District of Maryland

Baltimore, Maryland – The leader of the Jenifer drug trafficking organization (Jenifer DTO), Kedrick Arnold Jenifer, a/k/a “Ricky Jenifer,” “James Howard Collier, Jr.” and “Rick,” age 44, of Bowie, Maryland, pleaded guilty today to conspiring to distribute cocaine.

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

“IRS Criminal Investigation is committed to its joint efforts with its local and federal law enforcement partners to ensure that drug trafficking organizations such as the Jenifer DTO are not successful in their illegal drug activities conducted in communities across the country,” said Thomas Jankowski, IRS Criminal Investigation Special Agent in Charge, Washington DC Field Office.

According to his plea agreement and court documents, from September 2012 until his arrest in October 2014, Kedrick Jenifer was the head of the drug organization.  He directed the collection and transportation of money from Baltimore to Houston, Texas. The Jenifer DTO would hide money in secret compartments in “courier vehicles” that were transported from Baltimore to Houston.  Jenifer would then fly to Houston and obtain kilograms of cocaine from a source of supply.  The cocaine was transported from Houston to Baltimore in the courier vehicles, and Jenifer would return to Baltimore via commercial air carrier.

In September 2012, Texas State Police stopped a courier vehicle in Chambers County, Texas.  Law enforcement officers discovered approximately 30 kilograms of cocaine hidden in secret compartments within the vehicle.  Phone records reveal that one of the persons in the courier vehicle was in contact with Jenifer prior to, the day of, and after the car stop.

In July 2013, a courier vehicle loaded on a car-carrier at Jenifer’s direction was intercepted in Arkansas.  The vehicle contained approximately 23 kilograms of cocaine hidden in a secret compartment.

Between August 2013 and October 2014, Jenifer directed approximately 30 shipments of cocaine concealed in secret compartments in the courier vehicles. After a courier vehicle would return to Baltimore from Houston, Jenifer was seen operating the hidden compartments in the courier vehicle and supplying other members of the Jenifer DTO with cocaine at their distribution location at RCH Plaza in west Baltimore.

Jenifer and/or another member of the Jenifer DTO also made approximately 16 trips to Woodbridge, Virginia to deliver kilograms of cocaine to co-defendant Thomas Simmons.

On October 9, 2014, approximately 27 kilograms of cocaine were seized from one of the Jenifer DTO’s courier vehicles.

Jenifer agreed that he was responsible for the distribution of no less than 450 kilograms of cocaine between August 2013 and October 2014.

According to previously filed court documents, Jenifer owns World Fed Apparel, Inc., a clothing store in Baltimore.  Jenifer is also a co-owner of Flavor Factory, LLC, which is believed to own an ice cream franchise in Baltimore. At the time of Jenifer’s arrest, the government seized, among other things, a 2013 Rolls Royce Ghost valued at $296,000, a 2014 Ferrari 458 Italia valued at $271,000, other high-end vehicles owned by Jenifer, and large sums of money from his residence and other locations.

Jenifer and the government have agreed that if the Court accepts the plea agreement, Jenifer will be sentenced to 20 years in prison. Jenifer has also agreed to the entry of an order requiring him to forfeit three properties in Baltimore and one in North Miami, Florida, as well as a boat.  U.S. District Judge Richard D. Bennett scheduled sentencing for January 26, 2016 at 10:00 a.m.

Co-conspirators Brooke Renee Lunn, a/k/a “Brooke Thomas” and “Brooke Renee,” age 49; William Hegie, age 55; Kermit Clark, age 45; and Elroy Johnson, age 49, all of Baltimore, and Thomas Simmons, age 38, of Hampton, Virginia, previously pleaded guilty to their participation in the conspiracy.  Each were sentenced to 10 years in prison except Lunn, who was sentenced to 12 years in prison.

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

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Michael Eugene Aldridge, age 42, of Hampstead, Maryland, today to 10 years in prison, followed by lifetime supervised release, for distribution and possession of child pornography. Judge Garbis also ordered that, upon his release from prison, Aldridge 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; and Carroll County Sheriff James DeWees.

According to Aldridge’s plea agreement, he covertly took videos of minor females, including while they were undressed, to produce child pornography.  Aldridge distributed the videos to others to encourage those individuals to produce child pornography and exchange the images and videos with Aldridge. In an online conversation Aldridge had with an individual in California, the other individual discusses his abuse of a seven year old female and his plans to videotape the abuse during an upcoming visit.  Aldridge encouraged the individual to send him video of the abuse and suggested sexually explicit conduct for the other individual to engage in with the child.  Aldridge also suggested giving the child drugs to induce a deeper sleep.

On June 26, 2014, a search warrant was executed at his residence and Aldridge was interviewed by law enforcement.  During the interview, Aldridge admitted that he viewed and distributed child pornography.  A search of Aldridge’s email account recovered two images of child pornography.  A forensic analysis of his cell phone recovered 15 images depicting minors engaged in sexually explicit conduct.

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police, and Carroll County Sheriff’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Albert A. Firlie, age 67, of Severn, Maryland, today to 135 months in prison followed by supervised release for life for possessing child pornography. Judge Bredar enhanced Firlie’s sentence based upon a 1991 child abuse conviction in Howard County, Maryland involving the sexual abuse of a prepubescent girl. Judge Bredar also ordered that upon his release from prison, Firlie 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; Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; 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; and Anne Arundel County Police Chief Tim Altomare.

According to Firlie’s plea agreement, beginning no later than October 2003, Firlie obtained child pornography from the internet.  In November 2007 and April 2009, he created email accounts with a username that combined his first name with the first name of the victim in his child sex abuse case. Firlie used the internet to try to locate the victim and her family as recently as June 2014.

From December 12, 2008 to December 26, 2014, Firlie uploaded approximately 120 videos depicting minors engaged in sexually explicit conduct, using a website that provided users with remote “cloud” storage for media files.  On September 13, 2014, Firlie attempted to upload 51 videos depicting minors engaged in sexually explicit conduct to another email address, using a different website that also provided users with the remote storage.  That website detected the use of its cloud services for the storage of child pornography and reported the matter to the National Center for Missing and Exploited Children, who in turn reported the matter to the U.S. Postal Inspection Service.

On February 3, 2015, investigators executed a search warrant at Firlie’s residence recovered a large number of computers and other digital storage media which contained over 600 images, including over 120 videos depicting minors engaged in sexually explicit conduct.  The images included prepubescent minors and sadistic or masochistic conduct.

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

United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service, HSI-Baltimore, Maryland State Police and Anne Arundel County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Christopher V. Johnson, age 24, formerly of New York, today to 102 months in prison, followed by five years of supervised release, for bank fraud conspiracy and aggravated identity theft.  Judge Bredar also entered an order requiring Johnson to pay restitution of $155,515.33.

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 Brian Murphy of the United States Secret Service - Baltimore Field Office; U.S. Marshal Johnny Hughes; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Fairfax County, Virginia, Police Chief Edwin C. Roessler, Jr.; Easton Police Department Chief David A. Spencer; Anne Arundel County Police Chief Tim Altomare; and Talbot County State’s Attorney Scott G. Patterson.

According to Johnson’s plea agreement, from at least the winter of 2012 through July 2014, Johnson conspired with Wanisha D. Coates, Lakriesha Coates, Domenique Miller, Sheardwood Michel, Shamika Earle and others to create counterfeit credit cards, using stolen or otherwise compromised credit and debit card numbers belonging to others.  They encoded the stolen account information onto credit and stored value cards which were then used to obtain money and credit from banks and credit unions.  These proceeds were used to buy consumer products, including designer shoes by Gucci, Louis Vuitton and Christian Louboutin, and designer clothes from Neiman Marcus.

 On November 2, 2012, Johnson and Wanisha and Lakriesha Coates used altered credit cards to make fraudulent purchases at a Target in Fairfax, Virginia.  Johnson was arrested and convicted in Fairfax County, Virginia for credit card fraud.  Wanisha Coates was also arrested and charged in Fairfax County, but failed to appear for her court hearing.  A bench warrant was issued for her arrest.

On April 2, 2013, Johnson and Wanisha Coates were stopped by a Maryland State Trooper for a traffic violation in Centreville, Maryland.  The Trooper smelled burnt marijuana and searched the vehicle, seizing several gift cards, credit cards and “ReloadIt” stored value cards that were altered and rewritten with compromised account information.

On January 11, 2014 Easton Police officers arrested Johnson and Miller after they tried to buy multiple gift cards at a Staples store in Easton.  A number of credit cards fraudulently re-encoded with stolen or compromised account information were seized, along with a small amount of marijuana.  Miller advised police that his girlfriend was staying at an Easton motel.  Officers arrived at the motel room and were overwhelmed by the odor of raw and burnt marijuana as they entered.  Present inside the room were the girlfriend and Wanisha Coates. Coates identified herself as “Wanda C. Redd,” who is in fact her mother.  Officers seized 44 credit or stored value cards, many of which had been fraudulently altered.  Johnson had used one of the fraudulently altered cards to make over $200 in purchases at a drug store in Easton.  Of the 108 cards seized from Johnson, Miller and Coates on January 11, approximately 88 were found to be rewritten with stolen credit card/bank card account information.  Many of the cards had been altered so that the last four digits appearing on the front of the card matched the last four digits of the stolen account number rewritten on the magnetic strip of the card.  

Johnson was released from custody in Talbot County on January 12, 2014.  That same day, someone logged-in to Johnson’s account and unsuccessfully attempted to remotely erase the date on Johnson’s iPhone, which was in the custody of law enforcement.

On March 13, 2014, Anne Arundel County Police responded to a call from a man at a motel in Linthicum, Maryland, later identified as Johnson, who said he had been cut in the face with a knife by Wanisha Coates.  Police found Johnson and Coates outside of their motel room attempting to leave.  Police seized approximately 27 credit and gift cards, some visibly altered, and a device for reading, erasing and writing data on magnetic strips of credit cards. At least 13 of the seized credit cards and gift cards had been reencoded with account information that did not match the numbers appearing on the front of the cards.

Between June 30 and July 7, 2014, Johnson, Michel and another conspirator made numerous purchases in New Jersey using fraudulently reencoded credit and stored value cards.  On July 14, 2014, Johnson was driving in Lyndhurst, New Jersey, when a police officer attempted to pull him over.  When the officer got out of his patrol car, Johnson pulled away and police gave chase.  After Johnson struck a small tree, police ordered him out of the vehicle, but Johnson accelerated in reverse, sideswiping a police vehicle and drove for several blocks before bailing out of the car.  Johnson ran through several back yards before being arrested by officers.  Johnson was charged and officers seized marijuana, a tablet computer, two cell phones, a receipt for a $624 wire transfer, and numerous credit and gift cards, at least one of which was visibly tampered with.  Johnson’s New Jersey state charges are still pending.

On July 23, 2014 the U.S. Marshals Service Regional Fugitive Task Force located Coates, who had fled from federal pretrial supervision in June 2014, at a motel in Belleville, New Jersey.  Task force officers arrived at the motel room, which smelled strongly of burnt marijuana, and arrested Coates.  Officers seized marijuana, a credit card embossing device, electronics, and approximately 100-150 stored value cards or credit cards, some of which had been fraudulently re-encoded with stolen credit card information.

On March 10, 2015, while Johnson was an inmate at the Chesapeake Detention Facility in Baltimore, he made several calls to Earle.  Johnson was being held there pending his initial appearance and arraignment on his federal charges.  During the calls, which were recorded, Johnson asked Earle if she was with Michel, and if she would get him money orders for his commissary account.  During the call, Johnson told Earle to purchase the money orders with gift cards obtained using stolen credit card account information.  Earle advised that she already had three $100 money orders purchased with fraudulently obtained gift cards.  Johnson asked Earle to try to get another gift card purchased with stolen credit card information, in order to get him another money order.  In a later call, Johnson asked Earle to get him money orders for $85 because they cleared into his commissary account faster. Earle confirmed that Michel was with her and they would get additional money orders for Johnson.

Earle and Michel were arrested on March 12, 2015, after engaging in numerous fraudulent transactions using cards encoded with stolen credit card information at a department store in Towson, Maryland.  At the time of their arrest, Michel possessed 26 fraudulently reencoded cards and Earle possessed 15 fraudulently reencoded cards.  Earle also had four money orders in Johnson’s name – three for $100 and one for $85.  The money orders had all been purchased with prepaid debit cards that had been purchased using stolen credit card information.

The loss attributable to Johnson during the course of the conspiracy is between $120,000 and $200,000, and involves more than 250 victims.

Co-conspirator Sheardwood H. Michel, age 26, of St. Albans, New York, and Shamika C. Earle, age 25, of Deer Park, New York, pleaded guilty to their roles in the scheme and are scheduled to be sentenced on October 26 and 27, respectively.

Wanisha D. Coates, age 26, and Lakriesha Coates, age 25, both of Baltimore, Domenique R. Miller, age 21, of Newnan, Georgia, previously pleaded guilty to their participation in the scheme and were sentenced to four years in prison, a year and a day in prison, and time served, respectively.

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 HSI Baltimore, U.S. Secret Service, U.S. Marshals Service, Easton Police Department, Maryland State Police, Anne Arundel County Police Department, Fairfax (Virginia) County Police Department, Talbot County State’s Attorney’s Office and the U.S. Marshals Service Regional Fugitive Task Force for their work in the investigation and related prosecution.  Mr. Rosenstein praised the Fairfax County (Virginia) Commonwealth’s Attorney’s Office and Lyndhurst (New Jersey) Police Department for their assistance in the investigation and prosecution.   Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced former letter carrier Takisha Cole, age 33, of Washington, D.C. today to 21 months in prison followed by three years of supervised release for possession with intent to distribute marijuana, use of a communications device to facilitate drug trafficking and bribery.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General; Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.

From at least March 2011 through September 2014, Cole was a letter carrier for the U.S. Postal Service, assigned to a route serving the Silver Spring, Maryland area.

According to court documents and evidence presented at Cole’s five-day trial, from at least May 2013 through August 13, 2014, Michael Prandy paid Cole to use her position as a letter carrier to obtain and deliver packages containing marijuana to Prandy.  The packages were sent from California and elsewhere and mailed via USPS to Prandy’s residence in Silver Spring.  In August 2013, Prandy’s address was removed from Cole’s postal route. Nevertheless, Cole continued to pick up his packages at the Silver Spring Postal Annex and deliver them to Prandy’s residence on McAlpine Road.  According to trial testimony, in return for delivering the packages, Prandy paid Cole $50 to $100 per package, which he placed in an envelope and left in the mailbox at his residence for Cole to pick up.

Michael Louis Prandy, age 39, of Silver Spring, Maryland previously pleaded guilty to his role in the conspiracy and was sentenced to 33 months in prison.

United States Attorney Rod J. Rosenstein commended the U.S. Postal Service -OIG, the U.S. Postal Inspection Service and Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Ray D. McKenzie, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Darryl Green, a/k/a “Showboat,” age 47, of Baltimore, Maryland, today to 12 years in prison, followed by three years of supervised release for a robbery conspiracy and for committing a robbery.

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

According to Green’s plea agreement, in March 2014, Green and co-defendant Antwan Travers planned to commit an armed robbery at a pharmacy in Baltimore. According to his plea agreement, on March 19, 2014, Travers drove Green to the store and waited outside as the getaway driver.  Green entered the store and asked an employee about medication for pink eye.  At the time, the employee was holding her two-month old baby.  The employee’s husband was also in the store. Green pointed a long-barreled BB pistol at the employee and her baby and said, “I’m going to kill the baby.”  He then ordered the employee to move towards the cash register.  The employee and her husband activated a loud panic alarm, and Green fled the store.  Travers drove Green away from the pharmacy. 

Green and Travers also attempted to rob a grocery store in Reisterstown, Maryland, on March 27, 2014.  Travers drove Green to the supermarket. Green entered the store and asked a store employee about purchasing a Keno card.  Green then pointed a handgun at the employee and demanded money from the register.  Green said, “You better make it quick or I’m going to shoot you.”  Green stole about $5,000 from the supermarket. According to Travers’ plea agreement, he drove away before Green could escape.  Green attempted to run away, but he was quickly caught by members of the Baltimore County Police Department.  Officers found the gun that Green had used during the robbery, a loaded .380 caliber handgun with an obliterated serial number, near the location where Green was arrested.  Officers also found the stolen money, about $5,000, in a plastic bag. 

Antwan Travers, age 45, of Baltimore, previously pleaded guilty to his role in the robberies and is scheduled to be sentenced on November 16, 2015 at 3:00 p.m.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Joshua Ferrentino, who are prosecuting the case.

Baltimore, Maryland – A federal grand jury has indicted six defendants on fraud and identity theft charges involving a scheme to fraudulently obtain unemployment insurance benefits:

Diameter Jeffrey Akala, age 42, of Silver Spring, Maryland;

Wilfred Mendez, age 21, of Bronx, New York;

Eric Gonzalez, age 33, of Alexandria, Virginia;

Tawana McClain, age 50, of Washington, D.C.;

Ferny Alexander Moreno Puente age 23, of Gaithersburg, Maryland;

Wilfredo Torres, age 35, of Alexandria, Virginia.

The indictment was returned on October 13, 2015 and unsealed today.  Three other defendants have pleaded guilty to their participation in the scheme:

Dulce Oleo, age 38, of the Bronx, New York;

Yaw Bempa-Boateng, age 35, of Silver Spring, Maryland; and

Carmen Benitez, age 29, of Scranton, Pennsylvania.

The indictment and guilty pleas were 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; and Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division.

“Today's guilty pleas send a strong message that schemes to defraud the unemployment insurance program will not be tolerated,” stated Steven Anderson, Special Agent in Charge, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations in Washington, DC.  “The Office of Inspector General will continue to work cooperatively with our law enforcement partners to aid in the identification and prosecution of individuals engaged in these types of crimes.

According to the 11 count indictment, from March 2012 to May 2015, the defendants caused the Maryland Department of Labor, Licensing and Regulation (DLLR) and the Pennsylvania Department of Labor and Industry (DLI), which administered the unemployment insurance benefit programs in their respective states, to issue unemployment benefits in the names of individuals by submitting false applications for monetary benefits for their own personal use and benefit.

The indictment alleges that members of the conspiracy obtained the personal identities of other individuals, including Maryland residents.  Akala filed false documentation with DLLR and DLI in the names of fictitious companies.  The filings falsely stated that the fictitious companies employed and paid wages to actual individuals. In fact, no unemployment insurance taxes were paid over to DLLR or DLI in the names of the fictitious companies.

According to the indictment, members of the conspiracy fraudulently used residential mailing addresses of co-conspirators in Maryland, New York, the District of Columbia, Pennsylvania and Virginia to register and receive correspondence for the fictitious companies, and apply for and receive prepaid debit cards containing fraudulently obtained unemployment benefits.  In exchange for the use of their addresses, the co-conspirators received funds obtained through the fraud, typically in the form of a fraudulently obtained prepaid debit card.  Members of the conspiracy regularly contacted DLLR and DLI, falsely representing themselves either to be a representative of one of the fictitious companies or an individual entitled to unemployment benefits.  Akala moved regularly between different states in order to retrieve correspondence addressed to fictitious companies and individuals, including prepaid debit cards issued by DLLR and DLI.

The co-conspirators used the prepaid debit cards at ATMs or stores in order to withdraw and use approximately $1,468,463.80 in fraudulently obtained unemployment insurance benefits. The indictment seeks forfeiture of at least that amount.

Akala, Mendez, Gonzalez, McClain, Moreno Puente and Torres face a maximum sentence of 20 years in prison for conspiring to commit wire fraud and for wire fraud.  Akala and Mendez also face a mandatory minimum sentence of two years in prison for aggravated identity theft consecutive to any other sentence imposed. Moreno Puente and Torres are expected to have their initial appearances today in federal court in Virginia, and Gonzalez is expected to have his initial appearance today in federal court in Greenbelt.  Akala is detained pending a detention hearing scheduled for October 20, 2015 at 2:30 p.m.  McClain and Mendez were released under the supervision of pretrial services.

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

In related cases, Bempa-Boateng, Benitez and Oleo have pleaded guilty to their participation in the conspiracy. Bempa-Boateng admitted that he initially agreed to have a co-conspirator file unemployment claims in his name, and eventually filed multiple false claims on his own behalf. Benitez agreed to use a Maryland unemployment insurance card and debit cards that the co-conspirator obtained for her through false means, to fraudulently withdraw benefits funds.  Oleo admitted that she provided the conspirator with personal identifying information of others in order to file false unemployment claims; and personally used at least 10 fraudulently obtained unemployment insurance cards.  Bempa-Boateng, Benitez and Oleo have each agreed to the entry of an order to pay restitution and forfeiture of $801,710.40; $388,378 and $191,122, respectively.

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 Department of Labor – OIG and U.S. Postal Inspection Service for their work in the investigation, and praised the Maryland Department of Labor, Licensing and Regulation and the Pennsylvania Department of Labor and Industry for their assistance in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Sean R. Delaney, who is prosecuting the case.

Baltimore, Maryland –Lyneth Nyabiosi, age 50, and her husband, Willie Evans III, a/k/a “James Davies” and “James Davis,” age 53, both of Bear, Delaware, pleaded guilty today to conspiring to commit mail fraud arising from a scheme to falsely bill Nyabiosi’s employer, Sheppard Pratt Health Systems, for approximately $2.5 million for work purportedly performed by a company that the defendants secretly controlled.

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

Sheppard Pratt Health System is a private, non-profit health system in Maryland which offers mental health, substance use and special education services.  Sheppard Pratt’s main campus is located in Towson, Maryland.  From November 2005 to September 2014, Nyabiosi was the director of the Health Information Management Department (HIM Department) of Sheppard Pratt.  The department was responsible for maintaining patient medical records. As the director, Nyabsiosi was the highest ranking employee in the HIM Department.

According to their plea agreements, Nyabiosi and Evans controlled and operated an entity named Information Management Solutions Technology (IMST), which was designed to appear as an independent third party contractor, but was in fact created by the defendants to execute the fraud scheme.  On March 7, 2007, Nyabiosi, on behalf of Sheppard Pratt, entered into a contract with IMST to manage medical records for Sheppard Pratt.  Nyabiosi never informed Sheppard Pratt that she and her husband were affiliated with IMST, in violation of Sheppard Pratt’s conflict of interest policy. To further hide their affiliation with IMST, Evans signed the contract on behalf of IMST as “James Davies,” a purported regional account representative at IMST.  Thereafter, Evans continued to represent himself to Sheppard Pratt staff as “James Davis,” an account representative, even though no such person was ever affiliated with IMST.

From 2007 to 2014, the defendants submitted over 180 false invoices requesting that Sheppard Pratt pay IMST for work which was never performed, or for excessively inflated amounts for the work that was actually performed.  For example, IMST picked up at most approximately 2,863 boxes of patient records from Sheppard Pratt for short-term storage, yet the invoices falsely represented that IMST had picked up over 500,000 boxes of patient records. Other invoices and documents provided to Sheppard Pratt falsely represented that IMST had picked up and was storing 20,270 boxes of records from the company Iron Mountain, when in fact, IMST never picked up a single box.  And on two separate occasions in 2009, the defendants sent invoices to Sheppard Pratt for purported work on a project to digitize older patient records.  The defendants paid a third party company $26,395 to complete the work, but they billed Sheppard Pratt $546,510.

Nyabiosi personally approved all of the false invoices, causing Sheppard Pratt to mail checks to IMST totaling $2,742,791.  The defendants deposited the money in their bank account for their personal use.

In September 2014, the law firm representing Sheppard Pratt contacted “James Davis” using IMST contact information provided by the defendants.  On September 4, 2014 and September 14, 2014, counsel for Sheppard Pratt met with Evans, who falsely represented himself to be “James Davis” and never revealed himself to be Nyabiosi’s husband.  Evans falsely told the law firm that he, “James Davis,” alone owned IMST and was in charge of running the business.

The defendants have agreed to the entry of an order to forfeit and pay restitution of $2,742,791, and to forfeit two residences located in Bear and Newark, Delaware and three vehicles.

The defendants face a maximum sentence of 20 years in prison for conspiring to commit mail fraud.  U.S. District Judge James K. Bredar has scheduled sentencing for Nyabiosi and Evans for February 4 and 5, 2016, respectively, both at 9:30 a.m.

United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorney Rachel M. Yasser, who is prosecuting the case.

Baltimore, Maryland – A federal grand jury indicted William H. Steinhaus IV, age 33, of Brunswick, Maryland, yesterday for sexual exploitation of a child and distributing child pornography.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Frederick County Sheriff Charles A. “Chuck” Jenkins; Frederick County State’s Attorney J. Charles Smith; and Chief Cathy L. Lanier of the Metropolitan Police Department.

According to the six count indictment, between December 8 and 9, 2014, Steinhaus had a number of sexually explicit conversations on Kik, an instant messaging application, with other Kik users regarding their shared sexual interest in prepubescent children. Steinhaus took pictures using his iPhone or iPad of a two year old girl engaged in sexually explicit conduct and distributed them to approximately 25 other Kik users.

The indictment alleges that during those two days, Steinhaus and another Kik user exchanged approximately 290 messages.  They discussed how Steinhaus could best sexually abuse the toddler.  Steinhaus sent the user images of the child and Steinhaus engaged in sexually explicit conduct; and pictures of a couch, stating “That’s where tw[sic] assault will happen.”

Also on December 8, 2014, Steinhaus and a second Kik user allegedly exchanged approximately 293 messages.  Steinhaus sent pictures of the child and Steinhaus engaged in sexually explicit conduct; and pictures of a couch, stating “That’s where the assault is going to happen.”

According to the indictment, between December 8 and 9, 2014, Steinhaus and a third Kik user exchanged approximately 419 messages.  Steinhaus sent approximately 30 pictures he had taken of the toddler, several of which contained images of the child and Steinhaus engaged in sexually explicit conduct.

Steinhaus is presently in state custody following his arrest on December 9, 2014 on related charges filed in Frederick County Circuit.

Steinhaus faces a mandatory minimum sentence of 15 years in prison and a maximum of 30 years in prison on each of two counts for sexual exploitation of a child; and a mandatory minimum sentence of five years in prison and a maximum of 20 years in prison on each of four counts for distributing child pornography.  An initial appearance is expected to be scheduled for October 30, 2015 at 11:00 a.m. in U.S. District Court in Baltimore.

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

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

United States Attorney Rod J. Rosenstein commended the FBI, Frederick County Sheriff’s Office, Frederick County State’s Attorney’s Office and Metropolitan Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Judson T. Mihok, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jasper McWilliams, age 48, of Dundalk, Maryland today to 10 years in prison, followed by five years of supervised release, for possession with intent to distribute cocaine and crack cocaine, and for possession of a firearm in furtherance of a drug trafficking crime.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief James W. Johnson of the Baltimore County Police Department.

According to his plea agreement, on March 19, 2015, law enforcement officers executed a search warrant at McWilliams’ residence.  Officers recovered a total of 533.37 grams of powder cocaine and 69.78 grams of crack cocaine from the home, packaged in a number of plastic bags. In addition, officers recovered a loaded Taurus 9mm handgun from a locked safe underneath McWilliams’ bed. The locked safe also contained $15,160 in drug proceeds.  Elsewhere in McWilliams’ bedroom, the officers recovered drug paraphernalia, including a digital scale, a metal can with a false bottom, a metal grinder, and an at-home marijuana drug test kit.

United States Attorney Rod J. Rosenstein praised the Baltimore County Police Department for its work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Morris Thweatt, age 47, of Silver Spring, Maryland today to 80 months in prison followed by three years of supervised release for three bank robberies.  Judge Grimm also entered an order that Thweatt forfeit and pay restitution of $22,773, the total amount that he stole.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department. 

According to his plea agreement, Thweatt robbed three banks in Silver Spring, wearing various disguises, and handing the bank tellers notes that stated that he had a bomb.

On June 10, 2014, Thweatt told a teller at Capital One Bank located on Tech Road that he had an explosive device, and demanded money.  The “device” was in fact a canister with a radio wire.  Thweatt stole $4,500 and fled.

On July 2, 2014, Thweatt told a teller at Capital One Bank located on University Boulevard that he was going to light a device he was carrying on fire.  The “device” was in fact a plastic bag with an electrical wire wrapped in aluminum foil attached to the bag.  Thweatt stole $8,075 and fled.

On July 22, 2014, Thweatt threatened a teller at Bank of America located on Colesville Road with a fake improvised explosive device, stating that he was going to blow the place up.  Thweatt stole $10,198 and fled.

United States Attorney Rod J. Rosenstein praised the FBI and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Daniel C. Gardner, who prosecuted the case.

 

Baltimore, Maryland – A federal grand jury has indicted James Cicala, age 54, of Columbia, Maryland for interstate travel with intent to engage in a sexual act with a minor.  The indictment was returned on October 8, 2015, and unsealed today upon the arrest of Cicala

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); Worcester County Sheriff Reggie T. Mason, Sr.; and Special Agent in Charge Michael Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General.

According to the indictment, on August 15, 2015, Cicala traveled from his beach house in Delaware to Berlin, Maryland, to engage in a sexual act with a 15 year old girl.  According to a search warrant affidavit filed in connection with the investigation, on July 21, 2015, an undercover detective with the Worcester County Sheriff’s Office who was investigating child solicitation on the internet responded to an ad entitled “Daddy’s Little Girl.” The person posting the ad stated that they were interested in meeting someone for a “Daddy/Daughter Relationship.”  The undercover detective identified himself as a 15 year old female, and the poster identified himself as a male in his late 40’s.

The poster and the undercover detective exchanged messages for several weeks, eventually agreeing to meet to engage in sexually explicit conduct. During their conversations, Cicala refers to himself as “Daddy.”  According to the affidavit, on August 15, 2015, law enforcement attempted to identify the owner of the telephone number used to text messages to the undercover detective and learned that the number belonged to the Department of Justice.  Many of the conversations Cicala allegedly had with the undercover officer occurred using Cicala’s DOJ-issued phone or work computer, sometimes during work hours.

Cicala was arrested on August 15, 2015, as he arrived at the location where he was to meet the 15 year old girl in order to engage in sexually explicit conduct.  Cicala had traveled from his beach house in Delaware to the meeting place in Berlin, Maryland.  On August 17, 2015, Cicala was placed on administrative leave by the Department of Justice, where he worked in IT, and all electronic devices assigned to him were secured.

Cicala faces a maximum of 30 years in prison followed by up to lifetime of supervised release for traveling interstate to have sex with a minor.   An initial appearance is scheduled for today at 3:15 p.m. before U.S. Magistrate Judge Timothy J. Sullivan in U.S. District Court in Baltimore.

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

This case was 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, Worcester County Sheriff’s Office and DOJ- Office of Inspector General for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Darryl Norris, age 37, of Baltimore, today to nine years in prison followed by three years of supervised release for robbing a video game store.  Judge Russell also entered an order that Norris pay restitution of $13,481.15.

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

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

Norris admitted to committing six other robberies with co-conspirators from August 26 to September 27, 2014, using a similar modus operandi: Rainbow Clothing on Maiden Choice Lane in Baltimore; Cappy Cleaners on Belair Road in Baltimore; The Summit at Owings Mills, in Owings Mills, Maryland; Royal Farms on Wilkens Avenue and another Royal Farms on Keswick Road, both in Baltimore; and 7-Eleven on Pleasant Plains Road in Towson, Maryland.

The total loss from the seven robberies was $13,481.15.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and City Police Departments and Baltimore County and City State’s Attorney’s Offices for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.

Baltimore, Maryland – Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 82, of Boca Raton, Florida pleaded guilty today to conspiracy to distribute oxycodone and other drugs.

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

“State and federal authorities are continuing to look at ways to shut down ‘pain clinics’ that are really just fronts for criminals who divert pharmaceutical drugs and hook a new generation of addicts,” said U.S. Attorney Rod J. Rosenstein. “Gerald Wiseberg traveled from state to state setting up clinics that prescribed opioid drugs to people who had no medical need for the drugs.”

“This pill mill operator case shows the complexity of the drug abuse cycle and how law enforcement must take a multi-tiered approach in dealing with prescription drug abuse and the connected abuse of heroin”, stated Assistant Special Agent in Charge Don A. Hibbert. “When users of prescription medications, especially opiate derivatives like oxycodone, become abusers of the medication, they often find themselves switching from oxycodone to a cheaper drug such as heroin.  In doing so, a new generation of heroin addicts are created, which leads to an increase in cases of heroin overdoses we see every day in this nation.”

According to Wiseberg’s plea agreement, from March 2010 through February 2011, Gerald Wiseberg owned and operated Total Care Medical Center, a pain management clinic located in Deerfield Beach, Florida. Although Wiseberg was not a medical doctor, he established the standard operating procedures for the clinic, including which drugs the prescribing physician could prescribe and the maximum dosage amounts of these drugs.  As a result of the procedures instituted by Wiseberg, Total Care accepted cash payments in exchange for providing prescriptions for large amounts of controlled substances (including oxycodone and alprazolam) to customers who did not have a legitimate medical need for the drugs.

In late 2010 and early 2011, two Maryland co-conspirators traveled to Florida to learn how to operate a pain clinic like Total Care. By early 2011, Wiseberg and the two Maryland co-conspirators agreed to open a similar pain management clinic in Maryland.  Wiseberg and the co-conspirators opened Healthy Life, with Wiseberg as part owner of the business. Wiseberg interviewed and hired medical directors at Healthy Life specifically because he believed they would write prescriptions for narcotics to customers without a legitimate medical need.

Healthy Life first opened in Owings Mills, Maryland, but in October 2011, moved to a larger office in Timonium, Maryland.  Both Healthy Life locations attracted large and unruly crowds.  While outside the locations, customers caused disturbances, used narcotics, and engaged in narcotics transactions.  Over 80% of the customers who received a prescription from Healthy Life were from out of state.  Approximately 97% of the customers who received prescriptions from Healthy Life received at least one prescription for oxycodone.

From June 2011 through April 2012, Wiseberg was paid $12,000 per month by his co-conspirators for his role at Healthy Life.  In addition to these monthly payments, Wiseberg also received cash payments for his 30% share of the net profits from the operation of Health Life.  In 2011 alone, those cash payments totaled $165,000.

As part of his plea agreement, Wiseberg also pleaded guilty to a charge filed in the Southern District of New York for conspiring to distribute oxycodone and other drugs.  In that case, Wiseberg conspired with others to recruit patients from pain clinics to fill their prescriptions at specific pharmacies owned and controlled by Wiseberg’s co-conspirators.  Wiseberg admitted that he knew the prescriptions for oxycodone and other drugs that were given to the patients he recruited were not for a legitimate medical purpose and were issued outside the bounds of medical practice.  Wiseberg also knew that the pharmacies would honor the prescriptions because his co-conspirators had recruited pharmacists to staff the pharmacies who would fill such prescriptions.  As part of the scheme, Wiseberg and his co-conspirators required that patients filling prescriptions for oxycodone and other narcotics to submit another prescription for a non-controlled substance at the same time.  Wiseberg admitted that he knew that the patients submitting the prescriptions would, and did, pay substantially marked-up prices for oxycodone and purchase additional non-controlled substances they did not need, in order to receive the painkillers that were prescribed to them without a legitimate medical purpose.

Wiseberg faces a maximum sentence of 20 year in prison for each of the drug conspiracy charges to which he is pleading guilty.  Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for March 7, 2016 at 9:15 a.m.

United States Attorney Rod J. Rosenstein commended the DEA Baltimore District Office and New Jersey Field Division, IRS, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office, for their work in these investigations. Mr. Rosenstein expressed his appreciation to U.S. Attorney Preet Bharara for the Southern District of New York, and Assistant U.S. Attorneys Edward Diskant, Daniel Tehrani, and Shawn Crowley, who handled the New York prosecution.  Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Peter J. Martinez, who are prosecuting the Maryland case.

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Kenneth Wayne Watford, age 55, of Bowie, Maryland, today to 135 months in prison followed by five years of supervised release for two identity theft schemes.  Judge Messitte also ordered Watford to pay restitution of $14,254.54.

On April 16, 2015, a federal jury convicted Watford of conspiracy, wire fraud, credit card fraud and attempted credit card fraud, and aggravated identity theft in connection with fraud schemes using the stolen identities of others to purchase expensive cars and obtain credit cards in Watford’s business’ names backed by other people’s credit.  After being charged with the first scheme, and while on federal pre-trial supervision, Watford also used another victim’s stolen identity to obtain and use a credit card to make purchases exceeding $14,300.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge James M. Murray of the United States Secret Service - Washington Field Office; Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief John Nesky of the Bowie Police Department.

According to evidence presented at his six day trial, Watford, Flinton Newton and Juan Carlos Willis obtained the identity information of credit-worthy individuals, created false identity documents in the names of those individuals, and then posed as those individuals at automotive dealerships in order to apply for vehicle financing.  Watford and his coconspirators filled out credit applications with dealers in Maryland and Virginia, and then used the extended credit to purchase, or attempt to purchase, expensive cars without any intention of making payments on the loans.

On June 23, 2012, Watford, Willis and a coconspirator posing as an identity theft victim used the victim’s identity to submit a credit application for $77,450 to finance the purchase of a 2011 BMW 750 at BMW of Silver Spring, Maryland.

On June 29, Watford used the victim’s identity to apply for an American Express business credit card account in the name of Annie M’s Groceries, a business entity Watford had registered the previous year.  Evidence presented at trial also revealed that Watford, Willis and the unidentified co-conspirator also attempted to purchase two Cadillac Escalades from Capitol Cadillac in Greenbelt using the same victim’s credit. 

On July 19, 2012, Newton and Willis returned to Capitol Cadillac, where Newton posed as a second victim whose identity he had fraudulently obtained and applied for $80,663 in financing to purchase a 2013 Cadillac Escalade in the second victim’s name. Watford had provided Willis with access to a business auto insurance policy he had established in the name of Annie M’s Groceries, and Willis used this online access to Watford’s insurance policy to obtain proof of insurance for the purchase of the vehicle.

Later that evening, Newton and Willis drove to Mercedes-Benz of Silver Spring where Newton again posed as the second victim.  The men attempted to purchase a 2012 Mercedes-Benz CL550 and a 2009 Mercedez-Benz S550 for a total of $120,056.  They filled out credit applications to finance the entire purchase price, again using the victim’s identity and credit, and an insurance policy under the name of Annie M’s Groceries. The dealership manager, however, saw that the victim’s credit had just been used to purchase the Cadillac Escalade, so he notified Montgomery County Police, who responded and arrested Newton and Willis.

A subsequent search of Willis’ cell phone revealed text messages between Willis and Watford concerning the purchase and use of the BMW, as well as the victim’s personal information. On July 26, 2012, Watford was arrested while driving the BMW in Bowie. Inside the car were the victim's credit reports from three credit bureaus, and a social security card and driver’s license in the name of Watford’s alias, “Abdul Abrams.” Law enforcement executed a search warrant at Watford’s residence and seized credit reports and financial documents in the names of other victims.

The total attempted loss as a result of this fraudulent scheme was between $400,000 and $1 million.

In 2013, after Watford was charged for the above scheme and released pending trial, he obtained the personal identifying information of a third victim.  Using that identity to guarantee the cards, Watford twice applied for credit cards in the name of a second business entity he controlled, Futranet Coaches of America.  Watford’s first attempt, an application to American Express in August 2013, was declined; however, in September 2013 Watford successfully used the third victim’s credit to obtain a $15,000 line of credit with Fleetcor, LLC, a credit-card issuer specializing in fuel cards.  During the next month, Watford ran up over $14,300 in purchases on cards issued on that account, including $13,000 paid to a former business associate who was holding several vehicles belonging to Watford as collateral on a large outstanding debt Watford owed him.  In addition to being found guilty of two counts of unauthorized credit card use and two counts of aggravated identity theft in conjunction with this post-release conduct, Watford was also found guilty of committing these offenses while on federal pre-trial release, requiring that his sentences for these counts run consecutive to his sentence on the automobile-related fraud charges.

Flinton Newton, age 35, of Bartlett, Tennessee previously pleaded guilty to his participation in the scheme and was sentenced to 42 months in prison for conspiring to commit wire fraud and aggravated identity theft.  Juan Carlos Willis, age 42, of Hyattsville, Maryland pleaded guilty to the same offenses on the day before his trial was scheduled to begin, and was subsequently sentenced to 61 months in prison.

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 Secret Service, U.S. Postal Inspection Service, Montgomery County Police Department and Bowie Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Adam K. Ake and Special Assistant United States Attorney James I. Pearce, who prosecuted the case.

Baltimore, Maryland – Baltimore City Police officer Maurice Lamar Jeffers, age 47, of Savage, Maryland, pleaded guilty today to theft of government property and stealing property as a federal officer.

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; and Interim Commissioner Kevin Davis of the Baltimore Police Department.  

“The agents carried out an undercover operation and obtained a video recording of the defendant stealing cash while he believed he was executing a search warrant,” said U.S. Attorney Rod J. Rosenstein. “I want to thank the officers of the Baltimore Police Department and other agencies that assisted in this investigation.”

Jeffers has been a sworn member of the Baltimore Police Department for the last 12 years, and was assigned as a Task Force Officer (TFO) to the U.S. Marshals’ Capital Area Regional Fugitive Task Force (CARFTF).  As a TFO, Jeffers received special deputation to execute arrest and search warrants supporting the federal task force. Jeffers was responsible for locating and arresting offenders who had active local and federal arrest warrants and assisting in locating individuals for other jurisdictions and agencies upon request.

According to information provided to the court at his plea hearing, acting on information provided by a confidential source, law enforcement conducted a covert operation in which agents rented a hotel room and set up audio and video recording devices. Law enforcement also hid approximately $3,000 in pre-recorded cash in a pocket of a jacket and inside a pair of shoes in a duffle bag. The cash belonged to the FBI.   

Jeffers and his colleagues were told that a local law enforcement agency was conducting a narcotics investigation and that the target of the investigation was staying at the hotel room. Jeffers and his partner were told to secure the room so that the local law enforcement agency could later execute a search warrant.  Jeffers and his partner entered the hotel room and conducted a brief protective sweep.  Jeffrers then told his partner to go to the lobby of the hotel to tell other CARFTF members that no one was located inside the room.

After his partner left the room, Jeffers searched the hotel room and located the hidden cash, which he placed into his pants pockets.  Jeffers kept the money for his own personal gain.  On May 7, 2015, Jeffers was arrested and searched incident to the arrest.  Law enforcement located $220 (eleven $20 bills) on Jeffers that he stole from the hotel room on March 10, 2015.

Jeffers faces a maximum sentence of 10 years in prison for each of the two theft counts.  U.S. District Judge J. Frederick Motz has scheduled sentencing for February 11, 2015, at 10:00 a.m.

United States Attorney Rod J. Rosenstein praised the Baltimore FBI Public Corruption Task Force, which includes Agents and law enforcement officers from the IRS, the Baltimore Police Department, the Prince George’s County Police Department and the Baltimore FBI, for their work in the investigation.  Mr. Rosenstein expressed his appreciation to the U.S. Marshals Service for its assistance and thanked Assistant United States Attorney Rachel M. Yasser, who is prosecuting the case.

Baltimore, Maryland – A criminal complaint has been filed charging Donta Betts, age 19, of Baltimore, with attempted arson of a police cruiser, civil disorder and unlawful making of a destructive device. The criminal complaint was filed on October 6, 2015 and unsealed today. Betts was arrested on July 7, 2015, on unrelated state charges.  Betts will make his initial appearance on the federal charges on Friday, October 23, 2015 at 11:00 a.m. in U.S. District Court in Baltimore.

The criminal complaint 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 Interim Commissioner Kevin Davis of the Baltimore Police Department. 

“The rule of law must be upheld, and criminals who destroy property and jeopardize lives must be held accountable,” said U.S. Attorney Rod J. Rosenstein. “Recordings from public and private surveillance cameras allow police and prosecutors to identify suspects and prosecute them even when immediate arrests are not possible.”

“These violent acts endangered the safety of dozens of officers and citizens in the area that day,” said ATF Special Agent in Charge William P. McMullan.  “ATF is committed to making sure that the perpetrators of these acts are held responsible and we will continue to investigate anyone who threatens the well-being of our community.”

On April 27, 2015, riots and widespread looting erupted in Baltimore.  The CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore was looted and burned.

According to the affidavit filed in support of the criminal complaint, at 4:49 p.m. that day, Baltimore CitiWatch surveillance footage captured an individual removing the gas cap from a Baltimore Police cruiser, then placing a piece of flammable material into the fuel filler pipe, and igniting the material.

At 5:43 p.m., additional surveillance footage and still photos taken by the media covering the riots captured an assemblage of propane cylinders and charcoal briquettes approximately 10 to 12 feet from the curb directly outside the main entrance to CVS.  The individual is captured setting fire to a roll of toilet paper and placing it on top of the propane cylinders and charcoal briquettes.  The individual can be seen a few minutes later squirting lighter fluid onto the burning roll of toilet paper atop the incendiary materials. At approximately 5:49 p.m., the individual is seen running away from the improvised incendiary device that he made as it burned in the street.  At approximately 5:58 p.m., the improvised incendiary device exploded approximately 40 feet in front of a Baltimore Police riot line that had assembled across Pennsylvania Avenue just north the front entrance of CVS.  ATF investigators have determined that the explosion resulted in flying debris of large metal fragments from the propane cylinders and a large fireball with blast effects felt by nearby by-standers.

Additional surveillance footage showed the individual inside the CVS and exiting the store carrying items; throwing rocks at police; and attempting to tip over MTA vehicles while encouraging others to join him.

According to the affidavit, further investigation identified the individual seen in the CitiWatch surveillance camera footage as Donta Betts.

Betts faces a mandatory minimum sentence of five years in prison, and a maximum of 20 years in prison for attempted arson; five years in prison for civil disorder; and 10 years in prison for the unlawful making of a destructive device.  Betts remains detained.

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.

Federal prosecutors previously have charged two other defendants for arson crimes committed during the Baltimore riot on April 27, 2015. Darius Raymond Stewart is charged with malicious destruction of a commercial building for allegedly setting fire to a liquor store on West North Avenue. Raymon Carter pleaded guilty to the federal crime of rioting, including the arson of the CVS pharmacy on Pennsylvania Avenue.

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

United States Attorney Rod J. Rosenstein praised the ATF and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Matthew J. Maddox , who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Cornelius Maurice Jackson, a/k/a “Buddy Love” and “Buddy,” age 43, of Washington, D.C., Maryland today to 11 years in prison followed by four years of supervised release for conspiring to distribute and possession with intent to distribute cocaine base.  Judge Chasanow also entered an order that Jackson forfeit $9,100.                       

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Cathy L. Lanier of the Metropolitan Police Department; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to his plea agreement, from at least September 12 to December 18, 2013, Jackson and co-defendant Daniel Fields distributed cocaine base.  Specifically, on four occasions, a confidential source met Fields in Oxon Hill, Maryland, and the two traveled to Washington, D.C. where they met Jackson.  Jackson traveled back to Maryland with the confidential source and Fields to obtain the crack cocaine from a source in Hillcrest Heights. Jackson handed the drugs to Fields who in turn distributed the drugs to the confidential source.  The confidential source gave Fields $2,600 on each of three occasions for the individual purchases of about 58 grams of crack cocaine, and $1,300 on the fourth occasion to purchase 27.3 grams of crack cocaine.

Daniel Aubulah Fields, a/k/a “Squirt,” age 44, of Forest Heights, Maryland, previously pleaded guilty to his participation in the drug trafficking conspiracy and was sentenced to eight years in prison.

United States Attorney Rod J. Rosenstein praised DEA, Metropolitan Police Department and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O. Hayes and Ray D. McKenzie, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Gilbert Stokes, age 47, of Baltimore, Maryland, today to 18 years in prison, followed by three years of supervised release for the December 12, 2013 armed robbery of a convenience store.  Stokes also admitted to the attempted armed robbery of a hotel on December 6, 2013, and committing the armed robbery of a fast food restaurant on December 23, 2013.

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

According to Stokes’ plea agreement, on December 6, 2013, he entered a hotel on W. Madison Street in Baltimore, displayed a gun to the hotel clerk and demanded money.  The clerk advised that the only money on hand at the hotel was in the safe and the clerk did not have a key to the safe.  Stokes fled without obtaining any money.  Baltimore Police detectives reviewed hotel surveillance video and identified Stokes as the robber. The clerk identified Stokes from a photo array.

On December 12, 2013, Stokes entered a convenience store in Windsor Mill and brandished a handgun at two victims.  The victims were able to hide in the store while Stokes stole packs of cigarettes and left.  Witnesses at the scene identified the get-away vehicle Stokes used, which the police subsequently located.  Recovered from under the front seat was a revolver that matched the firearm seen in the store’s surveillance video.  A witness identified Stokes as the person who brandished the gun and committed the robbery.

Stokes also admitted that on December 23, 2013, he robbed a fast food restaurant on N. Howard Street in Baltimore, brandishing a weapon and demanding money.  Stokes stole approximately $200 from the register and fled.  Officers located Stokes on Greene Street, and saw Stokes throw an object under the vehicle.  Law enforcement recovered a .17 caliber BB-gun from under the vehicle and $190 from Stokes.  The victims were brought to the scene of the arrest and identified Stokes as the armed robber.

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 and prosecution.  Mr. Rosenstein thanked Special Assistant United States Attorney Matthew K. Hoff, a cross-designated Baltimore City Assistant State’s Attorney, part of the Baltimore initiative to combat violent crime, and Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.

Baltimore, Maryland – Bruno Rodriguez, age 35, formerly of Hyattsville, Maryland pleaded guilty today to conspiring to defraud the United States and money laundering.

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

According to his plea agreement and court documents, from November 2011 to May 2012, Rodriguez helped to file fraudulent tax returns using the stolen identities of Puerto Rican residents.  A co-conspirator who lived in Puerto Rico emailed Rodriguez the names, dates of births and social security numbers of Puerto Rican residents.  The emails appeared to be grouped by families and included minor children.  Rodriguez agreed to share a portion of the tax refunds with the co-conspirator.

Rodriguez gave the emails to his wife, Jennifer Rodriguez, who owned Latin Multi Services, a tax preparation service located in Silver Spring, Maryland.  Jennifer Rodriguez used the stolen identifying information to prepare tax returns that falsely listed the taxpayers as residents of Maryland and included fabricated income figures and deductions.

All of the returns requested refunds and listed bank accounts controlled by Rodriguez and his wife as the recipient bank account for the refunds. The fraudulent returns were electronically deposited into the bank accounts.

Over the course of the scheme, Bruno Rodriguez caused to be filed 291 false tax returns with the IRS, which resulted in the IRS paying $983,382 in refunds. Rodriguez has agreed to the entry of an order to pay restitution of $983,382.

Bruno Rodriguez faces a maximum sentence of five years in prison for conspiring to defraud the United States and 20 years in prison for money laundering. U.S. District Judge J. Frederick Motz scheduled sentencing for January 5, 2016 at 10:30 a.m.

Jennifer Rodriguez, age 41, of Hyattsville, Maryland previously pleaded guilty to the fraud conspiracy.  She was sentenced to a year and a day in prison, and an order was entered that she pay restitution of $983,382.

United States Attorney Rod J. Rosenstein praised the IRS – Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.

Baltimore, Maryland – A federal jury convicted Angela M. Blythe, age 51, of Oakland, Maryland, today of conspiring to commit bank fraud, bank fraud and two counts of making a false statement to a bank.

The conviction 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 2006, Blythe prepared deeds, mortgages and notes using false identities provided by her co-conspirator.  Blythe recorded those fraudulent documents in Garrett County, Maryland and Preston County, West Virginia, which concealed her co-conspirator’s ownership of the properties.  On at least seven occasions, Blythe also conducted property settlements in which her co-conspirator participated as buyer, seller and/or borrower using the false identities, which Blythe concealed from the lenders. Blythe failed to conduct the settlement transactions as described on the settlement statements and paid over the seller’s proceeds as her co-conspirator directed.

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.

The government seeks the forfeiture of $1,725,000, the proceeds of the scheme to defraud the lenders.

Blythe faces a maximum sentence of 30 years in prison for conspiracy and bank fraud; and 30 years in prison for each of two counts of making a false statement to a bank.  U.S. District Judge William D. Quarles has scheduled sentencing for December 14, 2015.

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.

Baltimore, Maryland – The Maryland U.S. Attorney’s Office today honored 112 police officers, prosecutors and federal agents for outstanding work that resulted in significant federal violent crime prosecutions.  Recipients included police officers from Annapolis, Baltimore City, Baltimore County, Bowie, Howard County, Montgomery County, Prince George’s County, Takoma Park, and Washington, D.C.; prosecutors from Baltimore City, Prince George’s County and the Maryland Attorney General’s Office; and federal agents from ATF, DEA, FBI, HSI and the U.S. Marshals Service.

“This is a particularly good time to thank a police officer, as the exceptional work that most of them do every night and day is too often ignored,” said U.S. Attorney Rod J. Rosenstein.  “Local, state and federal police and prosecutors are working together to combat violent crime in Maryland. The hard work of these law enforcement officers and prosecutors led to dozens of convictions of dangerous criminals.”

The honorees participated in the investigation and prosecution of more than 25 violent crime cases involving more than 70 defendants.  In addition to investigators, several of the nominees were evidence technicians or computer specialists who collected and analyzed evidence that led to the convictions of these defendants.  The defendants included armed robbers, gang members, and drug dealers.  A majority of the defendants have previous felony convictions and many are career offenders and/or armed career criminals.

In addition to U.S. Attorney Rod Rosenstein and keynote speaker Interim Baltimore Police Commissioner Kevin Davis, agency representatives who participated in today’s awards ceremony included:  Maryland Attorney General Brian E. Frosh; Baltimore City State’s Attorney Marilyn Mosby; ATF Special Agent in Charge William McMullan; FBI Special Agent in Charge Kevin Perkins; DEA Special Agent in Charge Karl C. Colder; ICE Homeland Security Investigations Special Agent in Charge Andre Watson; Deputy U.S. Marshal Pat Monardo; Baltimore County Police Major Evan Cohen; Prince George’s County Police Deputy Chief Hector Velez; Annapolis Police Chief Michael A. Pristoop; Bowie Police Chief John Nesky; and Captain Renato Caldwell, Washington Metropolitan Police Department.

United States Attorney Rod J. Rosenstein commended all the honorees for their work on these violent crime investigations.  Mr. Rosenstein thanked the Assistant United States Attorneys who prosecuted the cases and nominated their agents for these awards.

Greenbelt, Maryland – LaRosa Bolton, age 54, of Laurel, Maryland pleaded guilty today to theft of government property in connection with a scheme to fraudulently receive reimbursement for travel expenses for medical care related to injuries sustained on the job.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General; and 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.

 According to her plea agreement, Bolton was a letter carrier for the U.S. Postal Service at the Laurel, Maryland post office.  Between 1993 and 1998, Bolton sustained three separate injuries at work, all of which qualified her for worker’s compensation.  She began receiving compensation benefits in 2001.  Bolton was also eligible to receive reimbursement for travel expenses to and from medical appointments related to her injuries.

From January 2008 to July 2014, Bolton submitted vouchers to the Office of Worker’s Compensation Programs (OWCP) for the reimbursement of travel expenses for approximately 1,170 trips for medical care. Approximately 89 of those trips were actually for medical care received.  However, Bolton admitted that she did not receive medical care for the remaining 1,081 trips.

 To obtain reimbursement from OWCP, Bolton periodically prepared and mailed numerous forms falsely certifying that she had driven round trip from her home to medical facilities for treatment.  As a result, Bolton was paid between $70,000 and $120,000 for the reimbursement of travel expenses to which she was not entitled.

Bolton faces a maximum sentence of 10 years in prison.  U.S. District Judge Peter J. Messitte has scheduled sentencing for January 20, 2016 at 9:30 a.m.

United States Attorney Rod J. Rosenstein commended the U.S. Postal Service -OIG and U.S. Department of Labor - OIG, Office of Labor Racketeering and Fraud Investigations for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Hollis Raphael Weisman, who is prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Norman D. West, age 48, of Hyattsville, Maryland and Washington, D.C. today to two years in prison, followed by three years of supervised release, for conspiracy to commit theft of public money in connection with a fraudulent tax refund scheme. Judge Chasanow also entered an order requiring West to pay restitution of $408,221.30, the total amount of the tax loss.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Jeffrey S. DeWitt, Chief Financial Officer for the District of Columbia; Gilbert Garza, Chief of the D.C. Office of Tax and Revenue, Criminal Investigation Division; and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.

“Conspiring to defraud the government through filing false tax returns is unlawful.” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office.  “Bringing individuals to justice, such as Norman West, who intentionally engage in defrauding the IRS and taxpayers is a priority for IRS-CI.”

John L. Phillips, Assistant Inspector General for Investigations, Treasury Office of Inspector General, said, “The sentencing today demonstrates the continued efforts of the Treasury Office of Inspector General and our law enforcement partners to protect our nation and the hard working taxpayers money from offenders who commit fraud against the Treasury Department by fraudulently obtaining improper payments.”

According to West’s plea agreement, West is a musician and operated a putative tax preparation business known as “Flash Cash Financial,” or “Flash Cash,” which had a purported business address in Baltimore, Maryland. 

From August 2011 through January 2013, West and his co-conspirators obtained the personal information of “recruits” which West used to file false tax returns in order to generate a fraudulent refund.  West relied largely upon word of mouth to market his scheme.  West paid a co-conspirator a $100 referral fee per recruit. West and his co-conspirators obtained the identities of at least 197 individuals. West used the personal information of those individuals and made up the rest of the tax returns in order to generate refunds. West listed false wages, falsely claimed educational tax credits, and falsely claimed earned income tax credit.

West filed 197 federal tax returns that claimed $391,553 in fraudulent tax refunds, all of which was issued by the IRS.  In addition, West filed 28 fraudulent returns with the District of Columbia, which generated an additional $16,668.30 in fraudulent refunds.  All of the refunds were deposited in bank accounts opened by West in the name of Flash Cash.  West paid the recruits a small portion of the fraudulent refunds, usually about $500, and kept the rest for himself and his co-conspirators.

United States Attorney Rod J. Rosenstein commended the IRS-CI, the Washington, D.C. Office of the Chief Financial Officer and Office of Tax and Revenue, Criminal Investigation Division, and the Department of Treasury Office of Inspector General, for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kathleen O. Gavin, who prosecuted the case.

Greenbelt, Maryland – Terrence Mullen, age 41, of Boonton, New Jersey, pleaded guilty today to interstate transportation of property taken by fraud.

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

 According to his plea agreement, in September and October 2013, using a fraudulent internet domain name, Mullen emailed a company that specialized in producing and selling scientific devices about the purchase of two mass spectrometers and related equipment for over $400,000.  In order to obtain credit to make the purchase, in September 2013 Mullen submitted false information to the company on the credit application, including a false name, references and banking information.

In order to conceal the fraud scheme from New Jersey law enforcement, in October 2013, Mullen rented business space in Beltsville, Maryland and directed the company to deliver the mass spectrometers and equipment to the Beltsville location.  After the company shipped the items from Texas to Beltsville, Mullen sold the spectrometers to a company located in New Jersey.  Mullen used the sales proceeds to pay for personal expenses and a family member’s educational expenses.

Mullen has agreed to the entry of an order to forfeit and pay restitution of at least $414,682.89, the amount of the loss to the company.

Mullen faces a maximum sentence of 10 years in prison.   U.S. District Judge Paul W. Grimm has scheduled sentencing for February 17, 2016 at 9:00 a.m.

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorneys Thomas P. Windom and Michael T. Packard, who are prosecuting the case.

Greenbelt, Maryland - A federal jury has convicted Carla Carter, former deputy director of the Prince George’s County Housing Authority, and her husband, Raymond Carter, both age 54, of Mitchellville, Maryland, on charges related to a scheme to fraudulently receive approximately $112,000 in rental subsidy payments from the Housing Authority.

The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.

According to the evidence presented at the eight-day trial, Carla Carter was deputy director of the Prince George’s County Housing Authority (Housing Authority) from July 2007 through February 2012.  From June through October 2008, she also served as the acting director of the Prince George’s County Department of Housing and Community Development (DHCD), the parent agency of the Housing Authority.  Carla and Raymond Carter owned properties in Prince George’s County that were registered in HUD’s Section 8 Housing Choice Voucher Program (HCV Program).  The HCV Program is a federal program assisting low-income families, the elderly and the disabled to afford decent, safe and sanitary housing in the private rental market. The program is administered by the Housing Authority.

The evidence showed that from October 2007 through December 2012, the Carters conspired to defraud HUD and the Housing Authority to obtain rental subsidy payments for the properties they owned in Bowie and Capitol Heights.  During most of this period, Carla Carter was an employee with the Housing Authority who formulated policy and influenced decisions with respect to Housing Authority programs. To disguise the scheme and their ownership of the properties, the Carters identified a co-conspirator as the owner and landlord of the properties, and submitted numerous false documents to the Housing Authority.  In 2008 or 2009, Carla Carter asked an employee of the Housing Authority and the DHCD to change the listed owner of one of the properties in DHCD’s computer records from “Carla Carter” to “Raymond Carter,” and to change the listed landlord of that property from “Carla Carter” to the name of the co-conspirator. The Housing Authority made rental subsidy payments to the co-conspirator. According to trial testimony, all of the rental subsidies were funneled into three bank accounts controlled by the Carters.

According to the trial testimony, on May 5, 2008, and April 18, 2011, Carla Carter submitted a false financial disclosure statement to the Prince George’s County Board of Ethics that failed to disclose her ownership of the properties.   The Housing Authority placed Carla Carter on administrative leave and she submitted her letter of resignation on March 29, 2012, effective April 6, 2012.

Carla and Raymond Carter each face a maximum sentence of 20 years in prison for conspiring to commit wire fraud, 13 counts of wire fraud, and conspiring to commit money laundering. U.S. District Judge George J. Hazel has scheduled sentencing for Carla and Raymond Carter on January 11, 2016, at 9:30 a.m. and 10:30 a.m., respectively. The Carters are released under the supervision of U.S. Pretrial Services.

United States Attorney Rod J. Rosenstein praised the HUD-OIG and FBI for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Bryan E. Foreman and Nicolas Mitchell, who are prosecuting the case.

Baltimore, Maryland – Darius Raymond Stewart, age 21, of Baltimore, has been charged in a federal criminal complaint with malicious destruction of a commercial building, arising from the arson of a liquor store on April 27, 2015, during the riots following the death of Freddie Gray. One victim was trapped and seriously injured inside the store, and another escaped with minor injuries. The criminal complaint was filed on September 24, 2015 and unsealed today. Stewart was arrested on September 28, on unrelated state charges.  Stewart will make his initial appearance on the federal charges on Friday, October 2, 2015 at 11:00 a.m. in U.S. District Court in Baltimore, Courtroom 7B, before U.S. Magistrate Judge Stephanie A. Gallagher.

“There are recordings and other evidence of people looting businesses, starting fires and attacking innocent victims, and it is our duty to prosecute the perpetrators,” said U.S. Attorney Rod J. Rosenstein. “Citizens need to know that the rule of law will be upheld, and criminals who destroy property and jeopardize lives will be held accountable.”

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

“ATF has continuously stated that we would focus our investigative efforts to ensure that the individuals who set these fires across our city would be caught,” said ATF Special Agent in Charge William P. McMullan. “Today's arrest is another example of ATF's commitment to holding people responsible for their violent actions.”

According to the affidavit filed in support of the criminal complaint, on April 27, 2015, at approximately 8:33 p.m. Baltimore City Fire Department dispatch received a call reporting a fire at a liquor store located in the 2200 block of West North Avenue.  The caller reported that looters had set the building on fire and there was at least one person inside.  The Baltimore City Fire Department went to the store and discovered a small trash can on fire inside the store. Approximately 20 minutes later, the fire department was again sent to the store for another fire.  They again extinguished the fire and discovered an unconscious victim in the basement of the building.  The victim suffered smoke inhalation and carbon monoxide poisoning and was hospitalized for one week. The damage caused by the fire was extensive and it is estimated that it will cost approximately $350,000 to repair and restore the building.

The store’s owners reported that on the day of the incident a group of approximately 20 to 30 people entered the store and began banging on the bulletproof plexiglass window with pipes and crow bars before being chased off by a member of the community.  A second wave of dozens of people then entered the business and began ransacking and looting the store.  Baltimore CitiWatch surveillance footage captured individuals repeatedly assaulting and robbing one of the owners as he stood outside the store while it was being looted.  He was eventually rescued by police, but suffered a head injury.  The second owner hid inside the building until he became aware of a fire inside the building.  He was able to escape through a back door to the roof.  He jumped down off the roof, injuring his ankle, and escaped in his vehicle.

A surveillance camera recorded a man wearing camouflage pants, a dark jacket with an orange lining, and a skull cap, intentionally setting multiple fires within the store. Fire investigators discovered multiple areas of origin within the store, consistent with the locations observed on the surveillance footage.

ATF issued a reward poster with a photo of the man seen in the store surveillance video.  According to the affidavit, a confidential source contacted ATF and identified the man in the photo as Darius Stewart.  Other witnesses also identified Stewart from CitiWatch surveillance camera footage as well as from the store’s surveillance video.

Stewart faces a mandatory minimum sentence of five years and a maximum of 20 years in prison for malicious destruction of a commercial building by fire.  Stewart remains detained.

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

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

Baltimore, Maryland – Peter Aleksandrov Magnis, age 27, of Hydes, Maryland, pleaded guilty today to a robbery conspiracy in connection with the robbery of a jewelry store, including a carjacking and kidnapping.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.        

According to his plea agreement, Magnis was part of a conspiracy to rob a Pikesville jewelry store.  Specifically, in the fall of 2012, a co-conspirator devised a plan to commit an armed robbery of a jewelry store, known to be owned and operated by members of the Russian community of Northwest Baltimore.  The co-conspirator recruited 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 Magnis’ 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.  Early in the morning on January 16, 2013, as the employee was driving from Zilberman’s home, four co-conspirators used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, the 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. According to the plea agreement, once at the location, Magnis’ 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, while other co-conspirators stayed with the employee.  Additional co-conspirators were stationed near the jewelry store to act as “look-outs.”  The two co-conspirators entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000.  The 2 co-conspirators drove back to the remote location, where the employee was placed back into the trunk of his car and driven to another location, where he was left.  The employee was able to kick his way out of the trunk through the back seat of his car.

On January 18, 2013, 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.

On November 19, 2014, during the search of Magnis’ residence and the adjacent property, a bag of guns was found buried on the adjacent property within 20 feet of Magnis’ property.  Inside the bag were six firearms (all rifles and shotguns), each individually wrapped in clear plastic wrap.  Two of the firearms were sawed off shotguns, and one of these had an obliterated serial number.  Both of those guns were stolen during an armed home invasion of residence in Reisterstown, Maryland, on July 22, 2012.

In addition, in January and May 2013 Magnis purchased three handguns.  One of those handguns was seized during a car stop and search of a co-conspirator in September 2013.  The co-conspirator was prohibited from purchasing or possessing firearms due to a previous felony conviction.

Magnis faces a maximum sentence of 20 years in prison for the robbery conspiracy. U.S. District Judge J. Frederick Motz has scheduled sentencing for December 22, 2015, at 10:30 a.m.

Grigoriy (Greg) Zilberman, age 24, of Owings Mills, Maryland, previously pleaded guilty to his role in the robbery conspiracy and is scheduled to be sentenced on December 18, 2015.

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

Baltimore, Maryland – Timothy L. Ritchie, age 44, of Annapolis, Maryland, pleaded guilty today to making false statements arising from a real estate closing.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; and Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General.

Ritchie owned and operated Richland Homes, Inc., and was in the business of building, purchasing and selling homes.

According to his plea agreement, on July 7, 2005, Ritchie attended a residential closing for his purchase of three lots located at 24058 St. Michael’s Road in St. Michael’s, Maryland. John Davis, a real estate agent, conducted the closing, and listed Ritchie on the HUD statement as the buyer/ borrower.  The HUD statement falsely stated that Ritchie provided $1,153,937.23 in cash at the closing.  In fact, Ritchie did not provide any funds to Davis at the closing. As a result of the false statement, Ritchie fraudulently obtained approximately $2,445,102 from a mortgage lender by wire transfer to fund the settlement.

Ritchie faces a maximum sentence of five years in prison.  U.S. District Judge Richard D. Bennett scheduled his sentencing for January 14, 2016, at 10:00 a.m.

In a related case, John L. Davis, age 55, of Chestertown, Maryland, previously pleaded guilty to conspiracy to commit mail fraud and wire fraud arising from his participation in the scheme, and awaits sentencing. Davis admitted that the loss arising from his participation in the scheme is between $400,000 and $1 million.

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

United States Attorney Rod J. Rosenstein commended the FHFA - OIG and FDIC – OIG for their work in the investigation.  Mr. Rosenstein thanked Special Assistant U.S. Attorney Kevin V. DiGregory and Assistant U.S. Attorney Kathleen O. Gavin, who are prosecuting the case.

Greenbelt, Maryland – U.S. Magistrate Judge Thomas M. DiGirolamo convicted Earl Howard Teeter, Jr., age 73, of Hyattsville, Maryland today of operating a vehicle without due care, after Teeter pleaded guilty to failing to stop after driving a vehicle involved in an accident resulting in death.  Both charges were in connection with a February 1, 2015 fatal hit and run crash that took place on the Baltimore Washington Parkway.

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

“If not for the exceptional detective work by the U.S. Park Police, this crime would have gone unsolved,” said U.S. Attorney Rod J. Rosenstein.

 According to evidence presented at today’s trial, on February 1, 2015 at approximately 9:00 p.m., Rick Warrick, age 38, of Washington, D.C. was driving northbound on the Baltimore Washington Parkway when his driver’s side front tire became flat.   Mr. Warrick pulled onto the highway shoulder and activated his hazard lights.  His fiancé and a minor male, who were passengers in the car, held flashlights while Mr. Warrick changed the tire.

While changing the tire, a vehicle struck Mr. Warrick, and seriously injured his fiancé.  The minor male was knocked to the ground, but was not injured.  The vehicle failed to stop.  Mr. Warrick was transported to a hospital and pronounced dead.  His fiancé was transported to another hospital and treated for her injuries.

Further investigation of vehicle fragments and parts from the crash led U.S. Park Police detectives to Teeter, who owned a 2004 Toyota Sienna van.  Detectives met with Teeter.  Teeter said he was driving northbound on the Parkway on February 1, 2015 when he hit something as he changed lanes.  Teeter also said he had seen a vehicle on the side of the road but was unsure what he had struck.  According to Teeter, he had taken his vehicle to a body shop for repair after being involved in a collision, and notified his insurance company that he had struck something on the night of February 1, 2015. The vehicle was seized from the repair shop.

Teeter faces a maximum sentence of six months in prison for each of the two offenses. Magistrate Judge DiGirolamo has scheduled sentencing for January 20, 2016.

United States Attorney Rod J. Rosenstein commended the Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis R. Weisman, who is prosecuting the case.

Baltimore, Maryland – Robert John Wiseman, Jr., age 55, of Essex, Maryland, pleaded guilty today to distribution of child pornography.

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

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

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

As part of his plea agreement, Wiseman will be required to forfeit the computers, hard drives and other digital media seized during the search.  In addition, Wiseman must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

Wiseman faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison, followed by up to lifetime of supervised release.  Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for January 6, 2016, at 10:00 a.m.

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

United States Attorney Rod J. Rosenstein commended the Baltimore County Police Department, FBI and HSI Baltimore for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who are prosecuting the case.

Greenbelt, Maryland – A federal grand jury indicted the following defendants on charges arising from a scheme to defraud elderly victims of millions of dollars:

Gbenga Benson Ogundele, a/k/a “Benson Ogundele,” age 57, of Laurel, Maryland;

Mukhtar Danjuma Haruna, a/k/a “Mukhtar Haruna Danjuma” and “Mukky,” of Lagos, Nigeria;

Victor Oyewumi Oloyede, age 41, of Laurel;

Olusegun Charles Ogunseye, a/k/a “Charles O. Ogunseye,” age 58, of Laurel;

Babtunde Emmanuel Popoola, a/k/a “Emmanuel Popoola” and “Tunde Popoola, age 40, of   Bowie, Maryland;

Adeyinka Olubunmi Awolaja, Jr., a/k/a “Yinka O. Awolaja, Jr.,” age 33, formerly of New Carrolltown, Maryland;

Mojisola Tinuola Popoola, a/k/a “Mojisola Oluwakemi Tin Popoola” and “Moji T. Popoola,” age 41, of Laurel;

Olusola Olla, age 48, of Brown Summit, North Carolina; and

Olufemi Wilfred Williams, a/k/a “Wilfred Olufemi Williams” and “Femi Williams,” age 26, of Owings Mills, Maryland.

The indictment was returned on May 18, 2015 and partially unsealed today upon the arrests of eight of the defendants. Mukhtar Haruna has not been arrested and is believed to be overseas.  Olusola Olla had his initial appearance in federal court in North Carolina this morning, and was ordered detained and to be transferred to Maryland. The initial appearances of the remaining defendants who were arrested are scheduled for this afternoon in federal court in Greenbelt and Illinois.

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

According to the 10 count indictment, from January 2011 to May 18, 2015, members of the conspiracy searched online dating websites to initiate romantic relationships with elderly male and female individuals.  They phoned, emailed, texted and used internet chat messenger services to form romantic relationships with the victims, who lived in Maryland and around the country.

The indictment alleges that members of the conspiracy used a number of false stories and promises to convince the victims to provide money to the conspirators, including fake hospital bills, plane trips to visit the victims, problems with overseas businesses and foreign taxes.  The conspirators opened bank accounts in order to receive millions of dollars from the victims.

The indictment alleges numerous deposits from several victims into bank accounts controlled by the defendants, or checks received from the victims, ranging in individual amounts from $1,720 to $30,000.

All of the defendants face a maximum sentence of 20 years in prison for conspiring to commit wire fraud, and for conspiring to commit money laundering.

Additionally, all of the defendants except for Mojisola Popoola face a mandatory minimum sentence of two years in prison to be served consecutive to any other sentence for aggravated identity theft, arising from the alleged use of a victim’s name, bank account number or driver’s license in furtherance of the fraud scheme.

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

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

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

United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorneys Thomas P. Windom and Leah Jo Bressack, who are prosecuting the case.

Baltimore, Maryland – Dilip Patel, age 49, of Wilmington, Delaware pleaded guilty today to wire fraud.

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); Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Assistant Administrator for Field Operations Tom Crone, of the Alcohol and Tobacco Tax and Trade Bureau.

 Patel owned and operated a retail liquor store in Cecil County known as Chesapeake Wine and Spirits.

According to his plea agreement, from January 2011 to June 2012, a number of smugglers from New York City ordered bulk liquor from the store by phone.  The smugglers then drove to the store, paid cash for the bulk liquor, loaded the liquor into their vehicles and drove back to New York City, evading the payment of excise taxes by failing to file reports with the state of New York describing the transportation of the liquor into New York.

Patel has agreed to the entry of an order to pay restitution of $673,992 to the state of New York - the amount of excise tax loss, and forfeit $11,000 seized from a bank account that was the liquor store’s operating account.

Patel faces a maximum sentence of 20 years in prison.  U.S. District Judge Marvin J. Garbis has scheduled sentencing for January 7, 2016.

United States Attorney Rod J. Rosenstein commended the HSI Baltimore, IRS - Criminal Investigation and the Alcohol and Tobacco Tax and Trade Bureau for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Richard C. Kay, who is prosecuting the case.

Baltimore, Maryland – Tiffany Saunders Carraway, age 34, of Baltimore, pleaded guilty today to theft of government property arising from a scheme to falsify her income and living arrangements to illegally obtain food stamp and Medicaid benefits.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division; and Inspector General William E. Johnson, Jr. of the Maryland Department of Human Resources, Office of Inspector General.

The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to purchase food.  SNAP paid monthly benefits to individuals found to be eligible based in part on the beneficiary’s income and living arrangements.

Medicaid is a federal-state health insurance program for low-income and needy people. Medicaid paid benefits to individuals found to be eligible based in part on the beneficiary’s income and living arrangements.

According to her plea agreement, Carraway worked at SSA.  She began receiving Medicaid benefits for her four children in 2006.  In 2007, Carraway married and began living together with her spouse who was also employed by SSA.  Carraway did not report this change in living arrangements or household income to Medicaid.  In 2009, Carraway and her husband bought a $170,000 home in Baltimore.

In 2008, Carraway applied for SNAP benefits, underreporting her own income and failing to disclose her marriage and her husband’s income.  She also provided SNAP with documents purporting to show that she was paying rent, rather than living in the home that she and her husband purchased.

Between 2008 and 2011, Carraway received $26,885.31 in SNAP benefits; and between 2008 and 2013, she received approximately $68,482.60 in Medicaid benefits, to which she would not have been entitled if her true income and living arrangements had been disclosed.

Carraway faces a maximum sentence of 10 years in prison for theft of government property and a $250,000 fine.  U.S. District Judge James K. Bredar scheduled sentencing for December 2, 2015, at 10:00 a.m.

United States Attorney Rod J. Rosenstein praised the SSA- OIG and DHR-OIG for their work in the investigation.  Mr. Rosenstein thanked Special Assistant United States Attorney Lauren E. Perry, on detail from the Social Security Administration, who is prosecuting the case.

 

Greenbelt, Maryland – U.S. District Judge George J. Hazel, sentenced Steven Patrick Bruce, age 32, of Oxon Hill, Maryland, today to seven years in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin, being a felon in possession of a firearm and conspiracy to obstruct justice.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and St. Mary’s County Sheriff Tim Cameron.

According to Bruce’s plea agreement, from July 2013 until approximately July 2014, Bruce conspired with others to distribute heroin to drug customers in and around Prince George’s and Saint Mary’s Counties, Maryland.  Bruce obtained heroin from one or more suppliers, and used his residence on Lindsay Road in Oxon Hill, as a base of operations for storing and distributing narcotics.

In late July of 2014, the DEA conducted a controlled purchase of heroin from Bruce utilizing a confidential source.  During a recorded meeting at Bruce’s residence, Bruce distributed a quantity of heroin to the confidential source for $100.  Based on his involved in the conspiracy, Bruce admitted that he distributed between 100 grams and 400 grams of heroin.

On July 31, 2014, DEA and other law enforcement officers and agents executed a search warrant at Bruce’s residence.  During the execution of that search warrant, law enforcement officers recovered the following items, among others: an Israeli Military Industry Uzi 9 millimeter submachine gun; 346 rounds of 9 millimeter ammunition; 32 rounds of .45 caliber ammunition; and three high-capacity magazines.  Law enforcement also recovered drug paraphernalia and packaging, a bottle of Inositol powder (used by narcotics distributors as a cutting agent), and a small zip-lock bag containing heroin.

On July 31, 2014, Bruce was charged with being a felon in possession of a firearm, and possession of controlled substances with intent to distribute, and was subsequently detained by order of the court.

On August 2, 2014, while Bruce was incarcerated, he called a friend and asked a relative of that person to falsely tell Bruce’s attorney and law enforcement that the firearms, ammunition and narcotics found during the search warrant executed at Bruce’s residence belonged to the friend’s relative, not Bruce, in an attempt to obstruct the government’s investigation.

United States Attorney Rod J. Rosenstein commended the DEA and St. Mary’s County Sheriff’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Daniel C. Gardner, who prosecuted the case.

Greenbelt, Maryland – Richard Spivey, age 52, of Waldorf, Maryland, pleaded guilty today to distribution of child pornography. After Spivey’s guilty plea, U.S. District Judge George J. Hazel ordered that he be immediately detained and Spivey was taken into custody.

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

According to Spivey’s plea agreement, between January 29 and 30, 2014, Spivey used a file sharing program to distribute over 2,000 files depicting children engaged in sexually explicit conduct.  A search warrant was executed at Spivey’s residence on June 18, 2014, and law enforcement seized numerous electronic devices, including a desktop computer, a laptop computer and two external hard drives.  A forensic review of the electronic devices found thousands of image files and hundreds of movie files containing child pornography.  Some of the files portrayed sadistic and masochistic conduct and other depictions of violence, as well as images of infants and toddlers.                                           

In addition, law enforcement found videos on Spivey’s electronic devices that he produced, depicting a prepubescent female in different stages of undress.  Spivey admitted that he surreptitiously recorded the child while she was undressing, using a hidden camera. These videos constitute child pornography. Finally, Spivey also admitted surreptitiously producing videos of an adult female, while that person was in the bathroom in various stages of undress.

As part of his plea agreement, Spivey 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).

Spivey and the government have agreed that if the Court accepts the plea agreement Spivey will be sentenced to between 150 and 240 months in prison, followed by a lifetime of supervised release.  U.S. District Judge George J. Hazel has scheduled sentencing for January 25, 2016 at 2:00 p.m.

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

United States Attorney Rod J. Rosenstein commended the FBI, for its work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Nicolas A. Mitchell and Kristi A. O’Malley, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced former correctional officer Travis Paylor, age 27, of Baltimore, today to 76 months in prison, followed by three years of supervised release, for participating in a racketeering conspiracy and drug conspiracy, involving the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Paylor was convicted on February 5, 2015, after a more than two month long jury trial.

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; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS); Interim Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.

“Travis Paylor received the longest sentence of any correctional officer in the case, which is appropriate because he continued to engage in illegal activity even after he was convicted in this case,” said U.S. Attorney Rod J. Rosenstein.

“We commend our task force partners for yet another successful prosecution in the wide-ranging corruption cases that plagued the now closed Baltimore City Detention Center.  This sentence once again emphasizes we will not tolerate corruption within our correctional system and those found to be engaged in such criminal activity will be prosecuted to the fullest extent of the law,” said Secretary Stephen T. Moyer.

According to trial testimony and court documents, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.  Tavon White and other BGF leaders and members incarcerated at BCDC were involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers (COs), who received payments, gifts, or a share of the profits.

According to evidence presented at trial, Paylor was a correctional officer (CO) at the BCDC who smuggled contraband into the jail for distribution by BGF inmates. In return, Paylor and other COs received payments, gifts or a share of the profits.

According to trial evidence and other court documents, Paylor was an important source of supply of Percocet pills for BGF leader Tavon White, who bought Percocet pills from Paylor once or twice a week.  Paylor worked with other correctional officers to sell contraband to White, as well as to other inmates.  Paylor charged various rates, depending on the amount of items purchased.  For example, Paylor charged $300 just to bring in 50 Percocet pills provided by the inmate’s outside source of supply.  From 2009 through 2010, when Paylor was moved to the Baltimore Central Booking and Intake Center (BCBIC), Tavon White paid Paylor approximately $10,000 for drugs.  Paylor continued selling contraband to inmates after he was moved to BCBIC.

This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators.  Investigations are continuing.

Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers.  Thirty-five defendants pleaded guilty and five defendants were convicted after trial.  Three defendants were acquitted and one defendant died.

To date, 23 of the correctional officers, including Paylor, have been sentenced to up to 76 months in prison.

BGF leader Tavon White, age 37, pleaded guilty to his participation in the racketeering conspiracy and testified at the trial and was sentenced to 12 years in prison.  Inmates and leaders in the BGF gang, Russell Carrington, a/k/ Rutt, age 34, and Joseph Young, a/k/a Monster, age 33, both of Baltimore, were convicted after trial and sentenced to 210 months in prison and 15 years in prison, respectively.  Former correctional officer Ashley Newton, age 31, of Baltimore, was sentenced to 51 months in prison, after being convicted after trial of participating in racketeering, drug, and money laundering conspiracies, involving the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).

U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: the Maryland State Police, Prince George’s County Police Department, United States Marshals Office, DEA, Washington-Baltimore High Intensity Drug Trafficking Area and Maryland Coordination and Analysis Center.

United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – A federal grand jury today indicted Lawrence Coleman, age 46, of Reisterstown, Maryland, on charges arising from a scheme to defraud a customer by submitting false invoices, overbilling more than $515,000.

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

According to the indictment, Coleman owned and operated Perfection Plus Auto Detailing, located in Reisterstown, Maryland.  Prior to starting his business, Coleman was an employee of Avis, a rental car company.  Beginning in 2007, Perfection Plus contracted with Avis to provide vehicle prepping services at Baltimore/Washington Thurgood Marshall Airport (“BWI”) in Hanover, Maryland.  These services were performed on new vehicles prior to being offered for rent (infleeting), as well as for vehicles that were being removed from service (defleeting). According to the indictment, after a rental vehicle underwent Perfection Plus’ infleeting or defleeting service at the BWI site, the service manager for Perfection Plus sent Coleman a vehicle worksheet that included a checklist of the work that was performed on each car.  Based upon the submitted worksheets, Coleman prepared invoices listing the identification numbers of the cars serviced, and then sent those invoices to Avis, billing Avis approximately $14.75 per vehicle for the prep service.

The indictment alleges that from August 2007 through November 2010, Coleman submitted false invoices to Avis for prepping services that were not performed on thousands of rental vehicles purportedly serviced by Perfection Plus, sometimes submitting more than twenty invoices for the same vehicle.  To conceal the scheme, Coleman submitted new invoices that contained both the identification numbers of rental vehicles for which payment was legitimately due and those for which payment had already been made.  Coleman allegedly used his knowledge as a former Avis employee to avoid closer scrutiny of his billing practices by submitting individual invoices that were less than $1,000, a threshold amount not requiring a second level of approval under Avis’ internal accounting procedures.        

The indictment alleges that Coleman overbilled Avis approximately $515,149, and the indictment seeks forfeiture in that amount.  

Coleman faces a sentence of 20 years in prison for wire fraud.  Coleman’s initial appearance 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 commended the FBI for its work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Martin J. Clarke, who is prosecuting the case.

Baltimore, Maryland – Grigoriy (Greg) Zilberman, age 24, of Owings Mills, pleaded guilty today to a robbery conspiracy in connection with the robbery of a jewelry store, including a home invasion robbery, and a carjacking and kidnapping.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.        

According to his plea agreement, Zilberman was part of a conspiracy to rob a Pikesville jewelry store.  In the course of the conspiracy, Zilberman admitted that he also participated in a home invasion robbery in order to obtain firearms, which were subsequently used in the jewelry store robbery.

Specifically, on July 22, 2012, 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, Zilberman and his 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.  One of the conspirators was armed with a handgun when they entered the residence.  Zilberman and two other conspirators 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 robbers beat the resident when he tried to resist and the resident was bound 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.

According to the plea agreement, in the fall of 2012, a co-conspirator devised a plan to commit an armed robbery of a jewelry store, known to be owned and operated by members of the Russian community of Northwest Baltimore.  The co-conspirator recruited 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 his plea agreement, on January 15, Zilberman enticed the employee to visit his home, aware that after the employee left Zilberman’s home, the co-conspirators planned to abduct him at gunpoint to obtain keys and other information from him in order to rob the jewelry store.  Early in the morning on January 16, 2013, as the employee was driving from Zilberman’s home, four co-conspirators used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, the 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.  According to the plea agreement, once at the location, Zilberman’s 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, while other co-conspirators stayed with the employee.  Additional co-conspirators were stationed near the jewelry store to act as “look-outs.”  The two co-conspirators entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000.

On the evening of January 16, 2013, the employee returned to Zilberman’s home and told him of his abduction and the robbery, including the fact that he and his family were threatened if he reported the incident to the police.

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.  Zilberman received $5,000 cash for his role in the crimes.

Zilberman faces a maximum sentence of 20 years in prison for the robbery conspiracy. U.S. District Judge J. Frederick Motz has scheduled sentencing for December 18, 2015.

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

Baltimore, Maryland –Robert “Meech” Tucker, age 23, of Baltimore, pleaded guilty today to the federal crime of possession of a gun by a previously convicted felon.

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; Baltimore City State’s Attorney Marilyn Mosby; and Interim 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.

If the Court accepts the plea agreement, Tucker will be sentenced to 42 months in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for December 14, 2015 at 11:00 a.m.  Tucker remains detained.

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 is prosecuting the case.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Cecil Scott Wiggins, age 49, of Annapolis, Maryland, today to four years in prison, followed by three years of supervised release, 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 William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Annapolis Police Chief Michael A. Pristoop; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.

According to Wiggins’ plea agreement, on December 19, 2014, Annapolis Police Department (APD) officers were called to the1300 block of Tyler Avenue in Annapolis for reports of shots fired.  When officers arrived, the victim stated that her boyfriend, Cecil Scott Wiggins, fired a shot into her home.  At the time Wiggins fired the shot, the victim and her fourteen-year old son were attempting to prevent Wiggins from getting inside the home. The shot hit the ceiling of the kitchen, without going through the upstairs floor or causing any injuries.        

APD and the Anne Arundel County Police Department eventually located Wiggins at his mother’s home in Annapolis.  APD personnel spoke to Wiggins’ mother, who gave consent to search her residence, and signed a consent form.  In the basement where Wiggins resided, APD recovered a .22 caliber spent shell casing on the floor near the couch, and a silver/black .22 caliber revolver in the nearby laundry room.  The revolver had black tape and multicolored rubber bands around the handle, and was loaded with one round of .22 caliber ammunition that matched the type of shell casing found on the floor.

Wiggins was arrested and transported to APD headquarters.  Wiggins acknowledged he had a gun when he went to the victim’s home.  He claimed that he accidentally pulled the trigger when he stuck his arm through the open door and the door closed on his arm. 

Wiggins had previous felony convictions which prohibited him from possessing firearms or ammunition.

United States Attorney Rod J. Rosenstein commended the ATF, Annapolis and Anne Arundel County Police Departments and Anne Arundel County State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg and Special Assistant U.S. Attorney Shelly S. Glenn, who prosecuted the case.

Baltimore, Maryland – Jose Hector Laguerre, age 47, of Baltimore, pleaded guilty today to conspiring to commit robbery in connection with several robberies of patrons of the Maryland Live Casino.

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; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; and Anne Arundel County Police Chief Tim Altomare.

According to his plea agreement, on three occasions from November 1 to November 10, 2013, Laguerre and co-conspirator Willie Fleming used a firearm to rob eight patrons of the Maryland Live Casino located in Hanover, Maryland.  Fleming instigated the robberies in order to pay his gambling and marijuana trafficking debts.   Fleming obtained and maintained possession of the handgun used in the robberies, and committed an additional robbery with another co-conspirator of three casino patrons on October 27, 2013.

Video surveillance from the casino showed Laguerre and Fleming following patrons inside the casino, and then by car as they drove out of the casino garage.  The co-conspirators robbed the victims at gunpoint after the victims got out of their cars to enter their homes, or in one instance, as they rested in their car while parked in a shopping center lot on their way home.  The robbers stole a total of at least $26,000 in cash, a check and personal property such as jewelry, credit cards, cell phones, wallets, purses and clothing.

On November 14, 2013, Fleming was arrested for drug and gun offenses in Baltimore while he was in the vehicle used to commit the robberies.  A search warrant was executed on the car and law enforcement seized ski masks, a vest worn by Laguerre in a casino video, jewelry stolen from the victims and a receipt for valet parking at the casino dated the same day as one of the robberies.

Laguerre faces a maximum sentence of 20 years in prison.  U.S. District Judge Richard D. Bennett scheduled sentencing for January 5, 2016 at 3:00 p.m.

Willie Hernandez Fleming, age 37, of Baltimore, previously pleaded guilty to his role in the robberies and was sentenced to 137 months in prison.

United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police, and the Montgomery County, Prince George’s County and Anne Arundel County Police Departments for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, Jr., who is prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake, sentenced Nishon Rainner, age 31, of Woodlawn, Maryland, today to 100 months in prison, followed by three years of supervised release, for being a felon in possession of guns and ammunition.  Chief Judge Blake also sentenced Rainner to 18 months in prison, consecutive to the sentence on his gun conviction, for violation of his supervised release on a previous federal conviction.

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; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.

According to the evidence presented at Rainner’s three day trial and other court documents, on March 12, 2015, officers from the Baltimore County Police Department executed a search warrant at Rainner’s rented house in Woodlawn, as part of an investigation by the Baltimore County Regional Auto Theft Task Force into Rainner’s involvement in an organized automobile theft organization.

In the family room on the first floor of the house, police officers recovered a loaded 7.62 caliber AK-47 style semi-automatic rifle and an unloaded 12-gauge tactical shotgun stored together in a plastic bag leaning against the wall; the bag also contained other loose ammunition compatible with the AK-47.  Inside a small closet nearby, which housed the water heater, officers located a loaded .40 caliber handgun above the doorframe.  The handgun was located next to a sunglass case containing additional ammunition and a Washington, D.C. driver’s license with a picture of Rainner in the name “Gary Simon.”  All three firearms were operational and none were secured or locked in any way to prevent them from being fired.  Police also found a second Washington, D.C. license with a photograph of Rainner in the name of Rodney Nicolas.  Further investigation revealed a third false Washington, D.C. driver’s license with Rainner’s picture in the name of Brandon Rucker.  It was determined that the information on the false licenses matched that of individuals with those same names who lived in Florida and North Carolina.

During the execution of the search warrant at the Woodlawn house, police officers recovered three stolen cars and found the keys to the stolen cars hanging on a key rack in the main entry of the house.   

During the search, officers also found mail with Rainner’s name and the address of the house in Woodlawn, as well as Washington, D.C. traffic citations issued to Gary Simon and correspondence addressed to “Rodney Nicholas,” and over $14,000 in cash.  Finally, the police officers found a lease for the Woodlawn home, which was signed by Rainner, and a receipt for $10,600, for six-months’ rent, paid in cash.  Rainner, his girlfriend, and her children ages 5 and 9, were present in the house at the time of the execution of the warrant, and were listed as the only occupants of the townhome on the lease.

Rainner subsequently agreed to make a statement to the officers.  During interviews with police Rainner denied living at the Woodlawn residence. Rainner also told law enforcement that he did not know who owned the guns, nor how they had gotten into the house.

According to witness testimony, the firearms were stolen from their rightful owners.  Bank records for Rainner indicated that on the dates two of the guns were stolen he was in the area where the thefts occurred.  The third stolen weapon had been stored in the basement of a home where Rainner had previously lived and had stored items in the basement, as well.

Court documents show that Rainner has 16 previous convictions, including the illegal possession of firearms, stolen cars, false identifications, and false statements.

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Special Assistant United States Attorney David P. Kehoe and Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.

Baltimore, Maryland – Larry Lowry, age 61, of Orchard Beach, Maryland, pleaded guilty today to conspiracy and bribery in connection with a scheme in which commercial haulers paid Department of Public Works (DPW) employees cash in return for allowing the haulers to deposit trash at the Quarantine Road Landfill (Landfill) without paying the required disposal fees.                                       

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

The DPW’s Bureau of Solid Waste is responsible for managing Baltimore City’s waste management services, including overseeing citizen drop-off centers, such as the Northwest Transfer Station (NWTS) and the Landfill.  Baltimore City’s waste management system generates revenue for the City by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities.  The City contracts with private salvage companies to purchase and remove scrap metal from its trash collection facilities. DPW employees at the Landfill and NWTS are required to place the recyclable scrap metal in separate bins provided by the salvage companies.  The salvage companies regularly pick up the scrap metal and, based on predetermined prices per ton, the salvage companies pay the City for the value of the scrap metal.         

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 and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located farther within the Landfill.  Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill.

DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system.  To activate the system and record a particular transaction, DPW employees must enter the tag number of the truck and a corresponding billing code.  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 his plea agreement, beginning in 1988, Lowry was in the business of collecting and hauling trash to the Landfill when he learned from a friend that he could avoid paying the disposal fee if he paid a cash bribe to the scale house operators. The friend introduced Lowry to William Nemec and others to whom Lowry paid $100 per trip in lieu of the usual dumping fee.  This continued for approximately two years until Lowry stopped using the Landfill.  In 2010, Lowry approached Nemec and told him that he wanted to start using the Landfill again for free.  Thereafter Lowry paid a $100 cash bribe, usually to Nemec, but sometimes to others.  Paying the $100 bribe for each trip he made to the Landfill saved Lowry thousands of dollars in fees each month.  When Lowry first started paying the bibes he would hand the money to the scale operator through the outbound window at the scale house.  Later, he usually met Nemec at an off-site location where he would pay a week’s worth of bribes or more.  Lowry always paid the bribes in cash.  While he was paying the bribes Lowry received phony receipts from the scale house operators at the outbound window.  From July 1, 2014 to May 1, 2015 alone, Williams paid more than $20,000 in bribe payments in lieu of paying the required waste disposal fees, which totaled approximately $60,000.

As part of his plea agreement, Lowry has agreed to forfeit and pay restitution of $350,000.

Lowry faces a maximum sentence of five years in prison for the conspiracy and 10 years in prison for bribery. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Williams on January 8, 2016 at 10:00 a.m.

Former DPW employees Tamara Oliver Washington, age 55, and William Charles Nemec, Sr., age 55, both of Baltimore; and commercial haulers Mustafa Sharif, age 63, of Baltimore, and Adam Williams, Jr., age 52, of Randallstown, have pleaded guilty to their participation in the bribery scheme. Nemec and another DPW employee, Michael Theodore Bennett, age 46, also of Baltimore, have pleaded guilty to a related “junking” scheme. Washington is scheduled to be sentenced on October 20, 2015, Williams on October 21, 2015, Sharif on November 6, 2015, Nemec on November 17, 2015, and Bennett on December 21, 2015.  Washington and Nemec have each agreed to the entry of an order to pay $6 million in restitution.  Sharif has agreed to forfeit and pay restitution of $500,000 and Williams has agreed to forfeit and pay restitution of $900,000. As part of his plea agreement, Bennett agreed to the entry of an order to pay restitution of $526,273.

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, who is prosecuting the case.

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Fitzgerald Stoney, Jr., age 42, of Glenarden, Maryland today to 12 years in prison followed by five years of supervised release for conspiring to possess with the intent to distribute one kilogram or more of phencyclidine (PCP) and two counts of possession with intent to distribute PCP.

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; Chief Gary Gardner of the Howard County Police Department; and Chief James W. Johnson of the Baltimore County Police Department. 

According to his plea agreement, detectives investigating the distribution of PCP in Howard County intercepted phone calls and text messages in 2013 which identified Stoney as trafficking in PCP.  On November 7, 2013 law enforcement executed a search warrant at the home of a co-conspirator and seized 53 grams of PCP attributable to Stoney.

On December 1, 2013, Baltimore County Police arrested Stoney and seized 19 grams of PCP from him, which were intended for resale. On December 5th, Howard County Police arrested Stoney and one of his co-defendants, Soboyejo Sofidiya, and seized 178 grams of PCP from them which were intended for resale.  Stoney and Sofidiya had been travelling back to Baltimore from New York where they had purchased PCP for resale.

On December 19, 2013, law enforcement executed a search warrant at the home of another co-conspirator and seized 315 grams of PCP attributable to Stoney.

To date, Soboyejo Sofidiya, age 33, of Laurel, Maryland and three other co-defendants have pleaded guilty to their participation in the drug conspiracy, and were sentenced to a period ranging from time served to 60 months.

United States Attorney Rod J. Rosenstein praised ATF and the Howard County and Baltimore County Police Departments for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Leo J. Wise and Christopher Romano, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Anand Venkatraman, age 41, of Clarksburg, Maryland today to 15 months in prison, followed by three years of supervised release, for installing code that intentionally caused damage to a computer.  Judge Chasanow also entered an order requiring Venkatraman to pay restitution of $157,300.

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

According to his plea agreement, from September 17, 2012 through January 29, 2014, Venkatraman worked as a contractor and employee of a privately held staffing company serving a variety of industries, based in Hanover, Maryland.  Venkatraman held the position of Senior Developer, and was skilled in computer code, server and database construction and maintenance, and website design and architecture.

During the course of his employment with the company, Venkatraman was provided administrator credentials and passwords, and had access to and control over the infrastructure of the website of one of the company’s subsidiaries that helped people with disabilities to find employment.  Venkatraman admitted that he used his access privileges and his technical skills to implant malicious code on the subsidiary’s webservers, which allowed him to remotely execute commands that, among other things, would cause the website to crash.

On January 29, 2014, Venkatraman’s last day of employment, the company disabled his credentials and passwords.  After his separation from the company, on three separate occasions Venkatraman accessed, without authorization, the malicious code that he had previously implanted on the subsidiary’s webservers, causing the website to crash on June 13, 18 and 20, 2014.  On June 26, 2014, Venkatraman again accessed the subsidiary’s webservers without authorization, and posted a blog post disparaging the subsidiary.  On June 28, 2014, Venkatraman sent an email to a company official in which he admitted posting the “derogatory blog.”  Approximately six months later, Venkatraman again attempted to access the malicious code that he had implanted on the subsidiary’s webservers, but the company had discovered and removed the malicious code.

As a result of Venkatraman’s actions, the company and its subsidiary sustained a loss of $157,300.

United States Attorney Rod J. Rosenstein praised the FBI and U.S. Secret Service for their work in the investigation and thanked the Maryland State Police for its assistance.  Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Michelle Lee Davis, age 38, of Laurel, Maryland today to six months in prison, followed by one year of supervised release which includes six months of home confinement, for criminal contempt.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.

 Davis was an employee of the U.S. Probation and Pretrial Services for the District of Maryland from February 1998 to October 2014.  In recent years, including in April 2014, Davis served as an administrative technician with the Pretrial Services office in Greenbelt, in which she conducted record and criminal history checks of new defendants, scheduled initial appearances with a U.S. magistrate judge, and opened and closed files related to defendants on pretrial release.

According to her plea agreement, on March 24, 2014 a magistrate judge ordered the sealing of an indictment that charged two defendants with a drug conspiracy. The initial appearance of one of the charged defendants was held on April 15, 2014, at which time Davis learned of the defendant’s identity.  Davis did not disclose to her supervisors or colleagues that she knew the defendant.  During two telephone conversations that day, Davis disobeyed the court order sealing the indictment by disclosing the existence and details of the sealed indictment and the identity of the defendant charged in the sealed indictment, to an acquaintance of Davis and the defendant.

United States Attorney Rod J. Rosenstein commended the FBI and DEA for their work in the investigation.  Mr. Rosenstein praised the U.S. Probation and Pretrial Services for their assistance in the investigation, and thanked Assistant U.S. Attorneys Kelly O. Hayes and Arun G. Rao, who  prosecuted the case.

Greenbelt, Maryland – Amy Ranee Powell, age 41, of Huntingtown, Maryland pleaded guilty today to interstate transportation of stolen money in connection with a scheme to embezzle over $414,000 from her employer.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief J. Thomas Manger of the Montgomery County Police Department.

According to Powell’s plea agreement, from 2003 through 2013 Powell was a trusted employee of an architectural firm in Bethesda, Maryland, whose duties included bookkeeping and office management.  As part of her responsibilities, Powell wrote checks linked to the company’s bank account to pay the company’s bills.  The company’s owner endorsed the number of blank checks needed to pay the bills, and then gave the checks to Powell to be completed.        

Powell admitted that from December 2010 through September 2013, she wrote at least 82 unauthorized checks from the company’s account, payable to herself.  The checks ranged in amount from $500 to $8,000, and totaled approximately $420,444.42.  Powell transported at least 16 unauthorized company checks, totaling $80,546.55, from the company’s office in Bethesda to her bank in Springfield, Virginia, where she deposited the checks into her bank account. When the fraud was discovered in September 2013, Powell’s bank returned $6,322.40 to the company for an unauthorized check Powell deposited on September 5, 2013.

Powell admitted that she diverted at least $414,122.02 from the company’s bank account and deposited those funds into her own bank account.

As part of her plea agreement, Powell has agreed to the entry of a restitution order in the full amount of the victim’s losses, which is at least $414,122.02.  In addition, Powell will be required to forfeit any assets traceable to her offense, substitute assets, and/or a money judgment equal to the value of the property involved in the offense.

Powell faces a maximum sentence of 10 years in prison. U.S. District Judge Peter J. Messitte has scheduled sentencing for January 6, 2016 at 9:30 a.m.

United States Attorney Rod J. Rosenstein commended the Montgomery County Police Department, Financial Crimes Section for its work in the investigation.  Mr. Rosenstein thanked Special Assistant U.S. Attorney Jennifer L. Wine and Assistant U.S. Attorney Sujit M. Raman, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Mark Nixon, age 54, of Silver Spring, Maryland, today to 42 months in prison, followed by three years of supervised release, for conspiring to defraud the United States by steering federal contracts to a company in which he secretly held a financial interest. 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.

Mark Nixon was a civilian employee of the Department of Defense, and worked at the U.S. Army Research Laboratories (ARL).  From 2008 to December 2010, Nixon was the Director of Vehicle Technology Directorate with ARL at Aberdeen Proving Ground.  He was married to Sandra Nixon.

The Nixons had a financial interest and management role in the operation of the following companies: Motile Robotics, Inc. (MRI), located in Joppa, Maryland; Atlantic Capital Enterprises (ACE); and Arrow Technical Incorporated (ATI).

Mark and Sandra Nixon, along with Kenneth Dawson, created and operated MRI.  Dawson had full time employment with two defense contractors 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, Mark and Sandra Nixon created MRI, provided significant input regarding its operation, and were in effect silent and undisclosed partners, owners and co-presidents.  They helped operate MRI using the aliases “Paul Martin” and “Lisa Hart” in order to conceal their financial interest.

According to the plea agreements, in 2008, Mark Nixon created and approved government documents that caused ARL to fund micro propulsion and wind tunnel research, including the fabrication of a small open-jet wind tunnel.  Mark Nixon was designated as the team leader for ARL on the research project.

Beginning in February 2008, the United States awarded a large defense contractor a task order, worth approximately $3.6 million, to construct the open flow wind tunnel. 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, for approximately $3.5 million, under which MRI was again 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.

Although 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 invoices listing false labor and materials charges.  These included more than $35,000 in false labor charges submitted for a relative of Sandra Nixon, who was characterized as an aerospace engineer.  In fact, the relative was a retired school employee.

MRI received more than $5 million in federal funds under these subcontracts. Mark Nixon caused MRI to pay money to Arrow Technical, and Arrow Technical to pay Atlantic Capital, both companies in which the Nixons had a financial interest.  The Nixons and Dawson personally benefited from over $750,000 sent to these companies.

Sandra Nixon, a/k/a “Lisa Hart,” age 52, of Silver Spring, and Kenneth Dawson, age 52, of Niceville, Florida, previously pleaded guilty to conspiring to defraud the United States. Judge Garbis has scheduled sentencing for Sandra Nixon on October 2, 2015 at 9:30 a.m. and for Kenneth Dawson on October 30, 2015 at 10:00 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 are prosecuting the case.

Baltimore, Maryland - Kimberly Harrison, age 46, of Rosedale, Maryland, pleaded guilty today to embezzling funds from a federally funded non-profit organization she founded.  She also admitted committing bankruptcy fraud.

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 Housing and Urban Development Office of Inspector General; and Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General.

According to her plea agreement, Kimberly Harrison embezzled over $100,000 from Between Friends, which she founded and operated from 2008 to 2012, including $60,264 which she stole from September 2011 to September 2012.  Between Friends assisted disadvantaged children to find foster homes and provided services to the children and their foster families. Kimberly Harrison also admitted that when she filed for bankruptcy on June 28, 2012, she did not disclose the approximately $45,514 she had received from Between Friends, Inc., in the form of both checks made payable to Harrison directly, and checks made payable to her landlord for Harrison’s monthly rent payments, from June 2011 until the filing of her petition.  Harrison also failed to list as an asset a 2009 Lexus RX350 that she purchased for $31,037.88 on June 23, 2012, just five days prior to filing her petition.

As part of her plea agreement, Harrison will be required to pay restitution of $104,432.11, the total amount she embezzled from Between Friends.

Kimberly Harrison faces a maximum sentence of 10 years in prison for federal program theft.  U.S. District Judge J. Frederick Motz has scheduled sentencing for November 19, 2015 at 10:00 a.m.

Kimberly Harrison’s sister, Sharon Harrison, age 48, also of Rosedale, was recently sentenced to three years in prison for embezzling from four non-profit organizations for which she worked, including Between Friends.  Sharon Harrison was also ordered to pay restitution of $1,306,797.70, the total amount that she embezzled.

United States Attorney Rod J. Rosenstein praised the FBI, HUD-OIG and Baltimore Office of Inspector General, for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.