District of Maryland
Press releases recorded for this federal judicial district.
Baltimore Man Sentenced to 9 Years in Prison for a Drug Distribution Conspiracy and for Bribing Letter Carriers to Divert Packages Containing MarijuanaRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Gary Coleman, a/k/a “Short,” age 44, of Baltimore, today to nine years in prison, followed by five years of supervised release, in connection with a bribery and drug conspiracy in which he bribed letter carriers to divert packages of marijuana sent through the mail and deliver the packages to Coleman and other co-conspirators. Judge Motz also ordered Coleman to forfeit $14,700.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City Sheriff John Anderson.
“Today’s sentencing confirms that anyone using the U.S. mail to distribute marijuana or any other illegal narcotics will be brought to justice and held accountable,” said David Bowers, Acting Inspector in Charge, U.S. Postal Inspection Service-Washington Division. “We’re grateful to our law enforcement partners who helped with this investigation and look forward to their continued support to protect America’s postal system from criminal activity.”
According to his plea agreement, Coleman and others conspired with letter carriers Antoinette McDaniels and Hilary Gainey, paying them bribes in exchange for diverting packages containing marijuana and delivering those packages to Coleman and other co-conspirators.
Specifically, Coleman admitted that in February 2014 and April 2014, he was introduced to Antoinette McDaniels and Hilary Gainey, respectively, while they were employed by the U.S. Postal Service as letter carriers. A co-conspirator told Coleman that McDaniels and Gainey would divert specific packages sent through the U.S. mail that contained marijuana, and deliver those packages to co-conspirators, in exchange for a bribe of $100 per parcel. Coleman, McDaniels and Gainey agreed to this arrangement and Coleman paid them up to $100 for each parcel diverted and delivered to him or a co-conspirator. According to court documents the packages were sent via the U.S. mail from Arizona, California, Florida, and elsewhere, to addresses along McDaniels’ route in Baltimore and Gainey’s route in Columbia, Maryland.
According to their plea agreements, Gainey and McDaniels delivered approximately 100 packages and 30 packages, respectively, to Coleman and other co-conspirators. Gainey was paid a total of $10,000 by the co-conspirators and McDaniels was paid a total of $4,700 by the co-conspirators. Coleman admitted that during his participation in the conspiracy, between 100 and 400 kilograms of marijuana were distributed.
McDaniels and Gainey previously pleaded guilty to their roles in the conspiracy. They each face a maximum sentence of five years in prison for the bribery conspiracy and two years in prison for bribery. McDaniels faces a maximum of 20 years in prison and Gainey faces a mandatory five years and up to 40 years in prison, for conspiracy to distribute and possess with intent to distribute marijuana. U.S. District Judge J. Frederick Motz has scheduled sentencing for McDaniels on August 28, 2015, and for Gainey on August 21, 2015.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, DEA, Maryland State Police, Baltimore City Police Department and Baltimore City Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Jason D. Medinger, who is prosecuting the case.
Baltimore Man Pleads Guilty to Sex Trafficking ConspiracyRead the Press Release
Baltimore, Maryland – Gerald Lee Banks, age 40, of Baltimore, pleaded guilty today to conspiracy to commit sex trafficking by force, fraud and coercion.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.
According to Banks’ plea agreement, from September through May 2013, Banks conspired with Travis Lamont Foote, a/k/a “Cash,” to commit sex trafficking by force fraud and coercion.
For example, in September 2012, Jane Doe 1, an 18 year old woman living in Florida, had dropped out of high school and was trying to get back into school or find employment. Foote contacted Jane Doe 1 on Facebook, using a female online identity he created, “Cash Treasure,” and told Jane Doe 1 that “she” knew someone who would be able to assist her. Foote then reached out to Jane Doe 1, as a friend of “Cash Treasure,” and lured her to Baltimore stating that he could help Jane Doe 1 to get back into high school and get a diploma. After Jane Doe 1 agreed, Foote paid for an airline ticket for Jane Doe 1 to fly from Florida to Baltimore sometime in September.
Banks and Foote met Jane Doe 1 at the airport and drove her to a motel in Catonsville, where they had rented four rooms, three of which were occupied by other females. It was then that Jane Doe 1 learned that Banks and Foote were running a prostitution business and that they expected Jane Doe 1 to work for them. At first Jane Doe 1 refused, but eventually she began having sex with men for money, with all of the proceeds going to Banks and Foote.
During this time of the conspiracy, Banks and Foote used internet websites to advertise the women who worked for them, including Jane Doe 1, as available for prostitution. All of the proceeds were paid to Banks and Foote. On November 14, 2012, an undercover detective from the Baltimore County Police Department Vice Unit scheduled a “date” with one of the prostitutes advertised by Banks and Foote. The undercover detective met the woman at the agreed upon time and place and she was arrested. Jane Doe 1 was also arrested and officers located and attempted to arrest Foote but he struggled and ran away.
On May 16, 2013, a Baltimore County Police officer conducted a traffic stop of a vehicle being operated by Banks, with Foote and an 18 year old female, Jane Doe 2, as passengers in the car. Banks, Foote and Jane Doe 2 were arrested when officers recovered a plastic bag containing 16 smaller bags of crack cocaine. Jane Doe 2 was listed in police records as a possible runaway and investigation showed that Jane Doe 2 began working as a prostitute for Banks and Foote in April 2013. As a result of internet advertisements placed by Banks and Foote, Jane Doe 2 had approximately 100 “dates” with men to engage in commercial sex acts and all of the proceeds were paid to Banks. Jane Doe 2 told law enforcement that earlier in May 2013, Foote beat and choked her when she tried to leave the motel after refusing a request from one of the men. Banks stopped Foote from choking her, but was aware that Foote physically forced Jane Doe 2 back to the hotel room.
Shortly after his arrest on May 16, 2013, Banks made bail and was released. Banks did not attend further court proceedings and an arrest warrant was issued in October 2013. On January 9, 2014, federal charges were filed against Banks, who evaded authorities until his arrest in October 2014.
Banks faces a maximum sentenced of life in prison, and will also be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). U.S. District Judge James K. Bredar has scheduled sentencing for November 18, 2015, at 3:00 p.m. Banks remains detained.
Travis Lamont Foote, a/k/a “Cash,” age 31, of Baltimore, previously pleaded guilty to his role in the sex trafficking conspiracy and was sentenced to 12 years in prison.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
Third Conspirator Sentenced to 13 Years in Prison for Armed RobberyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Joel Varela Linares, age 25, of Washington, D.C., to 13 years in prison, followed by five years of supervised release, for conspiring to commit the robbery of a person he believed to be a drug dealer, for using and brandishing a firearm during a crime of violence, and for conspiring to possess with intent to distribute more than a kilogram of heroin.
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 his plea agreement, on April 11, 2014, Linares and his co-conspirators Shawn Delonte Allen and Evan Anthony Peek-Austin, entered the victim’s residence and awaited his arrival. As the victim arrived home, Allen approached the victim from behind and forced him at gunpoint into the residence. After zip-tying the victim’s hands, Linares, Austin, and Allen questioned the victim about the location of drugs and drug proceeds. The robbers thought the victim was in possession of heroin imported from Guatemala or proceeds from heroin sales. Linares, Austin, and Allen each had a handgun and threatened to kill the victim if he did not produce the drugs or drug proceeds. While questioning the victim, Allen brandished his gun. When the victim claimed that he did not have drugs or drug proceeds, Linares placed a knife to the victim’s neck and Allen struck the victim in the head with a handgun. Allen also heated a metal spoon and placed the hot spoon on the victim’s wrists, demanding the victim tell them the location of the drugs and money.
Linares and his co-conspirators move the victim to the basement where Austin secured the victim’s feet with plastic zip ties. Allen again heated a metal spoon and placed the hot spoon on the victim’s hands and face, while Linares, Austin, and Allen continued to demand that the victim tell them the location of the drugs and money. The victim finally told Linares and his co-conspirators that his American friend had the drugs and money and the robbers allowed the victim to call his friend, who was, in fact, a Special Agent with Homeland Security Investigations. The victim arranged to meet with the agent and told Austin and his co-conspirators that his friend would have approximately 10 kilograms of heroin.
Linares and Allen instructed the victim to drive them to the meeting location in Beltsville, Maryland. Linares told the victim that Austin would remain at the victim’s home to wait for the victim’s family and that Austin would harm the victim’s family if the victim did not comply with their instructions. Austin later met up with Linares, Allen, and the victim at the meeting location. Once the HSI agent arrived, the victim met the agent and told him that Linares and his co-conspirators were going to kill him. As the HSI agent and the victim left, Allen got out of the car and brandished his gun. Linares entered another vehicle and pursued the agent’s car until he was stopped by Prince George’s County Police officers. Meanwhile, Austin and Allen fled the meeting location in a Honda Prelude and were pursued by law enforcement. They eventually ran away and Allen was subsequently apprehended by police. Austin approached two people in a pick-up truck, brandished his gun and carjacked the truck. Austin drove away in the truck, but was shortly trapped in the area by a gate. Austin then got out of the truck and ran. Austin was later caught by police.
A subsequent search of the Honda Prelude, which was registered to Austin, recovered $5,000 in cash, a black ski mask, black hat, black pellet gun, black single strap backpack containing zip ties and white gloves, and a wallet containing Austin’s identification documents.
Shawn Delonte Allen, age 40, of Waldorf, Maryland and Evan Anthony Peek-Austin, age 39, of Landover, Maryland previously pleaded guilty to their roles in the robbery. Allen was sentenced to 150 months in prison and Peek-Austin was sentenced to 11 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. Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O. Hayes and Daniel C. Gardner, who prosecuted the case.
Sykesville Business Owner Pleads Guilty to $11 Million Fraud SchemeRead the Press Release
Baltimore, Maryland – Rolf Ramelmeier, age 78, of Sykesville, Maryland pleaded guilty today to mail fraud and money laundering in connection with a scheme to defraud Northrop Grumman Corporation of more than $11 million.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Scott Hinckley of the Federal Bureau of Investigation.
According to Ramelmeier’s plea agreement, he owned and operated JADM. Inc., which was in the business of selling or brokering natural gas sales, out of his residence. Ramelmeier exercised complete control and authority over the company. JADM’s sole client for many years was the Northrop Grumman Corporation. JADM supplied natural gas to several Northrop Grumman Corporation facilities that were located in Linthicum, Maryland. Ramelmeier obtained the gas from a supplier, such as UGI Energy Services (UGI) or Potomac Electric Power Company (PEPCO) and Baltimore Gas and Electric Company (BG&E) transported the gas from UGI or PEPCO to the Northrop Grumman facilities. JADM would then issue monthly invoices to Northrop Grumman which specified the units, known as “decatherms,” of gas delivered and the cost per decatherm. In turn, Northrop Grumman would issue payment to JADM on the invoices.
Ramelmeier admitted that beginning in at least 2003 and continuing until December 2013, he engaged in a scheme to defraud Northrop Grumman by overcharging for the amount of natural gas delivered to the Linthicum facilities. Ramelmeier executed and concealed this scheme by, among other things, falsifying invoices and other documents and by using a false corporate identity and bank accounts that he maintained in the names of shell entities.
Specifically, Ramelmeier represented himself as a gas broker and led the UGI or PEPCO personnel to believe that their company was entering into a sales contract directly with Northrop Grumman when, in fact, Northrop Grumman had no knowledge of these agreements. Under the agreements, UGI and PEPCO were required to submit their invoices to Northrop Grumman by mailing them to a post office box in Roanoke Rapids, North Carolina and by e-mailing a copy of each invoice to Ramelmeier at JADM. In fact, Northrop Grumman had no such post office box. Rather, at Ramelmeier’s direction, an associate opened that post office box using the name “Northrup Sensors.” The associate regularly retrieved the mail from the post office box, including the invoices from PEPCO and UGI, and forwarded that mail to Ramelmeier. Ramelmeier created invoices on JADM letterhead which charged the real Northrop Grumman for more than the amount of natural gas that UGI or PEPCO had invoiced. Northrop Grumman then paid JADM on the inflated JADM invoices, first by check and then, in more recent years, by wire transfer to JADM’s bank account.
Ramelmeier transferred those Northrop Grumman payments from the JADM account into a bank account that he held in the name of Consolidated Fuel Atlantic (Consolidated), a shell company with no assets or business. Ramelmeier then transferred all or most of the funds out of the Consolidated bank account and into an account Ramelmeier had opened in the name of Northrop Group Sensor Division (NGS Div.) with an address at the post office box in Roanoke Rapids. Ramelmeier used NGS Div. checks to pay UGI or PEPCO for the amount of their original invoices, deceiving those companies into believing that they were being paid by Northrop Grumman. Ramelmeier kept the difference between the original amount invoiced by UGI and PEPCO and the amount that Northrop Grumman paid based on JADM’s inflated invoice, for his own personal use and benefit.
As a result of the fraudulent scheme Ramelmeier caused Northrop Grumman to pay him at least $11,238,519 for natural gas that was never actually provided.
In December 2013, Northrop Grumman noticed some unusual charges by JADM for natural gas purportedly used at one of the Linthicum locations, which Ramelmeier falsely claimed was a JADM billing error. Ramelmeier offered to credit Northrop Grumman for the overcharge. Suspicious of Ramelmeier’s explanation, Northrop Grumman hired a consulting firm to conduct an analysis to determine if there had been any other overcharges. The consulting firm compared the amount of gas delivered, per JADM’s invoices, to the amount of gas delivered, per BG&E’s records. That analysis revealed that JADM routinely charged Northrop Grumman and specifically, that between 2003 and 2013 JADM overcharged Northrop Grumman by $11,238,519.
On May 16, 2014, Northrop Grumman representatives confronted Ramelmeier about the $11 million in overcharges. Ramelmeier falsely claimed, among other things that the billing errors occurred because corrupt employees doing the billing for JADM had engaged in embezzlement, when in fact, JADM had no employees; and that he could not provide Northrop Grumman with his billing records because his company computer files were corrupted.
On May 19, 2014, the first business day following his confrontation with the Northrop Grumman representatives, Ramelemeier used $82,626.54 of the fraud proceeds to pay off the entire mortgage balance on his residence, and the next day the post office box in Roanoke Rapids was closed.
Ramelmeier faces a maximum sentence of 20 years in prison each for mail fraud and for money laundering. U.S. District Judge J. Frederick Motz has scheduled sentencing for November 2, 2015 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case.
Baltimore City Landfill Supervisor Admits to Accepting Bribes from Trash HaulersRead the Press Release
Baltimore, Maryland – William Charles Nemec, Sr., age 55, of Baltimore, pleaded guilty today to conspiracy and solicitation of bribes in connection with a scheme in which Department of Public Works (DPW) employees sought and accepted cash payments from commercial haulers in return for allowing the commercial haulers to deposit trash at the Quarantine Road Landfill without paying the required disposal fees. Nemec also admitted to participating in a scheme in which employees stole scrap metal from the Landfill for personal gain.
The plea agreement 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; 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 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.
Bribery Scheme
According to his plea agreement, Nemec started working in 1984 for the DPW as a scale house cashier at the Cold Spring Lane Landfill. Back then, weight tickets were handwritten, and Nemec and other cashiers would regularly accept bribes from small and large haulers in lieu of charging disposal fees and then split the bribe money among all the cashiers. That same year, Nemec was transferred to the Quarantine Road Landfill (Landfill) where he engaged in the same type of bribery scheme. Except for short periods of time over the years since 1984, and despite the comings and goings of new scale house employees and supervisors at the Landfill, Nemec and other scale house operators continued to execute the bribery scheme until Nemec’s arrest on May 12, 2015, and even after he was promoted to a supervisory position at the Landfill in 2006.
Beginning around 2002, Nemec executed the bribery scheme in tandem with two scale house operators, including Tamara Washington. Nemec and the scale house operators accepted $100 bribe payments from large haulers for each truckload of trash dumped at the Landfill, which saved the haulers many hundreds of dollars per trip to the Landfill. Nemec and others concealed the bribery scheme by not entering a truck’s registration number into the computerized scale system, which meant the transaction was not recorded. Consequently, the transaction would not appear on the scale house’s daily logs and the commercial hauler would not be billed for using the Landfill on that particular occasion.
To maintain the pretense that the trucks had been weighed and the disposal fee paid, Nemec and others would hand the truck drivers fake or blank receipts when they crossed the outbound scale. In return, the commercial haulers either paid the $100 bribe through the outbound window at the scale house or met with Nemec or another scale house operator at an off-site location to pay a week’s worth of bribes or more. The commercial haulers always paid the $100 bribes in cash.
By paying the $100 bribes in lieu of the disposal fees, these haulers saved their businesses thousands of dollars each month, which, in turn, cost the City of Baltimore more than $6 million in revenue. For example, from July 1, 2014 through May 1, 2015 alone, Nemec, while working as a supervisor at the Landfill, accepted on his own behalf, and on behalf of other DPW employees involved in the scheme, more than $15,000 in bribe payments from a commercial hauler in return for not charging the hauler or his company the required waste disposal fees, which totaled approximately $55,000 during that period of time.
Nemec has agreed to pay restitution of $6 million.
Illegal Junking Scheme
In addition to the revenue generated by the collection of disposal fees, Baltimore City’s waste management system generates revenue by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities, including household appliances, steel cables, copper wires, car parts, computer parts, door and window frames. The City awards contracts to private salvage companies to purchase and remove such scrap metal from its trash collection facilities.
DPW employees at the Landfill and other trash collection sites are required to segregate the recyclable scrap metal from general refuse and place it in separate bins provided by the salvage companies. The companies regularly pick up the scrap metal, weigh it and send a tonnage report to the City. Based on predetermined prices per ton, the City sends an invoice to the companies requesting payment for the value of the scrap metal the companies removed during a given period of time. Salvaging by employees, also referred to as “junking,” was strictly prohibited and employees were put on notice that any salvaging of metal constituted theft of City property.
From 2005 until May 2015, Nemec and other Landfill employees 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. Employees under Nemec’s supervision paid him cash to conceal the illegal junking that occurred daily at the Landfill.
Nemec knew that laborers 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. After collecting and creating piles of the scrap metal at various locations, the laborers would transport 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.
For the years 2011 and 2012, two laborers paid Nemec approximately $20 every day to allow them and others to collect and transport the stolen scrap metal. In addition to not reporting the daily trips to the salvage company to sell the stolen metal, which some days could take a total of 3 - 4 hours, Nemec would authorize and submit false time and attendance records to conceal the scheme, so that the laborers were able to be paid for work they did not perform while stealing the metal.
Nemec 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 November 17, 2015 at 9:30 a.m.
Former DPW employee Tamara Oliver Washington, age 55; and commercial haulers Mustafa Sharif, age 63, of Baltimore, and Adam Williams, Jr., age 52, of Randallstown, pleaded guilty in July 2015 to their participation in the bribery scheme. Washington is scheduled to be sentenced on October 20, 2015, Williams on October 21 and Sharif on November 6, 2015. Washington has agreed to pay restitution of $6 million. 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.
Pawn Shop Owner Indicted in Scheme to Sell Stolen Goods on eBayRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Noel Eric Anshel, age 48, of Owings Mills, Maryland for selling stolen goods and fraudulently obtained gift cards on eBay. The indictment was returned on August 11, 2015 and unsealed today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Chief Gary Gardner of the Howard County Police Department.
According to the one count indictment, Anshel operated Hilltop Cellular, a pawnshop located at 5450 Reisterstown Road in Baltimore. From no later than September 1, 2013 to April 1, 2015, Anshel paid cash to “boosters,” a common term for shoplifters, in exchange for items that he knew to be stolen property. This stolen property included faucets, garbage disposal units, drills, saws, digital cameras and televisions sets. Anshel allegedly sold the stolen property over eBay, often for less than the wholesale price for the items.
The indictment further alleges that boosters would also steal items from a store and return the stolen items to another location of the same chain in order to receive store credit in the form of gift cards. Anshel bought these cards knowing that the gift cards had been obtained by fraud. He then sold the gift cards over eBay.
The indictment seeks forfeiture of $1 million, the proceeds of the fraud scheme.
Anshel faces a maximum sentence of 10 years in prison for transporting stolen goods. An initial appearance was held this afternoon in U.S. District Court in Baltimore. Anshel was released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service and the Baltimore City Police Department and Howard County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
Maryland Owner of Loan Brokerage Firms Pleads Guilty to Fraud and Obstruction of Justice ChargesRead the Press Release
Baltimore, Maryland – Jeong Joon Moon, a/k/a Patrick Moon, age 47, of Germantown, Maryland, pleaded guilty today to charges arising from a scheme to defraud financial institutions who loaned money to small businesses.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Acting Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; and Acting Inspector General Fred W. Gibson, Jr. of the Federal Deposit Insurance Corporation.
Moon owned and operated JM Capital Solutions, Inc. and RNB Consulting, Inc., which were loan brokerage firms with offices located in Annandale and Springfield, Virginia. These firms specialized in securing loans for individuals interested in purchasing or refinancing small businesses in Maryland, Virginia, the District of Columbia and elsewhere.
Moon encouraged prospective borrowers to apply for business loans through the SBA’s Section 7(a) program, which authorizes SBA to help small businesses obtain financing by guaranteeing 75 to 90 percent of qualified loans made by commercial lenders. Small business owners are required to invest a certain amount of their own money into the business before they can qualify for the loan. Moon compiled and submitted to lenders the documentation necessary to substantiate the borrowers’ equity injection and ability to repay loans guaranteed by SBA, as well as documentation needed for other commercial loans.
According to his agreement to plead guilty to the indictment, from 2006 to April 2014, Moon and others defrauded financial institutions by submitting false copies of the borrowers’ monthly bank statements to reflect more money than was actually in the borrowers’ bank accounts. Moon and others also prepared and submitted false tax returns for the borrowers which inflated the borrowers’ income. The financial institutions relied on the false information to lend funds to the borrowers, which resulted in loan broker commissions being paid to JM Capital and RNB Consulting.
On July 12 and 15, 2013, Moon altered, destroyed or concealed documents relating to six loans guaranteed by SBA for six small businesses, intending to impede the federal investigation of such loans.
Moon has agreed to forfeit $14,708,000, the amount of fraudulently obtained loans.
Moon faces a maximum sentence of 30 years in prison for conspiracy to commit bank fraud, and for each of the 18 counts of bank fraud; and 20 years in prison on each of six counts for destruction of records in a federal investigation. U.S. District Judge William D. Quarles, Jr. scheduled sentencing for November 24, 2015 at 1:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the SBA - OIG, U.S. Postal Inspection Service, FBI and FDIC - OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and Marty Clarke, who are prosecuting the case.
MS-13 Member Sentenced to over 15 Years for Leadership Role in Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Wilmer Argueta, a/k/a “Chengo,” age 23, of Hyattsville, Maryland, today to 188 months in prison followed by five years of supervised release for conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang and against rival gangs.
According to his plea agreement, from 2009 until at least 2012, Argueta was a member and leader of the Peajes Locos Salvatrucha clique of MS-13. He and members of the Peajes and other MS-13 cliques committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation.
On January 3, 2010, Argueta and other MS-13 members attempted to kidnap and assault two individuals with weapons because Argueta and his co-conspirators believed one of the individuals was associating with a rival gang. After the individuals fled in different directions, several MS-13 members caught one of the victims and sexually assaulted her as retribution for associating with a rival gang.
In addition on January 13, 2011, Argueta attended a Peajes clique meeting during which another MS-13 member criticized members of the clique for not committing enough violent crimes and encouraging clique members to target rival gang members with acts of violence. After the meeting, Argueta and other MS-13 members strangled and stabbed an individual whom the clique members believed to be a member of a rival gang. Although the MS-13 members left the victim for dead, he survived.
Argueta also admitted that between March and November 2011, he and other members of the Peajes clique extorted a former MS-13 associate under the threat of a “greenlight” (an order to kill). Argueta ordered other MS-13 associates to relay the death threats to the victim, and he contacted the victim himself on multiple occasions to arrange extortion payments.
Between September and November 2011, Argueta conspired to kill an individual who had been assaulted by Argueta and other MS-13 members and who had agreed to testify as a witness against Argueta in state court. Specifically, Argueta admitted that, while incarcerated in the Prince George’s County Corrections Facility, he ordered the “greenlight” by contacting a co-conspirator who then relayed the instruction to other MS-13 members. On Nov. 15, 2011, three MS-13 members drove to the victim/witness’ home, and one of the co-conspirators shot at the victim from a moving vehicle, striking the victim in the chest. The victim survived.
To date, five of the 14 defendants charged in this case have pleaded guilty to participating in the racketeering conspiracy.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County and Montgomery County Police Departments, the Prince George’s County and Montgomery County State’s Attorney’s Offices, and the Takoma Park Police Department for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau, Lindsay Eyler Kaplan, and Trial Attorney Kevin L. Rosenberg with the Justice Department Criminal Division’s Organized Crime and Gang Section, who prosecuted this case.
MS-13 Member Sentenced to over 15 Years for Leadership Role in Violent Racketeering ConspiracyRead the Press Release
Participated in Assault, Kidnapping and Attempted Murder of a State’s Witness
A Maryland gang member was sentenced to 188 months in prison today for conspiring to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
The sentence was announced by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Rod J. Rosenstein of the District of Maryland; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); Chief Mark A. Magaw of the Prince George’s County, Maryland Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County, Maryland, Police Department; Chief Alan Goldberg of the Takoma Park, Maryland, Police Department; and Montgomery County State’s Attorney John McCarthy.
Wilmer Argueta, aka Chengo, 23, of Hyattsville, Maryland, pleaded guilty on April 20, 2015, before U.S. District Judge Roger W. Titus of the District of Maryland to one count of Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy.
According to the stipulated facts agreed to in connection with Argueta’s guilty plea, MS-13 is an international criminal organization and one of the largest street gangs in the United States with branches or “cliques” operating throughout Prince George’s and Montgomery Counties in Maryland. Both to maintain membership in the gang and to enforce internal discipline, members are required to engage in acts of intimidation and violence, including against members of rival gangs.
In connection with his plea, Argueta admitted that from 2009 until at least 2012, he was a member and leader of the Peajes Locos Salvatrucha clique of MS-13, and that he and members of the Peajes and other MS-13 cliques committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation.
Argueta admitted that on Jan. 3, 2010, he and other MS-13 members attempted to kidnap and assault two individuals with various weapons because Argueta and his co-conspirators believed one of the individuals was associating with a rival gang. After the individuals fled in different directions, several MS-13 members caught one of the victims and sexually assaulted her as retribution for associating with a rival gang.
In addition, according to the plea agreement, on Jan. 13, 2011, Argueta attended a Peajes clique meeting during which another MS-13 member criticized members of the clique for not committing enough violent crimes and encouraging clique members to target rival gang members with acts of violence. After the meeting, Argueta and other MS-13 members strangled and stabbed an individual whom the clique members believed to be a member of a rival gang. Although the MS-13 members left the victim for dead, he survived.
Argueta also admitted that between March and November 2011, he and other members of the Peajes clique extorted a former MS-13 associate under the threat of a “greenlight” (an order to kill). Argueta admitted that he ordered other MS-13 associates to relay the death threats to the victim, and he contacted the victim himself on multiple occasions to arrange extortion payments.
According to admissions made in connection with his plea, between September and November 2011, Argueta conspired to kill an individual who had been assaulted by Argueta and other MS-13 members and who had agreed to testify as a witness against Argueta in state court. Specifically, Argueta admitted that, while incarcerated in the Prince George’s County Corrections Facility, he ordered the “greenlight” by contacting a co-conspirator who then relayed the instruction to other MS-13 members. On Nov. 15, 2011, three MS-13 members drove to the victim/witness’ home, and one of the co-conspirators shot at the victim from a moving vehicle, striking the victim in the chest. The victim survived.
To date, five of the 14 defendants charged in this case have pleaded guilty to participating in the racketeering conspiracy.
The case is being investigated by HSI Baltimore, the Prince George’s County and Montgomery County Police Departments, the Prince George’s County State’s Attorney’s Office, the Takoma Park Police Department and the Montgomery County State’s Attorney’s Office. The Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit also provided assistance.
The case is being prosecuted by Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland.
Former Army Pharmacy Specialist Pleads Guilty to Stealing Drugs from Walter Reed HospitalRead the Press Release
Greenbelt, Maryland – Lamelle Marquez Malone, age 35, of Las Vegas, Nevada, formerly of Columbia, Maryland, pleaded guilty today to conspiring to steal prescription drugs from a military hospital and to interstate transportation of stolen property.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid‑Atlantic Field Office; and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations.
Malone admitted that from April 8, 2011 through August 2012, he conspired with Roger Gurdon, and others to steal Somatropin, a form of human growth hormone, from the pharmacy located at the former Walter Reed Medical Center in Washington, D.C. Malone and his co-conspirators re-sold the stolen pharmaceuticals for profit.
Gurdon was a pharmacy technician at Walter Reed. Between January 2008 and the fall of 2011, Gurdon stole Somatropin from Walter Reed and sold it to a co-conspirator. When Gurdon traveled out of the country in April 2011, he arranged for the co-conspirator to obtain Somatropin from Malone, who was an enlisted member of the Army and worked as a pharmacy specialist at Walter Reed. Malone distributed stolen Somatropin to the co-conspirator from April until August 2011, when Walter Reed was closed. Malone paid a pharmacy technician at Walter Reed to order the Somatropin which Malone stole, and paid the non-commissioned officer who was in charge of the pharmacy to ignore the fact that Malone was stealing Somatropin. Malone transported the stolen Somatropin from Walter Reed to his home in Columbia, and to College Park, Maryland to distribute the Somatropin to the co-conspirator.
During the period that Malone was involved in the conspiracy, the government contends that he and his co-conspirators stole over $2 million worth of Somatropin from the Walter Reed pharmacy. Gurdon admitted that the total loss to the United States over the course of the entire conspiracy was at least $4,467,000.
U.S. District Judge Paul W. Grimm has scheduled sentencing for Malone on November 24, 2015 at 9:30 a.m.
Roger Gurdon, age 43, of Waldorf, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to 78 months in prison, and was ordered to pay restitution of $4,467,000. Another conspirator, Issa Wasco Koroma, age 63, of Springdale, Maryland was sentenced to five years in prison for conspiring to steal prescription drugs from two federal military hospitals.
United States Attorney Rod J. Rosenstein praised the DCIS and FDA-OCI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Mara Zusman Greenberg, who is prosecuting the case.
Berlin Man Facing Federal Indictment for Armed Bank Robbery Carjacking, and Brandishing a FirearmRead the Press Release
Baltimore, Maryland – A federal grand jury today indicted Jeff V. Hare, age 53, of Berlin, Maryland, on charges of armed bank robbery, carjacking and brandishing a firearm during a crime of violence.
The indictment 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; Worcester County Sheriff Reggie T. Mason, Sr.; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Worcester County State’s Attorney Beau Oglesby.
According to the three-count indictment, on March 13, 2015, Hare entered the BB&T branch located at 11000 block of Racetrack Road in Berlin, wearing a ski mask and brandishing a handgun.
Hare told the bank tellers present in the bank’s lobby that he had a gun and he was robbing the bank, demanding that the tellers give him only fifty and one hundred dollar bills, and that they not give him any dye packs. Hare moved through the lobby from employee to employee pointing the handgun at the employees and demanding money. Hare also demanded each teller give him their car keys and purse, but each teller told Hare they did not have them available. Hare stole approximately $2,850 in cash from the bank.
The indictment alleges that after robbing the tellers in the lobby, Hare found a bank employee who had locked herself in a back room of the bank. Hare forced open the locked door, pointed his handgun at the employee and demanded her car keys and her purse. The employee gave Hare her purse, which contained cash and personal effects, and the keys to her car, a 2007 Kia Spectra, which was parked in the bank’s parking lot. Hare exited the bank and fled in the stolen 2007 Kia Spectra, which he abandoned at a nearby business.
Hare faces a maximum sentence of 25 years in prison for armed bank robbery; a maximum of 15 years in prison for carjacking; and a mandatory minimum of seven years and up to life in prison for brandishing a firearm during a crime of violence. An initial appearance has not yet been scheduled for U.S. District Court in Baltimore. Hare remains detained on related state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Worcester County Sheriff’s Office, Maryland State Police and the Worcester County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Zachary A. Myers, who is prosecuting the case.
Owner of District Heights Shipping Company Sentenced to Prison for Attempting to Illegally Export Arms to Lebanon and SmugglingRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Sam Rafic Ghanem, age 45, of Springfield, Virginia, today to 18 months in prison followed by three years of supervised release for attempting to illegally export firearms parts and accessories to Lebanon, and for smuggling goods from the United States. Judge Titus also ordered Ghanem to pay a fine of $70,734.24.
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 Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Ghanem, a naturalized U.S. citizen born in Lebanon, owned and operated Washington Movers International, also known as Washington Movers, Inc., a freight forwarding business located in District Heights, Maryland.
According to evidence presented at his five day trial, beginning October 3, 2013, Ghanem sought to export guns and accessories to Lebanon through his shipping company that were provided to him by an FBI source. Ghanem knew that the weapons and accessories were designated as defense articles and required an export license, which Ghanem never sought or obtained. In addition, those items were prohibited from export to Lebanon. Specifically, Ghanem attempted to export seven 9mm semi-automatic pistols; three .40 caliber semi-automatic pistols; 10 AR-15 .223 caliber semi-automatic rifles; and 18 advanced combat optic gun sights.
According to trial evidence, on November 21, 2013, Ghanem told the source to pay him $3,000 for the cost of purchasing salvaged vehicles which would be used to export the firearms and accessories. Ghanem texted the source his bank account number and at the direction of law enforcement, the source deposited $3,000 into Ghanem’s account. Ghanem purchased the salvaged vehicles and arranged for them to be cut up. Ghanem concealed the weapons and other items within the doors and cut-up parts of the salvaged vehicles, which were then loaded into a shipping container. Ghanem advised the source that the shipping container would be loaded with the remaining car parts and transported to the Port of Baltimore for shipment to Lebanon on December 23, 2013. Ghanem was subsequently arrested.
United States Attorney Rod J. Rosenstein commended the FBI and Homeland Security Investigations Washington, D.C., for their work in the investigation and thanked U.S. Customs and Border Protection for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Christine Manuelian and Joseph R. Baldwin, who prosecuted the case.
Glen Burnie Man Sentenced to 5 Years in Prison for CarjackingRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Deverey Hasani-Jarod Kelley, age 25, of Glen Burnie, Maryland, today to five years in prison followed by three years of supervised release for the armed carjacking of a woman who was in labor and on her way to the hospital.
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; Annapolis Police Chief Michael A. Pristoop; and Anne Arundel County State’s Attorney Wes Adams.
According to his plea agreement, on March 2, 2014, Kelley and co-defendant Cornell Robinson pointed guns at two individuals on Copeland Street in Annapolis, Maryland, as they were getting into their car. The victims were planning to go to the hospital because the woman was in labor. The male victim managed to flee and called the police. Robinson and Kelley forced the woman at gunpoint to a residential building nearby, demanding money. The woman repeatedly told them that she was in labor and did not have the key to the residence. When it became clear that she could not get into the residence, Robinson took her car key and left in the victim’s car.
Officers from the Annapolis Police Department arrived and pursued the stolen car into Eastport. Kelley threw out a loaded handgun at the corner of Tyler Avenue and Hilltop Lane, which was recovered by police. Robinson and Kelly got out of the car on Tyler Avenue and ran away, but were arrested nearby. Police also recovered a shotgun from a neighbor’s yard.
A federal jury convicted Cornell Louis Robinson, age 45, of Washington, D.C., on July 29, 2015. Robinson faces a maximum sentence of 15 years in prison for carjacking; life in prison for possession and brandishing a firearm in furtherance of a crime of violence; and 10 years in prison for possession of a firearm and ammunition by a felon. Judge Motz scheduled sentencing for Robinson on November 13, 2015, at 10:30 a.m. Robinson remains detained.
United States Attorney Rod J. Rosenstein commended the FBI, Annapolis Police Department, and Anne Arundel County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Bonnie S. Greenberg and Patricia C. McLane, who prosecuted the case.
Baltimore Co-Conspirator Admits to Robbing Seven StoresRead the Press Release
Baltimore, Maryland – Darryl Norris, age 36, of Baltimore, pleaded guilty today to robbing a video game store, and admitted to six other robberies.
The plea agreement 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; Chief James W. Johnson of the Baltimore County Police Department; Interim Commissioner Kevin Davis of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, on September 24, 2014, Norris and two co-conspirators entered the Game Stop at 8067 Liberty Road in Baltimore, pointing fake guns which appeared to be real weapons at an employee. The robbers demanded that the employee open the register, from which they took money. The robbers forced the employee to show them a safe and game systems, and then bound him with zip ties. The robbers took the employee’s cell phone as well as $7,833.79 in cash and merchandise.
Norris admitted to committing six other robberies with co-conspirators from August 26 to September 27, 2014, using a similar modus operandi: Rainbow Clothing on Maiden Choice Lane in Baltimore; Cappy Cleaners on Belair Road in Baltimore; The Summit at Owings Mills, in Owings Mills, Maryland; Royal Farms on Wilkens Avenue and another Royal Farms on Keswick Road, both in Baltimore; and 7-Eleven on Pleasant Plains Road in Towson, Maryland. The total loss from these robberies was $5,650.36.
Norris and the government have agreed that if the Court accepts the plea agreement, Norris will be sentenced to 108 months in prison. U.S. District Judge George L. Russell III has scheduled sentencing for October 16, 2015 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and City Police Departments and Baltimore County and City State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who is prosecuting the case.
Previously Convicted St. Mary’s County Sex Offender Pleads Guilty to Attempting to Induce a Minor to Have SexRead the Press Release
Greenbelt, Maryland – Nicholas Edward Seskar, Sr., age 41, of Lusby, Maryland, pleaded guilty today to attempting to induce a minor to engage in sex.
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); St. Mary’s County Sheriff Tim Cameron; and St. Mary’s County State’s Attorney Richard Fritz.
In 2006, Seskar admitted to having sex with a 15 year old when he was 30 years old. He pleaded guilty in the Circuit Court for St. Mary’s County to one count of sex offense in the third degree and was sentenced.
According to his plea agreement, from March 23 to April 2, 2015, Seskar communicated on Facebook with an individual named “Tiffany” who he believed was 15 years old. “Tiffany” was in fact an undercover law enforcement officer with the St. Mary’s County Sheriff’s Office. Over time, his Facebook conversations became extremely graphic regarding the sexual acts he wanted to perform on “Tiffany.” Seskar told the undercover police officer that he wanted to meet to have sex, and that he had slept with a 15 year old when he was 30 years old.
On April 2, 2015, Seskar arrived at a pre-arranged meeting place and was arrested by officers with the St. Mary’s County Sheriff’s Office.
As part of his plea agreement, Seskar must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Seskar and the government have agreed that if the Court accepts the plea agreement, Seskar will be sentenced to 15 years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for November 18, 2015 at 2:30 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the St. Mary’s County Sheriff’s Office, HSI Baltimore and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley and Special Assistant U.S. Attorney Jennifer Wine of the U.S. Department of Justice, who are prosecuting the case.
Virginia Cocaine Dealer and Member of the Jenifer Drug Trafficking Organization Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Thomas Simmons, age 38, of Hampton, Virginia, today to 10 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; Acting Assistant Special Agent in Charge Shawn R. Ellerman 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.
According to his plea agreement, from September 2012 to October 2014, the Jenifer DTO supplied Simmons and others with kilogram-quantities of cocaine for distribution in and around the Baltimore-Washington metropolitan areas. The Jenifer DTO obtained its cocaine from suppliers in or around Houston, Texas. The Jenifer DTO 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. In September 2012 and July 2013, courier vehicles for the Jenifer DTO were intercepted in Chambers County, Texas and in Arkansas. The vehicles contained approximately 30 kilograms and 23 kilograms, respectively, of cocaine hidden in secret compartments. Between August 2013 and October 2014, approximately 30 shipments of cocaine were made to the Jenifer DTO.
Since June 2013, members of the Jenifer DTO made approximately 16 trips to Woodbridge, Virginia, to deliver kilograms of cocaine to Simmons. For example, on June 16, 2014, a co-defendant met Simmons in Woodbridge, Virginia to deliver four kilograms of cocaine. During a court-authorized wiretap law enforcement intercepted phone calls between Simmons and other members of the Jenifer DTO discussing and arranging deliveries of cocaine to Simmons. On June 24, 2014, during an intercepted phone call a co-conspirator advised Simmons that he would deliver “a deuce,” or two kilograms of cocaine, to Simmons. On June 25, 2014, law enforcement agents observed Simmons and the co-conspirator meet in Woodbridge, Virginia, and exchange a black bag. The two men left the area and Simmons was covertly followed by the Virginia State Police. Simmons was stopped by the Virginia State Police and a K-9 unit arrived at the scene to scan Simmons’s vehicle. The K-9 alerted to the presence of narcotics in the vehicle and the vehicle was searched. During the search law enforcement officers located a hidden compartment in the rear cargo area of Simmons’s vehicle that contained two kilograms of cocaine in a black bag and scented dryer sheets.
Simmons admitted that he 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 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.
Baltimore Getaway Driver Admits to Conspiring to Participate in Three Armed RobberiesRead the Press Release
Baltimore, Maryland – Antwan Travers, age 45, of Baltimore, Maryland, pleaded guilty today to charges arising from his participation in a conspiracy to commit three armed robberies of commercial establishments.
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; Chief James W. Johnson of the Baltimore County Police Department; Interim Commissioner Kevin Davis of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to Travers’ plea agreement, in March 2014, Travers and co-defendant Darryl Green planned to commit an armed robbery at a pharmacy located in the 6600 block of Security Boulevard in Baltimore. According to his plea agreement, on March 19, 2014, Travers drove Green to the store and waited outside as the getaway driver. Green entered the store and asked an employee about medication for pink eye. At the time, the employee was holding her two-month old baby. The employee’s husband was also in the store. Green pointed a long-barreled BB pistol at the employee and her baby and said, “I’m going to kill the baby.” He then ordered the employee to move towards the cash register. The employee and her husband activated a loud panic alarm, and Green fled the store. Travers drove Green away from the pharmacy.
Travers also admitted that he and Green attempted to rob a grocery store on March 27, 2014. Travers drove Green to the supermarket. Green entered the store and asked a store employee about purchasing a Keno card. Green then pointed a handgun at the employee and demanded money from the register. Green said, “You better make it quick or I’m going to shoot you.” Travers drove away before Green could escape. Green attempted to run away, but he was quickly caught by members of the Baltimore County Police Department. Officers found the gun that Green had used during the robbery, a loaded .380 caliber handgun with an obliterated serial number, near the location where Green was arrested. Officers also found the stolen money, about $5,000, in a plastic bag.
Travers also admitted that he was the getaway driver in the February 16, 2014 robbery of a store in the 6600 block of Security Boulevard. In that robbery, Travers drove an unknown male to the store. The man brandished a firearm and demanded that the store employee empty the cash register and the safe. The man stole approximately $6,000.
Travers and the government have agreed that if the Court accepts the plea agreement, Travers will be sentenced to between 15 and 20 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for November 16, 2015 at 3:00 p.m.
Darryl Green, age 48, of Baltimore, previously pleaded guilty to his role in the robberies and is scheduled to be sentenced on September 14, 2015 at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg and Joshua Ferrentino, who are prosecuting the case.
Pennsylvania Man Sentenced to 7 Years in Prison for Traveling to Baltimore to Have Sex with a MinorRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Ryan C. Anton, age 42, of Elverson, Pennsylvania, today to seven years in prison followed by 10 years of supervised release for travel with intent to engage in illicit sexual conduct. Judge Bennett ordered that upon his release from prison, Anton 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; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Interim Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, in July, 2014, as part of an investigation of individuals who were targeting minors online for sexual exploitation, an undercover Baltimore City Police detective placed an ad on the internet. On July 23, 2014, Anton initiated text messaging with the undercover detective. Anton believed that the detective was a 14 year old, hearing-impaired girl named Heidi who was in the 10th grade. After a series of exchanges of sexually-explicit text messages over a period of weeks, including the solicitation of pornographic images from “Heidi,” Anton relayed that he was on a bus to Baltimore, provided the bus number and attempted to convince “Heidi” to board the bus.
Baltimore City Police detectives assisted by HSI agents boarded the bus and arrested Anton. Anton admitted that the plan was for “Heidi” to get on the bus with him to travel to Washington, D.C. where he had booked a hotel room to have sex.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Aaron S. J. Zelinsky, who prosecuted the case.
Drug Trafficker Exiled to 13 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Lateef Fisher, age 37, of Greencastle, Pennsylvania, today to 13 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute a kilogram or more of heroin or 28 grams or more of cocaine base in Hagerstown, Maryland, and the surrounding counties in Maryland, Pennsylvania, and West Virginia.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Special Agent in Charge Shawn R. Ellerman of the Drug Enforcement Administration, Baltimore District Office; Hagerstown Police Chief Mark Holtzman; and Washington County Sheriff Douglas W. Mullendore.
According to evidence presented at his seven day trial, Fisher sold heroin to an individual who agreed to cooperate with law enforcement. On February 19, 2014, law enforcement arrested Fisher after he parked his car in a lot in Hagerstown, Maryland, and seized two plastic bags of heroin.
Law enforcement made controlled purchases of heroin using confidential informants on five occasions from March 19 to July 23, 2014. These purchases totaled over 28 grams of heroin. In addition, from May to September 2014, two customers purchased approximately one kilogram of heroin from Fisher. Other customers purchased over 600 grams of heroin in July and August, 2014.
On September 4, 2014, law enforcement executed search warrants at Fisher’s residence and a storage unit he rented, seizing 709.5 grams of heroin, 40 grams of crack cocaine, 10 handguns, ammunition, $240,000, a press designed to compress kilogram packages of narcotics, vacuum sealers, digital scales and plastic baggies.
United States Attorney Rod J. Rosenstein commended the DEA, Hagerstown Police Department, Washington County Sheriff’s Office, and the Washington County Narcotics Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Evan T. Shea, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Cecil County Man Indicted for the Attempted Sexual Exploitation of a Minor and for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – A federal grand jury indicted James J. Stanley, age 28, of Rising Sun, Maryland, today for the attempted sexual exploitation of a minor and for distribution of child pornography.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief F.D. “Chip” Peterson, Jr. of the Rising Sun Police Department; and Cecil County State’s Attorney Ellis Rollins.
According to the two-count indictment, Stanley used a website that hosts anonymous, randomized, one-to-one video and text chat. The website allows users to seek chat partners without creating an account or providing any identifying information, and markets itself as an opportunity for users to “Talk to strangers!” The website allows users to engage in text-based chat sessions with or without accompanying video from the user’s webcam.
The indictment alleges that on October 20, 2014, while Stanley was participating in a video chat session on the website he used his webcam to display an image documenting the sexual abuse of a prepubescent girl.
The indictment also alleges that Stanley placed a digital recording device in a shower that he knew would be used by a minor female (Girl1), with the intent to create video recordings of Girl 1 engaged in sexually explicit conduct. Between November 14, 2014 and January 14, 2015, Stanley allegedly saved a video file to his computer that depicted Girl 1 taking a shower. Girl 1’s genital area is not visible in the video.
Stanley faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison for the attempted sexual exploitation of a child; and a minimum mandatory sentence of five years and a maximum of 20 years in prison for distribution of child pornography, each followed by up to lifetime of supervised release. An initial appearance has not yet been scheduled for Stanley, who is currently detained on related state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, the Maryland State Police, Rising Sun Police Department, and the Cecil County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who is prosecuting the case.
North Carolina Man Indicted for Receiving and Selling Misbranded Silicone for Buttocks InjectionsRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Vinnie Lysander Taylor, a/k/a “T,” age 44, of Wilmington, North Carolina, Pennsylvania and Georgia, on charges of receiving and selling industrial grade silicone, but representing to customers that it was medical grade silicone. The indictment was returned on August 3, 2015.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to the nine-count indictment, the only injectable silicone products approved or cleared for marketing by Food and Drug Administration (FDA) were ophthalmic devices for the treatment of eye injuries, such as, for example, detached retinas. These products were regulated by FDA as prescription medical devices.
The indictment alleges that Taylor obtained food grade liquid silicone from a company in Pennsylvania, which was produced and intended to be used as a lubricant and release agent in, among other things, food processing, food treatment, and food transportation and shipment. Taylor traveled to Prince George’s County, Maryland, and elsewhere, and in exchange for money, injected the food grade silicone into the buttocks of customers who wanted larger or fuller buttocks. When used in this fashion, liquid silicone is a medical device subject to regulation by the FDA.
According to the indictment, from approximately September 30, 2008 through December 2, 2014, Taylor placed approximately 180 orders for gallon jugs of liquid silicone with the company that produced the food grade liquid silicone. Taylor stored the liquid silicone in plastic bottles that were not labeled nor approved by the FDA for that purpose. Therefore, the liquid silicone was adulterated and misbranded.
The indictment alleges that Taylor, who was not a licensed medical practitioner, falsely represented to customers and victims to whom he administered liquid silicone injections that the procedure was safe. In addition, Taylor falsely told customers that he used medical grade silicone, when in fact the silicone was not medical grade silicone. Between September 2013 and September 2014, Taylor allegedly injected seven women in Prince George’s County with food grade liquid silicone in exchange for pay.
Taylor faces a maximum sentence of three years in prison for each of nine counts of receipt of a misbranded and adulterated device for delivery for pay with intent to defraud or mislead. An initial appearance has not yet been scheduled for Taylor. Taylor is currently detained on related state charges
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FDA Office of Criminal Investigations’ Metro Washington Field Office, the Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston and William D. Moomau, who are prosecuting the case.
Baltimore Cocaine Dealer and Member of the Jenifer Drug Trafficking Organization Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Elroy Johnson, age 49, of Baltimore, today to 10 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; Acting Assistant Special Agent in Charge Shawn R. Ellerman 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.
According to his plea agreement, from September 2012 to October 2014, the Jenifer DTO supplied Johnson and others with kilogram-quantities of cocaine for distribution in and around the Baltimore-Washington metropolitan areas. The Jenifer DTO obtained its cocaine from suppliers in or around Houston, Texas. The Jenifer DTO transported money hidden in secret compartments in “courier vehicles” from Baltimore to Houston. The cocaine was then transported from Houston to Baltimore hidden in the secret compartments in the Jenifer DTO’s courier vehicles. In September 2012 and July 2013, courier vehicles for the Jenifer DTO were intercepted in Chambers County, Texas and in Arkansas. The vehicles contained approximately 30 kilograms and 23 kilograms, respectively, of cocaine hidden in a secret compartment. Between August 2013 and October 2014, approximately 30 shipments of cocaine were made to the Jenifer DTO.
In August and September 2014, agents saw Johnson meet with members of the Jenifer DTO to exchange money and obtain cocaine. On October 9, 2014, approximately 123 grams of cocaine was seized from Johnson’s residence. On that same day, approximately 27 kilograms of cocaine were seized from one of the Jenifer DTO’s courier vehicles.
Johnson admitted that he 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.
William Hegie, age 54, and Kermit Clark, age 44, both 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.
Annapolis Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – Cecil Scott Wiggins, age 49, of Annapolis, Maryland, pleaded guilty today 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 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.
Annapolis Police Chief Michael Pristoop stated, “Violent crime in Annapolis is at a historic low due in part to the outstanding federal and local partnerships we enjoy. This is another clear example and I thank our law enforcement partners for their work in this case.”
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.
Wiggins and the government have agreed that if the Court accepts the plea agreement Wiggins will be sentenced to between 37 and 66 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for September 17, 2015, at 3:00 p.m.
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 are prosecuting the case.
Lexington Park Man Sentenced for Gun Charges and Trafficking Contraband CigarettesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced William Terrance Proctor, a/k/a “Boobie,” and “Booby,” age 32, of Lexington Park, Maryland, today to 78 months in prison followed by three years of supervised release for aiding and abetting the theft of a firearm, possession of an unregistered firearm, unlawful sale of a firearm to a prohibited person; and receipt, possession and transportation of contraband cigarettes.
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; St. Mary’s County Sheriff Tim Cameron; Charles County Sheriff Troy Berry; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, on October 27, 2012, individuals who stole approximately 48 firearms from a gun shop in Lexington Park transported the guns to Proctor’s residence. Knowing that the guns were stolen, Proctor agreed to store the guns at his house. Thereafter and until June 2014, Proctor arranged for the sale of approximately 45 of the stolen firearms.
On March 20, 2014, Proctor sold a rifle for $1,000 which had a barrel measuring less than 16 inches. From April to June, 2014, Proctor sold seven more firearms in exchange for contraband cigarettes – that is, cigarettes for which the applicable Maryland cigarette taxes were not paid. Of those seven firearms, two were stolen during the 2012 theft from the Tackle Box. Proctor knowingly sold them to an individual who had been previously convicted of a felony. Proctor then sold most of the contraband cigarettes.
On June 27, 2014, Proctor was arrested in Maryland in connection with his attempt to sell an eighth firearm in exchange for contraband cigarettes.
United States Attorney Rod J. Rosenstein commended the ATF, St. Mary’s County and Charles County Sheriffs’ Offices and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston, who prosecuted the case.
Capitol Heights Postal Worker Indicted in Disability Fraud SchemeRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Leroy T. King, Jr., age 54, of Bryans Road, Maryland, today on charges arising from a scheme to fraudulently obtain at least $60,000 in disability travel benefits.
The indictment 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 the eight count indictment, King was a U.S. Postal Service city carrier at the Capitol Heights, Maryland post office. On September 24, 2004, King was injured, which qualified him for compensation benefits provided to federal government employees for disability due to personal injury sustained while in the performance of duty. King returned to work in 2008, but remained eligible to receive disability benefits for medical benefits and for travel to and from medical treatment for that injury.
The indictment alleges that from November 2009 to March 2015, King repeatedly sought and received reimbursement for travel expenses allegedly incurred in connection with trips to and from medical treatment that King claimed had occurred, when, in fact, no medical treatment had been provided on the dates for which King sought reimbursement. King allegedly mailed reports to the Department of Labor’s Office of Worker’s Compensation Programs (OWCP) falsely stating that King had driven his vehicle to and from the Southern Maryland Processing and Distribution Center in Capital Heights Maryland, for purposes of medical treatment.
The indictment alleges that King fraudulently obtained at least $60,000 from OWCP as reimbursement.
King faces a maximum sentence of 20 years in prison for mail fraud; and five years in prison for making false statements. No court appearance has been scheduled for King.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the Department of Labor - OIG and U.S. Postal Service - OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Hollis Weisman and Special Assistant United States Attorney Nicholas Patterson, who are prosecuting the case.
Capitol Heights Man Exiled to 17 Years in Prison for Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Jay Maurice Tharps, age 33, of Capitol Heights, Maryland, today to 17 years in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition, possession with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime. Judge Grimm found that Tharps was a career offender based on three drug and gun convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, on April 11, 2013, Prince George’s County police officers executed a search warrant at Tharps’ residence and seized a loaded handgun with an obliterated serial number; a loaded semi-automatic pistol with an obliterated serial number; another loaded semi-automatic pistol that had been reported stolen; a loaded revolver; a semi-automatic rifle which was found near a high capacity loaded magazine; numerous ammunition; 84 grams of marijuana; and 15 grams of cocaine. Prior to this time, Tharps had been convicted of three felonies for drug and gun violations, and was thus prohibited from possessing firearms and ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case.
Business Owner Sentenced for Fraudulently Obtaining More than $2.6 Million in Government ContractsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Deborah K. Chasanow sentenced Yogesh K. Patel, age 48, of Gaithersburg, Maryland, today to 21 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with a scheme to fraudulently obtain more than $2.6 million in federal government contracts through a Small Business Administration (SBA) program designed to assist disadvantaged businesses. Judge Chasanow also entered an order that Patel forfeit $554,541.07.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations; and Mary L. Kendall, Deputy Inspector General, Department of the Interior.
According to his plea agreement and court documents, Patel owned 91% of United Native Technologies, Inc. (UNTI), which purported to perform information technology services to the government and commercial clients. In 2005, Patel applied for and was granted certification as a socially and economically disadvantaged owned business under SBA’s program. In addition to a broad scope of assistance from SBA, participants in the program can receive sole source government contracts that are reserved for socially disadvantaged owned companies.
In 2007, Patel met co-defendant Wesley Burnett at a business conference in Costa Rica. Burnett, who was not a member of any economically or socially disadvantaged group, had experience constructing and maintaining barriers at military and government installations. Patel and Burnett agreed that they would use UNTI to bid on SBA set aside contracts for barrier-related work. Burnett would perform the work under the contracts and would pay Patel 4.5 percent of the value of the contracts. In preparing a bid for a contact at Andrews Air Force, which was ultimately awarded to UNTI, Burnett and Patel exchanged emails in June 2011 in which they made statements indicating that they knew this arrangement was illegal.
In 2011, Patel met N.P. They agreed to a fraudulent pass-thru arrangement similar to the one Patel had entered into with Burnett.
From October 2010 to July 2013, UNTI was fraudulently awarded $2,682,430 in set-aside U.S. government contracts.
In 2011, 2012 and 2013, Patel falsely certified to the SBA that no outside entity or individual provided financial support to UNTI when in fact Burnett and N.P. provided financial support to UNTI; and that Patel ran UNTI full-time, when in fact he did not because he was receiving disability compensation from the Social Security Administration in each of those years.
From November 2012 to October 2013, Patel received $973,407.37 in government funds under the fraudulently obtained set-aside contracts. Patel kept a portion of these funds and turned the majority of them over to Burnett. Prior to November 2012, payments under contracts went to Burnett, who provided a portion of the funds to Patel.
Wesley Burnett, age 46, of Hermosa Beach, California, previously pleaded guilty to his role in the scheme. Burnett was sentenced to 42 months in prison and ordered to forfeit $694,893.99.
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, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the SBA OIG, U.S. Air Force Office of Special Investigations, and the Department of the Interior, OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and Sean R. Delaney, who prosecuted the case.
Washington, D.C. and Upper Marlboro Men Each Sentenced to 20 Years in Prison for Armored Car Robbery in Which Employee was ShotRead the Press Release
Greenbelt, Maryland - U.S. District Judge Deborah K. Chasanow today sentenced Keith Willie Reed, age 26, of Washington, D.C., and Tobias Richard Dyer, age 23, of Upper Marlboro, Maryland, each to 20 years in prison followed by 5 years of supervised release, after they pleaded guilty to robbery and interstate transportation of stolen vehicles, in connection with an armored car robbery.
The sentences and guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; and Chief Cathy L. Lanier of the Metropolitan Police Department.
According to their plea agreements and court documents, Reed, Dyer and others robbed an armored car employee on December 11, 2012, as the employee was carrying money from a business establishment to the armored transport vehicle. Specifically, on December 11, 2012, Reed, Dyer, and other perpetrators stole a 2012 Nissan Altima, and a 2002 Dodge Ram truck. Reed, Dyer other perpetrators transported the Altima from the District of Columbia to Maryland and Virginia. The Dodge Ram was transported by Reed, Dyer, and other perpetrators from Maryland to the District of Columbia.
Reed, Dyer and other conspirators traveled in the stolen Nissan Altima to the 6300 block of Livingston Road in Oxon Hill, Maryland, armed with firearms, in order to rob an armored car employee. The robbers exited the Nissan Altima and shot the employee while he was carrying $2,350 in cash from a store to the armored truck parked outside the store. The robbers took the bag containing the money being carried by the employee, and stole the employee’s gun. The robbers then got back into the stolen Nissan Altima and drove away.
The armored car employee was shot, sustaining life-threatening bodily injury.
Prior to their guilty pleas in Maryland, Reed and Dyer were convicted of similar crimes in a federal case in the Eastern District of Virginia and were each sentenced to 60 years in prison. The Maryland sentence is concurrent to the Virginia sentence.
United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and, the Metropolitan Police Department and the Takoma Park Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Special Assistant U.S. Attorney Matthew L. Paeffgen, who prosecuted the case.
Walkersville Man Sentenced to Two Years in Prison for Distribution of MethyloneRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Bradley Newman, age 30, of Walkersville, Maryland today to two years in prison, followed by three years of supervised release, for distribution and possession with intent to distribute methylone.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Special Agent in Charge Shawn Ellerman of the Drug Enforcement Administration, Baltimore District Office; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Frederick Police Department Chief Edward G. Hargis.
According to his plea agreement, on four occasions between October 2012 and January 2013, Bradley Newman distributed methylone to a confidential source, for profit. Each transaction was recorded by audio, video, or both. The substances obtained from Newman were tested and found to contain methylone and Newman admitted that he was selling a controlled substance.
Specifically, on October 11, 2012, Newman sold approximately 53 grams of methylone to the confidential source for $2,000, which was paid to Newman the following day. Subsequently, on November 1, 2012, Newman sold approximately 54 grams of methylone to the confidential source for $2,000; on December 6, 2012, Newman sold approximately 83 grams of methylone to the confidential source for $3,000; and on January 31, 2013, Newman sold approximately 85 grams of methylone to the confidential source for $3,000 (divided into two payments of $1,500 each). In all, Newman possessed with intent to distribute approximately 275 grams of methylone.
United States Attorney Rod J. Rosenstein praised DEA, HSI Baltimore and the Frederick Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew C. Sullivan and Robert R. Harding, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Pikesville Man Sentenced to Two Years in Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Eliot Knecht Friedman, age 57, is a resident of Pikesville, Maryland today to two years in prison, followed by 20 years of supervised release, for possession of child pornography. Judge Bredar ordered that upon his release from prison, Friedman 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). Freidman is a former contract employee at the National Security Agency.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Stephen E. Vogt 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 Friedman’s plea agreement, on June 27, 2014, a Baltimore County police detective was conducting an investigation regarding child pornography located an IP address on the a file sharing network that was sharing files suspected of depicting children engaged in sexually explicit conduct. The detective downloaded files containing child pornography that were being shared from that IP address. Records showed that Friedman was the subscriber for that IP address and Baltimore County detectives obtained a search warrant for the residence.
On July 22, 2014, members of the Baltimore County Police Department executed the warrant at Friedman’s residence. Law enforcement seized a desktop computer, five external hard drives and digital media. More than 150,000 images of child pornography, including images and videos of prepubescent minors, were subsequently found on the computer and other media associated with Friedman.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.
New Carrollton Man Sentenced to 13 Years in Prison for the Armed Robberies of Cell Phone StoresRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Tyran Antwain Lane, age 23, of New Carrollton, Maryland, today to 13 years in prison, followed by three years of supervised release, for conspiracy, armed robbery and brandishing a firearm during a crime of violence, related to the robberies of cell phone stores.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Tim Altomare; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, from January 29, 2013 through July 4, 2014, Lane was part of a conspiracy to rob cell phone stores in Anne Arundel, Baltimore and Montgomery Counties, along with co-defendants Donald Scott Deans, and Parris Benjamin Chisholm. The conspirators robbed a total of 10 stores during the course of the conspiracy and Lane actively participated in seven of those robberies.
Specifically, Lane, Dean Chisholm, and others, planned and organized the theft of cash, credit cards, cell phones, portable electronic communications devices, and tablet computers from businesses, their employees and customers. Lane, Dean and Chisholm then sold the stolen property for cash. According to their plea agreement and other court documents Lane, Dean or Chisholm used and brandished a gun to intimidate the employees during the robberies. In at least seven of the armed robberies the defendants used duct tape or other items to restrain employees and trash bags to carry the stolen items. The defendants used Chisholm’s car to travel to and from the robberies and to transport the stolen property and guns used during the robberies until Chisholm’s arrest on March 26, 2013. After Chisholm’s arrest, Lane and Deans committed at least four additional robberies, including two in Virginia.
Cell phone records show that Lane, Dean, Chisholm and others involved in the robberies and/or the sale of the stolen items communicated by cell phone calls and text messages before and after the robberies. In addition, Lane, Dean and Chisholm were all captured on surveillance video at least once during the robbery spree.
Chisholm was arrested on March 26, 2013, after he used a rock to break the front window of a cell phone store in the 7700 block of Belair Road in Baltimore County, and stole four cell phones. Police pulled him over and recovered new and used rolls of duct tape, clothing, and hats similar to those described by victims of the previous robberies from the car. The stolen cell phones were also recovered from the car. Video from the victim store recorded Chisholm as he committed the robbery.
Donald Scott Deans, age 23, of Largo, Maryland and Parris Benjamin Chisholm, age 24, of Millersville, Maryland, previously pleaded guilty to their participation in the robberies. Chisholm was sentenced to 16 years in prison and Deans is scheduled to be sentenced on October 2, 2015, at 2:00 p.m. Deans remains detained.
United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County, Montgomery County, and Prince George’s 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.
Seventh Defendant Indicted for Jewelry Store Heist that Included a Home Invasion Robbery, Carjacking and KidnappingRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment that adds a seventh defendant to the six already charged in connection with a conspiracy to rob a jewelry store. The superseding indictment also adds a home invasion robbery to the carjacking and kidnapping charges included in the original indictment. The superseding indictment was returned on July 28, 2015 and unsealed today.
The following individuals are charged in the superseding indictment:
Stanislav (Steven) Yelizarov, age 25, of Pikesville, Maryland
Alexsey (Losha) Sosonko, age 34, of Owings Mills, Maryland;
Igor Yasinov, age 25, of Baltimore;
Grigoriy (Greg) Zilberman, age 24, of Owings Mills;
Peter Magnis, age 27, of Hydes, Maryland;
Marat (Mike) Yelizarov, age 26, of Pikesville; and
Sorhib Omonov, age 27, of Baltimore (new defendant).The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt 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 the six count superseding indictment, from November 2012, through February 2, 2013, the defendants planned and organized the robbery of an Owings Mills jewelry store, in order to sell the stolen goods for cash.
The superseding indictment alleges that on July 22, 2012, S. Yelizarov, Sosonko, Zilberman, M. Yelizarov, and others committed an armed home invasion robbery and stole 10 firearms for use in future criminal activity. During the robbery, the victim was bound and beaten with a handgun. On December 25, 2012, S. Yelizarov, Yasinov and others broke into a residence and stole two guns which they planned to use in the robbery of the jewelry store. Prior to the robbery, the defendants gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. According to the indictment, on January 16, 2013, as the employee was driving from Zilberman’s home, S. Yelizarov, Sosonko, Yasinov, and Magnis drove a rented SUV and used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, the defendants allegedly removed the employee from his car. S.Yelizarov, Sosonko, Yasinov, and Magnis forcibly bound and blindfolded the employee, put him into the trunk of his own car and drove him to a predetermined location. According to the indictment, once at the location, S.Yelizarov, Sosonko, Yasinov, and Magnis brandished firearms and robbed the employee of the keys to the jewelry store and demanded the code to the jewelry store’s alarm system. The defendants threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. During the abduction and robbery the defendants allegedly wore masks and gloves to conceal their identities.
At approximately 3:52 a.m., the indictment alleges that S. Yelizarov and Sosonko drove the employee’s vehicle from the remote location to the jewelry store, where M. Yelizarov and Omonov were stationed nearby to act as “look-outs.” S. Yelizarov and Sosonko allegedly used the employee’s key and the alarm code forcibly obtained from the employee to enter the jewelry store, where they stole jewelry, stones, and watches, valued at about $500,000.
The indictment alleges that over the next few days, S. Yelizarov sold a portion of the items stolen from the jewelry store, both in Maryland and in Brooklyn, New York, receiving in excess of $129,000 in cash, which S. Yelizarov divided among the conspirators and others. According to the indictment, at the direction of S. Yelizarov, M. Yelizarov, Sosonko, and others removed guns and other evidence of the crimes from S. Yelizarov’s residence.
The defendants each face a maximum sentence of life in prison for the kidnapping conspiracy and the kidnapping and for carrying and brandishing a firearm in relation to a crime of violence. The defendants each face 15 years in prison for the carjacking; and 20 years in prison for the robbery conspiracy and for the robbery. An initial appearance was held today for Omonov in U.S. District Court in Baltimore and he was detained pending a detention hearing scheduled for July 31, 2015, at 2:30 p.m. before U.S. Magistrate Judge Timothy Sullivan. No court appearance on the superseding indictment has been scheduled for the remaining defendants.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Medical Device Manufacturer NuVasive Inc. to Pay $13.5 Million to Settle False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – California-based medical device manufacturer NuVasive Inc. has agreed to pay the United States $13.5 million to resolve allegations that the company caused health care providers to submit false claims to Medicare and other federal health care programs for spine surgeries by marketing the company’s CoRoent System for surgical uses that were not approved by the U.S. Food and Drug Administration (FDA). The settlement further resolves allegations that NuVasive caused false claims by paying kickbacks to induce physicians to use the company’s CoRoent System.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Principal Deputy Assistant Attorney General Benjamin C. Mizer, of the Justice Department’s Civil Division; and Special Agent in Charge Nick DiGiulio of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Inspector General Jon Rymer of the U.S. Department of Defense, Office of Inspector General; and Inspector General Patrick E. McFarland of the Office of Personnel Management – Office of Inspector General.
“Health care providers need to be free to make medical decisions without improper influence by material or incentives from manufacturers,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland. “A medical device manufacturer violates the law if it knowingly causes physicians to use its products for purposes that are not medically reasonable and necessary and to bill federal health insurance programs.”
“The Justice Department is committed to holding medical device manufacturers accountable, which includes requiring that they follow all laws designed to ensure that medical devices are safe and effective,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “It is also imperative that manufacturers not improperly influence the selection of medical devices in order to ensure that these decisions are based on the needs and interests of patients, not on a physician’s own financial interests.”
“Defrauding Medicare and Medicaid by paying kickbacks to physicians and promoting uses not covered by Federal health care programs will not be tolerated,” said Special Agent in Charge Nick DiGiulio of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Settlements such as the one entered into today by NuVasive send a message to the medical device industry that such practices will be closely monitored.”
The United States alleged that between 2008 and 2013, NuVasive promoted the use of the CoRoent System for surgical uses that were not approved or cleared by the FDA, including for use in treating two complex spine deformities, severe scoliosis and severe spondylolisthesis. As a result of this conduct, the United States alleged that NuVasive caused physicians and hospitals to submit false claims to federal health care programs for certain spine surgeries that were not eligible for reimbursement.
The settlement agreement also resolves allegations that NuVasive knowingly offered and paid illegal remuneration to certain physicians to induce them to use the CoRoent System in spine fusion surgeries, in violation of the federal Anti-Kickback Statute. The illegal remuneration consisted of promotional speaker fees, honoraria and expenses relating to physicians’ attendance at events sponsored by a group known as the Society of Lateral Access Surgery (SOLAS). SOLAS was allegedly created, funded and operated solely by NuVasive, despite its outward appearance of independence.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act by Kevin Ryan, a former NuVasive sales representative (United States ex rel. Kevin Ryan v. NuVasive, Inc. (D. Md.). The act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. As part of today’s resolution, Mr. Ryan will receive approximately $2.2 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.8 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The federal share of the civil settlement is $12,583,413.84, and the state Medicaid share of the civil settlement is $916,586.16. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
United States Attorney Rod J. Rosenstein commended HHS-OIG, the Department of Defense’s Office of the Inspector General and the Office of Personnel Management’s Office of Inspector General, for their work in the investigation and thanked the FDA’s Office of Chief Counsel and Office of Criminal Investigations for their assistance. Mr. Rosenstein also recognized the work of the Civil Division’s Commercial Litigation Branch and the National Association of Medicaid Fraud Control Units in reaching this settlement. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas H. Barnard, Thomas F. Corcoran and Jason D. Medinger, and Senior Trial Counsel Colin Huntley of the U.S. Department of Justice’s Civil Division, who handled this matter.
Hagerstown Drug Dealer Pleads Guilty and is Sentenced to over 4 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Rory Slade Jenkins, age 55, of Hagerstown, Maryland today to 51 months in prison, followed by five years of supervised release, after Jenkins pleaded guilty to conspiracy to distribute and possess with intent to distribute oxycodone.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Assistant Special Agent in Charge Shawn Ellerman of the Drug Enforcement Administration, Baltimore District Office; Washington County Narcotics Task Force led by Washington County Sheriff Douglas Mullendore; and Frederick County Sheriff Charles A. “Chuck” Jenkins.
According to his plea agreement, since at least April 2014, Jenkins conspired with others to distribute oxycodone in the Hagerstown area. During the course of the conspiracy, Jenkins would travel to New York with a co-conspirator to obtain new supplies of oxycodone and other drugs. Jenkins generally drove and was compensated for doing so. Jenkins knew that they were traveling to New York to obtain oxycodone and other drugs. Those drugs would then be broken up and redistributed in the Hagerstown area. During the course of the conspiracy, Jenkins made more than 20 trips to Harlem with the co-conspirator, going up and back in the same day. Jenkins also obtained bulk quantities of oxycodone pills from other sources, which he would distribute in the Hagerstown area.
Law enforcement overheard conversations between Jenkins and other conspirators in which Jenkins discussed traveling to New York to obtain new supplies of oxycodone, and other efforts to obtain oxycodone for distribution. Over the course of the conspiracy, Jenkins admitted that he was involved in the distribution of at least 15,000 milligrams of oxycodone.
United States Attorney Rod J. Rosenstein praised the FBI, DEA, Washington County Narcotics Task Force, and Frederick County Sheriff’s Office, for their work in the investigation and thanked the Eastern Panhandle (WV) Safe Streets Task Force for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark and Matthew C. Sullivan, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Former Baltimore City Employee Sentenced to 42 Months in Prison for Scheme to Defraud the City of BaltimoreRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Denita Hill, age 27, of Baltimore, Maryland, to 42 months in prison, followed by two years of supervised release, for a scheme to defraud the City of Baltimore through the reissuance of fraudulent checks for pay and benefits. Judge Russell also ordered Hill to perform 200 hours of community service. A federal jury convicted Hill on March 4, 2015 of wire fraud conspiracy and two counts of aggravated identity theft, in connection with the scheme
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to evidence presented at trial, Hill was an accountant in the Finance Department of the City of Baltimore. Co-defendant Robert Johnson worked in the Consumer Relations Service of the U.S. Department of Veteran’s Affairs.
Baltimore City employees who leave their employment are entitled to a lump sum check of any pay and benefits for which they are qualified. From July 11, 2013 to August 2, 2013, Hill and Johnson conspired to use the financial and identity information of former Baltimore City employees to obtain fraudulent employee benefit payout checks. Hill identified individuals who had received and cashed large lump sum payments and then obtained reissuance of such checks, as if they had not been received. These duplicate checks were printed at the Baltimore City Finance Office, where Hill stole the checks. Hill delivered the checks to Johnson, endorsed to him by Hill with the forged signature of the original payee. Johnson endorsed and cashed the checks, deposited the proceeds into his bank account and used the funds for his benefit.
For example, on July 11, 2013, Johnson deposited a check made out to a victim in the amount of $14,741.09, and fraudulently endorsed by Hill to Johnson with the victim’s forged signature. On July 31, 2013, Johnson deposited a check made out to a second victim in the amount of $58,485.91. Again, the check was endorsed by Hill to Johnson with the second victim’s forged signature. Both victims had previously received and cashed their initial lump sum payment checks and the duplicate checks were issued and endorsed to Johnson without their knowledge or permission.
After Johnson attempted to wire some of the funds to pay off an account at a different financial institution, Johnson’s bank was alerted to the suspicious transactions and referred the matter to the City of Baltimore Office of the Inspector General, who sought the assistance of the Finance Department in determining the authenticity of the endorsements. Hill was tasked with the investigation and notified Johnson of the problem. Hill attempted to derail the investigation and obtain release of the funds by the bank by claiming to have spoken with the check recipients, whom she said confirmed that the endorsements were genuine. In fact, neither statement was true: Hill had not spoken to the victims, and they had not endorsed their checks over to Robert Johnson. Meanwhile, Johnson’s bank had reversed the deposits and returned the funds to the City of Baltimore, leaving a large deficit in Johnson’s account balance. Johnson obtained funds from Hill to repay the amount due.
Over the course of the conspiracy, Hill and Johnson fraudulently obtained approximately $75,000 all of which was ultimately recovered.
Robert Johnson, age 34, of Perry Hall, Maryland, previously pleaded guilty to his role in the conspiracy and was sentenced to a year and a day in prison followed by three years of supervised release, and ordered to serve 75 hours of community service.
United States Attorney Rod J. Rosenstein praised the Baltimore Office of Inspector General, Baltimore City Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine and Special Assistant U.S. Attorney Josh Felsen, a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.
Washington, DC Man Convicted of Carjacking of a Pregnant Annapolis WomanRead the Press Release
Baltimore, Maryland – A federal jury today convicted Cornell Louis Robinson, age 44, of Washington, D.C., on charges related to the armed carjacking of a couple who were about to enter their vehicle to go to the hospital because the woman was in labor.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Annapolis Police Chief Michael A. Pristoop; and Anne Arundel County State’s Attorney Wes Adams.
According to evidence presented during Robinson’s three-day trial, on March 2, 2014, at approximately 4:30 a.m. Robinson, co-defendant Devery Kelley, and others approached two individuals on Copeland Street in Annapolis, Maryland, as they were getting into their car. The victims were planning to go to the hospital because the woman was in labor. The male victim fled from the car and called the police. Witnesses testified that Robinson and Kelley were both armed and forced the woman at gunpoint to accompany them to an apartment building nearby, demanding money. The woman repeatedly told them that she was in labor and did not have the key to the apartment, only the car key. Robinson and other robbers took her, continuing to hold her at gun point, and tried to get her to open an apartment. The victim again told the robbers that she did not have a key to the apartment. When it became clear that she could not get into the apartment, Robinson took the key to the car and left in the victim’s car.
The robbers, driving the stolen car, were followed by officers from the Annapolis Police Department. Witnesses testified that at the corner of Tyler Avenue and Hilltop Lane a handgun was thrown out of the window of the car, but was recovered by police. On Tyler Avenue Robinson and Kelly both got of the car and ran away, but were arrested nearby.
Robinson faces a maximum sentence of 15 years in prison for carjacking; a maximum of life in prison for possession and brandishing a firearm in furtherance of a crime of violence; and a maximum of 10 years in prison for possession of a firearm and ammunition by a felon. No sentencing date has been set for Robinson, who remains detained
Deverey Hasani-Jarod Kelley, age 25, of Glen Burnie, Maryland, previously pleaded guilty to his role in the crime and is scheduled to be sentenced on August 12, 2015 at 11:00 a.m. Kelley also remains detained.
United States Attorney Rod J. Rosenstein commended the FBI, Annapolis Police Department, and Anne Arundel County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Bonnie S. Greenberg and Patricia C. McLane, who are prosecuting the case.
Member of Cherry Hill Group ‘UDH” Sentenced to 15 Years in Prison for Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Bryan Turner, age 29, of Baltimore, to 15 years in prison followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute crack cocaine and heroin. Turner is a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, Turner is a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.
On August 5, 2011, Turner participated in the robbery of the Chesapeake Bank of Maryland in Arbutus, along with other UDH members. Turner and others went into the bank and presented the teller with a note demanding money. Turner and his associates stole $7,305, which was later divided between Turner and three other UDH members.
Turner admitted that as a member of UDH he sold crack cocaine, heroin and other narcotics with UDH members. They sold the drugs from a house located on Giles Road, in the UDH area of Cherry Hill. At one point, Turner even lived in the residence. In addition to selling drugs from this location, co-defendant Antione White and others stored firearms at the house, which were used communally by other UDH members. On March 8, 2011, officers executed a search warrant at a residence in the 2900 block of Cherryland Road. Turner and other UDH members were arrested and law enforcement recovered $105 from the toilet, where a UDH member had attempted to flush it; a backpack with 406 vials containing almost 25 grams of crack cocaine; drug paraphernalia and packaging material. Officers recovered $192 in cash and two Percocet pills from Turner. On January 18, 2013, Baltimore City Police arrested White and other UDH members at the Giles Road residence and seized cocaine, drug paraphernalia and a loaded gun.
During his participation in the UDH drug conspiracy Turner was responsible for distributing in excess of 280 grams of crack cocaine and more than a kilogram of heroin.
Antione White, age 27, of Baltimore, previously pleaded guilty to his role in the conspiracy and was sentenced to 18 years in prison.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Hanover Business Owner Sentenced to Prison for Mortgage and Tax Fraud SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Luis R. Valladares, age 52, of Hanover, Maryland, today to 18 months in prison, followed by three years of supervised release, for the fraud schemes. Judge Quarles ordered Valladares to pay restitution of $487,000, the total amount of the victim’s losses in the mortgage fraud scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
Valladares owned and operated two businesses, Amazing Cleaning and Amazing Contractors, which provided janitorial services and drywall repair to vacated commercial and residential apartments.
According to his plea agreement, in late 2006, Valladares applied for a loan to purchase a house in Miramar, Florida. Valladares provided fake lease documents with forged signatures of one of his employees and the employee’s relatives, and three fake money orders to make it appear that he was collecting rent. After obtaining a mortgage loan for $484,900, Valladares only made a few payments on the loan. The home was foreclosed upon, resulting in a loss of approximately $250,000.
In late 2007, Valladares applied for two separate loans totaling $767,000 to buy a house in Hanover, Maryland. At the closing, Valladares omitted the Florida house as a property he owned; and reported owning a rental property in Burtonsville, Maryland, which he didn’t own or receive rental income from. In October 2014, the Maryland house was sold in a short sale for approximately $530,000, causing a loss of approximately $237,000. The total loss as a result of the mortgage fraud scheme was $487,000.
Beginning in approximately 2003, Vallardares also engaged in tax fraud by substantially understating income on business and personal tax returns. He diverted about $346,951 in third-party checks payable to the businesses to his personal accounts, and did not provide tax return preparers with information pertaining to these transactions. As a result, income deposited into his personal account was not reported either on business or personal tax returns.
In 2005 and 2006, Vallardares also engaged in tax fraud by writing a series of company checks to his brother and his brother’s business, ostensibly for business expenses. For nine of these checks totaling $152,000, his brother then endorsed the checks back over to Valladares or his then-wife, who deposited the checks into their personal bank account. They claimed these checks as business expenses on their tax returns.
Valladardes wired approximately $618,500 from a personal account to an account he controlled in Ecuador, and falsely claimed to IRS investigators that he was building apartment buildings in Ecuador as an investment.
The tax loss resulting from the tax fraud schemes totaled $292,277, for which Valladares remains liable.
After the IRS investigation had begun, Valladares left the United States for Ecuador in September 2011. Charges against him were filed in federal court in Maryland in October 2011. Valladares was arrested in September 2014 when he arrived in Aruba for his honeymoon, and he was returned to the United States for prosecution.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the IRS – Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Sean R. Delaney, who prosecuted the case.
Cockeysville Youth Group Volunteer Pleads Guilty to Distribution of Child PornographyRead the Press Release
Baltimore, Maryland –Gregory Wayne Gibson, age 63, of Cockeysville, Maryland pleaded guilty today to distribution of child pornography. For the past three to four years, Gibson was a volunteer youth group leader at a church in Baltimore County, working with children ages nine through eighteen. Gibson also assisted with childcare at his wife’s unlicensed home daycare, which included infants.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Gibson’s plea agreement, he has been involved in the collection and distribution of child pornography. In July 2014, a detective from the Baltimore County Police Department (BCPD) downloaded a file containing child pornography that Gibson had made available using a file sharing program. The video file depicted a prepubescent female engaged in sexually explicit conduct with an adult male. On February 24, 2015, a BCPD detective again downloaded a video file made available by Gibson using a file sharing program, which depicted a minor female engaging in sexually explicit conduct. On April 16, 2015, a search warrant was executed at Gibson’s residence and at his employer’s location in Baltimore City. During the searches, investigator’s seized Gibson’s laptops and external hard drives, as well as two flash drives, all of which contained images and/or videos of child pornography.
Gibson voluntarily spoke to investigators admitted to using file sharing software to download child pornography. Child pornography was found during a forensic examination of Gibson’s laptops, external hard drives and flash drives, including the videos downloaded by the BCPD detectives during the investigation. The electronic media contained in excess of 260,000 images and videos. A preliminary review of those files revealed that the majority of these files depicted minors engaging in sexually explicit conduct. There were also a significant number of images of child erotica and of images and videos depicting infants and toddlers engaging in sex acts with adults, including images and videos depicting bondage and anal penetration.
The forensic analysis of the digital evidence seized from Gibson’s residence and place of employment revealed that Gibson was acquiring images of child pornography as recently as five days before the state search warrant was executed.
As part of his plea agreement, Gibson 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).
Gibson faces a minimum mandatory sentence of five years in prison and a maximum of 20 in prison followed by up to lifetime of supervised release for distribution of child pornography. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 26, 2015 at 3:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, the Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Member of the Jenifer Drug Trafficking Organization Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Kermit Clark, age 44, of Baltimore, today to 10 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; Acting Assistant Special Agent in Charge Shawn R. Ellerman 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 investigation highlights how DEA Baltimore successfully conducts long-term complex investigations,” stated Acting ASAC Shawn Ellerman. “The case stretched from Staten Island, New York to Houston, TX and I want to commend the agents for their careful and methodical work which resulted in the dismantling of a large scale drug trafficking organization that imported hundreds of kilograms of cocaine into the Baltimore area.”
According to his plea agreement, from September 2012 to October 2014, the Jenifer DTO supplied Clark and others with kilogram-quantities of cocaine for distribution in and around the Baltimore-Washington metropolitan areas. Clark became a member of the conspiracy to distribute more than five kilograms of cocaine.
The Jenifer DTO obtained its cocaine from suppliers in or around Houston, Texas. The Jenifer DTO would transport money hidden in secret compartments in “courier vehicles” from Baltimore to Houston. The cocaine was then transported from Houston to Baltimore in the Jenifer DTO’s courier vehicles. In July 2013, a courier vehicle for the Jenifer DTO was intercepted in Arkansas that contained approximately 23 kilograms of cocaine hidden in a secret compartment. Between August 2013 and October 2014, approximately 30 shipments of cocaine, concealed in secret compartments in the Jenifer DTO’s courier vehicles, were made to the Jenifer DTO. On October 9, 2014, approximately 27 kilograms of cocaine were seized from one of the Jenifer DTO’s courier vehicles. .
Clark agreed that he 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.
William Hegie, age 54, of Baltimore, previously pleaded guilty to his participation in the conspiracy and was 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.
Husband and Wife Admit to Procurement Fraud Scheme and to Embezzling Employee BenefitsRead the Press Release
Baltimore, Maryland – Shaun Tucker, a/k/a “Shawn Turner,” and “Mark Tyler,” age 49, and his wife, Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” age 50, both of Keymar, Maryland, pleaded guilty today to charges in connection with defrauding the United States of over $30 million in connection with obtaining government contracts, stealing over $1.6 million in employee benefits and evading taxes.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Marc I. Machiz, Director of the Philadelphia Regional Office of the Labor Department’s Employee Benefits Security Administration; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Small Business Administration Inspector General Peggy E. Gustafson; and Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations.
“The Tuckers’ fraudulent actions deprived the federal contract employees of Quantell and Intaset of rightfully earned benefits under the Service Contract Act,” stated Special Agent in Charge Steven D. Anderson, of the Washington Regional Office, U.S. Department of Labor - OIG, Office of Labor Racketeering and Fraud Investigations. “My office remains committed to investigating these types of crimes, and we will continue to proactively work with our law enforcement partners to bring corrupt individuals and companies to justice.”
According to their pleas, the Tuckers were controlling officers and majority shareholders of Quantell, Inc. and Intaset Technologies Corporation from 2007 to 2010. Quantell and Intaset provided labor services to federal government agencies. In 2010, the Tuckers sold Intaset, but continued to have influence on the operation of Intaset.
Federal Procurement Fraud
From 2007 to 2013, the Tuckers and their co-conspirators, including Jonathan Mickle, made false representations to the government regarding the eligibility of Quantell and Intaset for small business, Service Disable Veteran Owned Small Business and other set-aside contracts, including the 2007 Camp Lejeune contract, 2007 Battle Creek, Michigan contract, 2008 Andrews Air Force Base contract, 2008 Beale Air Force Base contract, 2011 Langley Air Force Base contract and 2011 Camp Lejuene contract. The Tuckers and co-conspirators falsely represented the past revenues, ownership, controlling officers, distribution of profits, location and other key attributes of Quantell and Intaset to multiple federal agencies. When bid protests were lodged by competing firms, the Tuckers and co-conspirators prepared and submitted false responses. The Tuckers’ actions cause other companies, which the government actually meant to support with set-aside contracts, to lose out on valuable opportunities to provide contracting services to the federal government.
The Tuckers used the money from the government contracts for their own personal benefit, including building, purchasing and leasing a 5,000 square foot residence in Swanton, Maryland; additions to the real property in Taneytown, Maryland, including a personal residence, gym, bar and break room equipped with high definition TVs, top of the line weight equipment, video games and combat wrestling equipment; additions to the real property in Keymar; 45 foot sailboat named “Quantell;” 2008 Audi A8; 2011 BMW; and mortgage payments related to real estate, watercraft and vehicles.
The Tuckers and their co-conspirators used aliases and false identities to communicate with the U.S. Department of Defense (DOD) in order to falsely portray the past performance of Quantell. They created a fake corporate entity name Staff-It with a fake period of performance from 2005 to 2008 involving more than $12 million of work by Quantell for Staff-It, and falsely indicated that Quantell was supplying service workers at military treatment facilities for Staff-It. Then they created phone lines and had conspirators participate in false phone conversations with DOD representatives so as to deceptively win the 2011 Camp Lejeune contract. The Tuckers and their co-conspirators carried out similar schemes with respect to other past performances, establishing internet phone lines to spoof the location of businesses, and labeling the phone lines based on the fake company contact person.
The Tuckers admit that as a result of the procurement fraud conspiracy, the full value of the contracts awarded to Quantell and Intaset based on false representations was at least $30 million.
Employee Benefit Fraud
Moreover, the service contracts awarded by the United States to Quantell and Intaset, as well as the McNamara-O’Hara Service Contract Act (SCA), required Quantell and Intaset to provide bona-fide health and welfare benefits to the service contract employees of Quantell and Intaset hired to do the work for the federal government. From 2008 to at least 2012, however, the Tuckers stopped contributing the SCA funds to any bona-fide health and welfare plan. Instead, the Tuckers lied to employees of Quantell and Intaset, and to multiple federal agencies, regarding the compliance of Quantell and Intaset with the SCA, so that the Tuckers and their co-conspirators, including Jonathan Mickle, could divert at least $1.6 million in SCA monies paid by the government to Quantell and Intaset under service contracts for their own personal benefit. The Tuckers and their co-conspirators used shell companies and companies that they were associated with to conceal the diversion of SCA funds to them. The Tuckers falsely told employees that they would be receiving health and welfare benefits, when they knew in fact that the money was being diverted to buy luxury vehicles, make improvements on the Tuckers’ residences.
The Tuckers admit that as a result of the fraud involving employee benefits, more than $1.6 million of the SCA funds were fraudulently diverted for the co-conspirators’ benefit from at least 350 individual employees.
Tax Fraud
Finally, the Tuckers attempted to evade income tax due of $492,961 for tax years 2009, 2010 and 2011.
The Tuckers and the government have agreed that if the Court accepts the plea agreements, Shaun Tucker will be sentenced to eight years in prison and Joanna Tucker will be sentenced to between six and 18 months in prison. Shaun Tucker further agrees to pay forfeiture of at least $30 million and Joanne further agrees to pay forfeiture of at least $20 million, and that their residence in Keymar is subject to forfeiture. Both Tuckers also agree to pay restitution of at least $1.6 million in connection with the employee benefit fraud, and pay restitution to the IRS of $492,961 for tax evasion. U.S. District Judge J. Frederick Motz has scheduled sentencing for both Tuckers for November 20, 2015, at 12:00 p.m.
In a related case, co-conspirator Jonathan Mickle, age 43, of Asheville, North Carolina, formerly of Taneytown, Maryland, pleaded guilty on June 25, 2015 to conspiracy to commit wire fraud and tax fraud in connection with the fraud schemes. Judge Motz has scheduled sentencing for November 3, 2015, at 2:15 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This and other cases brought by members of the Task Force demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein commended the U.S. Department of Labor –OIG/Office of Labor Racketeering and Fraud Investigations, IRS – Criminal Investigation, U.S. Department of Labor - Employee Benefits Security Administration, DCIS, SBA Office of Inspector General, and Air Force Office of Special Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry Gruber and Judson Mihok, who are prosecuting the case.
Former NIH Employee Indicted for Using Her Government Credit Card to Make Unauthorized PurchasesRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Francesca Daniele, age 48, of LaPlata, Maryland, today on wire fraud charges in connection with the misuse of her government credit card.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch
According to the three-count indictment and other court documents, Daniele was an employed as a program support assistant at the National Institutes of Health (NIH) from June 2013 to September 2014, when she was terminated. As part of her employment, Daniele was authorized to purchase equipment from vendors and to administer contracts on behalf of NIH. To perform her job, Daniele was issued a government credit card in her name, which was only to be used for official government purchases.
The indictment alleges that from July 12 through July 28, 2014, Daniele used her government credit card to make over $21,000 of personal purchases at retail stores and used her cell phone to contact the credit card’s customer service center to facilitate approval of those purchases. According to court documents, Daniele purchased gift cards, electronics, and other personal items such as food and clothing. The indictment further alleges that to conceal the scheme Daniele falsely reported that her credit card had been lost.
Daniele faces a maximum sentence of 20 years in prison for each of three counts of wire fraud. No court appearance has been scheduled. Daniele was arrested on June 30, 2015, in Las Vegas, Nevada on a related criminal complaint. She was transferred to Maryland and had an initial appearance on July 23, 2015 in U.S. District Court in Greenbelt. Daniele remains detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the HHS-OIG for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas P Windom and Trial Attorney Justin D. Weitz of the Justice Department’s Public Integrity Section, who are prosecuting the case.
Former Letter Carrier Convicted of Drug Trafficking and BriberyRead the Press Release
Greenbelt, Maryland – A federal jury convicted former letter carrier Takisha Cole, age 33, of Washington, D.C. late on Friday, July 24, 2015 of possession with intent to distribute marijuana, use of a communications device to facilitate drug trafficking and bribery.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
From at least March 2011 through September 2014, Cole was employed by the U.S. Postal Service as a letter carrier, assigned to a route serving the Silver Spring, Maryland area. Cole was responsible for delivering packages sent through the U.S. Postal Service to the appropriate addresses on her route.
According to court documents and evidence presented at Cole’s five-day trial, from at least May 2013 through August 13, 2014, Michael Prandy paid Cole to use her position as a letter carrier to obtain and deliver packages containing marijuana to Prandy. The packages were sent from California and elsewhere and mailed via USPS to Prandy’s residence in Silver Spring. In August 2013, Prandy’s address was removed from Cole’s postal route. Even though Prandy’s address was no longer on her postal route, Cole continued to pick up his packages at the Silver Spring Postal Annex and deliver them to Prandy’s residence on McAlpine Road. According to trial testimony, in return for delivering the packages, Prandy paid Cole $50 to $100 per package, which he placed in an envelope and left in the mailbox at his residence for Cole to pick up.
The jury was unable to reach a verdict on the charge of conspiracy to distribute and possess with intent to distribute 100 kilograms or more of marijuana.
Cole faces a maximum sentence of five years in prison for possession with intent to distribute marijuana; four years in prison for use of a communications device to facilitate drug trafficking; and 15 years in prison for bribery. U.S. District Judge Theodore D. Chuang has scheduled sentencing for October 19, 2015 at 2:00 p.m.
Michael Louis Prandy, age 39, of Silver Spring, Maryland previously pleaded guilty to his role in the conspiracy. Judge Chuang scheduled Prandy’s sentencing for August 4, 2015, at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Service -OIG, the U.S. Postal Inspection Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Ray D. McKenzie, who are prosecuting the case.
Conspirator Sentenced to 30 Months in Prison for Conspiracies to Pass Counterfeit Money and Launder MoneyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Jasonn A. Williams, age 36, of Jamaica, New York, today to 30 months in prison followed by three years of supervised release for conspiring to pass counterfeit $100 bills and conspiring to commit money laundering. Judge Messitte also entered an order that Williams pay restitution of $18,600 and forfeit $22,462.88.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office.
According to his plea agreement and court documents, from December 1, 2012 to April 29, 2013, Williams, Larry Barringer, Donte Barringer, Jamarr Little and others used counterfeit $100 bills to purchase inexpensive merchandise and receive change in genuine currency; to purchase money orders and prepaid money cards, including Greendot cards; and to purchase expensive merchandise, such as computers. The conspirators exchanged the merchandise purchased with the counterfeit $100 bills for genuine U.S. currency and used the money orders and money cards purchased with the counterfeit bills to conduct other financial transactions.
Judge Messitte found that in the conspiracy to pass counterfeit money and in the money laundering conspiracy, the loss attributable to Williams exceeded $30,000.
Larry L. Barringer, age 54, of Baltimore, previously pleaded guilty to the counterfeiting and money laundering conspiracy and was sentenced to five years in prison. Donte Barringer, age 37, and Jamarr Little, age 21, both of Washington, D.C., have also pleaded guilty to the counterfeiting conspiracy. Little was sentenced to a year and a day in prison and ordered to pay restitution of $10,900. Donte Barringer was sentenced to one year of probation and ordered to pay $18,600 in restitution.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service – Washington Field Office for its work in the investigation and thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Brooklyn Man Admits to Four Armed Commercial RobberiesRead the Press Release
Baltimore, Maryland – Phillip Thomas McGowans, age 27, of Brooklyn, Maryland, pleaded guilty today to robbery.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Marilyn Mosby; Interim Commissioner Kevin Davis of the Baltimore Police Department; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
According to his plea agreement, on July 25, 2014, McGowans pointed a handgun at an employee at the Village Liquors store in Brooklyn, Maryland and demanded money. McGowans fled with $800 from the business. On August 11, 2014, McGowan again robbed the same liquor store, pointing a handgun at employees. McGowan fled with $1,149, a bottle of vodka and cigarettes.
McGowan also robbed the New York Fried Chicken store on East Patapsco in Baltimore on August 19 and 30, 2014. On both occasions, he pointed a weapon at an employee. He fled with $200 on the first occasion and an undetermined amount on the second robbery.
McGowans and the government have agreed that if the Court accepts the plea agreement, McGowans will be sentenced to between 10 and 13 years in prison. U.S. District Judge Richard D. Bennett scheduled sentencing for October 28, 2015, at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore and Anne Arundel County Police Departments and Baltimore and Anne Arundel County City State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Michael Hanlon, who are prosecuting the case.
Former Chief Financial Officer Indicted for Stealing over $1.6 Million from Three EmployersRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Christopher C. Camut, age 52, of Baltimore, Maryland, on charges arising from a scheme to fraudulently obtain over $1.6 million from three companies at which he was employed as the chief financial officer. The indictment was returned on June 15, 2015, and unsealed today at his initial appearance in federal court in Greenbelt. Camut was released under the supervision of U.S. Pretrial Services.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Company A, which is headquartered in Silver Spring, Maryland, is a non-profit organization dedicated to developing microbicides that can provide women in developing countries with protection against HIV infection. Company B manufactures products for the medical industry. Company C develops medical countermeasures against biological and chemical threats, and has an office in Annapolis, Maryland.
According to the 16 count indictment, Camut was the chief financial officer for: Company A between August 2012 and August 2014; Company B between May 2010 and September 2011; and Company C between January 2007 and April 2010. From January 2008 to May 2014, Camut created engagement letters, agreements and invoices to make it appear as if financial institutions had provided services to the companies. He caused the companies to issue checks payable to financial institutions, which Camut then deposited into his personal bank accounts.
The indictment further alleges that Camut created agreements between coconspirator Kaitlyn Jones and Companies A, B and C, which falsely represented Jones’ profession. Camut caused the three companies to transfer by wire and issue checks payable to Jones, although Jones performed no work for the companies. Camut and Jones shared the proceeds received from the companies.
The indictment seeks forfeiture of at least $1,618,951, the amount of money Camut allegedly stole from the companies.
Camut faces a maximum sentence of 20 years in prison for conspiring to commit wire fraud and on each of 13 counts of wire fraud; and a mandatory minimum of two years in prison on each of two counts for aggravated identity theft consecutive to any other sentence imposed.
Kaitlyn Jones, age 48, of Reisterstown, Maryland, pleaded guilty to her participation in the conspiracy and awaits sentencing.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Leah Jo Bressack and David I. Salem, who are prosecuting the case.
Disbarred Attorney Convicted for Scheme to Defraud Clients of More Than $750,000Read the Press Release
Greenbelt, Maryland – A federal jury today convicted former attorney Saundra Lucille White, a/k/a Lucille Parrish-White and six variations of those names, age 57, of Lothian, Maryland, on charges of mail fraud, wire fraud, money laundering, and aggravated identity theft in connection with a scheme to defraud clients of at least $750,000.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Geary of the Treasury Inspector General for Tax Administration; Anne Arundel County Police Chief Tim Altomare; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to the evidence presented at White’s seven day trial, in March 2010, White agreed to assist Victim H to obtain guardianship for a relative (Victim M) who had been incapacitated by a stroke. At White’s request Victim H provided White with an accounting of Victim M’s assets. With White’s assistance, Victim H obtained guardianship of Victim M a short time later. Victim M died on January 7, 2011. White was disbarred from the practice of law in the District of Columbia on January 20, 2011 and disbarred in Maryland on September 9, 2011. White did not inform Victim H of her pending disbarment, nor did she tell Victim H that she was no longer a licensed attorney.
According to trial evidence, from March 2010 through May 2013, White created fraudulent tax notices that purported to be from the Internal Revenue Service, and demanded payment of taxes purportedly owed by Victim M and by a deceased relative of Victim M. The notices required that payments be sent to an entity called Intel Realty Financial Services (IRFS) at a mailbox in Annapolis, Maryland, controlled by White. White then mailed and faxed the fraudulent tax notices to Victim H, advising Victim H that in her role as legal guardian of Victim M, she was required to remit payments for these taxes to the address in the notice. Once White obtained the checks sent by Victim H in response to the fraudulent tax notices, totaling $750,000, she deposited them in the bank accounts she opened in the names of IRFS and Victim M. White withdrew the funds from the bank accounts, forging Victim M’s signature on checks made out to White, other entities controlled by White, a family member, or otherwise for White’s benefit. White also obtained debit cards in Victim M’s name and attempted to obtain a Maryland driver’s license in the name of Victim M, but bearing White’s photograph. White used some of the money to purchase luxury items, including a $20,500 check used as a down payment for a 2011 Silver Volvo C70 hard-top convertible.
White faces a maximum sentence of 20 years in prison for each of three counts of mail fraud, one count of wire fraud, and two counts of money laundering; and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge Paul W. Grimm has scheduled his sentencing for January 25, 2016.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended TIGTA, the Anne Arundel County Police Department, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom and Special Assistant U.S. Attorney James I. Pearce of the U.S. Department of Justice, who are prosecuting the case.
D.C. Area Drug Trafficker Sentenced to 27 Years in Prison for Drug Distribution and Money Laundering ConspiraciesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Anthony Torrell Tatum, age 37, of Arlington, Virginia, today to 27 years in prison for conspiracy to distribute cocaine and heroin, possession of a gun in furtherance of a drug trafficking offense and money laundering conspiracy. Judge Chasanow previously entered an order requiring Tatum to pay a $108 million money judgment, and a forfeiture order for personal property seized during the investigation, including $328,700 in assorted jewelry, over $1 million in cash or deposited in bank accounts, and a luxury vehicle.
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; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief of Police Robert D. MacLean of the U.S. Park Police; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement and court documents, from at least January 2011 through his arrest on September 6, 2013, Tatum conspired with Ishmael Ford-Bey and others to distribute cocaine and heroin in Prince George’s County, Washington, D.C. and Oxon Hill, Maryland.
In late 2010, law enforcement received information that Tatum was the source of supply of cocaine to a cooperating source and that Ford-Bey was providing Tatum and others with kilogram quantities of cocaine. Between April 2011 and January 2012, U.S. Park Police conducted undercover purchases of a total of 308 grams of crack cocaine from co-conspirator Terrin Anderson. Anderson drove a vehicle registered to Ford-Bey to make some of the deliveries.
In May 2013, Tatum rented a storage unit in Fort Washington, Maryland using an alias. A search warrant was executed at the storage unit in August 2013. Law enforcement seized a kilogram of cocaine wrapped in duct tape, 258 grams of cocaine contained in plastic baggies, 195 grams of heroin and an assault rifle with two magazines.
On September 6, 2013, law enforcement agents executed a search warrant at an apartment on Campbell Avenue in Arlington, Virginia and seized $7,823 in cash, a fake driver’s license bearing Tatum’s picture, expensive jewelry and clothing. Tatum was present at the location and arrested.
Also that day, law enforcement agents executed a search warrant at a storage unit in Temple Hills, Maryland and seized digital scales, heroin, a handgun and ammunition.
On October 1, 2013, a search warrant was executed at the apartment of a co-conspirator that Tatum and Ford-Bey had been identified as visiting. Agents located a safe which contained $823,640 in cash, several expensive watches, and jewelry. In addition, agents recovered scales, three heat sealers, a coffee grinder, a currency counter, and other drug paraphernalia, as well as approximately 350 grams of cocaine. Latent fingerprints recovered from the heat sealers were identified as belonging to Tatum and Ford-Bey.
In an effort to disguise and hide their drug proceeds, Tatum and others created numerous business entities, including 1001 Solutions, Beauty International Supply, Inc. and Going Green Towing, which had little, if any, legitimate business. They set up bank accounts in the names of each business and deposited their drug proceeds into those business accounts. For example, during four months in 2012, Tatum made over $93,000 in cash deposits and $45,000 in money order deposits into one business bank account. In another bank account, between November 2012 and February 2013, Tatum made over $90,100 in cash deposits or payments.
In March 2011, Tatum used drug proceeds to purchase a cashier’s check for $17,000 payable to a BMW dealership to buy a vehicle. In October 2012, again using drug proceeds, Tatum bought a 2013 Volvo car; and in 2011, he bought a Land Rover for $60,013. Tatum also used drug proceeds to buy expensive jewelry.
Four defendants, including Tatum, were convicted federally for their participation in the conspiracy. Co-conspirators Ishmael Ford-Bey, age 40, of Mitchellville, Maryland; Terrin Tamal Anderson, age 29, of Waldorf, Maryland; and David Allen Jones, age 40, of District Heights, Maryland; previously pleaded guilty and were sentenced to 33 years in prison, 12 years in prison and 45 months in prison, respectively. Judge Chasanow also entered an order requiring Ford-Bey to pay a $108 million money judgment, and a forfeiture order for personal property, including luxury vehicles, jewelry and cash.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Prince George’s County Police Department, U.S. Park Police, U.S. Postal Inspection Service, IRS-CI, ATF and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas P. Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Two Commercial Trash Haulers Admit to Bribing Baltimore City Landfill EmployeesRead the Press Release
Baltimore, Maryland – Mustafa Sharif, age 63, of Baltimore, 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. Adam Williams, Jr., age 52, of Randallstown, pleaded guilty to the same charges on July 17, 2015.
The plea agreements were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt 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, in 2005, Williams collected and hauled trash in his small dump truck 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. After the friend introduced Williams to a scale house operator, none of the scale house operators, including Tamar Washington, charged Williams a disposal fee for using the Landfill. In 2006 Williams partnered with another individual to haul trash, and then operated his own hauling business from 2007 to 2015. He paid a $100 bribe to the scale house operator for each trip he made to the Landfill, which saved him thousands of fees each month. Williams either paid the operator through the outbound window at the scale house, or met the operators at an off-site location where he would pay a week’s worth of bribes or more. From July 1, 2014 to May 1, 2015 alone, Williams paid more than $42,000 in bribe payments in lieu of paying the required waste disposal fees, which totaled approximately $120,000.
According to his plea agreement, in 2012, Sharif collected and hauled trash in his small dump truck when one day he was allowed to dump trash at the Landfill without paying the disposal fee. Sharif told Williams about what had happened, and Williams explained that Sharif could avoid paying the disposal fee every time he dumped at the Landfill if he paid $100 in cash to the “girls” at the scale house, meaning Tamara Washington and another individual. Thereafter, Sharif paid the bribes, either through Williams or directly to the scale house operators, which saved him thousands of dollars in disposal fees each month. Sharif would meet one of the scale house operators off-site to deliver the weekly bribes, or he would drop it off in an envelope at their respective residences. From July 1, 2014 to May 1, 2015 alone, Sharif paid more than $42,000 in bribe payments in lieu of paying the required waste disposal fees, which totaled approximately $150,000.
Sharif has agreed to forfeit and pay restitution of $500,000 and Williams has agreed to forfeit and pay restitution of $900,000.
Sharif and Williams face 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 October 21, and Sharif on November 6, 2015.
Former Baltimore City Department of Public Works (DPW) employee Tamara Oliver Washington, age 55, of Baltimore, pleaded guilty on July 2, 2015 to the conspiracy and to solicitation of bribes, and is scheduled to be sentenced on October 20, 2015, at 10:00 a.m.
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.
Three Arrested and Charged in Connection with Two Schemes Using Stolen Personal Identification InformationRead the Press Release
Baltimore, Maryland – Three Nigerian nationals were arrested today, charged by criminal complaint with fraud and aggravated identity theft in connection with two schemes using stolen personal identification information. In addition to the arrests, more than 130 law enforcement officers from nine agencies executed 17 search warrants as part of this ongoing investigation.
Charged by criminal complaint are:
Omolaja Terry Iginla, age 25, of Laurel, Maryland;
Mayowa Olabiyi Towobola, age 24, of Parkville, Maryland; and
Hafis Omowonuola Oladokun, age 38, of Owings Mills, Maryland.The charges and arrests were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Kathryn Montemorra, Assistant Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
“Today’s enforcement sends a clear message to those who believe that the profit of cybercrime outweighs the risks of detection and capture,” said Ivan Arvelo, Acting Special Agent in Charge, HSI Baltimore. “The message is that you are not anonymous and you will be arrested. As we have shown, HSI and its law enforcement partners will vigorously pursue those who steal, peddle, and abuse the private information of American consumers.”
“This has been a complex and important fraud investigation that illustrates the commitment and cooperation of law enforcement personnel at all levels. With patience and a sound investigation, we ensure that perpetrators of such fraud will not get away with ruining the lives of innocent people,” said Baltimore County Police Chief James Johnson.
“Criminal conspiracies involving fraudulent refund schemes victimize our nation’s honest taxpayers,” said Kathryn Montemorra, Assistant Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s enforcement actions are a reminder that IRS-CI will remain vigilant in our investigation of these schemes and will continue to work with our law enforcement partners to combat this type of criminal conduct.”
According to the affidavit filed in support of the criminal complaint, the investigation began in 2013 when Iginla was initially arrested after accepting delivery for two fraudulent Ghanaian passports. A search warrant executed at Iginla’s apartment recovered, among other items, an Apple iPod which was found to contain the personal identification information (PII) of more than 35,000 individuals, including names, dates of birth, social security numbers, addresses, telephone numbers and email addresses; named text files; account numbers and security codes for numerous Green Dot & other prepaid debit cards; business names, addresses, and associated EIN numbers; monetary loss values contained within “text files” associated with the PII of many of the probable identity theft victims residing throughout the United States; and a digital image of a social security card of a probable identity theft victim. Digital forensic examination of an iOS address book uncovered from the laptop computers seized during the search revealed a contact for “Mayowa”, which is the first name of Towobola. The cellular telephone number is subscribed in the name of Hafis Omowonuola Oladokun.
According to the criminal complaint, the PII data recovered from the iPod found in Iginla’s apartment was forwarded to the IRS. Analysis revealed that the stolen PII data recovered from the Apple iPod was used to file approximately 4,500 fraudulent tax returns with the IRS. The attempted refund amount from these returns is approximately $13,025,000, and over $2,400,000 in refunds has been distributed by the IRS. Investigation revealed that in some cases, tax refunds were transferred to Green Dot and other prepaid debit card accounts and the funds were then withdrawn from the accounts. For example, a prepaid debit visa account found in Iginla’s files show that the account was activated on line in the name of D.S. Within two day of its activation, that account received a direct deposit of a tax refund. When interviewed, D.S. advised investigators that he had not filed federal tax returns for 2012 or 2013, nor had he applied for or possessed a prepaid visa debit card. D.S. confirmed that the PII on the account was the same as his. Prior to his interview with law enforcement, D.S. was not aware of being a victim of identity theft.
During the Iginla investigation, law enforcement became aware of a related investigation, originally initiated by the Baltimore County Police Department, regarding a fraud allegedly perpetrated by Oladokun, Towobola and others, which involved the re-encoding of victims’ debit card account numbers and the purchasing of money orders using PII stolen as a result of the Target Store data breach which occurred during November and December 2013. Investigation revealed that victim debit card account numbers were re-encoded onto other unknown debit/credit cards, which were then used to purchase money orders and make automatic teller machine (ATM) withdrawals at various banks and retailers located in Baltimore County. The money orders were then cashed by the conspirators at local check cashing stores.
Additionally, a review of financial records showed that many of the money orders cashed at the check cashing stores in Maryland were purchased with Green Dot prepaid debit card accounts using stolen PII. Investigation revealed that Oladokun, Towobola and other co-conspirators have cashed approximately 1,105 third party money orders at one check cashing store, totaling approximately $737,373.
The defendants face a maximum sentence of 20 years in prison for wire fraud and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. The defendants all had an initial appearance today in U.S. District Court in Baltimore. Iginla and Towobola consented to detention and Olakodun was detained pending a detention hearing scheduled for Thursday, July 23, 2015 at 3:00 p.m.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised HSI-Baltimore, IRS-CI, and the Baltimore County Police Department for their work in the investigation and thanked the Baltimore City, Anne Arundel County, Montgomery County and Prince George’s County Police Departments, Maryland State Police and the U.S. Department of State, Diplomatic Security Service for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and Sandra Wilkinson, who are prosecuting the case.