District of Maryland
Press releases recorded for this federal judicial district.
Man Arrested in Penn-North One Week After Baltimore Riots Guilty of Federal Gun ChargeRead the Press Release
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.
Annapolis Felon Sentenced to Four Years in Prison for Illegal Possession of a FirearmRead the Press Release
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.
Conspirator Admits to Robbing Casino PatronsRead the Press Release
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.
Woodlawn Man Exiled to 100 Months in Prison for Illegal Possession of Stolen Guns and AmmunitionRead the Press Release
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.
Third Commercial Trash Hauler Admits to Bribing Baltimore City Landfill EmployeesRead the Press Release
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.
PCP Trafficker Sentenced to 12 Years in PrisonRead the Press Release
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.
IT Professional Sentenced to 15 Months in Prison for Installing and Activating Malicious CodeRead the Press Release
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.
Former Federal Pretrial Services Employee Sentenced to Prison for Violating a Court Order Sealing an IndictmentRead the Press Release
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.
Employee Admits Stealing at Least $414,000 from the Bethesda Company Where She WorkedRead the Press Release
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.
Department of Defense Employee Sentenced to over Three Years in Prison for Fraudulently Obtaining over $750,000 from Contracts with Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced 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.
Rosedale Woman Pleads Guilty to Embezzling from Non-Profit Organization She FoundedRead the Press Release
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.
Parkville Sex Offender Sentenced to 14 Years in Prison for Sex Trafficking of a MinorRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Rodney Hubert, a/k/a “Noah,” age 40, of Parkville, Maryland, a registered sex offender in Maryland, to 14 years in prison followed by lifetime supervised release for sex trafficking of a minor. Judge Russell ordered that upon his release from prison, Hubert must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement and court documents, in January 2013, Hubert and Charles Hufton, a doorman at a nightclub in Baltimore, recruited girls to engage in prostitution, some of whom were underage.
Hubert sought a 19-year-old associate to work as a prostitute beginning in December 2012. Hubert and Hufton offered her a commission to recruit a 16-year-old Baltimore resident to perform prostitution. Hubert invited the 16 year old to reside with him. The 16 year old girl had sex with customers on at least five occasions in a Parkville house provided by Hubert, and on at least seven occasions at other locations.
Hubert offered to pay the 16 year old girl $400 dollars to take provocative photos of her wearing lingerie. She posed for the photos, although Hubert never paid her the promised fee. Hubert and Hufton used the photos to post online prostitution ads. Hubert also offered to pay her $1,000 to make a pornographic film with him in which they would engage in sex.
Hufton used his smartphone and email address to create and post online prostitution ads. Hubert and Hufton advertised online that the 16 year old would prostitute at both the Parkville house, as well as other locations of prospective clients. Hufton drove the prostitutes, including the 16 year old, to “out-call” locations and collected a portion of their earnings.
Co-defendant Charles Hufton, age 27, formerly of Cockeysville, Maryland, previously pleaded guilty to conspiring to commit sex trafficking of a minor and was sentenced to 30 months in prison.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation, and thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.
Director/ Treasurer of Non-Profits Admits to Stealing over $2 MillionRead the Press Release
Greenbelt, Maryland – Michael Parry, age 58, of Windermere, Florida pleaded guilty today to wire fraud and money laundering.
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 Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.
According to his plea agreement, in 1998 Parry was hired by the American Registry of Pathology (ARP) as its director of operations, and was promoted to executive director in 2014, a role he had been acting in since October 2011. The ARP is a non-profit organization that supports pathology services in the armed forces, and also engaged in non-governmental work, including the funding of fellowships and research studies in pathology. ARP has administrative offices in Rockville, Maryland and Camden, Delaware.
The International Registry of Pathology (IRP) is a non-profit organization that promotes the study of pathology on an international scale, by supporting pathologists and pathology students in less-developed countries. Parry served as treasurer of IRP. By October 2011, Parry was in control of IRP bank accounts.
From February 17, 2010 to April 21, 2014, Parry directed the payment of money from an ARP account to an IRP account by wire transfers. Parry falsely described the wire transfers as related to medical studies, research grants or other activities normally funded by ARP. Parry fabricated documents including: falsified invoices from a legitimate ARP vendor related to medical research studies; emails from himself to others purporting to memorialize conversations in which Parry sought and was granted approval for funding fictional research fellowships; and wire transfer documents purportedly showing that payments were made directly from ARP’s accounts to legitimate ARP vendors or educational institutions.
Parry then transferred funds from the IRP account to a personal account he controlled. The total loss to ARP as a result of the fraud scheme was $2,199,504.09. Parry has agreed to the entry of an order to pay restitution in this amount.
Parry faces a maximum sentence of 20 years in prison for wire fraud and 10 years in prison for money laundering. U.S. District Judge Peter J. Messitte has scheduled sentencing for December 18, 2015 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI and Army CID for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Joseph R. Baldwin and David L. Salem, who are prosecuting the case.
Three Defendants Indicted in Counterfeit Credit Card SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury returned a superseding indictment against three defendants on charges arising from a counterfeit credit card scheme:
Joseph R. Dominici, age 28, of Annapolis, Maryland,
Carlos M. Ledbetter, age 29, of District Heights, Maryland, and
Christina O. Price, age 22, of Bowie, Maryland.The superseding indictment was returned on September 15, 2015 adding Price as a defendant, and unsealed today upon her arrest.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Anne Arundel County Police Chief Tim Altomare; Anne Arundel County State’s Attorney Wes Adams; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
Dominici owned and operated JJ&M Enterprises, LLC, a business based in Annapolis. Ledbetter worked at JJ&M. Price was a server at a restaurant in Gambrills, Maryland.
According to the seven count superseding indictment, from at least July 2014 to February 9, 2015, Dominici obtained stolen or otherwise compromised credit card numbers from several sources, including black market “carding” websites where stolen credit card information can be purchased. Price used electronic devices known as skimmers to fraudulently obtain the credit card information of restaurant customers who paid by credit card. Price then provided this stolen customer information to Dominici for use in producing fraudulently re-encoded credit cards. Dominici and Ledbetter obtained stored value cards, used special equipment to encode the stolen account information onto stored value cards and then used the fraudulently re-encoded credit and stored value cards to buy merchandise.
The superseding indictment alleges that on February 9, 2015 Dominici possessed over 250 stolen or compromised credit card account numbers that he purchased from a black market “carding” website.
All of the defendants face a maximum sentence of 30 years in prison for conspiring to commit bank fraud; and a mandatory minimum sentence of two years in prison consecutive to any other sentence for aggravated identity theft. Dominici also faces a maximum sentence of 10 years in prison for access device fraud. Ledbetter and Price also face a maximum sentence of 30 years in prison for bank fraud. Price had her initial appearance and arraignment today and was released under the supervision of U.S. Pretrial Service. An initial appearance has not yet been scheduled for Dominici and Leadbetter on the superseding indictment. Ledbetter remains in federal custody, and Dominici was released under the supervision of U.S. Pretrial Services, following the return of the original indictment.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Anne Arundel County Police Department, HSI Baltimore, Prince George’s County Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers and Special Assistant U.S. Attorney Angela Tang, who are prosecuting the case.
Man Who Set Fire to CVS During Baltimore Unrest Pleads Guilty to Federal Crime of RiotingRead the Press Release
Baltimore, Maryland –Raymon Carter, age 24, of Baltimore, Maryland, pleaded guilty today to the federal crime of rioting on April 27, 2015, including the arson of the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore.
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; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Maryland State Fire Marshal Brian Geraci.
“The most important aspects of this case are that Raymon Carter will be punished for participating in the riot and that ordinary citizens concerned about their neighborhood helped to catch him,” said U.S. Attorney Rod J. Rosenstein. “Federal law prohibits people from traveling across a state line or using a telephone to participate in a civil disturbance that involves acts of violence, and this case sends a message that we intend to use it. Anyone who considers participating in a riot should know that police, prosecutors and citizens will track them down and send them to prison.”
“Our partnership with the U.S. Attorney’s Office, ATF, and other federal law enforcement agencies will ensure that criminals who harm our community will be held accountable for their actions,” said Baltimore Police Commissioner Kevin Davis
According to his plea agreement, on April 27, 2015, Carter used a telephone to discuss his plans to go to the scene of the riots that erupted across Baltimore following the funeral of Freddie Gray. Carter walked to the area of North and Pennsylvania Avenues, in the vicinity of the CVS Pharmacy located at 2509 Pennsylvania Avenue, where he was captured on video watching the rioting activity around him, including rioters setting small fires.
Looters broke through the main doors of the CVS and began removing merchandise and pharmaceuticals. Surveillance video shows Carter entering the CVS at 5:28 p.m. Carter used an open flame to illuminate the pharmaceuticals on the shelves. At 5:30 p.m. the video shows Carter unsuccessfully attempting first to move, and then to open, the pharmaceutical safe.
Carter is then seen on surveillance video going to and from the southeast corner of the sales floor – which the investigation showed was the area of origin of the fire - three separate times between 6:15 p.m. and 6:19 p.m. Carter admitted that his intent was to start a fire and that he used paper products from that area of the store to set the fire. At 6:19:34 p.m., the third time Carter is seen going to that corner of the store, he moves out of camera view, behind the shelves. Carter’s efforts to light a fire were successful and at 6:19:57 p.m. a flash of light can be seen on the video. After the flash of light, Carter reappears on the surveillance video from behind the shelves and is seen running away from the area toward the CVS exit. Flames in the southeast corner of the store become visible on the surveillance video at 6:22:19 p.m. Fourteen seconds later Carter is seen walking towards the exit while looking back at the fire, and the looters are seen running toward the exit. No other individual is seen on the surveillance video in the area of the fire from the time of the flash of light until Carter exits the store.
The Baltimore Fire Department was called to the CVS at 6:28 p.m. When firefighters arrived at the store, heavy smoke was seen venting from the main entry doors and the roof. The Baltimore Police Department established riot lines in an attempt to control the crowds while the firefighters worked to extinguish the fire.
Carter was subsequently identified by citizens after the ATF released two still photographs from the surveillance videos to the media and announced a $10,000 reward for information leading to the suspect’s identification, arrest and conviction. On June 29, 2015, the ATF released a wanted poster for Carter and received a hotline tip on July 1, 2015 concerning Carter’s location. ATF agents located, and after a foot chase, arrested Carter. At the time of his arrest, Carter had little in his pockets except two black lighters.
The total loss for the building alone as a result of the fire is estimated at $1.1 million. As part of his plea agreement Carter will be required to pay restitution, with the exact amount of restitution to be determined at sentencing.
Carter and the government have agreed that if the Court accepts the plea agreement Carter will be sentenced to four years in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for November 17, 2015 at 2:00 p.m.
The federal crime of rioting, governed by Section 2101 and 2102 of Title 18 of the United States Code, applies when a defendant travels across a state line or uses a facility of interstate commerce, including a telephone, to participate in a civil disturbance involving acts of violence.
The investigation into this and other arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Maryland State Fire Marshal’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Sandra Wilkinson, who is prosecuting the case.
Gun Charge Added Against a Laurel Man Previously Indicted for His Role in the Murder of a Robbery VictimRead the Press Release
Baltimore, Maryland – A federal grand jury returned a second superseding indictment today against Taylor King Pepe, age 21, of Laurel, Maryland on charges arising from the robbery of an individual who was shot and killed.
The second superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Gary Gardner of the Howard County Police Department; and Howard County State’s Attorney Dario Broccolino.
According to the four count indictment, on January 23, 2014, Pepe and others robbed an individual at gunpoint of Oxycodone pills. The victim was shot and killed.
The second superseding indictment adds an allegation that Pepe possessed a revolver on January 23 and 24, 2014. Pepe was allegedly prohibited from possessing a firearm pursuant to a protective order issued by the District Court of Howard County on October 3, 2013.
Pepe faces a sentence of 20 years in prison each for the conspiracy and for the robbery; a mandatory minimum of 10 years and a maximum of life in prison for aiding in the discharge of a firearm during a crime of violence; and 10 years in prison for possession of a firearm by a prohibited person. His initial appearance has not been scheduled. Pepe remains in federal custody.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the ATF, Howard County Police Department and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Zachary A. Myers, who are prosecuting the case.
Baltimore Woman Indicted for Allegedly Stealing Almost $200,000 in Social Security BenefitsRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Patricia Green Jackson, age 63, of Baltimore, for theft of government property and other charges arising from a scheme to steal social security benefits. The indictment was returned on September 15, 2015.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
According to the two-count indictment, Jackson was a friend of J.W. and a co-signer on J.W.’s bank account. J.W. began receiving retirement benefits from the Social Security Administration (SSA) in 1986, which were paid by direct deposit to her bank account. J.W. died on December 31, 1997. SSA was not aware of J.W.’s death, and continued to make monthly payments of J.W.’s retirement benefits until March 2015.
According to the indictment, after J.W.’s death Jackson used a debit card to withdraw and spend J.W.’s monthly SSA retirement benefits. At the time J.W.’s benefits were suspended in 2015, SSA was paying $1,087 per month in benefits and paid a total of $196,323 in unauthorized benefits after J.W.’s death in 1997. The indictment alleges that not only did Jackson steal those funds, but she concealed J.W.’s death so that SSA would continue to pay J.W.’s retirement benefits.
Jackson faces a maximum sentence of 10 years in prison for theft of government property and a maximum of five years in prison for SSA benefit fraud. No court appearance has been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the Social Security Administration - Office of Inspector General for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Lauren E. Perry, who is prosecuting the case.
Two Defendants Sentenced in Baltimore Residential Mortgage Fraud SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Kevin Campbell, age 53, of Pyesville, Maryland today to 19 months in prison followed by five years of supervised release for conspiring to commit mail, wire and bank fraud arising from mortgage fraud schemes resulting in losses totaling approximately $1.2 million. Judge Bredar also entered an order that Campbell pay restitution of $1,182,822.
Yesterday, in a related case, Judge Bredar sentenced co-conspirator Jonathan L. Miles, age 45, of Perry Hall, Maryland to 18 months in prison followed by five years of supervised release for conspiring to commit bank fraud, and entered an order that Miles pay restitution of $1,182,822.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General.
Campbell invested in Baltimore residential real estate, and controlled four companies that bought and sold residential real estate: KMJ Realty LLC; E&W Realty LLC; C Realty LLC; and City Realty LLC. Miles was a loan officer for a mortgage brokerage company formerly located in Reisterstown, Maryland.
According to their plea agreements, from 2005 to 2007, the defendants caused false information to be provided to mortgage lenders in order to enable prospective purchasers to qualify for 18 home mortgage loans on properties located in Baltimore that they could not actually afford. Unknown to the lenders, Campbell provided most of the down payments and all of the closing costs. As a result, the loan application and HUD-1 substantially overstated the amount of the down payment and closing costs that the purchasers brought to the closings, thereby making the purchasers appear to be more creditworthy and to have more of a personal investment in the property than was actually the case.
In addition, the agreed purchase price established for the properties substantially exceeded the actual market value. Miles caused the inflated purchase price to be supported by a misleading appraisal report. By inflating the purchase price, Campbell and Miles were able to obtain financing that was substantially in excess of the original purchase price for each property. This enabled Campbell to cover most of the purchase price and all of the closing costs with the proceeds he received from the transaction, while still earning a significant profit. Campbell also received additional hidden payments amounting to 10% of the sales price disguised in the HUD-1 as a real estate commission to City Realty. Miles received a significant commission as the loan broker on each transaction.
Sixteen of the 18 loans ultimately went into default, resulting in foreclosures and losses totaling approximately $1.2 million to mortgage lenders, as well as Fannie Mae, Freddie Mac and four individual purchasers who lost money they provided for down payments on the mortgages.
United States Attorney Rod J. Rosenstein praised the Federal Housing Finance Agency – OIG, FBI and FDIC-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
Howard County Man Sentenced to over 15 Years in Prison for Armed Robbery and Being an Accessory to a MurderRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Avery Terry, age 23, of Laurel, Maryland, today to 181 months in prison followed by three years of supervised release for robbery, using and brandishing a firearm during the robbery, and accessory after the fact to a second robbery resulting in death.
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 Howard County State’s Attorney Dario Broccolino.
According to his plea agreement, on January 21, 2014, Terry and another individual robbed the CVS Pharmacy in Elkridge, Maryland at gun point. A store video camera recorded the robbery, including the distinctive clothing worn by the robbers. Terry texted a picture of himself holding the handgun used in the robbery two days prior. Terry had a previous felony conviction for drug distribution and was prohibited from possessing a gun or ammunition.
On January 26, 2014, Howard County Police executed an arrest warrant for another individual who was a suspected shooter in a January 23, 2014 robbery and homicide. Law enforcement saw Terry and the suspect leaving the suspect’s home and get into Terry’s car. Police made a traffic stop and arrested the suspected shooter. A black .38 caliber revolver, different from the gun used in the CVS robbery, was found under the driver’s seat where Terry was driving. Ammunition was also found in Terry’s car.
A Howard County detective who was investigating the CVS robbery was also participating in the execution of the arrest warrant that day. The detective noticed clothing in Terry’s car that matched the distinctive clothing worn by the CVS robbers on January 21. Law enforcement executed a search warrant at Terry’s home and recovered a mask and other clothing matching that worn by one of the CVS robbers.
After Terry’s arrest, Howard County Police monitored Terry’s jail calls, including a call in which he asked his mother to get his employer to provide a false alibi for him at the time of the CVS robbery. Terry’s mother called the employer and asked him to provide the alibi, but the employer refused and promptly reported the call to police. Cell site data from Terry’s phone revealed that it was used to send calls or data through a cell tower location near the CVS Pharmacy at the time of the robbery.
Subsequent investigation revealed additional information concerning Terry’s knowledge of the January 23, 2014, robbery/homicide. Call records show that between January 21 and January 26, 2014, Terry had frequent telephone communication with two individuals charged with that crime. In addition, Terry admitted that at the time of the alleged shooter’s arrest in Terry’s car, they were attempting to get rid of the murder weapon. The alleged shooter, Desmick Lewis, age 23, of Columbia, is facing murder charges in Howard County Circuit Court. A second alleged co-conspirator, Pepe Taylor, age 21, of Laurel, is charged federally for his role in the robbery and murder. Taylor has pleaded not guilty and his trial is scheduled to begin November 30, 2015. 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 ATF, Howard County Police Department and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Zachary A. Myers, who prosecuted the case.
Former Letter Carrier Admits to Receiving over $62,000 in Bogus Travel Expenses for Medical CareRead the Press Release
Greenbelt, Maryland – Leroy T. King, Jr., age 54, of Bryans Road, Maryland pleaded guilty today to mail fraud in connection with a scheme to fraudulently receive reimbursement for travel expenses for medical care related to an injury 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 his plea agreement, King was a letter carrier for the U.S. Postal Service at the Capitol Heights, Maryland post office. On September 4, 2004 King sustained an injury at work and received worker’s compensation until he returned to work in August 2008. King was eligible to receive reimbursement for travel expenses to and from medical appointments related to his injury.
From November 2009 to March 2015, King submitted vouchers to the Office of Worker’s Compensation Programs (OWCP) for the reimbursement of travel expenses for approximately 2,145 trips for medical care. Approximately 95 of those trips were actually for medical care received by King. However, King admitted that for the remaining 2,050 trips he claimed, he did not receive medical care.
To obtain reimbursement from OWCP, King periodically prepared and mailed numerous forms falsely certifying that he had driven round trip from his home to various medical facilities for treatment. As a result, King was paid $62,424.75, for the reimbursement of travel expenses to which he was not entitled.
King faces a maximum sentence of 20 years in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 30, 2015 at 3:00 p.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.
Defendants Arrested with Guns in Baltimore City Face Federal Charges in 14 Separate CasesRead the Press Release
Baltimore, Maryland – Fourteen defendants arrested with illegal guns in Baltimore this summer will now face federal charges as a result of an alliance between local and federal officials. The defendants were transferred from state custody to federal court. All are charged with being a felon in possession of a gun and face a maximum sentence of 10 years in federal prison.
“These federal indictments serve to put gun-toting criminals on notice that federal prosecutions await them if they choose to arm themselves with a firearm,” said Baltimore Police Department Interim Commissioner Kevin Davis. “We will continue to work collaboratively to identify and prosecute those who choose to continuously violate the law while we are working to make this city safe.”
“This demonstrates the important collaboration we have with our federal partners and sends a strong message to those repeat violent offenders that we will not let them get away with possessing guns in our City,” stated State’s Attorney Marilyn Mosby.
“ATF will continue to prioritize our efforts in combatting violent crime and targeting violent offenders in order to keep our communities safe,” said Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division. “Let it be clear - anyone who makes the decision to illegally carry a gun on the streets of Baltimore should be prepared to be face the consequences that accompany federal prosecution.”
“Police and prosecutors are working to identify armed criminals who deserve to be prosecuted in federal court,” said U.S. Attorney Rod J. Rosenstein.
Under an initiative by the Baltimore City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Baltimore City State’s Attorney’s Office and the United States Attorney’s Office, prosecutors and police review cases of defendants arrested for firearms violations and evaluate whether the case should be considered for federal prosecution. Prosecutors evaluate each defendant’s criminal record, the circumstances of the arrest and other relevant information.
The following defendants, all of Baltimore, have been charged with being a felon in possession of a gun:
Devonte Boone, age 27;
Derek Anthony Davis, age 31;
Marcus Davis, age 34;
Anthony Evans, age 23;
Dion Green, age 46;
Gary Hall, age 20;
Paul Jones, age 42;
Jemal Kimball, age 30;
James Kingsborough, age 24;
Bernard Lawson, age 29;
Larry Matthews, age 34;
Daniel McKenzie, age 26;
Alfred Patterson, age 50; and
Charles Quailes, age 38.Paul Jones is also charged with possession with intent to distribute a controlled substance, and faces a maximum sentence of 20 years. Charles Quailes is also charged with possession of an unregistered weapon and faces a maximum sentence of 10 years.
Any previously convicted criminal who possesses a gun faces a sentence of up to ten years in federal prison, even if the criminal did not use the gun. There is no probation or parole in the federal criminal justice system.
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 ATF, Baltimore Police Department and Baltimore State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Michael Hanlon, Seema Mittal, Clinton J. Fuchs, Patricia C. McLane, Bonnie S. Greenberg and Aaron S. J. Zelinsky, and Special Assistant U.S. Attorney Matthew Hoff, a cross-designated Baltimore City Assistant State’s Attorney, and Special Assistant U.S. Attorney Shelly S. Glenn, who are prosecuting the cases.
Defendant Charged in Federal Court for Possessing Medication Stolen from a CVS Pharmacy During the Baltimore RiotsRead the Press Release
Baltimore, Maryland – A criminal complaint has been filed charging Rashad Robertson, age 25, of Baltimore, with possession of Alprazolam, a prescription drug stolen during the looting on April 27, 2015 from the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore (CVS Pharmacy). The complaint was filed on August 31, 2015 and unsealed today.
The complaint 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; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.
“Federal law enforcement agencies are working closely with local police and prosecutors to investigate crimes committed during the Baltimore riots,” said U.S. Attorney Rod Rosenstein.
On April 27, 2015, the CVS Pharmacy was looted and burned. According to the affidavit in support of the complaint, on June 17, 2015, during the investigation of the pharmacy robbery, Baltimore police officers followed an individual, not Robertson, who was suspected of having a handgun, to a home in the 2400 block of Francis Street. They subsequently recovered a BB gun replica in the backyard.
The affidavit further alleges that the owner of the residence consented to a search. During an initial sweep of the dwelling, various prescription medications were located in plain view from the upstairs landing on a dresser in a rear bedroom. Many of the medications had “Return to stock vial” printed on the bottles with no prescribed recipient and “XXXX” appearing where a name would normally be provided. The bottles had “CVS Pharmacy” labels affixed to them. The residence is located approximately one block east from the CVS Pharmacy.
According to the affidavit, the owner advised that Robertson resided in the bedroom of the home that contained the medications. Robertson was also present during the search. When questioned, Robertson allegedly told investigators that the medications came from the April riots, and that an associate brought the medications to his house after the riots and put them on his dresser.
The affidavit alleges that further investigation revealed that the prescription bottles had been filled at the CVS Pharmacy. One of the bottles contained 60 pills of Alprazolam. DEA agents obtained video from the CVS Pharmacy. The video allegedly depicted an individual, identified as Robertson, in the pharmacy going through shelves where narcotics are located. Robertson allegedly can be seen taking unknown pill bottles.
Robertson faces a maximum sentence of one year and a $1,000 fine. Robertson had his initial appearance today and was detained pending a detention hearing scheduled for Friday, September 11, 2015, at 2:30 p.m. before U.S. Magistrate Judge Beth P. Gesner.
A federal grand jury returned an indictment on July 16, 2015 charging Raymon Carter, age 24, of Baltimore, with committing arson on April 27, 2015 of the same CVS Pharmacy. Carter has pleaded not guilty.
A criminal complaint and indictment are not a finding of guilt. An individual charged by criminal complaint or indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, Baltimore Police Department and ATF for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Seema Mittal, who is prosecuting the case.
Doctors Convicted in $2.5 Million Health Care Fraud SchemeRead the Press Release
Greenbelt, Maryland - A federal jury convicted two doctors, Paramjit Singh Ajrawat, age 60, and his wife, Sukhveen Kaur Ajrawat, age 57, both of Potomac, Maryland, on charges related to their health care fraud scheme. Paramjit Singh Ajrawat was convicted of one count of health care fraud, two counts of making a false statement related to a health care program, one count of obstruction of justice, four counts of wire fraud, and one count of aggravated identity theft. Sukhveen Kaur Ajrawat was convicted of one count of health care fraud, four counts of making a false statement related to a health care program, one count of obstruction of justice, four counts of obstructing an audit, four counts of wire fraud, and two counts of aggravated identity theft. The convictions are in connection with the pain clinic they owned and operated.
The convictions were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Drew Grimm, Office of Personnel Management, Office of Inspector General; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; 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 Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General.
P. Ajrawat was a licensed physician in Maryland who specialized in interventional pain management. S. Ajrawat was a licensed psychiatrist in Maryland. The Ajrawats owned and operated Washington Pain Management Center (WPMC) located in Greenbelt.
According to evidence presented at the eight day trial, from at least January 2011 through May 2014, the Ajrawats defrauded federal health benefit programs including: Medicare, Medicaid, TRICARE, Federal Employees Health Benefits Program and the Office of Workers’ Compensation Programs. The Ajrawats filed claims for procedures that were not performed. Specifically, the Ajrawats performed less expensive procedures but falsely billed for procedures that provided higher reimbursement amounts. The Ajrawats also submitted claims indicating that they had met the requirements for reimbursement, when in fact, they had not met those requirements. Finally, the Ajrawats submitted claims for procedures that had not been performed at all.
For example, the Ajrawats submitted claims that P. Ajrawat had performed nerve block injections with the use of an imaging guidance machine, when in fact he neither owned nor used such a machine. The Ajrawats also falsely documented patient files to indicate that an imaging guidance machine had been used to verify needle placement and caused the alteration or destruction of patient files to conceal the scheme from auditors and law enforcement.
The government seeks forfeiture of at least $2.5 million, the proceeds of the scheme.
The defendants face a maximum sentence of 10 years in prison for each count of health care fraud, five years in prison for each count of making a false statement related to a health care program; and 20 years in prison for each count of obstruction of justice and each count of wire fraud. Additionally, S. Ajrawat faces five years in prison for each count of obstructing a federal audit. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for February 1, 2016 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised DCIS, HHS-Office of Inspector General, OPM-Office of Inspector General, FBI, U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Service-Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Kelly O. Hayes and Mara Zusman Greenberg, who are prosecuting the case.
Montgomery County Man Sentenced to 42 Months in Prison for Deceptive Telemarketing Fraud Scheme that Defrauded Clients of $2.9 MillionRead the Press Release
Greenbelt, Maryland - U.S. District Judge Theodore Chuang sentenced Richard A. Brennan, age 43, of Clarksburg, Maryland, today to 42 months in prison, followed by three years of supervised release, for mail fraud, and for making a false statement on a tax return. Judge Chuang entered a judgment ordering Brennan to pay a $150,000 fine, $2.9 million in restitution to the victims of the fraud and $297,087 in restitution to the Internal Revenue Service. In addition, Judge Chuang ordered Brennan to perform 200 hours of community service.
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 William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Maryland Attorney General Brian E. Frosh.
According to his plea agreement, until January 2009, Brennan was a licensed attorney in Maryland. In late 2005 or early 2006, Brennan established the Law Offices of Richard A. Brennan (LORAB) to perform debt settlement services. “Debt settlement” differs from “debt management” services, in that, in debt management, debtors continue to make payments on accounts on negotiated terms, while debt settlement involves allowing debt accounts to go delinquent and making a lump sum offer to settle the account. While debt management services – and the fees that could be charged customers – were closely regulated in Maryland, debt settlement services were not.
The Maryland Attorney General’s Office and the Maryland Attorney Grievance Commission both received a high number of complaints from Brennan’s customers reporting that they were deceived by telemarketers who convinced them of the high probability of success by engaging Brennan and his debt settlement program, but who reported seeing little success in having their debts resolved. When the clients complained to LORAB, their calls frequently went unreturned and they were typically told their payments would not be refunded as they constituted Brennan’s attorney fees.
In October 2007, Brennan agreed with the Maryland Attorney General’s Office to cease engaging in a number of business practices, including misuse and commingling of his clients’ funds. Despite this, Brennan violated the agreement by continuing to recruit new clients without making the disclosures required under the agreement with the Attorney General’s office, and by omitting any mention of his restrictions under the agreement, which included a requirement that he maintain a surety bond in order to continue to provide debt settlement services.
To evade the restrictions in the agreement and to keep new clients from researching the large numbers of complaints posted online about his practices, Brennan changed his business entity name several times in quick succession, to include doing business for a few months as the Capital Law Group, then the Frederick Law Group and later as the Metro Law Group. Brennan also instructed telemarketers working for him to deny the new entities’ relationship with Richard Brennan.
In January 2009, Brennan surrendered his license to practice law by signing a joint petition with the Attorney Grievance commission. In that document, Brennan admitted that he had used client trust money for purposes other than its intended use. In June, 2009, Brennan appeared before the Circuit Court of Frederick County and acknowledged that he continued to debit funds from client bank accounts even after his surety bond had been revoked. Brennan was ordered to pay a $2.58 million money judgment in restitution to clients from whom he collected money up until October 2007. The Court also briefly jailed Brennan for contempt after he failed to provide the Attorney General’s Office a list of clients or accounting for funds as he had promised.
Even after losing his license to practice and this judgment, Brennan continued to attempt to defraud debt clients. On November 6, 2009, Brennan mailed an existing Frederick Law Group client a letter under the business entity name “International Debt Solutions.” In that letter, Brennan acknowledged that Frederick Law Group’s “web site and call center have been closed” “[d]ue to unforeseen circumstances” and attempted to dissociate himself with that firm by claiming that that “[Frederick Law Group] has forwarded us your information.” Brennan asked the client to fill out a new representation agreement, power of attorney, and electronic funds transfer authorization, which the victim returned by mail to an address two houses away from Brennan’s.
Brennan’s debt settlement fraud scheme caused the loss of approximately $2.9 million to his clients between October 18, 2007, and 2010, and involved more than 250 victims.
Brennan also admitted that he filed false tax returns in 2006 and 2007, underreporting his income in both years. For example, in 2007, Brennan reported an adjusted gross income of negative $576,273.10 when he had unreported business receipts that year of at least $9,229,802. Additionally, Brennan received a total of $5,387 in tax refunds based on his knowingly false returns submitted for 2006 and 2007. Brennan filed no tax returns for the tax year 2008, despite receiving over $6 million into business bank accounts he controlled. The total approximate tax loss to the United States is $297,087.
Further, Brennan knowingly possessed unregistered machineguns and short-barreled rifles and also engaged in the unlicensed manufacture of the machineguns. Specifically, in February 2011, a search warrant executed at Brennan’s home in Clarksburg, Maryland, yielded evidence that Brennan unlawfully converted 10 semiautomatic rifles into fully automatic weapons, and modified another rifle so that it had a barrel length of less than six inches. Brennan failed to register those modified weapons, as required by law.
United States Attorney Rod J. Rosenstein praised U.S. Postal Inspection Service, ATF, IRS-Criminal Investigation, and the Maryland Attorney General’s Office for their work in the investigation and thanked the Maryland Attorney Grievance Commission for its assistance. Mr. Rosenstein thanked Assistant United States Attorney Joseph R. Baldwin, who prosecuted the case.
MS-13 Gang Associate Sentenced to 20 Years in Prison for the Robbery of a Brothel that included a Rape and MurderRead the Press Release
Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Alexsi Lopez, age 27, of Hyattsville, Maryland, today to 20 years in prison, followed by three years of supervised release, for conspiracy and the violent robbery of a Hyattsville brothel that resulted in a rape and murder. A federal jury convicted Lopez of those crimes on April 9, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to the evidence presented at his six day trial, Lopez was associated with the MS-13 gang and knew his co-defendant, Ramon Miguel Cerros-Cruz through MS-13. Evidence showed that Lopez and Cerros-Cruz familiarized themselves with the location and operation of brothels in the Hyattsville-Langley Park area of Prince George’s County, then planned the robbery of a Hyattsville brothel apartment. According to trial testimony, on February 28, 2007, Lopez and Cerros-Cruz entered the brothel apartment armed with knives, and using force and violence, demanded money from the people within the brothel and searched the apartment for cash and items of value. Witnesses testified that Lopez and Cerros-Cruz bound one of the brothel’s employees, raped another employee and murdered a third person who arrived at the brothel during the commission of the rape and robbery, stabbing him multiple times when he resisted the demands of the defendants. DNA evidence placed Lopez and Cerros-Cruz at the scene.
Ramon Miguel Cerros-Cruz, age 25, of Silver Spring, Maryland previously pleaded guilty to the robbery conspiracy and was sentenced of 10 years in prison.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Prince George’s County Police Department for their work in the investigation and thanked the Prince Georges County Department of Corrections and the Maryland Department of Public Safety and Correctional Services for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Daniel C. Gardner, who prosecuted the case.
Baltimore City Landfill Employee Admits to Stealing Scrap Metal from the Landfill for Personal GainRead the Press Release
Baltimore, Maryland – Michael Theodore Bennett, age 46, of Baltimore, an employee at the Baltimore City Landfill, pleaded guilty today to conspiracy to steal from a program receiving federal funds, wire fraud and failure to file a tax return in connection with a scheme in which employees stole scrap metal from the Baltimore City Landfill for personal gain.
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.
Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters located near the main entrance of the Landfill, free of charge. Individuals or companies commercially hauling trash that have registered their vehicles with the City must obtained Landfill permits, and must deposit their trash in an open area located farther within the Landfill. Commercial haulers of trash must also pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill.
In addition to the revenue generated by the collection of disposal fees, Baltimore City’s waste management system generates revenue by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities, including household appliances, steel cables, copper wires, car parts, computer parts, door and window frames. The City awards contracts to private salvage companies to purchase and remove such scrap metal from its trash collection facilities.
DPW employees at the Landfill and other trash collection sites are required to segregate the recyclable scrap metal from general refuse and place it in separate bins provided by the salvage companies. The companies regularly pick up the scrap metal, weigh it and send a tonnage report to the City. Based on predetermined prices per ton, the City sends an invoice to the companies requesting payment for the value of the scrap metal the companies removed during a given period of time. Salvaging by employees, also referred to as “junking,” was strictly prohibited and employees were put on notice that any salvaging of metal constituted theft of City property.
From 2007 until May 2015, Bennett and other Landfill employees, including supervisor William Nemec, falsely represented to the DPW that they were performing the jobs for which they were hired when in fact, they used their paid positions during work hours to unlawfully collect and sell scrap metal for personal gain. Bennett and other employees used part of the proceeds of the sale of the scrap metal to pay other DPW employees for their help locating, setting aside, collecting and loading the scrap metal onto their trucks. Bennett and others paid cash to supervisors to look the other way and not report them of collecting and transporting the stolen scrap metal, including Nemec. Bennett and others under Nemec’s supervision also relied on Nemec to authorize and submit false time and attendance records to conceal the junking scheme.
Bennett and other employees at the Landfill used their personal cell phones to let each other know when and where recyclable scrap metals were being dumped at the Landfill and to coordinate their arrival at the private salvage yard. After collecting and creating piles of the scrap metal at various locations, Bennett and others transported the scrap metal using their personal pick-up trucks to a private salvage company, frequently making multiple trips during a single, eight-hour work shift. The stolen scrap metal that they sold to the private salvage company for cash resulted in a loss of revenue to the City totaling hundreds of thousands of dollars.
Bennett prepared and submitted false time and attendance records, which claimed he had been working, when he was instead illegally collecting and selling the scrap metal, resulting in wages being paid to Bennett for work he did not perform.
Bennett also admitted that he failed to report approximately $479,468 of income for tax years 2011, through 2013, the majority of which was obtained from the illegal junking scheme.
The loss to the City of Baltimore as a result of the junking scheme was $400,000, and the tax loss to the government for Bennett’s failure to file tax returns was $126,273. As part of his plea agreement, Bennett agreed to the entry of an order to pay restitution of $526,273, the total amount of the loss.
Bennett faces a maximum sentence of five years in prison for the conspiracy, 20 years in prison for wire fraud, and one year in prison for failure to file a tax return. U.S. District Judge Marvin J. Garbis has scheduled sentencing for December 21, 2015 at 10:00 a.m.
Former DPW employee 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, pleaded guilty to their participation in a related bribery scheme. Nemec also pleaded guilty to the “junking” scheme. Washington is scheduled to be sentenced on October 20, 2015, Williams on October 21 and Sharif on November 6, 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.
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.
Queen Anne’s County Cocaine Trafficker Sentenced to over Eight Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Baraka Zuberi Chauka, age 39, of Barclay, Maryland today to 100 months in prison, followed by three years of supervised release for conspiring to distribute, and possession with intent to distribute, cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Queen Anne’s County Sheriff R. Gary Hofmann III.
According to evidence presented at his trial, as part of a cocaine trafficking investigation by the Queen Anne’s County Narcotics Task Force, law enforcement learned in March 2014 that Chauka routinely supplied powder cocaine to co-defendant Adrian Reed, who cooked the powder into cocaine base to sell to customers. Chauka also sold powder cocaine and crack cocaine to his own customers.
Further investigation revealed that Chauka purchased powder cocaine from a supplier in the Philadelphia area. On April 21, 2014, Maryland State Police stopped Chauka on his way back from meeting with his supplier in Philadelphia, and he was found to be in possession of approximately 125 grams of powder cocaine. A subsequent search of Chauka’s residence revealed more cutting agents and a digital scale.
On April 30, 2014, shortly after he made bail from the state drug charges, law enforcement overheard calls between Chauka and Reed indicating that Chauka had immediately returned to drug distribution. As a result of these calls, law enforcement executed a second search warrant of Chauka’s residence, this time revealing more cutting agents, a digital scale, and two boxes of 9mm ammunition.
The investigation showed that Chauka trafficked approximately 232.5 grams of powder cocaine from March to April 2014.
Adrian Lamont Reed, age 39, of Chesterton, Maryland, previously pleaded guilty to his participation in the conspiracy and was sentenced to 70 months in prison.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and Queen Anne’s County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Christopher J. Romano, who prosecuted the case.
Courier for the Jenifer Drug Trafficking Organization Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – On September 1, 2015, U.S. District Judge Richard D. Bennett sentenced Brooke Renee Lunn, a/k/a “Brooke Thomas,” and “Brooke Renee,” age 48, of Baltimore, Maryland, to 12 years in prison followed by five years of supervised release for conspiracy to distribute and possession with intent to distribute five kilograms or more of cocaine, in connection with his participation in the Jenifer drug trafficking organization (Jenifer DTO).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
“This drug organization is a prime example of the complexities that DEA faces with today’s drug traffickers” stated Assistant Special Agent in Charge Don A. Hibbert. “DEA deals with professional couriers, whose only job is to transport drugs and money without being detected by law enforcement. This was accomplished in this case by sophisticated electronic traps, or hidden compartments, in the courier vehicles which resulted in more than 750 kilograms of cocaine being shipped from Houston for distribution in Baltimore. The destruction of this organization is a testament to the hard work and tenacity of the Special Agents and investigators that lived and breathed this case for 18 months.”
According to court documents and information provided at her plea and sentencing hearings, from September 2012 to October 2014, Lunn was the courier for the Jenifer DTO operating courier vehicles between Baltimore and Houston, Texas. The Jenifer DTO obtained its cocaine from suppliers in or around Houston, and transported money hidden in secret compartments in “courier vehicles” from Baltimore to Houston. The cocaine was then transported from Houston to Baltimore in the secret compartments in the courier vehicles. On September 27, 2012, Lunn was operating a courier vehicle near Houston when the vehicle was stopped by the Texas State Police. John Moore was a passenger in the vehicle. Lunn consented to a search of the vehicle and law enforcement recovered approximately 30 kilograms of cocaine that were located in hidden compartments in the vehicle. Both Lunn and Moore were arrested and charged by Texas authorities. After being released on bond, Lunn and Moore returned to Maryland. Subsequently, on October 20, 2012, Moore suffered a fatal gunshot wound to the back of the head. Law enforcement agents believe that Moore’s homicide was the direct result of the cocaine seizure.
After Lunn and Moore’s arrest in Texas in September 2012, the Jenifer DTO began using car-carriers to transport its courier vehicles loaded with cocaine. In July 2013, a Jenifer DTO courier vehicle, loaded on a car-carrier, was intercepted in Arkansas. Law enforcement recovered approximately 23 kilograms of cocaine hidden in a secret compartment in the courier vehicle. After that seizure, the Jenifer DTO returned to its previous method of using Lunn to drive the courier vehicles between Baltimore and Houston transporting cash and/or cocaine.
Between August 2013 and October 2014, Lunn made approximately 30 trips to Houston, Texas, on behalf of the Jenifer DTO, to deliver money and return to Baltimore with kilogram-quantity loads of cocaine, concealed in secret compartments in the Jenifer DTO’s courier vehicles. All of the cocaine deliveries were made by Lunn for the Jenifer DTO while she was awaiting trial for the 30-kilogram seizure of cocaine in Texas.
During the early morning hours on October 9, 2014, Lunn arrived in Baltimore after departing Houston, Texas, operating one of the Jenifer DTO’s courier vehicles containing hidden compartments. Later that day, law enforcement agents executed a search and seizure warrant on the courier vehicle operated by Lunn, and approximately 27 kilograms of cocaine were seized from inside of the hidden compartments contained within the courier vehicle.
Lunn admitted that she was a member and co-conspirator of the Jenifer DTO, which was responsible for trafficking no less than 750 kilograms of cocaine from Houston to Baltimore from August 2013 to October 2014.
Co-conspirators Thomas Simmons, age 48 of Hampton, Virginia, William Hegie, age 54, Kermit Clark, age 44, and Elroy Johnson, age 49, all of Baltimore, previously pleaded guilty to their participation in the conspiracy and were each sentenced to 10 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. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr., who prosecuted the case, 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 in this Organized Crime Drug Enforcement Task Force case.
Former Owings Mills Postal Service Employee Pleads Guilty to Embezzling More Than $92,000Read the Press Release
Baltimore, Maryland – Tonya Lucille Higgs, age 50, of Owings Mills, Maryland pleaded guilty today to misappropriation of postal funds.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General.
According to Higgs’ plea agreement Higgs had been an employee of the United States Postal Service (USPS) since 1995. In March 2011, she was promoted to Lead Sales and Service Associate at the Owings Mills Post Office. Her job responsibilities included consolidating and verifying postal monies and daily financial reports. From October 6, 2011 to May 10, 2014, Higgs fraudulently issued 272 Postal Service no-fee money orders, embezzling a total of approximately $92,147.76 from the USPS. To conceal the scheme, Higgs entered these money orders into the Postal Service database as refunds, so Higgs would not be expected to collect any money from the “customer.” Higgs also wrote relatives, friends, neighbors and associates names on the no-fee money orders to cover up the scheme. The majority of fraudulent no-fee money orders were either made payable to Higgs or used to pay Higgs’ personal bills. After learning of the suspiciously high number of no-fee money orders for refunds issued by Higgs, she was interviewed on May 15, 2014 by Special Agents of the USPS Office of Inspector General. Higgs admitted stealing postal funds through the issuance of no fee-money orders. Higgs was placed on emergency leave in no-pay status at the conclusion of the interview and subsequently fired.
Higgs faces a maximum sentence of 10 years in prison for misappropriation of postal funds. U.S. District Judge Ellen L. Hollander has scheduled sentencing for November 5, 2015 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Service, Office of Inspector General, for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney David P. Kehoe and Assistant U.S. Attorney Rachel M. Yasser, who are prosecuting the case.
Russian Nuclear Energy Official Pleads Guilty to Money Laundering Conspiracy Involving Violations of the Foreign Corrupt Practices ActRead the Press Release
U.S. Conspirators Paid Over $2 Million to Influence Russian Nuclear Energy Official and to Secure Business with State-Owned Russian Nuclear Energy Company
A Russian official residing in Maryland pleaded guilty today to conspiracy to commit money laundering in connection with his role in arranging over $2 million in corrupt payments to influence the awarding of contracts with the Russian state-owned nuclear energy corporation.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Deputy Inspector General John R. Hartman of the U.S. Department of Energy-Office of Inspector General (DOE-OIG) and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington, D.C., Field Office made the announcement.
Vadim Mikerin, 56, of Chevy Chase, Maryland, pleaded guilty before U.S. District Judge Theodore D. Chuang of the District of Maryland. Sentencing is scheduled before Judge Chuang on Dec. 8, 2015.
According to court documents, Mikerin was the president of TENAM Corporation and a director of the Pan American Department of JSC Techsnabexport (TENEX). TENAM, based in Bethesda, Maryland, is a wholly-owned subsidiary and the official representative of TENEX in the United States. TENEX, based in Moscow, acts as the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide. TENEX is a subsidiary of Russia’s State Atomic Energy Corporation.
In connection with the scheme, Daren Condrey, 50, of Glenwood, Maryland, pleaded guilty on June 17, 2015, to conspiring to violate the Foreign Corrupt Practices Act (FCPA) and conspiring to commit wire fraud, and will be sentenced on Nov. 2, 2015. Boris Rubizhevsky, 64, of Closter, New Jersey, pleaded guilty on June 15, 2015, to conspiracy to commit money laundering and will be sentenced on Oct. 19, 2015.
According to court documents, between 2004 and October 2014, Mikerin conspired with Condrey, Rubizhevsky and others to transmit funds from Maryland and elsewhere in the United States to offshore shell company bank accounts located in Cyprus, Latvia and Switzerland. Mikerin admitted the funds were transmitted with the intent to promote a corrupt payment scheme that violated the FCPA. Specifically, he admitted that the corrupt payments were made by conspirators to influence Mikerin and to secure improper business advantages for U.S. companies that did business with TENEX. Mikerin further admitted that he and others used consulting agreements and code words such as “lucky figure,” “LF,” “cake” and “remuneration” to disguise the corrupt payments.
According to court documents, over the course of the scheme, Mikerin conspired with Condrey, Rubizhevsky and others to transfer approximately $2,126,622 from the United States to offshore shell company bank accounts. As part of his plea agreement, Mikerin has agreed to the entry of a forfeiture money judgment in that amount.
The case was investigated by DOE-OIG and the FBI. The case is being prosecuted by Trial Attorneys Christopher Cestaro, Ephraim Wernick and Derek Ettinger of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David I. Salem and Michael T. Packard of the District of Maryland.
Mikerin Plea Agreement
Russian Nuclear Energy Official Pleads Guilty to Money Laundering Conspiracy Involving Violations of the Federal Corrupt Practices ActRead the Press Release
Greenbelt, Maryland - Vadim Mikerin, age 56, a Russian official residing in Chevy Chase, Maryland, pleaded guilty today to conspiracy to commit money laundering in connection with his role in arranging over $2 million in corrupt payments to influence the awarding of contracts with the Russian state-owned nuclear energy corporation.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the U.S. Department of Justice Criminal Division; John R. Hartman, Deputy Inspector General for Investigations, Office of Inspector General at the U.S. Department of Energy; and Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office.
According to court documents, Mikerin was the president of TENAM Corporation and a director of the Pan American Department of JSC Techsnabexport (TENEX). TENAM, based in Bethesda, Maryland, is a wholly-owned subsidiary and the official representative of TENEX in the United States. TENEX, based in Moscow, acts as the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide. TENEX is a subsidiary of Russia’s State Atomic Energy Corporation.
In connection with the scheme, Daren Condrey, 50, of Glenwood, Maryland, pleaded guilty on June 17, 2015, to conspiring to violate the Foreign Corrupt Practices Act (FCPA) and conspiring to commit wire fraud, and will be sentenced on Nov. 2, 2015. Boris Rubizhevsky, 64, of Closter, New Jersey, pleaded guilty on June 15, 2015, to conspiracy to commit money laundering and will be sentenced on Oct. 19, 2015.
According to court documents, between 2004 and October 2014, Mikerin conspired with Condrey, Rubizhevsky and others to transmit funds from Maryland and elsewhere in the United States to offshore shell company bank accounts located in Cyprus, Latvia and Switzerland. Mikerin admitted the funds were transmitted with the intent to promote a corrupt payment scheme that violated the FCPA. Specifically, he admitted that the corrupt payments were made by conspirators to influence Mikerin and to secure improper business advantages for U.S. companies that did business with TENEX. Mikerin further admitted that he and others used consulting agreements and code words such as “lucky figure,” “LF,” “cake” and “remuneration” to disguise the corrupt payments.
According to court documents, over the course of the scheme, Mikerin conspired with Condrey, Rubizhevsky and others to transfer approximately $2,126,622 from the United States to offshore shell company bank accounts. As part of his plea agreement, Mikerin has agreed to the entry of a forfeiture money judgment in that amount.
U.S. District Judge Theodore D. Chuang has scheduled sentencing for Mikerin on Dec. 8, 2015, at10:00 a.m. EDT.
United States Attorney Rod J. Rosenstein praised the DOE-OIG and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Michael T. Packard, and Trial Attorneys Christopher Cestaro, Ephraim Wernick, and Derek Ettinger of the U.S. Department of Justice Fraud Section, who are prosecuting the case.
Bookkeeper Sentenced to 30 Months in Prison for Stealing over $179,000 from her EmployerRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Jessica Lee Warner, age 39, of Baltimore, today to 30 months in prison, followed by three years of supervised release, for wire fraud and aggravated identity theft, in connection with a scheme to embezzle more than $179,000 from her employer. Judge Grimm also entered an order requiring Warner to pay restitution of $179,647.16, the amount she stole from her employer.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea, Warner was the bookkeeper for a company located in Montgomery County, responsible for electronically submitting employee payroll information to a payroll processing service. From 2007 to December 2012, Warner fraudulently used her position as a bookkeeper to increase her salary, and write checks from her employer’s bank accounts to herself and others, forging the signature of an individual who had signatory authority on the company’s checking accounts. Warner deposited the forged checks into her own bank account.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and Leah Jo Bressack, who prosecuted the case.
Criminals Arrested with Guns in Baltimore City to Face Federal Charges in Fourteen Separate CasesRead the Press Release
Baltimore, Maryland – Fourteen defendants arrested with illegal guns in Baltimore this summer will now face federal charges as a result of an alliance between local and federal officials. The names of the defendants will be disclosed when they are transferred from state custody to federal court next week.
Under an initiative by the Baltimore City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Baltimore City State’s Attorney’s Office and the United States Attorney’s Office, prosecutors and police review cases of defendants arrested for firearms violations and evaluate whether the case should be considered for federal prosecution. Prosecutors evaluate each defendant’s criminal record, the circumstances of the arrest and other relevant information.
“If you have a criminal record and possess a gun, be prepared to spend many years in a federal prison far from home,” said U.S. Attorney Rod J. Rosenstein. “Police and prosecutors are working to identify armed criminals who deserve to be prosecuted in federal court.”
Any previously convicted criminal who possesses a gun faces a sentence of up to ten years in federal prison, even if the criminal did not use the gun. There is no probation or parole in the federal criminal justice system.
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.
Member of Baltimore Cocaine Conspiracy Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake, sentenced Deshawn Steven Yarborough, age 29, of Baltimore, Maryland, today to 12 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Interim Commissioner Kevin Davis of the Baltimore Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from December 2013 through April 2014, Yarborough was a member of a conspiracy to distribute cocaine, along with Tyrone Robert Bailey, Lamont George Thomas, and others. As part of the conspiracy, Yarborough obtained kilograms of cocaine from a New York supplier. Law enforcement intercepted drug related calls and text messages through court-ordered wiretaps on Yarborough’s phones.
For example on March 10, 2014, Yarborough was overheard talking to Bailey about Bailey’s plans to travel to New York that day with co-conspirator Lamont Thomas in order to obtain cocaine. Later that day, as Bailey returned from New York, Maryland State Police conducted a traffic stop of Bailey’s pick-up truck for speeding. Lamont Thomas was driving the vehicle and Bailey was the front seat passenger. After a K-9 alerted to the presence of narcotics, law enforcement located an electronically controlled false compartment in the seat back of the rear bench seat. The compartment contained approximately 4.2 kilograms of cocaine. Law enforcement recovered $1,600 in cash and multiple cell phones from Bailey. One of the cell phones was the phone Bailey used to talk to Yarborough.
On March 11, 2014, investigators intercepted communications between Yarborough and his Baltimore-based customers, which indicated that Yarborough was waiting to be resupplied with drugs. After Thomas and Bailey’s arrest by Maryland State Police, Yarborough attempted to contact Bailey on one of the telephones law enforcement had seized from Bailey at the time of his arrest.
Yarborough admitted that during his participation in the conspiracy he was responsible for the distribution of between five and 15 kilograms of cocaine
Tyrone Robert Bailey, age 28, and Lamont G. Thomas, age 34, both of Baltimore, pleaded guilty to their roles in the conspiracy and were each sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department, Maryland State Police, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Baltimore Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III, sentenced Stephon Lowery, age 30, of Baltimore, today to 10 years in prison followed by four years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base.
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 his plea agreement, from no later than December 2013 through May 2014, Lowery and his co-defendants operated a street-level drug shop in the southwest area of Baltimore City that sold cocaine base daily to customers. Multiple times a day, they ordered crack cocaine from suppliers, ranging in quantities up to 28 grams, which they then sold in user-quantity amounts to street level users.
Lowery admits that he and his conspirators distributed more than 112 grams of crack cocaine.
To date, seven co-defendants have pleaded guilty to their participation in the conspiracy.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Sharfstein and Seema Mittal, who prosecuted the case.
Manager in Counterfeit Credit Card Ring Sentenced to over Six Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Navee Diaz, a/k/a India, age 40, of Owings Mills, Maryland today to 76 months in prison, followed by five years of supervised release, for bank fraud conspiracy and aggravated identity theft, arising from a scheme to use of stolen credit and debit card information to manufacture counterfeit credit cards used to buy merchandise and services. Judge Quarles also entered an order requiring Diaz to pay restitution of $126,318.99.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Gary Gardner of the Howard County Police Department; Interim Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Chief Ross C. Buzzuro of the Ocean City Police Department; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Newport News Police Chief Richard W. Myers; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to her plea agreement, starting before January 1, 2011 and continuing through June 2014, Diaz conspired with co-defendants William Downey, Michael Crew and others to manufacture counterfeit debit and credit cards bearing stolen and unauthorized credit and debit card account numbers then use the counterfeit cards to purchase goods and services. Diaz initially became involved in the scheme when her friend, Downey, introduced her to Crew, with whom she became romantically involved. Crew had an embossing machine, and made credit cards using altered gift cards and the credit card and debit card numbers stolen from others. The stolen credit card account numbers were obtained from a variety of sources. Once a valid number was obtained, Diaz and other co-conspirators would use those numbers to obtain other valid numbers, which they would confirm by calling customer service for the issuing financial institution. These numbers were used to manufacture counterfeit access devices bearing the stolen credit and debit card account numbers.
Crew sold the counterfeit credit cards and recruited others, including Diaz, to go out and make purchases on Crew’s instructions. Ultimately, Diaz began to provide cards to others and to take and fulfill orders for items to be purchased with the counterfeit cards. Diaz recruited others into the scheme, obtained cards as needed from Crew and co-defendant Jason Evans, and even manufactured cards herself. She exchanged dozens of text messages each day taking orders, arranging for cards and workers, and conducting other business of the conspiracy. Diaz went out shopping with the cards on a daily basis, with and without other workers in the scheme.
During her participation in the conspiracy, Diaz and her co-conspirators obtained or attempted to obtain extensions of credit from financial institutions of between $200,000 and $400,000, using the financial account numbers of real people. More than 250 individuals and institutions were defrauded by the scheme.
Michael Crew, age 55, of Owings Mills, and Jason Evans, age 32, of Millsboro, Delaware previously pleaded guilty to the same charges and were sentenced to nine years in prison and four years in prison, respectively, and were each ordered to pay restitution of $126,318.99. William Downey, age 43, of Gwynn Oak, Maryland, his brother, Stanley Downey, age 49, formerly of New York, also pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on October 7, 2015, and October 27, 2015, respectively, both at 1:00 p.m. The Downey brothers remain detained pending sentencing.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service; Howard County, Baltimore City, Baltimore County, Howard County, Ocean City and Newport News Police Departments, HSI Baltimore and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Leonardtown Man Sentenced to Six Years in Prison for Distribution of Heroin that Resulted in the Death of a FriendRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Joshua Scott Schellhase, age 31, of Leonardtown, Maryland today to six years in prison followed by three years of supervised release for distribution of heroin. A close friend of Schellhase died as a result of using the heroin distributed by Schellhase.
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 his plea agreement, during 2012 Schellhase was close friends with an individual with whom Schellhase used heroin or other opiates on a daily basis. Schellhase and the individual would provide heroin to each other as they were able to obtain it.
On October 11, 2012, the individual contacted Schellhase by text message and Schellhase agreed to give the individual some heroin that Schellhase had recently purchased. During the early evening, Schellhase drove to a residence in Calloway, Maryland. The individual came out of the house and Schellhase gave the individual a small amount of heroin and two cigarettes. The individual went back into the house, went into the bathroom and ingested the heroin he had received from Schellhase. About 15 minutes later, the individual’s girlfriend knocked on the bathroom door, but received no response. She opened the door and discovered the individual slumped over and non-responsive. Emergency medical personnel were called and attempted to revive the individual, but the individual died.
The cause of death was determined to be morphine intoxication. The victim died as a result of ingesting the heroin provided by Schellhase.
United States Attorney Rod J. Rosenstein praised the DEA and St. Mary’s County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who prosecuted the case.
Former APG Police Officer Admits to Stealing Electronics from Government Buildings While on PatrolRead the Press Release
Baltimore, Maryland – Former Army police officer and sergeant at the Aberdeen Proving Ground (APG), Gregory Lamont McNeill, age 45, of Baltimore, pleaded guilty today to concealing and retaining stolen federal government property.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Joshua Adams, Assistant Special Agent in Charge of the U.S. Army Criminal Investigation Command, Aberdeen Proving Ground; Joel Holdford, Chief of Police, Department of the Army (DA) Police, Aberdeen Proving Ground; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
From December 2002 to February 2015, McNeill was a police officer and sergeant for the DA Police on APG. McNeill patrolled APG during non-business hours. At times he would find buildings unlocked. McNeill would sometimes enter the building to determine whether anyone was working. Many times, no one was working during these non-business hours and the building occupants simply forgot to secure the building.
According to his plea agreement, from at least September 2011 to August 2014, during these building checks, McNeill took items of government property for his own personal use, or for the use of his family members, including laptops, iPad, iPod, camera and accessories, and other electronic equipment. McNeill would place the stolen item in a bag which he transferred from his police vehicle to his personal vehicle at the end of his shift before returning home.
In the months following the theft, four of the five stolen Apple electronic items were linked to iTunes accounts that belonged to McNeill or a member of his family.
On February 5, 2015, agents interviewed McNeill at the APG, while other agents searched his home with the consent of his wife. The agents seized numerous stolen items from his residence. McNeill was unaware of the ongoing search and during his interview, he denied stealing any government property and claimed, for example, that his family did not use Apple products.
During the scheme, McNeill stole approximately $35,000 worth of property belonging to the U.S. Army.
McNeill faces a maximum sentence of 10 years in prison. U.S. District Judge James K. Bredar has scheduled sentencing for November 23, 2015 at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the Department of the Army Police on Aberdeen Proving Ground; U.S. Army Criminal Investigation Command, and FBI for their work in the investigation. Mr. Rosenstein praised the Defense Criminal Investigative Service – Mid Atlantic for their assistance in the investigation, and thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
Bank Branch Manager Sentenced to over 8 Years in Prison for Armored Truck RobberyRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Valentina Elebesunu, age 50, of Temple Hills, Maryland to 105 months in prison followed by three years of supervised release for conspiring to commit, and committing, an armed robbery of an armored truck. Judge Hazel also entered an order that Elebesunu pay restitution of $272,956.17.
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.
Elebesunu was the branch manager at a Bank of America located at 3413 Kenilworth Avenue in Hyattsville, Maryland. According to evidence presented at the five day trial, between mid-November and November 21, 2012, Elebesunu conspired with Damione Lewis – a security guard at the bank, Delacey Brown, Taurian Miller, Adriane Baldwin and Barrington Turner to rob an armored truck that serviced the bank branch. Elebesunu had provided Lewis with inside information about the amount of funds scheduled to be picked up by the armored truck. Lewis then provided that information to the other co-conspirators.
On November 21, 2012, an armored car employee picked up $272,956.17 from the bank. Elebesunu and Lewis were working their respective jobs at the bank at the time. Elebesunu’s co-conspirators were in vans outside the bank. As the employee was taking the money from the bank to the armored truck, Elebesunu’s co-conspirators brandished firearms at the employee, took the money bags to their vans and drove away. The robbery proceeds were later divided between Elebesunu and her co-conspirators.
Damione Lewis, age 36, of New Carrolton, Maryland; Delacey Kinte Brown, age 38, of Landover, Maryland; and Taurian Devon Miller, age 31, and Adrian Baldwin, age 29, both of Washington, DC; and Barrington Turner, age 35, of Forestville, Maryland; have all pleaded guilty to their roles in the robbery. Lewis is scheduled to be sentenced on September 2, 2015. The remaining four defendants were sentenced to between 51 and 96 months in prison.
United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department and other members of the Cross Border Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys William D. Moomau and Bryan E. Foreman, who prosecuted the case.
Baltimore Man Exiled to 182 Years in Prison for Armed RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Paul Chance, age 28, of Baltimore, today to 182 years in prison for conspiring to commit robbery, three counts of robbery, four counts of possessing and brandishing a firearm in furtherance of robbery, and being a felon in possession of a firearm. Judge Russell also entered an order that Chance pay restitution of $19,011.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; Interim Commissioner Kevin Davis of the Baltimore Police Department; Baltimore City State’s Attorney Marilyn Mosby; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
“Paul Chance will spend the rest of his life in federal prison, and many other Baltimore criminals who are caught with a gun will join him,” said U.S. Attorney Rod J. Rosenstein. “The defendant’s first adult conviction was for armed robbery at age 18, and he only stopped committing armed robberies when he was behind bars.”
According to evidence presented during his six day trial, on March 29, 2013, Chance and co-defendant Sharmaine Diggs brandished semi-automatic handguns at the owner of the Ashland Café on York Road in Cockeysville, Maryland. They forced the owner inside his business and bound his hands with duct tape. They threatened to shoot him if he did not provide money, and pistol-whipped him. The defendants took $4,000 and a .45 caliber weapon that was in the kitchen safe, and another $15,000 from a downstairs safe. The robbers then forced the owner into the walk-in freezer, and left.
According to trial testimony, Chance, armed with a firearm, also robbed the following businesses: Pizza Hut on Annapolis Road in Severn, Maryland on April 7, 2013; the Hobbit Liquor Store on Bowleys Lane in Baltimore on April 26, 2013; and attempted to rob the Olive Garden on Perry Hall Boulevard in Baltimore on April 29, 2013. The jury also found that on April 19, 2013, Chance possessed a semi-automatic rifle and a pump action shotgun. Because of a prior felony conviction, Chance was prohibited from possessing a firearm.
Sharmaine Christopher Diggs, age 35, of Baltimore, previously pleaded guilty to his participation in the March 29, 2013 robbery, as well as an additional, subsequent attempt to rob the same cafe. Judge Russell sentenced Diggs to 20 years in prison and entered an order that Diggs pay restitution of $19,000.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City, Baltimore County and Anne Arundel County Police Departments and Baltimore City, Baltimore County and Anne Arundel County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Patricia C. McLane, who prosecuted the case.
Physician Admits Writing Prescriptions in the Names of Patients to Obtain Drugs for His Own UseRead the Press Release
Greenbelt, Maryland – Peter Wisniewski, age 52, of Huntingtown, Maryland, a physician in a Calvert County medical group, pleaded guilty today to three counts of possession of a controlled substance. Wisniewski admitted that he wrote prescriptions in the names of three of his patients for Oxycodone and Adderall that he then kept for his own use.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Calvert County Sheriff Mike Evans.
According to his plea agreement, between March 2012 and April 2015, Wisniewski wrote prescriptions for Oxycodone and Adderall in the names of three elderly patients but kept the drugs for himself. Wisniewski caused the pharmacy to fill the prescriptions, and he picked up the prescriptions without the knowledge or authorization of the patients in whose names he had written the prescriptions. Wisniewski falsely represented to the pharmacy that as the prescribing physician he was collecting the prescriptions in order to deliver them to his elderly patients.
To conceal the scheme, Wisniewski created false entries in the medical files of the three patients in whose names he was writing the prescriptions. During the scheme Wisniewski obtained more than 8,000 Oxycodone pills written in the names of those three patients.
The determination of what sentence to impose will be made by the sentencing judge, subject to a maximum of three years in prison. In light of the facts of the case, which will be more fully explained at sentencing, the government agreed to recommend a sentence of three years of probation and a fine of at least $40,000, which will be due on the date of Wisniewski’s sentencing. In addition, Wisniewski will voluntarily surrender his DEA controlled substances license and will not practice medicine for at least two years. The decision whether to allow Wisniewski to practice medicine at all in the future must be made by the state medical board. U.S. District Judge Paul W. Grimm has scheduled sentencing for October 23, 2015 at 1:00 p.m.
United States Attorney Rod J. Rosenstein commended the Department of Health and Human Services Office of Inspector General and the Calvert County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah J. Bressack and Lindsay Eyler Kaplan, who are prosecuting the case.
Hyattsville Man Pleads Guilty to Carjacking and to Illegal Possession of a GunRead the Press Release
Greenbelt, Maryland – Marden Gonzalez, age 20, of Hyattsville, Maryland, pleaded guilty today to carjacking and to being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Larry M. Brownlee, Sr. of the Maryland National Capital Park Police, Prince George’s County Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Gonzalez=s plea agreement, on February 17, 2015, at 1:00 p.m. Gonzalez approached the victim, who was stopped at a red light at the intersection of East-West Highway and Ager Road in Hyattsville. Gonzalez pointed a loaded .380 caliber pistol at the victim and demanded the victim’s car. The victim got out of the car and Gonzalez got in and drove away in the victim’s car.
A few minutes later, a Maryland Park Police officer spotted the stolen car at the intersection of Queens Chapel and Chillum Roads in Hyattsville. Park Police and Prince George’s County Police officers pursued Gonzalez through snowy streets. After sideswiping several parked cars, Gonzalez crashed the victim’s car headfirst into a parked car. The law enforcement vehicles pursuing Gonzalez slid in the snow when they attempted to brake, resulting in a crash. Three officers were injured and one was taken to a hospital. Gonzalez bailed out of the victim’s car and ran away, still carrying the loaded pistol. Officers located and arrested Gonzalez in the semi-enclosed back porch of a nearby house, and recovered the gun.
Gonzalez had previously been convicted of a felony and as a result, was prohibited from possessing a firearm or ammunition.
Gonzalez faces a maximum of 15 years in prison for carjacking and a maximum of 10 years in prison for being a felon in possession of a firearm. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 16, 2015, at 1:00 p.m.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Maryland National Capital Park Police and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Lindsay Eyler Kaplan and William D. Moomau, who are prosecuting the case.
Former NIST Police Officer Admits That He Attempted to Manufacture Methamphetamine, Causing an ExplosionRead the Press Release
Greenbelt, Maryland – Former National Institute of Standards and Technology (NIST) police officer Christopher Bartley, age 41, of Gaithersburg, Maryland, pleaded guilty today to attempting to manufacture methamphetamine in a laboratory room on the NIST campus on Saturday, July 18, 2015, which resulted in an explosion.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Scott Hinckley of the Federal Bureau of Investigation; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
"Methamphetamine is unsafe to produce and unsafe to use," said U.S. Attorney Rod J. Rosenstein. "Mr. Bartley damaged government property and jeopardized the health and safety of NIST employees by mixing dangerous chemicals."
According to his plea agreement, on July 18, 2015, Bartley reported to work at NIST where he worked as a lieutenant with the NIST police force. In the evening, Bartley entered a room inside a NIST building in order to use equipment to manufacture methamphetamine under a chemical fume hood. While attempting to manufacture methamphetamine, Bartley caused an explosion that blew four of the room’s windows out of their frames. The shatterproof windows were found at distances ranging from 22 to 33 feet from the building. Bartley suffered burns on his head and arm.
The explosion caused the temperature in the room to rise to 180 degrees, activating a silent heat alarm. When firefighters entered the building shortly thereafter, they saw Bartley leaving the room with burns on his arm, as well as singed eyebrows and hair. Before leaving the building, Bartley collected remnants of items from the scene of the explosion and later threw the items in a dumpster near the building. He then drove to another NIST building where he discarded additional items in the trash related to his attempt to manufacture methamphetamine.
Law enforcement later searched the trash near those two buildings and seized a coffee grinder with white powder residue, rubber gloves, a funnel, a soda bottle containing white powder with a rubber tube coming out the top, coffee filters, burnt and melted plastic, a bottle of Drano crystals, a gas mask and protective safety glasses.
Law enforcement agents searched Bartley’s vehicle and recovered a book that contained Bartley’s handwritten notes of ingredients and equipment needed to manufacture methamphetamine, including tubing, a funnel, coffee filters, Coleman camp fuel and lye.
At 1:27 a.m. on July 19, 2015, Bartley sent an email to his supervisor titled “tonight’s explosion” in which he admitted he had attempted to manufacture methamphetamine. A few hours later, Bartley also admitted to a law enforcement agent that he had been trying to manufacture methamphetamine at the time the explosion occurred.
The total amount of methamphetamine involved in the offense was less than five grams.
Bartley faces a maximum sentence of 20 years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for November 19, 2015 at 9:30 a.m. Bartley is not in custody.
United States Attorney Rod J. Rosenstein commended the FBI, DEA and Montgomery County Police Department for their work in the investigation, and praised NIST for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah Jo Bressack and Mara Zusman Greenberg, who are prosecuting the case.
Suitland Woman Pleads Guilty to Stealing over $115,000 in Social Security Retirement BenefitsRead the Press Release
Greenbelt, Maryland – Theresa Darlene Snead, age 56, of Suitland, Maryland pleaded guilty today to theft of government property in connection with a scheme to steal over $115,000 in social security benefits.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
According to Snead’s plea agreement, between May 1986 and her death on January 10, 2003, Individual A received monthly retirement benefits from the Social Security Administration (SSA). At the time of her death, Individual A was living with Snead. Individual A’s death was not reported to SSA. Between January 2003 and March 2014, when the benefits were terminated, SSA continued to mail Individual A’s monthly benefits check to Snead’s address in Suitland.
Snead admitted that after Individual A’s death she cashed the SSA checks at a local liquor store, using an identification card bearing Individual A’s name, but Snead’s photograph. Snead signed the back of each check in Individual A’s name. SSA paid a total of $115,388 in retirement benefits after Individual A’s death. Snead admitted that she knew she was not entitled to these benefits.
Snead and the government have agreed that if the Court accepts the plea agreement Snead will be sentenced to 18 months in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 10, 2015 at 2:30 p.m.
United States Attorney Rod J. Rosenstein commended the SSA Office of Inspector General for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Lauren Perry and Assistant U. S. Attorney Lindsay Eyler Kaplan, who are prosecuting the case.
Ringleader in Check and Credit Card Fraud Schemes Sentenced to over 5 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Egwolo Wilfred Otete, age 31, of formerly of Jacksonville, Florida and Beltsville, Maryland today, to 61 months in federal prison, followed by two years of supervised release, for check and credit card fraud schemes with over 250 victims and losses of more than $468,000. Otete has already served nearly 41 months in Florida state prison in connection with the schemes. Judge Bennett also ordered Otete to pay restitution of $468,534.42, the amount of the victims’ actual losses. Otete was ordered to be surrendered to immigration authorities for deportation after the service of his federal sentence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, from September 3, 2010 through March 1, 2011, Otete conspired with co-defendants Jimoh Babatunde Aderomilehin, Olaniyi Olalekan Akintuyi, Moyosore Fakeye, Obinna Stanley Okpala, and others, to execute a scheme to defraud financial institutions by depositing counterfeit checks into accounts at financial institutions and withdrawing the funds before the checks were returned as fraudulent.
Shortly after Otete arrived in the United States to attend college, he met Oluwaseun Sanya at a nightclub. Soon, Otete became deeply involved in both the check fraud scheme and a counterfeit credit card scheme, and moved in with Sanya. Their apartment became a central point where counterfeit checks and credit cards were produced and distributed, and fraud proceeds delivered.
In the counterfeit check scheme, Otete and others recruited students and others to allow the group to use their bank accounts to deposit counterfeit checks. Otete also recruited bank employees to obtain account and personal information about bank customers, which he and Sanya used to create the counterfeit checks to be deposited into the students’ compromised accounts. Once counterfeit checks were deposited, funds were withdrawn before the counterfeit checks could be identified as fraudulent and the deposits reversed. Otete also conducted transactions himself. Finally, Otete and Sanya received a substantial share of the proceeds after paying the students, the corrupt bank employees, and the costs of producing the checks.
In addition to the check fraud scheme, from October 2010 through November 2012, Otete conspired with co-defendants Aderomilehin, Fakeye, Akintuyi, Okpala, Hannah Moekay Konteh and others to execute a second scheme by obtaining stolen credit card numbers from individuals who worked in local businesses and “skimmed” credit cards. The skimmed numbers were used to re-encode credit cards the defendants already had. Otete and Sanya both had equipment to re-encode the credit cards and did so regularly. Sometimes they were paid for the cards, and sometimes they received a percentage of the funds which were obtained by using the re-encoded cards. Sometimes Otete directed co-defendants as to what to purchase. In some cases, Otete, Sanya, or others involved in the conspiracy identified complicit tellers or cashiers to use for transactions. Individuals traveled to North Carolina, Pennsylvania, Georgia and other locations to conduct transactions. Eventually, Otete taught others, such as Fakeye and Aderomilehin, how to manufacture the counterfeit credit cards and they obtained their own equipment.
In March 2011, Otete was arrested. A search warrant was subsequently executed at the apartment shared by Otete and Sanya. Sanya had disposed of his own equipment, but had left Otete’s equipment to be discovered. When he was released, Otete went to live with a friend of Sanya’s in Florida, and resumed credit card fraud as a way to pay his expenses. On several occasions he arranged for co-defendant Hannah Konteh to visit him and assist by conducting fraudulent transactions. Within months, Otete was arrested and detained for this conduct. He was subsequently convicted and served a sentence of nearly 41 months for the Florida conduct. Upon his release, he was transferred to Maryland for this case.
Otete and his co-conspirators attempted to obtain between $400,000 and $1 million as a result of the two fraud conspiracies, using the identities of more than 250 victims.
Oluwaseun Sanya, age 28, of Beltsville, Maryland; Jimoh Babatunde Aderomilehin, age 24, of Randallstown, Maryland;; Olaniyi Olalekan Akintuyi, age 25, of Baltimore; Moyosore Fakeye, age 27, of Baltimore; Obinna Stanley Okpala, age 24, of Baltimore; and Hannah Moekay Konteh, age 26, of Clinton, Maryland; Brianna Janet Turner, age 25, of Upper Marlboro, Maryland; Brittnee Ashanya Bellamy Handon, age 24, of Baltimore; and Nazrat Zaman, age 24, of Baltimore, previously pleaded guilty and were sentenced. Sanya was sentenced to 212 months in prison; Turner was sentenced to 65 months in prison; Konteh and Handon were each sentenced to four years in prison; Aderomilehin, Akintuyi, Fakeye, and Okpala were each sentenced to three years in prison; and Zaman was sentenced to six months.
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 thanked the U.S. Secret Service and the Montgomery County and Baltimore County Police Departments for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamara L. Fine, who prosecuted the case.
PoleZero Corporation Agrees to Pay $2.8 Million to Resolve False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – Department of Defense contractor PoleZero Corporation, owned by Dover Corporation since 2007, has agreed to pay the United States $2,800,000 to resolve allegations under the False Claims Act that the company caused false claims to be submitted to the Department of Air Force for communications equipment.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) - Mid-Atlantic Field Office; Brigadier General Keith M. Givens, Commander of the Air Force Office of Special Investigations; Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service (NCIS), Washington Field Office.
Pole Zero is a subcontractor that provided radiofrequency filters (RF filters) and integrated co-site equipment (ICE) to the United States Air Force for use in its E-3 AWACS Aircraft program. The settlement agreement resolves allegations that from 2004-2013 Pole Zero knowingly provided RF filters and ICE equipment that failed to meet contractual specifications. PoleZero denies the allegations.
“Defense contractors are expected to ensure that the equipment they provide meets the expectations of the contract. The military needs to be able to depend on the quality of the products it purchases," said United States Attorney for the District of Maryland Rod J. Rosenstein.
“Getting what you pay for is something we all should expect,” said Robert Craig, Special Agent in Charge for the DCIS, Mid-Atlantic Field Office. “DCIS and its law enforcement partners remain steadfast in expecting contractors to adhere to agreements made with the government when providing products and services.”
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government's recovery. The civil lawsuit was filed in the District of Maryland (United States ex rel. Stoneham v. PoleZero Corporation, PoleZero Acquisition, Inc. and Dover Corporation, WDQ 12-392). As part of today’s resolution, the Relator will receive $504,000 from the settlement.
The settlement was a result of an investigation by the U.S. Attorney's Office for the District of Maryland, U.S. Department of Justice, DCIS, Air Force Office of Special Investigations, and NCIS. Mr. Rosenstein commended the Defense Contract Audit Agency for their assistance in the investigation. The investigation was handled by Assistant U.S. Attorneys Thomas H. Barnard and Thomas F. Corcoran and Senior Trial Counsel Dan Spiro from the Department of Justice.
Bookkeeper Sentenced to 3 Years in Prison for Embezzling over $1.3 Million from Non-Profit OrganizationsRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Sharon Harrison, age 48, of Rosedale, Maryland, today to three years in prison followed by three years of supervised release for embezzling from four non-profit organizations for which she worked. Judge Motz also entered an order that Harrison pay restitution of $1,306,797.70, the total amount that she embezzled.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Scott Hinckley 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.
“Non-profit organizations that receive federal funds have a legal duty to use them for the intended purpose,” said U.S. Attorney Rod J. Rosenstein. “Sharon Harrison helped herself to federal funds intended to provide services for disadvantaged children and homeless families in Baltimore.”
According to her plea agreement, Harrison was a bookkeeper or fiscal manager for the following non-profit groups, all of which received federal funds to assist in their mission:
Health, Education, Advocacy, Life Inc. (HEAL) from 2005 to March 2011;
Between Friends, Inc. from September 2008 to November 2011;
Jobs, Housing & Recovery, Inc. (JHR) from May 20, 2013 to February 12, 2014; and
Reservoir Hill Improvement Council (RHIC) from December 2012 to February 2014.
HEAL and JHR provided services for the homeless in Baltimore City. Between Friends assisted disadvantaged children to find foster homes and provided services to the children and their foster families. RHIC developed and implemented solutions to needs arising at the Reservoir Hill Community in Baltimore.
Over the course of her employment at these non-profits, Harrison embezzled over $1.3 million. Specifically, Harrison admitted that she embezzled: $226,888.34 from HEAL; $784,781.17 from Between Friends; $161,750.14 from JHR; and $133,178.04 from RHIC.
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 prosecuted the case.
Silver Spring Man Sentenced for Two Bank RobberiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Paul Milton Laney, age 60, of Silver Spring, Maryland today to 78 months in prison followed by three years of supervised release for committing two bank robberies within three days.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Scott Hinckley of the Federal Bureau of Investigation; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, on February 18, 2014, Laney entered a bank in the 13000 block of Georgia Avenue in Silver Spring and demanded money from a teller. When the teller did not immediately comply, Laney leapt up onto the counter and stuffed $2,920 from the register into a plastic bag. As Laney was leaving, a bank employee attempted to stop him. Laney stated, “If you take another step closer, I’ll blow your head off.” The employee stepped away and Laney left the bank.
On February 21, 2014, Laney entered a bank in the 8700 block of Georgia Avenue in Silver Spring and demanded money from a teller. The teller was slow to put money in a bag. Laney leaned over the counter revealing a large kitchen knife inside his jacket and threated to kill the teller. The teller handed Laney approximately $999 from the register, and Laney left the bank.
United States Attorney Rod J. Rosenstein commended the FBI and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Daniel C. Gardner, who prosecuted the case.
Heroin Dealer Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Eric Johnson, age 38, of Baltimore, today to 12 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Marilyn Mosby; and Interim Baltimore Police Commissioner Kevin Davis.
According to his plea agreement, between January and June 2014, Johnson conspired with co-defendants Ronald Ross, Keith Gilliam, Sara Jones, Nicholas Jones and others to distribute heroin in Baltimore City. The defendants obtained bulk quantities of heroin and packaged the heroin for retail distribution. The prepackaged heroin was provided daily to Johnson and his co- defendants who sold the drugs to customers at an open-air drug shop in the vicinity of Baltimore and Bentalou Streets.
Johnson and his co-conspirators distributed between 100 and 400 grams of heroin.
Ronald Ross, age 27, and Keith Gilliam, age 21, both of Baltimore, were previously sentenced to 10 years in prison and five years in prison, respectively. Nicholas Jones, age 23, of Baltimore, has pleaded guilty and is scheduled to be sentenced on August 31, 2015.
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 United States Attorney Matthew Hoff, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Former Treasury Department Worker Pleads Guilty to Theft of Government FundsRead the Press Release
Greenbelt, Maryland – Marlene Biggs, age 53, of Bowie, Maryland today admitted to unlawfully converting funds obtained from her government credit cards to her personal use.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
Biggs was a management analyst with the Department of Treasury. She retired in 2013. According to her plea agreement, from October 2010 to January 2013, Biggs charged approximately $142,000 in 62 separate transactions to two Treasury-issued purchase cards for purported purchases of office supplies and equipment from a government vendor. In fact, no supplies and equipment were purchased in a majority of these transactions and instead, the vendor sent approximately $108,000 in 60 installments to Biggs’ personal bank account, and retained the balance.
In May 2014, an agent from the Treasury’s OIG office spoke to the vendor’s owner, who admitted to an agreement with Biggs in which he would charge government credit cards used by Biggs and then send approximately 75% of the charged amount back to Biggs’ personal bank account. When interviewed in July 2014, Biggs initially denied that she personally benefited from the funds she obtained from the vendor under this scheme. In fact, however, Biggs converted at least $100,000 in government funds to her personal use.
The total loss attributable to Biggs is between $120,000 and $200,000.
Biggs faces a maximum sentence of 10 years in prison for theft and conversion of government funds. Biggs has agreed to the entry of an order to pay restitution of at least $142,000 and forfeit at least $108,000. U.S. District Judge George J. Hazel has scheduled sentencing for November 24, 2015 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Department of the Treasury – OIG for its work in the investigation and thanked Special Assistant U.S. Attorney Nicholas J. Patterson, of the U.S. Department of Justice, and Assistant U.S. Attorney Joseph R. Baldwin, who are prosecuting the case.