his Support for ISIL
Mohamed Elshinawy, 30, of Edgewood, Maryland, was arrested on Friday, Dec. 11, 2015, on a federal criminal complaint charging him with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization; obstruction of agency proceedings; and making false statements and falsifying or concealing material facts. Elshinawy will have his initial appearance today at 2:45 p.m. EST before U.S. Magistrate Judge Beth P. Gesner of the District of Maryland in Baltimore.
The criminal complaint was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Special Agent in Charge Kevin Perkins of the FBI’s Baltimore Division.
“According to the allegations in the complaint, Mohamed Elshinawy received money he believed was provided by ISIL in order to conduct an attack on U.S. soil,” said Assistant Attorney General Carlin. “When confronted by the FBI, he lied in order to conceal his support for ISIL and the steps he took to provide material support to the deadly foreign terrorist organization. He will now be held accountable for these crimes. The National Security Division’s highest priority is counterterrorism and we will continue to pursue and disrupt those who seek to provide material support to ISIL.”
“This case demonstrates how terrorists exploit modern technology to inculcate sympathizers and build hidden networks, but federal agents and prosecutors are working tirelessly and using every available lawful tool to disrupt their evil schemes,” said U.S. Attorney Rosenstein. “The affidavit alleges that Mr. Elshinawy initially told the FBI that he was defrauding the terrorists, but further investigation showed that Mr. Elshinawy was supporting the terrorists and misleading the FBI.”
The affidavit filed in federal court alleges that in June 2015, the FBI became aware of an individual located in Egypt who was attempting to send money to the United States, possibly for nefarious purposes. The investigation revealed that on June 28, 2015, that individual wire transferred $1,000 to Elshinawy. The FBI interviewed Elshinawy on July 17, 2015. The affidavit alleges that Elshinawy first claimed that his mother had sent him the money, and then that the money was to purchase an iPhone for a friend. Later, he admitted that a childhood friend had contacted him a few months earlier to connect him, through social media, with an unidentified member of ISIL (referred to in the complaint as the “unidentified ISIL operative”). Elshinawy began communicating with the unidentified ISIL operative through a method of communication used by ISIL. The defendant also admitted that he understood the individual in Egypt who wire transferred the money on June 28, 2015, also to be an ISIL operative (referred to in the complaint as the “Egyptian ISIL operative”).
Elshinawy said that he had received a total of $4,000 in two payments –$1,000 through Western Union and $3,000 through PayPal – and that the ISIL operative instructed Elshinawy to use the monies for “operational purposes,” which Elshinawy understood to mean causing destruction or conducting a terrorist attack in the United States. Elshinawy stated that ISIL instructed him that if he ever came under surveillance by law enforcement, he should stop whatever activities he was doing in connection with executing an attack. Elshinawy claimed, however, that he never intended to carry out an attack and was only trying to get money from ISIL.
The affidavit further alleges that during a second interview with the FBI on July 20, 2015, Elshinawy stated emphatically that he received no other funds from ISIL other than the $4,000 he had previously disclosed. Later, however, Elshinawy said that he remembered receiving another payment of $1,200 from ISIL through PayPal, from the same unidentified ISIL operative, by order of a man in Syria. In this instance, Elshinawy explained that in order to receive the transfers from the unidentified ISIL operative, he engaged in a scheme by which he pretended to sell printers on eBay that would serve as a cover for the payments he received from ISIL.
A review of PayPal records indicates that Elshinawy allegedly concealed at least $3,500 of $7,700 that he received from ISIL operatives through his PayPal account between March and June 2015, specifically, $1,500 on March 23; $1,000 on April 16; $1,000 on May 1; $3,000 on May 14; and $1,200 on June 7. In total, Elshinawy allegedly received at least $8,700 from individuals he understood to be associated with ISIL.
According to the affidavit, Elshinawy used social media, multiple email accounts and “pay as you go” phones subscribed to him under various aliases to communicate with the individuals he understood to be associated with ISIL.
The social media communications between Elshinawy and his childhood friend were in Arabic, and many contained jihadist rhetoric found in ISIL- and other terrorist-related propaganda.
The investigation revealed that on Feb. 17, 2015, Elshinawy pledged his allegiance to ISIL and asked his childhood friend to deliver his message of loyalty. He stated that he was a soldier of the state, a common reference to ISIL, but temporarily away. Elshinawy also stated that his soul was over there with the jihadists and that every time he saw the news, he smiled. At the time of this conversation, ISIL recently had conducted a series of attacks and gained territory in Iraq. On Feb. 16, 2015, a video was publicly released showing the execution of 21 Egyptian nationals in Libya by ISIL extremists.
Also on Feb. 17, 2015, the childhood friend told Elshinawy to seek God’s help and not tell anyone his plans for a terrorist attack. Elshinawy agreed and acknowledged that it is a crime in the United States. He further declared his allegiance to committing jihad.
The investigation also revealed that on April 27, 2015, Elshinawy told his brother that he had pledged allegiance to ISIL and that he had received money from ISIL and expected to receive even more. In further communications with his brother in May 2015, Elshinawy stated his desire to die as a martyr for the Islamic State (ISIL), and in August 2015, he directed his brother to take steps to conceal their communications and any communications with the childhood friend, because Elshinawy believed his relationship with ISIL had been compromised.
The maximum sentence of imprisonment for attempting to provide material support to a designated foreign terrorist organization is 15 years; for obstruction of agency proceedings is eight years; and for making material false statements is eight years. If convicted, any potential sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation.
A criminal complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Christine Manuelian of the District of Maryland, with the assistance of Trial Attorney John Gibbs of the National Security Division’s Counterterrorism Section.
Elshinawy Complaint
Man Arrested in Penn-North One Week After Baltimore Riots Sentenced to 42 Months in Prison for Federal Gun ChargeRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Robert “Meech” Tucker, age 24, of Baltimore, today to 42 months in prison, followed by three years of supervised release, for illegal possession of a gun by a previously convicted felon.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore Police Commissioner Kevin Davis.
“Mr. Tucker threw a loaded gun on the ground and it fired, then he pretended to be injured. His actions incited misguided bystanders who attacked innocent police officers,” said U.S. Attorney Rod J. Rosenstein. “This case shows the challenges that police officers sometimes face as they work to protect the community and save lives.”
According to court documents, on May 4, 2015, a citizen notified police officers that a man was armed with a handgun in the Penn-North section of Baltimore, near a pharmacy that was burned during street riots the previous week. Officers alerted the CitiWatch camera operators, and a camera operator located Tucker, who matched the description.
The camera operator confirmed that Tucker was displaying characteristics of an armed gunman. Officers then drove their marked patrol car into the area. When the patrol car stopped, Tucker ran. Tucker then removed a handgun from his waistband area and threw it to the ground, causing it to fire. Fortunately no one was hit by the bullet. Police arrested Tucker and recovered a .357 Magnum revolver handgun loaded with two live rounds and one spent cartridge casing.
Meanwhile, bystanders wrongly shouted that a police officer shot Tucker in the back, people yelled and threw bricks and bottles at police officers, and a television network mistakenly reported that the police had shot Tucker.
Tucker was transported to the hospital, but he was not injured.
Tucker also admitted that five weeks earlier, on March 29, 2015, he committed an assault in violation of state law. In that incident, CitiWatch cameras in the area of Penn-North recorded Tucker striking a man in the back of the head with his fist. The man fell to the ground and was injured. The man was taken to the hospital and treated for his injury. The camera operator continued to monitor Tucker until he was located by Baltimore Police officers and arrested.
Federal prosecutors have charged four other defendants for crimes committed during the Baltimore riot on April 27, 2015. Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, was charged with obstruction of firefighters during a civil disorder and for aiding and abetting arson. Donta Betts, age 19, of Baltimore, is charged with attempted arson of a police cruiser, civil disorder and unlawful making of a destructive device. Darius Raymond Stewart, age 21, of Baltimore, is charged with malicious destruction of a commercial building for allegedly setting fire to a liquor store on West North Avenue. Raymon Carter, age 24, of Baltimore, Maryland, pleaded guilty to the federal crime of rioting, including the arson of the CVS Pharmacy on April 27, 2015, and was sentenced to four years in prison and ordered to pay restitution of $500,000.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Matthew Hoff, a Baltimore Assistant State’s Attorney assigned to handle federal Exile cases, who prosecuted the case.
Garrett County Attorney Sentenced to Prison for Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles sentenced Angela M. Blythe, age 52, of Oakland, Maryland, today to a year and a day in prison, followed by three years of supervised release, for conspiring to commit bank fraud, bank fraud and two counts of making a false statement to a bank. Judge Quarles also entered an order requiring Blythe to forfeit $696,517 and pay restitution of $948,203.25. Blythe was convicted by a federal jury on October 9, 2015, after a nine day trial
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.
Blythe was an attorney licensed to practice in Maryland and West Virginia, with an office in Oakland, Maryland. She was a settlement attorney in real estate transactions.
According to evidence presented at the nine day trial, from 2000 to 2005, Blythe conducted real estate settlements on at least seven occasions involving a co-conspirator whose identity she concealed from the financial institution loaning the funds for the transaction. Blythe filed mortgages on behalf of the co-conspirator, frequently at the last minute, which enabled her to pay the sales proceeds from the transaction to the co-conspirator and not to the named seller. Blythe recorded mortgages and deeds in Garrett County, Maryland and Preston County, West Virginia, which concealed her co-conspirator’s participation in the transactions and receipt of funds.
For example, in April 2004, Blythe transferred ownership of a restaurant/bed and breakfast which bordered on Deep Creek Lake for $0 consideration from her co-conspirator to a fictitious church trustee and church. Louis Strosnider subsequently applied for a mortgage loan of $2,250,000 to purchase the property. Blythe prepared a fraudulent settlement statement which stated that the bank was lending $1,725,000; the remainder of the purchase price was made up of a fictitious $750,000 down payment and $341,379.94 which Blythe was to collect from Strosnider at the settlement. According to the fraudulent settlement statement, Blythe was to pay a purported mortgage company $1,972,427.82 from the proceeds. At the closing in October 2004, Blythe failed to collect Strosnider’s funds as described in the settlement statement. In addition, she distributed the proceeds of the sale not to the fictitious trustee and church, but to her co-conspirator.
In a related case, Louis W. Strosnider, III, age 49, of Oakland, and Samuel R. VanSickle, a/k/a “Donald Blunt,” “Jacob Aiken,” “Allen Helms,” “Paul Walsh,” and “William Hall, Attorney,” age 51, of Accident, Maryland, were previously indicted on conspiracy and bank fraud charges. Strosnider previously pleaded guilty to his participation in the conspiracy and is awaiting sentencing. VanSickle has pleaded not guilty. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Joyce K. McDonald and Philip A. Selden, who are prosecuting the case.
Former Glen Burnie Man Pleads Guilty to a Robbery Conspiracy and to the August 2014 Robbery of an Exxon Gas StationRead the Press Release
Baltimore, Maryland - Robin Tyrone Smith, age 27, formerly of Glen Burnie, Maryland, pleaded guilty today to a robbery conspiracy and to the armed robbery of an Exxon Station convenience store on August 7, 2014.
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; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
According to his plea agreement, Smith conspired with others to rob the Exxon Station convenience store located at 7898 Ridge Road in Hanover, Maryland on August 7, 2014. Specifically, on August 7, 2014, Smith, who was captured on video surveillance, entered the Exxon armed with a gun and shot the store clerk during the robbery. The store clerk died at the scene.
According to the plea agreement, the evidence would show that on the day before the Exxon robbery, Smith burglarized an apartment near his residence at the time. Items taken during the burglary included a .45 caliber Springfield Armory XD 45 firearm, .45 caliber hollow point ammunition, an X-box gaming system and games for the system. The stolen gun was used by Smith in the robbery. Also on August 6, 2014, Smith sold some of the stolen X-box games at a store located in the Arundel Mills Mall. Smith provided his Maryland State Identification card at the store and witnesses have identified Smith as the person who sold the stolen games on that date. Surveillance video from the store shows Smith wearing the same clothing and shoes as he wore during the Exxon robbery.
Clothing and other evidence connecting Smith to the robbery and murder was also seized as a result of the execution of several search warrants during the investigation.
Smith and the government have agreed that if the Court accepts the plea agreement Smith will be sentenced to 40 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 1, 2016. Smith remains detained.
United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department, and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys John F. Purcell and Matthew C. Sullivan, who are prosecuting the case.
Waldorf Man Indicted in Scheme to Export Firearm Parts and AccessoriesRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Brian Thomas Platt, age 39, of Waldorf, Maryland, for illegally attempting to export and exporting firearms parts and other items designated as defense articles. The indictment was returned on December 7, 2015 and unsealed today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) - Mid-Atlantic Field Office; and Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.
To further the security and foreign policy of the United States, the export from the United States of certain items designated as defense articles is controlled. Before exporting defense articles, the exporter is required to obtain an export license and identify the nature of the defense articles to be exported, the end-recipient and the purpose for which they are intended.
According to the three count indictment, on the following occasions, Platt exported and caused the exportation of the following firearm parts and accessories designated as defense articles on the U.S. Munitions List, without first obtaining the required licenses and authorizations: on June 24, 2014, an Uzi trigger group and two Uzi top covers, from the United States and destined to France; on August 14, 2014, three M-16 selectors, three M-16 disconnectors, three M-16 auto sear assemblies and three M-16 hammers from the United States and destined to Thailand; and on October 4, 2014, an 18 ½ inch IMI Factory Galil 5.56mm barrel from the United States and destined for Finland.
Platt faces a sentence of 20 years in prison on each of three counts for unlawful export of defense articles. An initial appearance was held on December 8, 2015 and Platt was released under the supervision of U.S. Pretrial Services. Platt is scheduled to be arraigned in U.S. District Court in Greenbelt on December 21, 2015 at 3:00 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, DCIS and ATF for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mara Zusman Greenberg, who is prosecuting the case.
Bank Employee Sentenced for Fraudulently Withdrawing Customer FundsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Regan Christopher Tsoi-A-Sue, age 29, of Washington, D.C., today to 30 months in prison followed by five years of supervised release for bank fraud and aggravated identity theft arising from a scheme to fraudulently obtain money from customer bank accounts. Judge Grimm also entered an order that Tsoi-A-Sue pay restitution of $87,350.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to his plea agreement, Tsoi-A-Sue worked at Capital One as a relationship banker, at a branch on Wisconsin Avenue in Washington, D.C. He was assigned a unique user ID and password which allowed him to access and change customer accounts on Capital One’s computer system.
From September 9, 2011 to April 22, 2013, Tsoi-A-Sue fraudulently linked four temporary debit cards and one debit card of a closed bank account (the Debit Cards) in Capital One’s computer system to open bank accounts belonging to other persons. He also changed the pin number or increased the daily withdrawal limit, or both, of the Debit Cards. Tsoi-A-Sue then made and attempted to make transactions with the Debit Cards to withdraw funds from ATMs.
For example, on October 27, 2012, Tsoi-A-Sue fraudulently linked a Capital One Debit Card belonging to a closed bank account, to another Capital One savings account. On December 9, 2012, he used the Capital One Debit Card to withdraw $500 from the savings account at an ATM.
During the course of the scheme, Tsoi-A-Sue fraudulently withdrew $87,350.
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 HSI Baltimore for its work in the investigation and thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case
Jeffrey Cohen Sentenced to 37 Years in Prison in Massive Insurance Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jeffrey Brian Cohen, age 40, of Reisterstown, Maryland, today to 37 years in prison followed by three years of supervised release for wire fraud, aggravated identity theft, making false statements to an insurance regulator and obstruction of justice. Judge Quarles also entered an order requiring Cohen to pay restitution of $137 million, and will order forfeiture.
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; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division.
U.S. Attorney Rod Rosenstein stated, “The evidence demonstrated that Jeffrey Cohen was a chronic con artist who was planning to commit murder to prevent his fraud schemes from coming to light.”
“Cohen’s substantial criminal conduct may have benefited him short-term, but now Cohen is being held accountable for his criminal actions,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today's sentencing stands as an example that IRS-CI, along with the U.S. Attorney’s Office and our law enforcement partners, will continue to investigate and prosecute crimes involving financial fraud.”
“Postal Inspectors are proud to have worked with our federal law enforcement partners to end a widespread insurance fraud affecting businesses all over the U.S.,” stated Inspector In Charge David Bowers of the U.S. Postal Inspection Service. “But we are just as proud that the investigation may have prevented more dangerous activities from occurring.”
After four days of trial, Cohen pleaded guilty to the offenses on June 5, 2015. According to his plea agreement, Cohen acted as the president and chairman of the board of a Delaware corporation Indemnity Insurance Corporation RRG (Indemnity). Cohen previously controlled a District of Columbia corporation called Indemnity Insurance Corporation of DC, Risk Retention Group (Indemnity-DC), which was a predecessor entity to Indemnity. Both companies were located in Sparks, Maryland, and provided general liability insurance, liquor liability insurance, and excess liability insurance coverage to their customers, which were individuals and companies involved in the entertainment industry, such as nightclubs, concert tours, and special events. Both companies operated in several states, including Maryland.
The Delaware Insurance Commissioner and the DC Insurance Commissioner were charged by law with the responsibility of protecting insurance policyholders and the general public by regulating insurance companies and risk retention groups and their products to ensure among other things, that insurance companies and risk retention groups had the ability to pay claims.
Cohen admitted that from January 2008 to the fall of 2013, Cohen obtained insurance premiums by falsely representing the financial status of Indemnity and other Cohen controlled entities to some policyholders, a rating agency, independent financial auditors, the DC Insurance Commissioner and the Delaware Insurance Commissioner.
Specifically, Cohen created false financial documents, including bank statements, letters of credit, and confirmations of bank account balances. Cohen transmitted some of these false documents to A.M. Best in order to obtain financial ratings for Indemnity and Indemnity-DC that were not based on the companies’ true financial condition. Cohen then touted the A.M. Best ratings to potential policyholders, policyholders, and regulatory agencies. Cohen also transmitted false emails, management representation letters, financial statements, and other documents to the auditing firms Marcum and BDO, so the auditors would provide an unqualified audit opinion on Indemnity-DC and Indemnity financial statements that Cohen knew were false. Cohen used the name and identity of a bank official to create a false bank confirmation.
According to court documents, as of 2013, Cohen paid himself more than $96,000 a month. He lived in a multi-million dollar house in Florida, and maintained homes at different points in Phoenix, Reisterstown and Baltimore Maryland. He purchased luxury cars including a Bentley and Aston Martin.
To conceal the true financial condition of the companies, Cohen transmitted fraudulent audited and unaudited financial statements for Indemnity-DC and Indemnity to the DC Insurance Commissioner and the Delaware Insurance Commissioner. Cohen also made false statements to representatives of the Delaware Insurance Commissioner in June 2012.
According to court documents, more than 5,000 policyholders paid more than $100 million in premiums for coverage that was illusory because Cohen’s companies never had sufficient capacity to cover its loss exposure. Many of these policyholders suffered additional harm when the fraud scheme collapsed in 2013. These policyholders had to purchase new policies to protect themselves, or were left without new policies, risking self-insurance or potential bankruptcy. The government also presented evidence to the Court regarding individuals who suffered substantial injuries and/or death due to the actions of Indemnity’s insured. Multiple victims, and/or their estates’ representatives, failed to receive appropriate compensation because Indemnity could not perform under its insurance policies. The Court made a factual finding that the actual losses caused by the fraud scheme exceeded $100 million.
The Delaware Insurance Commissioner began civil proceedings against the Cohen companies in June 2013. In October 2013, two attorneys referred Cohen’s criminal offenses to federal authorities. On February 20, 2014, after a hearing in the Delaware insurance litigation and in an effort to prevent one of the attorneys from communicating with federal law enforcement, Cohen turned to the attorney and stated: “Now I’m coming after you. You’re next.” According to court documents, during a deposition in connection with the Delaware insurance litigation, Cohen made a motion to a witness as if he was pointing a gun and shooting it.
According to the Court’s findings, it was probable that Cohen meant to harm a judge in the Delaware insurance litigation, two attorneys who brought Cohen’s criminal conduct to the attention of the U.S. Department of Justice, and a Delaware government official. From May to June 2014, Cohen searched online terms involving the victims’ home addresses, ammonium nitrate bombs, other bombings and explosions, and how to assemble bombs. In June 2014, he purchased 50 pounds of ammonium nitrate. He also purchased a sophisticated $25,000 rifle with 200 rounds of ammunition from a specialty firearms manufacturer, and $550 worth of fuses and incendiary ammunition. He practiced with his newly purchased rifle at a firing range. Cohen bought night vision binoculars for more than $3,500.
The government presented evidence that on June 17, 2014 he activated a prepaid bank card in the name of “Bill Ward.” On June 19th, he sought to obtain the cash value of a life insurance policy that was less than a year old (he later received a check in the mail for $250,000). In mid-June, he purchased personal information about the individuals he was targeting, including their personal residences, family members and phone numbers. On June 20, Cohen created, printed, and used directions to travel from Baltimore to the homes of a Delaware government official and the Delaware judge. While at one of the public official’s home, Cohen took notes, including “get real estate listing for scouting,” “not much cover must be night,” and “do it late – after dusk.” During this trip, he made audio recordings in which he stated that he “was driving to Delaware to scout out how [he could] attack” these two individuals; he had “methodically planned” his “recon” trip; there are individuals who “kill because of the necessity” and “look at the killing as for the greater good.” He noted that killing should not be viewed as wrong because “killing culls the weak.”
The government also presented evidence that on June 23, Cohen created a last will and testament and transferred all his personal property. Shortly before his arrest, Cohen searched the internet for additional information about bombs, the public officials’ homes, estate sales and depression.
When agents executed arrest and search warrants on June 25, 2014 on Cohen and his residence, they found the $25,000 rifle in his garage and, in addition to the other items described above, a backpack containing wigs, masks, a false moustache, gas masks, several knives, wire garrotes, strike spikes and camouflage pants. They also found a military style vest, rifle scopes and accessories, ammunition for guns, bolt cutters and a GPS device. A notebook contained the following writings: “Always carry a loaded 45 for the end. Have to carry at all times.”
United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore, IRS – Criminal Investigation and U.S. Postal Inspection Service - Washington Division for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Joyce K. McDonald, who prosecuted the case.
Baltimore Man Pleads Guilty to Copyright Infringement for Illegally Reproducing and Distributing Copyrighted MoviesRead the Press Release
Greenbelt, Maryland – Dwayne Scott, age 55, of Baltimore, Maryland, pleaded guilty today to copyright infringement in connection with his reproduction and distribution of copyrighted works, including movies.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, Dwayne Scott was a corporate officer and registered agent of Hard Times Discount Clothing and Accessories in Baltimore. On four occasions between September 11, 2012 and August 6, 2015, law enforcement executed search warrants at Hard Times. On each occasion, law enforcement seized large numbers of CDs and DVDs of copyrighted works, which Scott had reproduced and distributed without the permission of the copyright holders. Scott admitted selling CDs and DVDs of copyrighted works for profit.
Specifically, on September 11, 2012, members of the Baltimore Police Department executed a search warrant at Hard Times in connection with a stolen property investigation. Subsequently, on January 29, 2014 and February 3, 2015, an undercover officer purchased DVDs from Hard Times. Each of the DVDs contained copyrighted movies that Scott had reproduced and distributed without permission. On April 16, 2014, February 24, 2015 and August 6, 2015, HSI Special Agents executed federal search warrants at Hard Times. In the back room of the business law enforcement found hundreds of CDs and DVDs containing copyrighted works which Scott had illegally reproduced and distributed. In addition, law enforcement located laptop computers actively downloading copyrighted movies from internet file sharing programs.
Scott faces a maximum sentence of five years in prison for copyright infringement. As part of his plea agreement, Scott will also be required to pay restitution of $15,001 and to forfeit the computers, hard drives, cell phones, CDs and DVDs, and other items seized during the search warrants. U.S. District Judge Paul W. Grimm has scheduled sentencing for April 11, 2016, at 9:30 a.m.
The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.
HSI manages the IPR Center, one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. As a task force, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the HSI-led IPR Center, visit www.IPRCenter.gov.
United States Attorney Rod J. Rosenstein thanked HSI Baltimore and the Baltimore Police Department for their work in the investigation and thanked the Motion Picture Association of America for its assistance. Mr. Rosenstein praised Assistant U.S. Attorney Nicolas A. Mitchell, who is handling the case.
Armed Robber Admits to Robbing Three Businesses in a WeekRead the Press Release
Baltimore, Maryland – Elbert Darell Crump, age 47, of Towson, Maryland pleaded guilty today to robbery.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on January 14, 2015 Crump entered the Dollar Tree on Joppa Road in Towson, wearing a mask covering part of his face. Crump pointed a semi-automatic handgun at a cashier and demanded money. Crump took cash out of the register drawer, a dollar from a nearby customer, and fled.
On January 20th, Crump entered the Gino’s Burgers and Chicken Restaurant on LaSalle Road in Towson. Crump produced a firearm and demanded money from the employees. When the manager/employee had difficulty opening a cash register, Crump struck the manager in the head with the firearm, knocking him to the ground. Another employee helped the manager open the cash registers and Crump took the cash. A video recording shows Crump pointing the firearm in the direction of some of the customers as well as the employees.
The next day on January 21, 2015, Crump entered the Toys ‘R Us store on Putty Hill Avenue in Towson, wearing a ski mask on his face. Crump pointed a gun at a cashier and demanded money. The cashier ran out the front door. Crump pointed his gun at another employee, forcing the employee to open eight cash registers and put the cash into a bag. During this time, several customers and employees called 911. Police from Baltimore County responded quickly and surrounded the store. Several customers who were inside fled the store and were moved to safety by the police. Crump attempted to leave by the front and then the back of the store, but returned inside once he saw all the police outside.
Baltimore County tactical officers and hostage negotiators arrived. Police were advised by fleeing customers that Crump was armed and that customers remained inside. Crump asked two customers to help him hide and handed them about $400. Crump hid in a large box on a shelf. The customers who received the money left the store, told police where Crump was hiding and gave the police the money. Tactical officers and canine officers subsequently entered the store and located Crump, hiding in a large box on a shelf. A 24 hour search of the store took place before the .380 caliber handgun was located in the baby section inside a bag with $1,650 taken by Crump from all of the registers.
Video recordings of all three robberies identified Crump as the robber. The firearm was registered to Crump’s girlfriend with whom Crump was staying. Clothes worn by Crump during the robberies were found at their residence.
Crump had previously been convicted of at least one crime of violence and one drug offense.
Crump and the government have agreed that if the Court accepts the plea agreement Crump will be sentenced to 20 years in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for March 4, 2016.
United States Attorney Rod J. Rosenstein commended the Baltimore Police Department, FBI and Baltimore County State’s Attorney's Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who is prosecuting the case.
Previously Convicted Sex Offender Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Charles Henry Crocker, age 45, of Phoenix, Maryland, today to 10 years in prison followed by 25 years of supervised release for possessing child pornography. Judge Bennett ordered that upon his release from prison, Crocker must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on July 18, 2003, Crocker was convicted of possession of child pornography in federal court in Florida, sentenced to 27 months in prison and ordered to register as a sex offender.
On April 25, 2015, an undercover Baltimore County Police detective connected to the internet and downloaded a movie file that was being made available by an internet user. The file contained a visual depiction of a minor engaging in sexually explicit conduct. Further investigation revealed that Crocker had made the file available.
On May 1, 2015, Baltimore County Police officers executed a search warrant at Crocker’s residence and seized a laptop, desktop computer and two external hard drives. Crocker admitted that he began looking at child pornography a couple years after being release from prison from his prior conviction. Previews of the electronic devices revealed several videos. A subsequent forensic review of the devices revealed additional videos. The videos included between 300 and 600 images of child pornography, including those involving prepubescent females.
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 HSI Baltimore, Baltimore County Police Department, FBI and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney David P. Kehoe, and Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
PCP Dealer Convicted of Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – A federal jury convicted George Jack Smith, age 28, of Burtonsville, Maryland, late yesterday for possession with intent to distribute phencyclidine (PCP), illegal possession of a firearm by a previously convicted felon; and using, carrying and discharging a weapon in connection with drug trafficking.
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; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to evidence presented at the five day trial, on December 1, 2013, Smith got into a vehicle outside an apartment complex in the 9300 block of Cherry Hill Road in College Park, Maryland, in order to sell PCP to the vehicle’s occupants. One of the vehicle’s occupants pulled out a knife. Smith got out of the car and fired a gun in the direction of the vehicle as it drove away. One of the bullets broke a pane of glass at the entrance to the apartment building.
Witnesses testified that a short time later, Smith got into a taxi, which was stopped by law enforcement at the apartment complex. Smith was ordered out of the cab and taken into custody. Law enforcement recovered the following items from the pockets of Smith’s jacket: a vial containing ¾ ounce of PCP; a loaded .380 caliber pistol, which had been reported stolen; and a .38 caliber revolver with five spent rounds.
Smith had at least two previous felony drug convictions and a conviction for robbery conspiracy, all in Montgomery County Circuit Court, and was therefore prohibited from possessing firearms or ammunition.
Smith faces a maximum of 20 years in prison for possession with intent to distribute PCP, a maximum of 10 years in prison for being a felon in possession of a firearm, and a mandatory minimum of 10 years and up to life in prison for using, carrying and discharging a firearm during a drug trafficking crime. U.S. District Judge Paul W. Grimm has scheduled sentencing for April 1, 2016, at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Nicolas A. Mitchell and Kristi N. O’Malley, who are prosecuting the case.
Parkton Landscaper Sentenced to over 3 Years in Prison for Stealing from a ClientRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jeffrey Poole, age 40, of Parkton, Maryland, today to 42 months in prison followed by three years of supervised release for bank fraud and aggravated identity theft arising from a seven year scheme to access a client’s bank account. Chief Judge Blake also entered an order requiring Poole to pay restitution of $160,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his plea, Poole met the victim when he provided landscaping services. He helped set up the victim’s new computer for on-line banking and gained access to the victim’s personal identity and financial information. Shortly thereafter, Poole used the victim’s identity to establish a PayPal account for the victim, without the victim’s knowledge. Poole used the victim’s personal and financial information to link the victim’s PayPal account to the victim’s checking account, so that payments made with or money transferred from the victim’s PayPal account would be automatically drawn from the victim’s bank account.
From April 2007 through January 2014, Poole repeatedly logged onto the victim’s PayPal account and made purchases for himself. He also initiated money transfers from the victim’s PayPal account into his own PayPal account. He then transferred the victim’s funds to his own bank accounts.
As a result of the scheme, Poole fraudulently obtained or attempted to obtain over $244,000.
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 for its work in the investigation and thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Leader of Riverdale Drug Distribution Conspiracy Sentenced to over 10 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Don Juan Campbell, a/k/a “Flav,” “Flava Flav,” and “Flay,” age 32, of Laurel, Maryland, today to 130 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), cocaine, crack cocaine, and heroin, and for possession of a firearm in furtherance of a drug trafficking crime. Judge Titus also entered an order requiring Campbell to forfeit $117,632, seized during a search of his residence and storage unit, as proceeds of the drug conspiracy, as well as four firearms and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, from 2005 until at least June 2013, Campbell conspired with others to distribute cocaine, crack cocaine and PCP in the Riverdale area of Prince George’s County, Maryland. Campbell and other conspirators used apartments in Riverdale as a base of operations for storing and distributing narcotics. In addition to selling PCP, heroin, cocaine and crack cocaine to drug customers, Campbell also supplied drugs to co-conspirators, including Lorenzo Jackson, Dwayne Haywood, Andre Lyons, Michael McCree, and Marcus Moss, who would re-distribute the drugs to their own customers.
On June 11, 2013, law enforcement agents executed a search warrant at Campbell’s residence in Laurel. During the search, agents recovered approximately 237 grams of crack cocaine, 173 grams of powder cocaine, and 54 grams of heroin. Also found in Campbell’s residence was a 9 millimeter handgun, $22,052 in cash, and drug paraphernalia including cooking and cutting agents used to manufacture narcotics. That same day, a search warrant was executed on a storage unit in Suitland, Maryland, that was used by Campbell. Law enforcement agents recovered $95,580 in cash, $300 of which turned out to be counterfeit.
On June 11, 2013, law enforcement agents executed search warrants at Lyons’ and Moss’ residences in Riverdale, Maryland. At Lyons’ residence agents recovered approximately 460 grams of heroin, 318 grams of cocaine base, and 1,200 grams of PCP. Also found in Lyons’s residence was a loaded .40 caliber semiautomatic pistol; a loaded .380 caliber semiautomatic pistol; and $15,310 in cash. At Moss’s residence agents recovered digital scales, PCP, and a loaded .40 caliber semiautomatic pistol that belonged to Campbell.
All eight defendants charged in the conspiracy have pleaded guilty to the roles in the drug distribution organization. Lorenzo Jackson, Dwayne Haywood, Michael McCree, and Marcus Moss all pleaded guilty and have been sentenced to up to 57 months in prison. Andre Lyons is scheduled to be sentenced on January 21, 2016, at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised ATF, Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Nicolas A. Mitchell, who are prosecuting the case.
Federal Indictment for Interfering with Efforts to Fight CVS Fire During Baltimore RiotsRead the Press Release
Baltimore, Maryland – Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, was arrested on federal charges today for obstruction of firefighters during a civil disorder and for aiding and abetting arson, in connection with a fire at CVS during the civil disturbance in Baltimore on April 27, 2015. The federal indictment was returned on December 1, 2015 and unsealed late on December 3, 2015.
“Anyone who considers harming people or property during a riot should know that we can track them down and send them to prison,” U.S. Attorney Rod J. Rosenstein said. "Federal law enforcement agencies are working closely with local police and prosecutors to investigate crimes committed during the Baltimore riots."
The indictment 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; Maryland State Fire Marshal Brian Geraci; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to the two count indictment, on April 27, 2015, riots erupted in Baltimore and at approximately 6:30 p.m. the Baltimore City Fire Department (BCFD) was notified of a fire at the CVS Pharmacy located at 2509 Pennsylvania Avenue, which is adjacent to the intersection of Pennsylvania Avenue and West North Avenue in Baltimore. Several BCFD engines were dispatched to suppress and extinguish the fire at the CVS. Firefighters deployed fire hoses to provide water in those efforts and to protect firefighters inside and near the building. Throughout the course of BCFD’s fire suppression and extinguishment efforts, rioting continued in the vicinity of CVS Pharmacy.
One hose was attached to a hydrant near the intersection of Pennsylvania and West North Avenues. As the firefighters deployed the hose, the indictment alleges that Butler stood on top of the hose. Once the hose was attached to the hydrant and the water was flowing into the hose, Butler allegedly punctured the hose twice using a sharp object - first near its attachment to the fire hydrant and then on a section of the hose that extended along the ground across Pennsylvania Avenue. Both punctures released a high-pressure stream of water from the hose and rendered the hose inoperable. As a result, the efforts to put out the fire at the CVS were impeded and delayed.
Butler faces a maximum sentence of five years in prison for obstruction of firefighters during a civil disorder, and a maximum of 20 years in prison for arson. An initial appearance is expected to be held on Monday, December 7, 2015, in U.S. District Court in Baltimore, but no time has 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.
Federal prosecutors previously have charged three other defendants for arson crimes committed during the Baltimore riot on April 27, 2015. Donta Betts, age 19, of Baltimore, is charged with attempted arson of a police cruiser, civil disorder and unlawful making of a destructive device. Darius Raymond Stewart, age 21, of Baltimore, is charged with malicious destruction of a commercial building for allegedly setting fire to a liquor store on West North Avenue. Raymon Carter, age 24, of Baltimore, Maryland, pleaded guilty to the federal crime of rioting, including the arson of the CVS Pharmacy on April 27, 2015, and was sentenced to four years in prison and ordered to pay restitution of $500,000.
The investigation into this and other arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, Maryland State Fire Marshal’s Office and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Philip A. Selden and Matthew J. Maddox, who are prosecuting the case.
Maryland U. S. Attorney’s Office Collects over $155 Million in Civil and Criminal Actions for U.S. Taxpayers in FY 2015Read the Press Release
Baltimore, Maryland – U.S. Attorney Rod J. Rosenstein announced that financial collections in criminal and civil actions in Fiscal Year (FY) 2015 in the District of Maryland reached $155,566,462.75. The U.S. Department of Justice keeps statistics on a fiscal year basis, closing the books each September 30.
Attorney General Loretta Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23 billion in collections in FY 2015 represents nearly seven and a half times the appropriated $2.93 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“Thanks to the hard work and dedication of employees of the U.S. Attorney’s Office and our partner agencies, funds recovered far exceed the cost of operating the office,” said Maryland U.S. Attorney Rod J. Rosenstein. “We will continue to hold accountable anyone who seeks to profit from illegal activities.”
According to statistics from the Department of Justice, the U.S. Attorney’s Office for the District of Maryland in FY 2015 collected $136,419,084.26 in criminal debts owed to the U.S. government and to federal crime victims, including restitution, criminal fines and felony assessments.
The statistics show that the $19,147,378.49 collected in civil actions in Maryland, include affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws, and debts collected on behalf of several federal agencies, including the U.S. Department of Education, Housing and Urban Development, Health and Human Services, Internal Revenue Service, and Small Business Administration.
Additionally, the District of Maryland worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $14,429,540.47 in cases pursued jointly with these offices. Of this amount $429,088.54 was collected in criminal actions and $14,000,451.93 was collected in civil actions, including cases resolved under the False Claims Act on behalf of victim agencies such as the Department of Health and Human Services, Department of Defense and the Department of Education. These cases include the successful resolution of United States ex rel. Roman v. Education Affiliates, Inc., United States ex rel Stoneham v. Pole Zero, Inc. and investigations of DRS Technical Services, Inc. and Foundation Health Services, Inc. Additionally, the District of Maryland collected civil penalties under the Controlled Substances Act on behalf of the Drug Enforcement Administration from its investigation of Value Drug, Inc.
The U.S. Attorneys’ offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, labor and controlled substance laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
In addition, the U.S. Attorney’s Office for the District of Maryland, working with partner agencies and divisions, collected $16,708,177 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
For more information, the Department’s Annual Statistical Reports on prior fiscal years can be found on the internet at: http://www.justice.gov/usao/reading_room/foiamanuals.html.
Fourth Conspirator Admits to the Robbery of a Pikesville Jewelry Store Including Kidnapping and Brandishing a GunRead the Press Release
Baltimore, Maryland – Marat Yelizarov, age 28, of Pikesville, Maryland, pleaded guilty today to conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence, in connection with the robbery of a jewelry store, including a home invasion robbery, carjacking and kidnapping.
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 part of a conspiracy to rob a Pikesville jewelry store. In the course of the conspiracy, Yelizarov participated in an armed home invasion robbery designed to obtain firearms for use in the later robbery of the jewelry store.
Specifically, on July 22, 2012, Yelizarov, Zilberman and other conspirators 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, Yelizarov, Zilberman and their co-conspirators traveled to the home in Reisterstown. Dressed all in black and wearing ski masks and latex gloves, Zilberman and his co-conspirators entered the home through the unlocked garage door. A co-conspirator was armed with a handgun when they entered the residence. Yelizarov, Zilberman and another conspirator grabbed long guns 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. A co-conspirator beat the resident when he tried to resist while Yelizarov began to tie 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.
A co-conspirator devised a plan to commit an armed robbery of a jewelry store, and recruited Yelizarov, Igor Yasinov, Peter Magnis, Grigoriy Zilberman and others to participate in the robbery. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee.
According to 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, Yelizarov, Yasinov, Magnis and two other conspirators met at the residence of a sixth conspirator to prepare for the kidnapping and robbery, including preparing the firearms and donning masks and gloves. Yelizarov and one of the conspirators then drove to Zilberman’s home in order to alert the other conspirators of the employee’s departure. Early in the morning on January 16, 2013, Yelizarov and the other conspirator followed the employee from Zilberman’s home for a while, and then stopped. Yelizarov was aware that co-conspirators planned to abduct the employee to obtain keys and information to gain entry to and rob the jewelry store. Meanwhile, Yasinov, Magnis and two other co-conspirators 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, Yasinov, Magnis and the other co-conspirators removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location. Once at the location, Yasinov, Magnis, 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., two co-conspirators drove the employee’s vehicle from the remote location to the jewelry store. Yasinov and Magnis stayed with the employee. Yelizarov and another co-conspirator were stationed near the jewelry store to act as “look-outs.” Two co-conspirators entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was then placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car.
On January 18, 2013, one of the conspirators sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, the conspirator 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, the conspirator returned to Maryland and divided the cash proceeds among the members of the conspiracy and others. Yelizarov received cash for his role in the crimes.
On January 25, 2013, one of the conspirators was arrested in Buffalo, New York, and contacted Yelizarov, who agreed to assist in cleaning out the conspirator’s residence and disposing of evidence related to the jewelry store robbery, including a gun, laptop computer, ammunition, the GPS device, and other evidence of the crimes.
Yelizarov faces a maximum sentence of 20 years in prison for the robbery conspiracy; a maximum of life in prison for kidnapping; and a minimum mandatory sentence of seven years, and a maximum of life in prison for brandishing a firearm in relation to a crime of violence. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 9, 2016, at 9:30 a.m.
Grigoriy (Greg) Zilberman, age 24, of Owings Mills, Maryland, and Peter Aleksandrov Magnis, age 27, of Hydes, Maryland, and Igor Yasinov, age 26, of Baltimore, previously pleaded guilty to their roles in the robbery conspiracy and are scheduled to be sentenced on December 18, 2015, December 22, 2015, and March 8, 2016, respectively.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Five Defendants Indicted in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury indicted five residents of Maryland on charges arising from a bank fraud scheme:
Monika Michelle Hill, age 36, of Cockeysville,
Mark Darnelle Peeples, age 31, of Baltimore,
Dorian Maurice Griffin, age 20, of Baltimore,
Alysia Samon Rascoe, a/k/a “Alysia Simone Roscoe”, age 26, of Baltimore, and
Christopher Vance McKoy, age 24, of Baltimore.The indictment was returned on November 12, 2015 and unsealed upon the arrests of three defendants: Hill, who has been detained; Rascoe, who has been released; and McKoy, who is released and scheduled for arraignment on Friday, December 4, 2015 at 10:45 a.m. Peeples and Griffin remain at large.
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; and Chief James W. Johnson of the Baltimore County Police Department.
According to the 18 count indictment, from March 2013 to July 2014, members of the conspiracy would acquire account information and either alter checks to change the payee, or use the information from the check to create counterfeit checks to a new payee. The defendants negotiated fraudulent, stolen, altered and counterfeit checks at branch offices of financial institutions.
The indictment alleges that the defendants created and registered businesses using the identities of others, and opened bank accounts at a bank using the names of these businesses which did not exist other than on paper. The defendants used the identities of identity theft victims or their own identities as the account signatories. They deposited fraudulent, stolen, altered and counterfeit checks into these bank accounts, and then withdrew funds from the accounts by writing checks in their own names.
The indictment alleges that during the course of the scheme, the defendants fraudulently obtained or attempted to obtain over $230,000 from the financial institutions and individual victims, and that they actually received more than $170,000.
Finally, the indictment alleges that from September 24, 2013 to July 2014, Hill was on pretrial release in federal court in Baltimore in case no. 13-0248 ELH, when she conspired to commit bank fraud, and committed bank fraud and aggravated identity theft, as described above.
All of the defendants face a maximum sentence of 30 years in prison for conspiring to commit bank fraud and for bank fraud and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft. Hill also faces a maximum sentence of 10 years in prison for committing these offenses while on pre-trial release.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
Defendant Sentenced to Prison for Procurement Fraud, Embezzling Employee Benefits and Evading TaxesRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” age 50, of Keymar, Maryland, today to a year and a day in prison followed by three years of supervised release for two fraud schemes and tax evasion. Judge Motz entered an order requiring Joanne Tucker to pay restitution totaling $2,092, 961, specifically, $1.6 million for employee benefit fraud, and $492,961 to the IRS for tax evasion. As part of her plea agreement, Tucker will also be required to forfeit $30 million and her residence in Keymar.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Marc I. Machiz, Director of the Philadelphia Regional Office of the Labor Department’s Employee Benefits Security Administration; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Small Business Administration Inspector General Peggy E. Gustafson; and Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations.
According to her plea and court documents, Joanne and her husband, Shaun Tucker, were controlling officers and majority shareholders of Quantell, Inc. and Intaset Technologies Corporation from 2007 to 2010. Quantell and Intaset provided labor services to federal government agencies. In 2010, the Tuckers sold Intaset, but continued to influence its operations.
Federal Procurement Fraud
From 2007 to 2013, the Tuckers and their co-conspirators made false representations to the government regarding the eligibility of Quantell and Intaset for small business, Service Disable Veteran Owned Small Business and other set-aside contracts, including the 2007 Camp Lejeune contract, 2007 Battle Creek, Michigan contract, 2008 Andrews Air Force Base contract, 2008 Beale Air Force Base contract, 2011 Langley Air Force Base contract and 2011 Camp Lejuene contract. The Tuckers and their co-conspirators falsely represented the past revenues, ownership, controlling officers, distribution of profits, location and other key attributes of Quantell and Intaset to multiple federal agencies. When bid protests were lodged by competing firms, the Tuckers and co-conspirators prepared and submitted false responses. The Tuckers’ actions prevented other companies, which the government meant to support with set-aside contracts, from providing contracting services to the federal government.
The Tuckers used the money from the government contracts for their own personal benefit, including: building, purchasing and leasing a 5,000 square foot residence in Swanton, Maryland; additions to property in Taneytown, Maryland, including a personal residence, gym, bar and break room equipped with high definition TVs, top of the line weight equipment, video games and combat wrestling equipment; additions to their residence in Keymar; a 45 foot sailboat named “Quantell;” 2008 Audi A8; 2011 BMW; and mortgage payments related to real estate, watercraft and vehicles.
The Tuckers and their co-conspirators used aliases and false identities to communicate with the U.S. Department of Defense (DOD) in order to falsely portray the past performance of Quantell. They created a fake corporate entity named Staff-It with a fake period of performance from 2005 to 2008 involving more than $12 million of work by Quantell for Staff-It, and falsely indicated that Quantell was supplying service workers at military treatment facilities for Staff-It. Then they created phone lines and had conspirators participate in false phone conversations with DOD representatives so as to deceptively win the 2011 Camp Lejeune contract. The Tuckers and their co-conspirators carried out similar schemes with respect to other past performances, establishing internet phone lines to spoof the location of businesses, and labeling the phone lines based on the fake company contact person.
As a result of the procurement fraud conspiracy, the full value of the contracts awarded to Quantell and Intaset based on the false representations was at least $30 million.
Employee Benefit Fraud
The service contracts awarded by the United States to Quantell and Intaset, as well as the McNamara-O’Hara Service Contract Act (SCA), required Quantell and Intaset to provide bona-fide health and welfare benefits to their service contract employees hired to work for the federal government.
Quantell and Intaset had previously used FCE Benefits Administrators, Inc. (FCE) as a third party administrator, to help fulfill their obligations under the SCA. FCE used the SCA funds to create ERISA Plans for Quantell and Intaset. In July 2009, Shaun Tucker sent letters to FCE and the trustees of employee retirement plans so that he could obtain approximately $285,000 from the existing retirement plans into which the SCA money had previously been paid. The letters falsely claimed that Quantell and Intaset were transferring money to another health and welfare plan, when in fact the Tuckers knew that the money was instead being transferred into a bank account Joanne Tucker had asked a relative to open. Joanne Tucker caused such money to be spent on the Tuckers’ vacation home in Western Maryland and other personal benefits.
In a related fraud, the Tuckers lied to employees of Quantell and Intaset, to FCE and to multiple federal agencies, regarding the compliance of Quantell and Intaset with the SCA, so that the Tuckers and their co-conspirators could divert more than $1 million in SCA monies paid by the government to Quantell and Intaset under service contracts for their own personal benefit. The Tuckers and their co-conspirators used shell companies and companies that they were associated with to conceal the diversion of SCA funds to them. The Tuckers falsely told employees that they would be receiving health and welfare benefits, when in fact the money was being diverted to buy luxury vehicles, and make improvements on the Tuckers’ residences.
As a result of the fraud involving employee benefits, more than $1.6 million of the SCA funds were fraudulently diverted for the co-conspirators’ benefit from at least 350 individual employees.
Tax Fraud
Finally, the Tuckers attempted to evade income tax due of $492,961 for tax years 2009, 2010 and 2011.
Shaun Tucker, a/k/a “Shawn Turner,” and “Mark Tyler,” age 50, of Keymar, Maryland, previously pleaded guilty to his participation in the fraud schemes and was sentenced on November 20, 2015 to eight years in prison. Judge Motz also entered an order that Shaun Tucker forfeit $30 million and his residence in Keymar; and pay restitution of $1.6 million for the employee benefit fraud, and $492,961 to the IRS for tax evasion.
In a related case, co-conspirator Jonathan Mickle, age 43, of Asheville, North Carolina, formerly of Taneytown, Maryland, pleaded guilty on June 25, 2015 to conspiracy to commit wire fraud and tax fraud in connection with the fraud schemes. Judge Motz has scheduled sentencing for Mickle for February 19, 2016, at 9:30 a.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This and other cases brought by members of the Task Force demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein commended the U.S. Department of Labor –OIG/Office of Labor Racketeering and Fraud Investigations; IRS – Criminal Investigation; U.S. Department of Labor - Employee Benefits Security Administration; DCIS; SBA Office of Inspector General; and Air Force Office of Special Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry Gruber and Judson Mihok, who prosecuted the case.
Silver Spring Nightclub Owner Sentenced for Drug TraffickingRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Jason Miskiri, age 40, of Silver Spring, Maryland today to two years in prison followed by three years of supervised release for conspiring to possess with intent to distribute more than 1,000 kilograms of marijuana. Judge Titus also entered an order that Miskiri forfeit all of his interest in Society Lounge.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement and court documents, Miskiri obtained marijuana from several sources for distribution in Maryland. Miskiri was arrested in March 2009 in Texas after purchasing 209 pounds of marijuana that he intended to transport to Maryland.
Miskiri was also the largest customer of a drug trafficking organization headed by Garfield Mullings (Mullings DTO) that shipped large quantities of marijuana from California to Maryland. On numerous occasions from 2010 to 2012, Miskiri gave money to the Mullings DTO to buy marijuana in California and Arizona, which was shipped using commercial shipping companies to Miskiri in Maryland. He also received marijuana on consignment, and paid for it once it was sold. Initially, some of the shipments were sent to Island Flavors Restaurant in Laurel, Maryland, which Miskiri owned and operated. From August 31, 2010 to May 20, 2011, 8,690 pounds of freight, including marijuana, was delivered to the restaurant. After May 20, 2011, Miskiri continued to pick up large quantities of marijuana from the Mullings DTO at other locations.
In 2012, Miskiri obtained marijuana from other Texas sources with whom he met in Prince Georges County, Maryland.
Miskiri used the drug proceeds to open the Society Lounge, an upscale nightclub located on Georgia Avenue in Silver Spring, Maryland.
Miskiri did not file a personal tax return for any of the years in which he was engaged in the drug trafficking activity.
During his participation in the drug conspiracy, Miskiri was found to be responsible for the distribution of between 3,000 and 10,000 kilograms of marijuana.
In a separate case, Garfield Mullings, age 41, of Hyattsville, Maryland, and five others previously pleaded guilty to conspiring to distribute 100 kilograms or more of marijuana. U.S. District Judge J. Frederick Motz sentenced Mullings on May 29, 2014 to five years in prison and entered an order that Mullings forfeit $12,190,000.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, DEA and the Maryland State Police for their work in the investigation, and thanked the Houston, Texas Police Department and the Texas Department of Public Safety for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Matthew C. Sullivan and Evan T. Shea, who prosecuted the case.
Conspirator in Counterfeit Credit Card Ring Sentenced to over 6 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Stanley Downey, age 49, formerly of New York, today to 74 months in prison, followed by five years of supervised release, for bank fraud conspiracy and aggravated identity theft, arising from a scheme to use of stolen credit and debit card information to manufacture counterfeit credit cards used to buy merchandise and services. Judge Quarles also entered an order requiring Downey to pay restitution of $126,318.99.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Gary Gardner of the Howard County Police Department; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Chief Ross C. Buzzuro of the Ocean City Police Department; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Newport News Police Chief Richard W. Myers; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from at least January 1, 2012, through his arrest in August, 2013, Stanley Downey conspired with his brother William Downey, Michael Crew, Navee Diaz, Jason Evans, and others to manufacture counterfeit debit and credit cards bearing stolen and unauthorized credit and debit card account numbers then use the counterfeit cards to purchase goods and services.
Stanley Downey became involved in the scheme through others who knew the leader, Michael Crew, also known as “Black.” Black had an embossing machine and he made credit cards using altered gift cards and the credit card and debit card numbers of real people. The stolen card numbers were embossed on the gift cards, along with the name or alias of the person who would be using the cards.
Stanley Downey admitted that he primarily purchased counterfeit cards from Black, who provided the cards directly or through others, such as Navee Diaz and William Downey. Stanley Downey purchased a large number of cards and conducted a large number of transactions. For example, on January 2 and January 4, 2012, Stanley Downey and a co-conspirator used a counterfeit credit card to purchase approximately $5,738.70 in merchandise at a business in Baltimore County. Stanley and William Downey sometimes traveled together out of state to conduct transactions with the counterfeit credit cards when things got too “hot” in Maryland. Stanley Downey was traveling with his brother to Pittsburgh when the two of them were stopped by law enforcement outside Cumberland, Maryland on September 12, 2012. Stanley Downey provided a false name and a counterfeit driver’s license in that name to law enforcement. At the time of the stop, both William and Stanley Downey had over 60 counterfeit cards in their possession which were embossed with real account numbers belonging to victims and with the names “S Downey” and “W Downey.”
Stanley Downey also traveled with others to various places to use the counterfeit cards. For example, on October 10, 2012, Stanley Downey and a woman were arrested in Las Vegas and had 48 counterfeit credit cards in their possession, which they had been using to make purchases in Las Vegas and elsewhere. On August 13, 2103, Stanley Downey was arrested in New York for using counterfeit credit cards. He was convicted and began serving his sentence, but was subsequently transferred to Maryland to answer to these charges.
During his participation in the conspiracy, Stanley Downey and his co-conspirators obtained or attempted to obtain extensions of credit from financial institutions of between $400,000 and $1 million, using the financial account numbers of real people. More than 250 individuals and institutions were defrauded by the scheme.
Michael Crew, age 55, of Owings Mills, and Jason Evans, age 32, of Millsboro, Delaware previously pleaded guilty to the same charges and were sentenced to nine years in prison and four years in prison, respectively, and were each ordered to pay restitution of $126,318.99. Navee Diaz, a/k/a India, age 40, of Owings Mills, Maryland was sentenced to 76 months in prison, and was also ordered to pay restitution of $126,318.99. William Downey, age 43, of Gwynn Oak, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to five years in prison.
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 U.S. Secret Service; Howard County, Baltimore City, Baltimore County, Howard County, Ocean City and Newport News Police Departments, HSI Baltimore and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Baltimore Drug Dealer Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Hosie Hopkins, age 49, of Baltimore, today to 10 years in prison followed by three years of supervised release for possession with intent to distribute narcotics. Judge Quarles also entered an order that Hopkins forfeit a semi-automatic handgun and ammunition which Hopkins was prohibited from possessing as a result of two previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore Police Commissioner Kevin Davis.
According to his plea agreement, on April 22, 2014, Baltimore Police detectives saw Hopkins leave a dwelling in Baltimore City, go to another location in Baltimore City, remove a plastic bag from under his shirt/dip area, and place the bag under a wooden deck at a vacant house. Thereafter, officers found the plastic bag under the deck, which contained five gelatin capsules of heroin.
Police arrested Hopkins and executed a search warrant at the house Hopkins had left earlier that day. Police seized packaging material for narcotics including ziplock bags and vials; ziplock bags containing heroin cutting substances; and several gel capsules of heroin.
Additionally, the government stated at sentencing that a firearm was seized by police during the execution of the search warrant. That firearm was the subject of the Court’s forfeiture order.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Michael C. Hanlon, who prosecuted the case.
Hyattsville Man Sentenced to 7 Years in Prison for Carjacking and Illegal Possession of a GunRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Marden Gonzalez, age 20, of Hyattsville, Maryland, today to seven years in prison, followed by three years of supervised release, for carjacking 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 Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Larry M. Brownlee, Sr. of the Maryland National Capital Park Police, Prince George’s County Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Gonzalez=s plea agreement, on February 17, 2015, at 1:00 p.m. Gonzalez approached the victim, who was stopped at a red light at the intersection of East-West Highway and Ager Road in Hyattsville. Gonzalez pointed a loaded .380 caliber pistol at the victim and demanded the victim’s car. The victim got out of the car and Gonzalez got in and drove away in the victim’s car.
A few minutes later, a Maryland Park Police officer spotted the stolen car at the intersection of Queens Chapel and Chillum Roads in Hyattsville. Park Police and Prince George’s County Police officers pursued Gonzalez through snowy streets. After sideswiping several parked cars, Gonzalez crashed the victim’s car headfirst into a parked car. The law enforcement vehicles pursuing Gonzalez slid in the snow when they attempted to brake, resulting in a crash. Three officers were injured and one was taken to a hospital. Gonzalez bailed out of the victim’s car and ran away, still carrying the loaded pistol. Officers located and arrested Gonzalez in the semi-enclosed back porch of a nearby house, and recovered the gun.
Gonzalez had previously been convicted of a felony and as a result, was prohibited from possessing a firearm or ammunition.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Maryland National Capital Park Police and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Lindsay Eyler Kaplan and William D. Moomau, who prosecuted the case.
Allegany County Man Sentenced to 30 Years in Prison for Production and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles sentenced Richard Alan Blank, Jr., age 44, of LaVale, Maryland, today to 30 years in prison, followed by lifetime supervised release, for two counts of sexually abusing a minor to produce child pornography, and for possession of child pornography. A federal jury convicted Blank on July 2, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and by Allegany County State’s Attorney Michael O. Twigg, Colonel William M. Pallozzi, Superintendent of the Maryland State Police, Allegany County Sheriff Craig Robertson, Cumberland Police Chief Charles H. Hinnant, Frostburg Police Chief Royce C. Douty, Frostburg University Chief of Police Cindy R. Smith, as part of the Allegany County Combined Criminal Investigations Task Force (C3I).
According to evidence presented at Blank’s four-day trial, on May 30, 2014, Blank used a minor to engage in sexually explicit conduct in order to produce images documenting the sexual abuse of the minor. A search conducted by law enforcement on June 2, 2014 revealed that Blank possessed images documenting the sexual abuse of the minor female on his cellular phone.
As a result of his conviction, Blank will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Blank has been detained since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Allegany County Combined Criminal Investigations Task Force (C3I), comprised of the Maryland State Police, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Frostburg University Police Department and Allegany County State’s Attorney’s Office, for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Aaron S. J. Zelinsky, who prosecuted the case.
Commercial Trash Hauler Convicted in Bribe Scheme and Baltimore City Landfill Employee Pleads Guilty to Selling Scrap MetalRead the Press Release
Baltimore, Maryland – Jarrod Terrell Hazelton, age 32, of Parkville, Maryland, a former employee at the Quarantine Road Landfill (Landfill), pleaded guilty today to conspiracy, and wire fraud, in connection with a scheme to unlawfully sell scrap metal from the Landfill and Northwest Transfer Station (NWTS), while falsely representing to the Baltimore Department of Public Works (DPW) that he was performing his job.
On November 20, 2015, John Howard Brady, age 74, of Glen Burnie, was convicted after a five day trial of conspiracy and two counts of bribery in connection with a scheme in which Brady and other commercial haulers paid Department of Public Works (DPW) employees cash in return for allowing the haulers to deposit trash at the Quarantine Road Landfill (Landfill) without paying the required disposal fees.
The convictions were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
The DPW’s Bureau of Solid Waste is responsible for managing Baltimore City’s waste management services, including overseeing citizen drop-off centers, such as the NWTS and the Landfill. Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters located near the main entrance of the Landfill, free of charge. Individuals or companies commercially hauling trash that have registered their vehicles with the City must obtain Landfill permits. Commercial haulers of trash must also 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. The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver.
According to the evidence presented at Brady’s trial, Brady was a commercial trash hauler who owned and operated Brady’s Roll Off Service. From July 2014, through May 1, 2015, Brady agreed to pay bribes to Tamara Washington, one of the DPW scale house operators, in exchange for she and the other scale house operators, not charging Brady a disposal fee for using the Landfill. For example, on March 30, 2015, Brady paid a $2,000 cash bribe to Tamara Washington. The bribes paid to the scale house operators saved Brady thousands of fees each month. Brady either paid the operator through the outbound window at the scale house, or met the operators at an off-site location where he would pay a week’s worth of bribes or more. Evidence at trial established that Brady’s company used the landfill dozens of times a year since 2007, resulting in a loss of approximately $560,000 in disposal fees for the City of Baltimore.
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 2005 until May 2015, Hazelton, who was employed by DPW at the Landfill, and other DPW employees, including Michael Bennett and supervisor William Nemec, unlawfully collected and sold scrap metal for personal gain during work hours, while representing to DPW that they were doing the jobs for which they were being paid. Hazelton was a leader in the scheme and coordinated the daily collection of scrap metal at the Landfill. Hazelton and other employees used part of the proceeds of the sale of the stolen scrap metal to pay other DPW employees for their help locating, setting aside, collecting and loading the scrap metal onto their trucks. Hazelton, Bennett, and other employees at the Landfill, used their personal cell phones to communicate when and where recyclable scrap metals were being dumped at the Landfill, and to coordinate their arrival at the private salvage yard. Hazelton, Bennett, and others transported the scrap metal, using their personal pick-up trucks, to a private salvage company, frequently making multiple trips during a single, eight-hour work shift. The sale of the stolen scrap metal for their personal benefit resulted in a loss of revenue to the City of at least $400,000.
In order to conceal the junking scheme, Hazelton and Bennett paid cash to Nemec and other supervisors to not report them for collecting and transporting the stolen scrap metal, and to authorize and submit false time and attendance records. Hazelton 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 Hazelton for work he did not perform.
Hazelton and Brady each face a maximum sentence of five years in prison for the conspiracy. Hazelton also faces a maximum of 20 years in prison for wire fraud, and Brady faces a maximum of 10 years in prison for each of two counts of bribery. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Brady on February 16, 2016 at 10:00 a.m., and for Hazelton on February 17, 2016 at 11:00 a.m.
Former Baltimore City Department of Public Works (DPW) employees Tamara Oliver Washington and William Charles Nemec, Sr., both age 55; and Michael Theodore Bennett, age 47, all of Baltimore, previously pleaded guilty to their roles in the schemes and are awaiting sentencing. Five other commercial trash haulers have also pleaded guilty.
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 are prosecuting the case.
Maryland Owner of Loan Brokerage Firms Sentenced to Four Years in Prison for Fraud and Obstruction of JusticeRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jeong Joon Moon, a/k/a Patrick Moon, age 47, of Germantown, Maryland, today to four years in prison followed by five years of supervised release for conspiring to commit bank fraud, bank fraud and destroying records in a federal investigation, arising from a scheme to defraud financial institutions who loaned money to small businesses. Judge Quarles also entered an order that Moon forfeit $2,270,590.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; U.S. Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; and Matthew Alessandrino, Assistant Inspector General for Investigations, Federal Deposit Insurance Corporation.
Moon owned and operated JM Capital Solutions, Inc. and RNB Consulting, Inc., which were loan brokerage firms with offices located in Annandale and Springfield, Virginia. These firms specialized in securing loans for individuals to purchase or refinance small businesses in Maryland, Virginia, the District of Columbia and elsewhere.
Moon encouraged prospective borrowers to apply for business loans through the SBA’s Section 7(a) program, which authorizes SBA to help small businesses obtain financing by guaranteeing 75 to 90 percent of qualified loans made by commercial lenders. Small business owners are required to invest a certain amount of their own money into the business before they can qualify for the loan. Moon compiled and submitted to lenders the documentation necessary to substantiate the borrowers’ equity injection and ability to repay loans guaranteed by SBA, as well as documentation needed for other commercial loans.
From 2006 to April 2014, Moon and others defrauded financial institutions by submitting false copies of the borrowers’ monthly bank statements to reflect more money than was actually in the borrowers’ bank accounts. Moon and others also prepared and submitted false tax returns for the borrowers which inflated the borrowers’ income. The financial institutions relied on the false information to lend funds to the borrowers, which resulted in loan broker commissions being paid to JM Capital and RNB Consulting.
On July 12 and 15, 2013, Moon altered, destroyed or concealed documents relating to six loans guaranteed by SBA for six small businesses, intending to impede the federal investigation of such loans.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the SBA - OIG, U.S. Postal Inspection Service, FBI and FDIC - OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and Marty Clarke, who prosecuted the case.
Fourth Conspirator Pleads Guilty in Bank Fraud SchemeRead the Press Release
Greenbelt, Maryland – Bertrand Awah Essem, age 27, of Beltsville, Maryland pleaded guilty today to conspiring to commit bank fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge David G. Bowers 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. Essem told the recruits that money would be transferred into these accounts from The Home Depot. The recruit would be required to withdraw the majority of the money and give that to Essem. The recruit could keep a portion, in some cases as much as $300.
After the recruits, including Stanley Nmesirionye and Dosis Feludu, opened the bank accounts, Essem collected the debit cards and PIN numbers and provided them to another co-conspirator.
In furtherance of the scheme, 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 card numbers of co-conspirators recruited by Essem,
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, and Dosis Feludu, age 25, of Salisbury, Maryland, previously pleaded guilty to their participation in the fraud scheme and await sentencing.
Essem faces a maximum sentence of 30 years in prison and a fine of $1 million. U.S. District Judge George J. Hazel scheduled his sentencing for February 5, 2016, at 9:00 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service and U.S. Department of the Treasury – OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.
Former SSA Security Guard Admits to Stealing Electronics Worth over $74,000Read the Press Release
Baltimore, Maryland – Heath Unkart, age 26, of Hanover, Pennsylvania pleaded guilty today to theft of government property.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division.
From August 2014 to July 2015, Unkart was a security guard at SSA headquarters in Woodlawn, Maryland. According to his agreement to plead guilty to the information, and had the case gone to trial, the government would have proven that Unkart stole electronic equipment, including Polycom audio/video units, an external hard drive, a projector, a camera and other items, from SSA headquarters while he was on duty. Unkart transported the equipment to his home and then placed many of the stolen items for sale on eBay.
For example, on March 30, 2015, Unkart sold three sets of stolen Polycom video conferencing equipment on eBay for $7,500 and on April 16, 2015, he sold an additional two sets of Polycom video conferencing equipment on eBay for $3,000.
On July 17, 2015, law enforcement agents executed a search warrant at Unkart’s home. They seized numerous items, including two external hard drives, a projector, a Polycom camera, and three additional sets of Polycom conferencing units, all of which were missing from the SSA headquarters campus. In total, approximately $74,296.40 in stolen SSA equipment was recovered.
Unkart faces a maximum sentence of 10 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 4, 2016 at 2:15 p.m.
United States Attorney Rod J. Rosenstein commended the SSA – OIG for its work in the investigation and thanked Special Assistant United States Attorney Lauren E. Perry, on detail from the Social Security Administration, who is prosecuting the case.
Wife of Department of Defense Employee Sentenced for Fraudulently Obtaining over $750,000 from Contracts with Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Sandra Nixon, a/k/a “Lisa Hart,” age 52, of Silver Spring, Maryland today to six months in prison followed by three years of supervised release for conspiring to defraud the United States. Judge Garbis also entered an order requiring Nixon to pay restitution of $750,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
Sandra Nixon was married to co-defendant Mark Nixon. Mark Nixon was a civilian employee of the Department of Defense, and worked at the U.S. Army Research Laboratories (ARL) in Hampton, Virginia, and Aberdeen, Maryland. From 2008 to December 2010, Nixon was the director of the Vehicle Technology Directorate with ARL at Aberdeen Proving Ground. Co-defendant Kenneth Dawson was a longtime friend of the Nixons.
Sandra and Mark Nixon also had a financial interest and management role in the operation of Motile Robotics, Inc. (MRI), located in Joppa, Maryland; Atlantic Capital Enterprises (ACE); and Arrow Technical Incorporated (ATI).
Sandra and Mark Nixon reached an agreement with Kenneth Dawson to create and operate MRI. Dawson had full time employment with two different defense contractors that required him to report to work at Eglin Air Force Base in Florida, where he lived. In 2007, Dawson used his personal credit cards to pay for startup costs associated with MRI, and the Nixons reimbursed Dawson for these expenses. Although Dawson was the supposed president of MRI, in reality, Sandra and Mark Nixon created MRI, provided significant input regarding its operation, and were in effect a silent and undisclosed partner, owner and co-president. They helped operate MRI using the aliases “Lisa Hart” and "Paul Martin" in order to conceal their financial interest.
According to their plea agreements, in 2008, Mark Nixon determined that microsystem controls research was needed, including the fabrication of a small open-jet wind tunnel. Mark Nixon created and approved government documents that caused ARL to fund this research, and became the designated team leader for ARL on the research project.
In January 2009, the United States awarded a large defense contractor a task order to construct the open flow wind tunnel from February 2008 to 2011, worth approximately $3.6 million. Mark Nixon persuaded the defense contractor to use MRI as a subcontractor. Mark Nixon also played an important role in the government awarding the defense contractor another task order to construct a closed circuit wind tunnel from January 2009 to 2011, for approximately $3.5 million, under which MRI was a subcontractor. Mark Nixon provided the contracting officer with a technical evaluation of the contract and its cost, and acted as the government official overseeing and managing this work on a routine basis.
Pursuant to the conspiracy, the United States was billed for more than $35,000 in false labor charges by a relative of Sandra Nixon, who was characterized as an aerospace engineer. In reality, the relative was a retired school employee. Although Mark Nixon knew that he had a prohibited financial interest in MRI, he conducted a technical evaluation of MRI’s capabilities as a subcontractor, and approved the false invoices.
MRI received more than $5 million in federal funds under these task orders. Mark Nixon caused MRI to pay money to ATI, and ATI to pay ACE. The three defendants personally benefited from over $750,000 sent to these companies. The Nixons personally received more than $400,000 as a result of the task orders awarded to MRI.
Mark Nixon, age 55, of Silver Spring, Maryland, pleaded guilty on June 15, 2015 to his participation in the conspiracy and was sentenced to 42 months in prison. Judge Garbis also entered an order requiring Nixon to pay restitution of $750,000.
Kenneth Dawson, age 52, of Niceville, Florida, also has pleaded guilty to his participation in the conspiracy and is scheduled to be sentenced on December 15, 2015 at 9:30 a.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein commended the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit, DCIS and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry M. Gruber and P. Michael Cunningham, who prosecuted the case.
Manchester Man Sentenced to 30 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jesse David Kuchta, age 28, of Manchester, Maryland, today to 30 years in prison, followed by lifetime supervised release, for production and possession of child pornography. Judge Russell ordered that upon his release from prison, Kutcha must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Carroll County Sheriff James DeWees; and Carroll County State’s Attorney Brian DeLeonardo.
According to Kuchta’s plea agreement, on May 14, 2014, a detective with the Carroll County Sheriff’s Office received a Cybertip from the National Center for Missing and Exploited Children concerning images depicting minors engaged in sexually explicit conduct that had been uploaded to a website. Law enforcement identified Kuchta as the holder of the website’s accounts. On May 14, 2014, law enforcement executed a search warrant at Kuchta’s residence.
Kuchta arrived home during the search. He admitted taking the images and videos of a minor female engaged in sexually explicit conduct and uploading them online. Law enforcement seized a flash drive, two micro SD cards and two cell phones used to produce and possess the child pornography, as well as other items seen in the images and videos that Kuchta produced.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police, Carroll County Sheriff’s Office and Carroll County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.
Capitol Heights Man Exiled to over 10 Years in Prison for Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Reuben Benjamin Coleman, age 38, of Capitol Heights, Maryland, today to 130 months in prison followed by three years of supervised release for possessing a firearm in a school zone and possession with intent to distribute crack cocaine.
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 Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, on September 25, 2014, ATF Violent Crime Initiative Team agents and Prince George’s County police officers executed a search warrant at a residence in Capitol Heights where Coleman often stayed. They seized a 9 mm pistol from Coleman’s bedroom, and a small bag containing 8.28 grams of crack cocaine from a Mercedes Benz that Coleman drove and had parked outside the residence.
Coleman admitted that from August 15 to 16, 2014, he transported the pistol to the residence via public roads that he knew or had reasonable cause to believe were within 1,000 feet of a school zone.
Coleman also admitted that he is a career offender based on two prior drug convictions.
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 Joseph R. Baldwin, who prosecuted the case.
Baltimore Drug Dealer Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Damonan Irby, age 33, of Baltimore, Maryland today to 12 years in prison, followed by three years of supervised release, for possession with intent to distribute 3, 4-methylenedioxy-N-methylcathinone or MDMC.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Commissioner Kevin Davis of the Baltimore Police Department.
According to Irby’s plea agreement, on October 17, 2014, law enforcement received information from a confidential source of information that a multi-kilogram shipment of the controlled substance 3, 4-methylenedioxy-N-methylcathinone or MDMC, known on the street as “Molly,” would be delivered to Baltimore City later that afternoon. Information provided by the source was corroborated and independently verified by law enforcement.
Members of the Baltimore Police Department and Homeland Security Investigations, Baltimore, established surveillance in the area of Northern Parkway and Harford Road, where the delivery was scheduled to take place. Law enforcement officers observed a silver Camaro, that matched the description supplied by the source, parked behind a restaurant in the 6600 block of Harford Road. A short time later, law enforcement observed a vehicle, being operated by Irby, pull into the parking lot and park one car away from the Camaro. Irby, carrying a grey shopping bag, got into the Camaro. Law enforcement officers were able to observe the two individuals exchange packages. At the conclusion of the exchange, Irby got out of the Camaro with a large black backpack in his hand. Law enforcement officers, believing a narcotics transaction had just occurred, approached Irby and detained him. The black backpack was found to contain four kilogram sized plastic bags containing an off white substance. A search of the Camaro recovered the grey shopping bag that Irby had brought into the vehicle. The bag contained three large bundles of cash, totaling $39,920. A subsequent lab analysis of the drugs from the backpack revealed that the bag contained a total of 3,970 grams of MDMC.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Christopher J. Romano and Jason D. Medinger, who prosecuted the case.
MS-13 Member Pleads Guilty to Racketeering Conspiracy Including a Murder and Attempted MurderRead the Press Release
Greenbelt, Maryland – Aldair Garcia-Miranda, a/k/a “Callado” and “Poseido,” age 21, of Wheaton, Maryland, pleaded guilty today to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including a murder; attempted murder in aid of racketeering; and carrying, using, brandishing, and discharging a firearm during a crime of violence.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief Edward G. Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang and against rival gangs.
According to his plea agreement and court documents, from 2013 through at least 2014, Garcia-Miranda was a member of the Normandie clique of MS-13. Garcia-Miranda and MS-13 members committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation.
Garcia-Miranda admitted that on November 30, 2013, he and another MS-13 member traveled to Frederick, Maryland, in order kill a person who had fled there from El Salvador when MS-13 in El Salvador had issued an order to kill that person. Garcia-Miranda and the other MS-13 member had in their possession a .380 caliber handgun that belonged to the Normandie clique. An MS-13 member who had lived in Frederick and was familiar with the victim from El Salvador, communicated with the victim and lured him to a wooded area where Garcia-Miranda and the other MS-13 member met them. The victim was killed after the MS-13 member from Frederick shot the victim with the Normandie clique’s gun and Garcia-Miranda and the other MS-13 member stabbed the victim multiple times. A .380 caliber bullet that was recovered from the victim during the autopsy matched a bullet recovered at the scene of a November 11, 2012 murder in the Hyattsville, Maryland, area.
Garcia-Miranda also admitted that on July 30, 2014, he and two other MS-13 members approached three people walking in the area of 30th Avenue in Hyattsville, Maryland. Garcia-Miranda and other MS-13 members had traveled to that area with guns to search for and shoot suspected rival gang members who had harassed and tried to steal the bicycle of a person who was a friend of MS-13. Garcia-Miranda and an MS-13 associate, each armed with a .380 caliber handgun, fired multiple shots at the three victims, striking one victim seven times and another victim once. Five shell casings collected at the scene were fired from the same gun that fired the casings recovered at other crime scenes, including murders in Hyattsville on November 11, 2012 and February 28, 2013.
Garcia-Miranda faces a maximum sentence of life in prison for the racketeering conspiracy because it included a murder; a maximum of ten years in prison for attempted murder in aid of racketeering; and a mandatory minimum of 10 years and up to life in prison, consecutive to any other sentence, for using, carrying, brandishing and discharging a firearm during a crime of violence. U.S. District Judge Peter J. Messitte has scheduled sentencing for February 24, 2016, at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Prince George’s County Police Department, Frederick Police Department, Hyattsville Police Department, Montgomery County Police Department, Prince George’s County State’s Attorney’s Office and its Strategic Investigations Unit, Frederick County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, Prince George’s County Department of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan, who are prosecuting this case.