District of Maryland
Press releases recorded for this federal judicial district.
Baltimore City Police Officer Charged with TheftRead the Press Release
Baltimore, Maryland – Baltimore City Police officer Maurice Lamar Jeffers, age 47, of Savage, Maryland, has been charged by criminal complaint with theft of government property and stealing property as a federal officer. The criminal complaint was returned on Friday, May 8, 2015 and unsealed today.
The criminal complaint 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; and Commissioner Anthony W. Batts of the Baltimore Police Department.
“The affidavit alleges that agents carried out an undercover operation and obtained a video recording of the defendant stealing cash while he believed he was executing a search warrant,” said U.S. Attorney Rod J. Rosenstein. “I want to thank the officers of the Baltimore Police Department and other agencies that assisted in this investigation.”
According to the criminal complaint, Jeffers has been a sworn member of the Baltimore Police Department for the last 12 years, and is currently assigned as a Task Force Officer (TFO) to the U.S. Marshals’ Capital Area Regional Fugitive Task Force (CARFTF). As a TFO, Jeffers received special deputation to execute arrest and search warrants supporting the federal task force. Jeffers is responsible for locating and arresting offenders who have active local and federal arrest warrants and assisting in locating individuals for other jurisdictions and agencies upon request.
The criminal complaint alleges that Jeffers stole approximately $3,000 on March 10, 2015, while Jeffers was on official business as a TFO for CARFTF. According to the affidavit filed in support of the criminal complaint, law enforcement conducted a covert operation in which agents rented a hotel room and set up surveillance equipment. Law enforcement also placed $3,200 in cash throughout the room – a portion of the money was placed in pain view and the rest was hidden.
At the direction of law enforcement involved in this investigation, Jeffers and other members of CARFTF were told that the subject of a fictitious drug investigation was staying at the hotel room. Jeffers and CARFTF members were directed to secure the subject and the hotel room so that law enforcement could later execute a search warrant in the subject’s hotel room.
According to the criminal complaint, Jeffers and another CARFTF member went to the hotel room to secure it. After Jeffers and the other TFO conducted a security check of the room the other TFO left to report that the room was secured. According to the criminal complaint, after the other TFO left, audio and video surveillance captured Jeffers searching the room and placing the money into his pants pockets. After Jeffers and the other CARFTF members left, law enforcement involved in this investigation conducted an inventory of the hotel room. As seen on the video, the prerecorded funds that had been planted in the hotel room – totaling $3,000 – were gone. The stolen cash was not submitted as evidence, as it should have been if it had been lawfully seized.
Jeffers faces a maximum sentence of 10 years in prison for each of the two theft counts. An initial appearance was held on May 8, 2015, in U.S. District Court in Baltimore. Jeffers was released under the supervision of U.S. Pretrial Services.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the Baltimore FBI Public Corruption Task Force, which includes Agents and law enforcement officers from the IRS, the Baltimore Police Department, the Prince George’s County Police Department and the Baltimore FBI, for their work in the investigation, and recognized the U.S. Marshals Service for its assistance. Mr. Rosenstein thanked Assistant United States Attorney David I. Sharfstein, who is prosecuting the case.
Baltimore Man Admits to Robbing Six Businesses in Two DaysRead the Press Release
Baltimore, Maryland – Nick Hornberger, age 33, of Baltimore, pleaded guilty today to three counts of 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; Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on March 5, 2014, from 12:40 a.m. to 2:35 p.m. Hornberger robbed the following five stores, stealing a total of $162 from four of these stores:
Royal Farms, Dundalk Avenue, Baltimore County;
Royal Farms, O’Donnell Street, Baltimore City;
7-11, Eastern Boulevard, Baltimore County;
7-11, Wise Avenue, Baltimore County; and
Dunkin Donuts, Kenwood Avenue, Baltimore County.
The following day, Hornberger robbed a pizza restaurant on Holabird Avenue in Baltimore County of $450.
In each robbery, the cashier or employee from whom Hornberger demanded money believed that Hornberger had a weapon, or was pointing a gun or assault rifle from inside of a white plastic bag. Following his arrest, Hornberger identified himself in photos taken from video surveillance at each robbery. A search warrant was executed at Hornberger’s motel room and a car used in the robberies. Law enforcement seized a toy black assault style rifle stuffed inside a white plastic bag.
Hornberger and the government have agreed that if the Court accepts the plea agreement, Hornberger will be sentenced to between 60 to 151 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for August 25, 2015 at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments and Baltimore City and County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Piper F. McKeithen, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, and Assistant United States Attorney Bonnie S. Greenberg, who are prosecuting the case.
Baltimore Drug Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Earl Hamman Musheer, age 60, of Baltimore, today to 10 years in prison followed by five years of supervised release for conspiring to possess with the intent to distribute five kilograms or more of cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, Musheer had a co-conspirator retrieve packages containing a total of at least five kilograms of cocaine from a store in Baltimore County, Maryland. The cocaine was destined for sale in and around Baltimore.
On November 6, 2014, DEA investigators became aware that a suspicious package was in route to the store. When the parcel was delivered a couple days later to the store, the investigators detected a strong odor emanating from the box. A drug detection dog alerted on the parcel, indicating the presence of a controlled substance. The investigators subsequently opened the parcel pursuant to a search and seizure warrant. The parcel contained more than five kilograms of cocaine, which has a wholesale value of roughly $150,000. After obtaining a second warrant authorizing the installation of a tracking device within the parcel, the investigators inserted the tracking device and returned the package to the store.
On November 10, 2014, the co-conspirator retrieved the package, and was observed driving to meet Musheer in Baltimore City. Musheer placed the package in his own car, after which both were arrested. At the time of his arrest, Musheer had over $40,000 in cash and numerous pre-paid cell phones in his car.
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Joshua T. Ferrentino, who prosecuted the case.
U.S. Attorney Issues Police Week Message to Baltimore City Police OfficersRead the Press Release
U.S. Attorney Rod J. Rosenstein sent the following message to police officers serving in Baltimore City today:
During National Police Week, we pay tribute to police officers who have died in the line of duty and give thanks to officers who faithfully protect and serve.
In particular, I want to express my gratitude to every police officer who serves with honor and integrity in Baltimore City. Criticism of your department, whether or not justified, should not obscure the good that so many of you do every day. The murder rate in Baltimore City fell dramatically over the past decade, along with most types of crime, thanks in large part to superb work by outstanding officers of the Baltimore Police Department. You have saved many lives.
Some criminals have taken advantage of recent events. Although many agencies are working on long-term solutions, only the Baltimore Police Department can stop criminals from harming victims today. Good police work is essential to hold criminals accountable and deter them from committing more crimes and creating more victims.
Baltimore City police officers have one of the most challenging and most important jobs in Maryland. Thank you for your courage and for your devotion to justice.
Former MVA Employee Sentenced to 18 Months in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Traci Lynette Cure, age 46, of Silver Spring, Maryland today to 18 months in prison followed by a year of supervised release for conspiracy in connection with issuing fraudulent driver’s licenses and duplicate vehicle titles.
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 Milton Chaffee, Administrator of the Maryland Motor Vehicle Administration - Investigation and Security Services Division.
Cure worked at the Maryland Motor Vehicle Administration in Upper Marlboro, Maryland beginning in 1997, and served as a customer agent/lead worker from 2007 until September 4, 2013.
According to her plea agreement, from November 2011 to August 2013, a co-conspirator paid Cure at least $5,500 to issue fraudulent driver’s licenses for the co-conspirator and others, and fraudulent duplicate vehicle titles. Cure received approximately $40 for each of at least 120 duplicate vehicle titles she fraudulently produced, and $100 for each of at least seven driver’s licenses she fraudulently issued. Cure produced driver’s licenses bearing the photos of the co-conspirator and others, and the names of real people, including victims who were citizens of Colombia and Puerto Rico.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and MVA - Investigation and Security Services Division for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.
Waldorf Man Sentenced to over 12 Years in Prison for Armed Robbery ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Shawn Delonte Allen, age 40, of Waldorf, Maryland today to 150 months in prison followed by five years of supervised release for conspiring to commit the robbery of a drug dealer and for using and brandishing a firearm during a crime of violence.
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 Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, on April 11, 2014, Allen and his co-conspirators Evan Anthony Peek-Austin and Joel Varela Linares, 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, Allen, Linares and Austin 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. Allen, Linares and Austin each had a handgun and threated to kill the victim if he did not produce the drugs or drug proceeds. While questioning the victim, Allen brandished his gun. Allen also heated a metal spoon and placed the hot spoon on the victim’s hands and face, demanding the victim tell them the location of the drugs and money. The victim finally told Allen 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 Allen and his co-conspirators that his friend would have approximately 10 kilograms of heroin.
Allen and Linares instructed the victim to drive them to the meeting location in Beltsville, Maryland. Once the HSI agent arrived, the victim met the agent and told him that Allen 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. Allen and Austin fled the meeting location and were pursued by law enforcement. They eventually ran away and Allen was subsequently apprehended by police.
Evan Anthony Peek-Austin, age 39, of Landover, Maryland, and Joel Varela Linares, age 25, of Washington, D.C., previously pleaded guilty to their roles in the robbery and are scheduled to be sentenced on June 19, 2015 at 10:00 a.m. and May 28, 2015 at 10:30 a.m., respectively.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Daniel C. Gardner and Kelly O. Hayes, who prosecuted the case.
Baltimore Drug Dealer Exiled to 14 Years in Prison for Robbing A Pharmaceutical Truck and Conspiring to Distribute CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles Jr. sentenced Donte Walter Robinson, age 36, of Baltimore, today to 14 years in prison followed by five years of supervised release for conspiring to distribute five or more kilograms of cocaine, and robbery. Judge Quarles also ordered Robinson to pay restitution of $75,186.
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; Assistant Special Agent in Charge Gary Tuggle 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); Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on December 13, 2010, Robinson and others robbed a pharmaceutical delivery truck. Robinson obtained a U-Haul as the get-away vehicle. Three co-conspirators waited for the pharmaceutical delivery truck to arrive at a pharmacy on West Pratt Street in Baltimore. When the driver got out of the truck and opened the rear door, two co-conspirators jumped into the truck and pointed a loaded gun at the truck driver. They tied the driver’s hands behind his back and continued to hold a gun on him. One of the co-conspirators stayed in the back with the driver while the other drove the truck, with Robinson driving the U-Haul behind them. They drove to the 2000 block of Annapolis Road in Baltimore where they transferred the pharmaceuticals, worth a total of $75,186, to the U-Haul.
Additionally, on six occasions from January to May, 2011, Robinson flew with other co-conspirators from Baltimore to McAllen, Texas to transport one to two kilograms of cocaine, per trip, back to Maryland on behalf of a drug dealer. Robinson knew that the cocaine was to be distributed in Maryland.
United States Attorney Rod J. Rosenstein commended the FBI, DEA, HSI Baltimore, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Christopher Romano, who prosecuted the case.
Silver Spring Man Sentenced for Involuntary Manslaughter in Fatal Crash on Baltimore-Washington ParkwayRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Bernardo Lloyd, age 48, of Silver Spring, Maryland late yesterday to 63 months in prison, followed by three years of supervised release, for involuntary manslaughter connected to a fatal crash on the Baltimore-Washington Parkway.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.
According to testimony at his four day trial, on January 31, 2012, about 2 p.m., Bernardo Lloyd was driving a black Lexus on the Baltimore-Washington Parkway in Cheverly, Maryland, at a high rate of speed, keeping pace with a black Nissan. Both vehicles were passing other southbound vehicles, changing lanes abruptly to get around the other vehicles. Other vehicles had to take evasive action as Lloyd passed them. Lloyd and the driver of the Nissan appeared to be racing each other. Lloyd was traveling at about 100 miles per hour. The posted speed limit in that area is 45 mph.
The victim was driving a Ford F150 pickup truck in the center lane of the highway, when Lloyd struck the pickup truck from the rear. As a result of the crash, the truck rolled over several times and came to a stop on its roof in the center lane. The victim died at the scene from head and neck trauma as a result of the crash. Lloyd’s Lexus bounced to a stop off the highway on the right side. Lloyd and his passenger were transported to the hospital, where both were treated for minor injuries and released.
United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant U.S. Attorney Nicholas J. Patterson, who prosecuted the case.
Manager in Counterfeit Credit Card Ring Pleads GuiltyRead the Press Release
Baltimore, Maryland –Navee Diaz, a/k/a India, age 40, of Owings Mills, Maryland pleaded guilty today to bank fraud conspiracy and aggravated identity theft, arising from a scheme to use of stolen credit and debit card information to manufacture counterfeit credit cards used to buy merchandise and services.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Gary Gardner of the Howard County Police Department; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Chief Ross C. Buzzuro of the Ocean City Police Department; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Newport News Police Chief Richard W. Myers; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to her plea agreement, starting before January 1, 2011 and continuing through June 2014, Diaz conspired with co-defendants William Downey, Michael Crew and others to manufacture counterfeit debit and credit cards bearing stolen and unauthorized credit and debit card account numbers, then use the counterfeit cards to purchase goods and services. Diaz initially became involved in the scheme when her friend, Downey, introduced her to Crew, with whom she became romantically involved. Crew had an embossing machine, and made credit cards using altered gift cards and the credit card and debit card numbers stolen from others. The stolen credit card account numbers were obtained from a variety of sources. Once a valid number was obtained, Diaz and other co-conspirators would use an algorithm to derive other valid numbers, which they would confirm by calling customer service for the issuing financial institution. These numbers were used to manufacture counterfeit access devices bearing the stolen credit and debit card account numbers.
Crew sold the counterfeit credit cards and recruited others, including Diaz, to go out and make purchases on Crew’s instructions. Ultimately, Diaz began to provide cards to others and to take and fulfill orders for items purchased with the counterfeit cards. Diaz recruited others into the scheme, obtained cards as needed from Crew and co-defendant Jason Evans, and even manufactured cards herself. She exchanged dozens of text messages each day taking orders, arranging for cards and workers, and conducting other business of the conspiracy. Diaz went out shopping with the cards on a daily basis, with and without other workers in the scheme.
During her participation in the conspiracy, Diaz and her co-conspirators obtained or attempted to obtain extensions of credit from financial institutions of between $200,000 and $400,000, using the financial account numbers of real people. More than 250 individuals and institutions were defrauded by the scheme.
Diaz and the government have agreed that if the Court accepts the plea agreement Diaz will be sentenced to 76 months in prison. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for July 14, 2015 at 10:00 a.m. At the time of her sentencing, Diaz will also be required to pay restitution in the full amount of the victims’ actual losses, currently computed to be $126,318.99.
Michael Crew, age 55, of Owings Mills, previously pleaded guilty to the same charges and was sentenced to nine years in prison and ordered to pay restitution of $126,318.99. William Downey, age 43, of Gwynn Oak, Maryland, his brother, Stanley Downey, age 49, formerly of New York, and Jason Evans, age 32, of Millsboro, Delaware, also pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on July 30, 2015, June 23, 2015, and May 20, 2015, respectively, all at 1:00 p.m. Diaz and the Downey brothers remain detained pending sentencing.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service; Howard County, Baltimore City, Baltimore County, Howard County, Ocean City and Newport News Police Departments, HSI Baltimore and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Baltimore Cocaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake, sentenced Lamont George Thomas, age 34, of Baltimore, Maryland, today to 10 years in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine. Judge Blake enhanced Thomas’ sentence after finding he was a career offender based on three previous felony drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from December 2013 through April 2014, Thomas was a member of a conspiracy to distribute cocaine. As part of the conspiracy, Thomas obtained kilograms of cocaine from a New York supplier. Law enforcement overheard co-defendant Tyrone Bailey discussing drug activity over court-ordered wiretaps on a co-conspirator’s phones.
For example, on March 10, 2014, Bailey was overheard telling a co-conspirator that he was traveling to New York that day to obtain cocaine. As Bailey returned from New York, Maryland State Police conducted a traffic stop of Bailey’s pick-up truck for speeding. Thomas was driving the vehicle and Bailey was the front seat passenger. After a K-9 alerted to the presence of narcotics, law enforcement located an electronically controlled false compartment in the seat back of the rear bench seat. The compartment contained approximately 4.2 kilograms of cocaine. Law enforcement recovered $1,600 in cash and multiple cell phones from Bailey. One of the cell phones recovered was the phone Bailey used to talk to his co-conspirator.
Tyrone Robert Bailey, age 28, of Baltimore, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to 10 years in prison. Thomas and Bailey have been detained since their arrest on March 10, 2014.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department, Maryland State Police, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Christopher J. Romano and Special Assistant U.S. Attorney Christopher Flagg, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, who prosecuted this Organized Crime Drug Enforcement Task Force 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 William Hegie, age 54, of Baltimore, to 10 years in prison followed by five years of supervised release for conspiring to distribute five or more kilograms of cocaine, in connection with his participation in the Jenifer drug trafficking organization (Jenifer DTO).
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Commissioner Anthony W. Batts 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 Hegie and others with kilogram-quantities of cocaine for distribution in and around the Baltimore-Washington metropolitan areas. Hegie 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.
Hegie 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.
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 Attorneys John W. Sippel, Jr. and Scott A. Lemmon, who are prosecuting the case, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance in this Organized Crime Drug Enforcement Task Force case.
Former Owner of Empire Towers Pleads Guilty to Fraudulent $7 Million Bond Scheme and Filing a False Tax ReturnRead the Press Release
Baltimore, Maryland - Wilfred T. Azar, III, age 53, formerly of Queenstown, Maryland, pleaded guilty today to securities fraud and filing a false tax return.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
In 1999, Azar became president and majority owner of Empire Corporation and exercised complete control over the operations of Empire. Empire Corporation owned Empire Towers Corporation. Empire Towers Corporation’s primary asset was Empire Towers, a 10 story office building in Glen Burnie, Maryland.
According to Azar’s plea agreement, by January 2006, Empire Corporation could no longer pay its expenses and was effectively insolvent. By 2007, Empire Towers Corporation had exhausted its lines of credit from lending institutions.
From January 2006 to April 2010, Azar caused Empire Corporation to sell bonds to over 50 individual investors for more than $7 million. While many of the bonds were titled “registered,” the bonds were not registered with either the U.S. Securities and Exchange Commission (SEC) or the state of Maryland. In addition, Azar falsely told investors that Empire Corporation was in good financial health and that the company generated enough revenue to pay the promised 10 percent annual rate of return. Azar falsely represented that the money invested would be used for a specific renovation project or other capital improvement at the Empire Towers office building. Azar failed to inform investors that he used most of the money raised from previous bond sales for his own personal purposes. Although the bonds were issued by Empire Corporation, Azar diverted millions of dollars of proceeds from the bond sales to his own bank account and the bank accounts of other companies that he controlled.
During the period of the fraud, Azar misappropriated approximately $7,219,362 in investor proceeds raised through the sale of bonds. Azar used the bond proceeds: to purchase a $100,000 Aston Martin luxury automobile; to pay the $3,000 monthly mortgage on his primary residence; to pay $51,000 to an Azar trust; to purchase Baltimore Ravens season tickets for $17,298; and to pay $25,389 in country club dues. In addition, Azar charged over $420,000 to a credit card paid by Empire Management Services, including daily living expenses, lavish vacations, and university tuition for one of his children. Azar also diverted more than $1.07 million in Empire funds to other unrelated businesses he controlled under the guise of “loans” which were never repaid.
During 2009, Azar embezzled approximately $1,959,250 in Empire funds, which he failed to report as income on his tax return. This resulted in a tax loss to the government of $469,936.
Azar faces a maximum sentence of 20 years in prison for securities fraud, and a maximum of three years in prison for filing a false tax return. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for August 12, 2015, at 10:00 a.m.
The SEC has also filed a complaint against Azar and another individual in connection with the scheme, and that case is pending.
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 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, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the IRS-CI, FBI and SEC for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory Bockin and Trial Attorney Kenneth Vert of the Justice Department’s Tax Division, who are prosecuting the case.
Temple Hills Felon Convicted of Armed Robbery of a Pizza Hut in BowieRead the Press Release
Greenbelt, Maryland – A federal jury convicted Gary Warren Hancock, Jr., age 37, of Temple Hills, Maryland, today of robbery, brandishing a firearm during the robbery and being a felon in possession of a gun and ammunition.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief John Nesky of the Bowie Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to evidence presented during the six day trial, on May 2, 2013, Hancock entered the Pizza Hut restaurant at 1290 Crain Highway NW, Bowie, Maryland, pointed a handgun at an employee and demanded the opening of a safe. When the employee said he could not open the safe, Hancock demanded money from the cash register. The employee complied. Hancock fled on a motorcycle.
A Bowie City Police Department officer happened to be on patrol just outside the Pizza Hut at the time, and was alerted by witnesses to the robbery. The officer saw Hancock fleeing on the motorcycle and gave chase. After a pursuit, Hancock crashed the motorcycle and was arrested. Law enforcement officers recovered the stolen money and a loaded firearm.
Hancock had previously been convicted of numerous felonies, including carjacking, kidnapping and attempted robbery, and was thus prohibited from possessing a firearm and ammunition.
Hancock faces a maximum sentence of 20 years in prison for the robbery; a mandatory minimum sentence of seven years in prison and a maximum of life in prison for using a firearm during the robbery; and a mandatory minimum sentence of 15 years and a maximum sentence of life in prison for being a felon in possession of a gun and ammunition. U.S. District Judge George J. Hazel has scheduled sentencing for August 11, 2015 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the ATF, Bowie and Prince George’s County Police Departments and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Michael T. Packard, who are prosecuting the case.
Hanover Business Owner Admits to Mortgage and Tax Fraud SchemesRead the Press Release
Baltimore, Maryland – Luis R. Valladares, age 52, of Hanover, Maryland, pleaded guilty today to mail fraud, admitting that his fraud schemes resulted in total losses of approximately $779,277.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly 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, 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.
As a result of the mortgage fraud scheme, Valladares has agreed to pay restitution of $487,000, the total amount of the victims’ losses.
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.
Vallardes 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.
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.
Valladares faces a maximum sentence of 20 years in prison. U.S. District Judge William D. Quarles, Jr. scheduled his sentencing for July 29, 2015, at 1:00 p.m.
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 Gregory R. Bockin, who is prosecuting the case.
Career Offender Admits to Committing Three Armed Robberies in Maryland in Six WeeksRead the Press Release
Greenbelt, Maryland –James Davis, age 56, formerly of Washington, D.C., pleaded guilty today to conspiring to commit robbery, robbery of money belonging to the United States, carrying and brandishing a firearm during a robbery, and being a felon in possession of a firearm.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Chief Mark A. Magaw of the Prince George’s County Police Department and Chief Douglas Holland of the Hyattsville Police Department.
According to his plea agreement, on August 8, 2013, Davis and co-conspirator Recardo Beatty drove to the Hyattsville Post Office. Beatty first entered the post office to scout the inside. Davis then entered, while Beatty waited outside in their getaway vehicle. Davis pointed a long black paintball gun at an employee. The employee and another employee fled from their cash registers, while Davis grabbed money and money orders out of the register. Davis and Beatty fled in their vehicle.
On August 15, 2013, the pair traveled to the Glut Food Co-Op in Mt. Rainer, Maryland. As Beatty waited outside in the vehicle, Davis entered the store, walked behind a counter where an employee was working and displayed a paintball gun. Davis ordered the employee to open the cash register and Davis removed money. Davis and Beatty fled in their vehicle.
On September 17, 2013, Davis and Beatty traveled to the Dollars and Sense store in Brentwood, Maryland and entered the store together. Davis demanded that an employee open a cash register, from which he took money and a cash box. Beatty, who was armed with a firearm, saw another employee approach a store exit door. A fight ensued, and the employee was hit on the head. Davis and Beatty fled the store in their vehicle.
On the same day as the Dollars and Sense robbery, officers recovered the firearm from Beatty that was used in the robbery. The next day, September 18, 2013, officers executed a search warrant at Beatty’s residence where Davis was staying, and recovered a paintball gun and clothing used in the robberies.
Davis had previously been convicted of a felony and was thus prohibited from possessing a firearm.
Davis and the government have agreed that if the Court accepts the plea agreement, Davis will be sentenced to 16 years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for August 12, 2015 at 10:00 a.m.
Recardo Beatty, age 50, of Washington, D.C., previously pleaded guilty to his participation in the robberies and awaits sentencing.
United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service and the Prince George’s County and Hyattsville Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leah Jo Bressack and Special Assistant United States Attorney Matt Paeffgen, who are prosecuting the case.
Three Indicted on Federal Charges Related to Sex Trafficking of a MinorRead the Press Release
Greenbelt, Maryland – A federal grand jury today indicted Michael Andrew Davila, age 26, of Berwyn Heights, Maryland, Elsie Liseth Pazmino, age 28, also of Berwyn Heights, and John David Hamlett, age 32, of Laurel, Maryland, for conspiracy to engage in sex trafficking of a minor, sex trafficking of a minor, and transportation of a minor for prostitution.
The 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; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to the three count indictment, between January and March 2015, the defendants conspired to, and did, have the victim, who was under the age of 18, engage in commercial sex acts.
Specifically, the indictment alleges that Davila enticed the victim to engage in prostitution and created and posted advertisements on the Internet that advertised the victim for prostitution. According to the indictment, the advertisements used a false name and age for the victim and included pictures of another female, not the victim. Davila and Pazmino allegedly answered text messages and calls from clients seeking to engage in sexual acts with the victim and arranged “dates” for the victim with those clients. According to the indictment, Davila and Pazmino arranged and paid for hotel rooms in which the victim engaged in prostitution. The defendants allegedly transported the victim to locations within and outside Maryland to engage in prostitution and benefited financially from the proceeds of the victim’s prostitution.
The defendants face a maximum sentence of life in prison. Davila, Pazmino and Hamlett were previously charged by criminal complaint. After an initial appearance on the charges in the criminal complaint, Davila and Hamlett were ordered to be detained and Pazmino was released under the supervision of U.S. Pretrial Services. No date has been set for the defendants’ initial appearance and arraignment on the indictment.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation and thanked the Anne Arundel County Police Department for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Conor Mulroe, who are prosecuting the case.
Hampstead Man Pleads Guilty to Distribution and Possession of Child PorngraphyRead the Press Release
Baltimore, Maryland – Michael Eugene Aldridge, age 42, of Hampstead, Maryland, pleaded guilty today to distribution and possession of child pornography.
The guilty plea 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; and Carroll County Sheriff James DeWees.
According to Aldridge’s plea agreement, he covertly took videos of minor females, including while they were undressed, to produce child pornography. Aldridge distributed those videos to others to encourage them to engage in the production of child pornography and exchanges the images and videos with Aldridge. On June 26, 2014, a search warrant was executed on his residence and Aldridge was interviewed by law enforcement. During the interview, Aldridge admitted that he viewed and distributed child pornography. A search of Aldridge’s email account recovered two images of child pornography. A forensic analysis of his cell phone recovered 15 images depicting minors engaged in sexually explicit conduct.
As part of his plea agreement, Aldridge must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Aldridge faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison, for distribution of child pornography; and a maximum of 10 years in prison for possession of child pornography, followed by up to lifetime of supervised release. U.S. District Judge Marvin J. Garbis has scheduled sentencing for July 28, 2015, at 9:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Maryland State Police, and Carroll County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Owner of District Heights Shipping Company Convicted of Illegally Attempting to Export Arms to Lebanon and SmugglingRead the Press Release
Greenbelt, Maryland – A federal jury convicted Sam Rafic Ghanem, age 45, of Springfield, Virginia, today for attempting to illegally export defense articles, specifically firearms parts and accessories, to Lebanon, and for smuggling goods from the United States.
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; 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 are prohibited from export to Lebanon. The specific items Ghanem attempted to export included: 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.
Ghanem faces a maximum sentence of 20 years in prison for attempting to illegally export defense articles, and 10 years in prison for smuggling. U.S. District Judge Roger W. Titus has scheduled sentencing for August 12, 2015 at 10:00 a.m.
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 are prosecuting the case.
Bookkeeper Pleads Guilty to Embezzling from Non-Profit OrganizationsRead the Press Release
Baltimore, Maryland - Sharon Harrison, age 48, of Rosedale, Maryland, pleaded guilty today to embezzling more than $1.3 million from four non-profit organizations for which she worked and which received federal funding.
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; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General; and Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General.
“Non-profit organizations that receive federal funds have a legal duty to use them for the intended purpose,” said U.S. Attorney Rod J. Rosenstein. “Sharon Harrison helped herself to federal funds intended to provide services for disadvantaged children and homeless families in Baltimore.”
According to her plea agreement Sharon Harrison was a bookkeeper or fiscal manager for the following non-profit groups, all of which received federal funds to assist in their mission:
Health, Education, Advocacy, Life Inc. (HEAL) from 2005 to March 2011;
Between Friends, Inc. from September 2008 to November 2011;
Jobs, Housing & Recovery, Inc. (JHR) from May 20, 2013 to February 12, 2014;
and Reservoir Hill Improvement Council (RHIC) from December 2012 to February 2014.HEAL and JHR provided services for the homeless in Baltimore City. Between Friends assisted disadvantaged children to find foster homes and provided services to the children and their foster families. RHIC assessed community needs, developed and implemented solutions on issues common to the Reservoir Hill Community in Baltimore.
Over the course of her employment at HEAL, RHIC, JHR and Between Friends, Harrison embezzled over $1.3 million. Specifically, Harrison admitted that she embezzled: $226,888.34 from HEAL; $784,781.17 from Between Friends; $161,750.14 from JHR; and $133,178.04 from RHIC. As part of her plea agreement, Sharon Harrison agreed to the entry of a restitution order for the full amount of the victim’s losses, $1,306,797.70.
Sharon Harrison faces a maximum sentence of 10 years in prison for federal program theft. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 30, 2015, at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, HUD-OIG and Baltimore Office of Inspector General, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Final Defendant Convicted After Five Day Trial of Conspiracy to Distribute over $6.6 Million in Contraband CigarettesRead the Press Release
Baltimore, Maryland – A federal jury today convicted Nikolay Zakharyan, age 24, of Owings Mills, Maryland, for conspiracy to receive, possess, sell and distribute over $6.6 million in contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid. Nikolay’s father, Artur Zakharyan, age 54, of Reisterstown, pleaded guilty before trial to his participation in the conspiracy.
The conviction and guilty plea 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; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to their guilty pleas, Elmar Rakhamimov was the leader and organizer of the scheme, and he coordinated with Ilgar Rakhamimov (no relation) and Artur Zakharyan to collect the money to purchase the contraband cigarettes, and to arrange for the storage and transportation of the contraband cigarettes to Brooklyn, New York. Elmar Rakhamimov, Ilgar Rakhamimov, and Artur Zakharyan purchased contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area.
According to court documents and testimony at the five day trial, Artur Zakharyan recruited his son, Nikolay Zakharyan, to participate in the scheme. Nikolay Zakharyan assisted in the unloading, accounting, bagging, moving and loading of the master cases of contraband cigarettes. Nikolay Zakharyan traveled to the home of Elmar Rakhamimov to assist during no less than 10 deliveries of contraband cigarettes. Nikolay Zakharyan unloaded the cases of cigarettes from the truck into Elmar Rakhamimov’s garage and counted the number and types of cigarettes delivered to ensure that the delivery was complete. Nikolay Zakharyan also traveled to Elmar Rakhamimov’s home in the days following the delivery of the cigarettes to load them into the vehicle used to transport the contraband cigarettes to Brooklyn, New York.
Other members of the conspiracy included Zarakh Yelizarov, Salim Yusufov, Adam Azerman, Shamil Novakhov, and Ruslan Ykiew.
The first transaction occurred at Chesapeake Monuments, a business owned by Ilgar Rakhamimov, on December 11, 2011, when Elmar Rakhamimov and Ilgar Rakhamimov purchased 20 master cases of contraband cigarettes in exchange for $18,000 in cash. After the first transaction, the contraband cigarettes were delivered to and stored at the home of Elmar Rakhamimov in Owings Mills. Prior to each transaction, Elmar Rakhamimov, Ilgar Rakhamimov, and Artur Zakharyan discussed the transaction on the phone, and frequently met at Elmar Rakhamimov’s home to discuss the purchase and compile and count the money for the transaction.
The cigarettes were sold and distributed in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. At the time of the indictment the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $4.35 per package of cigarettes ($43.50 per carton of cigarettes). The total tax evaded over the course of the conspiracy was more than $2.5 million.
Following many of the deliveries, the conspirators met at Elmar Rakhamimov’s residence to discuss moving the cigarettes to Brooklyn, New York where the cigarettes were sold at a profit to individuals in New York, who further distributed the contraband cigarettes. The cigarettes were often transported from Maryland to New York by Adam Azerman, who delivered them to Shamil Novakhov, a relative of Ilgar Rakhamimov. Ilgar Rakhamimov brought Novakhov into the conspiracy, and was the primary contact with Novakov throughout the conspiracy. Novakhov’s nephew, Ruslan Ykiew, also would travel from New York to Maryland to obtain contraband cigarettes and transport them to his uncle in New York. Ykiew initially stored the cigarettes in a restaurant he owned. At Novakhov’s request, in 2012 Ykiew rented a warehouse for the storage of the contraband cigarettes. Ilgar Rakhamimov and his co-conspirators paid $30 for each carton of contraband cigarettes, and sold them to buyers in New York for approximately $41 - $45 per carton.
Yelizarov and Elmar Rakhamimov laundered the proceeds of the contraband cigarette sales through an international money laundering operation that wired funds from banks located in Latvia, Cyprus, Estonia, and New York, to a bank in Maryland, disguising the money as legitimate business payments for medical equipment or supplies. From December 27, 2012 through September 5, 2013, Yelizarov and Rakhamimov wired a total of $649,500 through 12 transactions.
As part of his plea agreement, Artur Zakharyan is required to forfeit $50,000 believed to be proceeds of the offense, $11,947 and a 1 troy ounce gold bar seized from Zakharyan’s belongings on December 17, 2013, and four troy ounce gold bars and a gold coin seized from his home on December 11, 2013.
Artur and Nikolay Zakharyan each face a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Artur Zakharyan for July 9, 2015, at 1:00 p.m. and for Nikolay Zakharyan on July 29, 2015 at 10:00 a.m.
Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland, and his brother, Salim Yusufov, age 44, of Reisterstown, Maryland; Ilgar Rakhamimov, age 41, Zarakh Yelizarov, age 52, and Adam Azerman, age 60, all of Pikesville, Maryland; and Shamil Novakhov, age 59, and Ruslan Ykiew, age 40, both of Brooklyn, New York, previously pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office for its assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.
District Heights Man Indicted for Second Degree Murder Arising from Baltimore-Washington Parkway Fatal Car CrashRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Anthony Lamont Payne, age 27, of District Heights, Maryland, today on charges of second degree murder arising from a fatal car crash. The indictment was returned yesterday and unsealed today upon his arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.
The one count indictment alleges that Payne killed the victim on March 20, 2015. The charge arises from a fatal car crash on the Baltimore-Washington Parkway.
Payne faces a maximum sentence of life in prison. An initial appearance was held at 4:00 p.m. today in U.S. District Court in Greenbelt. Payne was detained under the supervision of U.S. Pretrial Services, pending a detention hearing to be held on April 30, 2015 at 12:30 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Hollis Raphael Weisman and Special Assistant United States Attorney Conor Mulroe, who are prosecuting the case.
Millersville Man Sentenced to 16 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 Parris Benjamin Chisholm, age 24, of Millersville, Maryland, today to 16 years in prison, followed by three years of supervised release, for 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 his arrest on March 26, 2013, Chisholm participated in the armed robberies of five cell phone stores in Anne Arundel, Baltimore and Montgomery Counties, along with co-defendants Donald Scott Deans, and Tyran Antwain Lane.
Specifically, Chisholm, his co-defendants, 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. Chisholm and his co-defendants then sold the stolen property for cash. According to his plea agreement and other court documents Chisholm or his co-defendants used and brandished a gun to intimidate the employees during the robberies. In at least three of the armed robberies the defendants used duct tape 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. Cell phone records show that Chisholm, his co-defendants 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.
Chisholm was arrested on March 26, 2013, after the burglary of a cell phone store in the 7700 block of Belair Road in Baltimore County. Chisholm used a rock to break a window in the front of the store and stole four cell phones. Police pulled him over while he was driving his car. Law enforcement recovered new and used rolls of duct tape, clothing, and hats similar to those described by robbery victims 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 Tyran Antwain Lane, age 23, of New Carrollton, Maryland, previously pleaded guilty to their participation in the robberies. Deans is scheduled to be sentenced on April 24, 2015, at 9:15 a.m., and Lane is scheduled to be sentenced on July 31, 2015 at 11:30 a.m.
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.
Hagerstown Woman Sentenced to over Three Years in Prison for Distribution of Heroin Resulting in an Overdose DeathRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Heather Lynn Koons, age 33, of Hagerstown, Maryland today to 37 months in prison, followed by three years of supervised release, for distribution of heroin to an individual, resulting in his death from a heroin overdose. Judge Bennett also ordered Koons to pay restitution of $3,484 to the victim’s family.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Washington County Sheriff Douglas W. Mullendore.
According to her plea agreement, on October 19, 2012, Koons distributed approximately one gram of heroin to two individuals. One of the individuals, Daniel Shorten, died later that evening of a heroin overdose. Following Shorten’s death, Koons and the other individual exchanged text messages and had a series of phone conversations about the overdose. During one of the phone calls Koons instructed the individual to delete text messages from her phone and to refrain from contacting Koons for two weeks. During a recorded phone conversation on October 23, 2012, Koons admitted that she distributed heroin to Shorten and the other individual prior to Shorten’s death.
United States Attorney Rod J. Rosenstein praised the DEA and Washington County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted the case.
Baltimore Heroin Dealer Exiled to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Steven Andrew Young, age 39, of Baltimore, today to 12 years in prison followed by four years of supervised release, after Young pleaded guilty today to conspiracy to distribute and possession with intent to distribute heroin.
The plea and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from at least January to May 2014, Young obtained large quantities of heroin which he and others broke down and packaged for street-level distribution. Law enforcement officers saw Young using a vehicle during suspected drug transactions, and saw Young selling drugs out of a home on Greencrest Road in Baltimore.
On May 23, 2014, investigators executed search warrants for the vehicle and house, and seized a loaded semi-automatic handgun, two plastic bags containing approximately 47 grams of heroin, 3,700 empty gelatin capsules used to package heroin for street-level distribution, and several large bags of cutting agent.
During his participation in the drug conspiracy, Young admitted that he and his coconspirators distributed between 100 and 400 grams of heroin.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Christopher Flagg and Assistant United States Attorney Christopher Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Asset Manager Pleads Guilty to $5 Million Fraud SchemeRead the Press Release
Greenbelt, Maryland – Max Wagenblast, age 35, of Arlington, Virginia, pleaded guilty today to wire fraud in connection with a scheme to steal over $5 million from his company.
The guilty plea 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.
According to the his plea, Wagenblast was employed as an asset manager for a Bethesda company (the company) that was the second largest Special Servicer of commercial real estate mortgages in the United States. As a Special Servicer, the company was responsible for administering defaulted commercial mortgage loans and the real estate securing foreclosed loans. The company performed this service on behalf of the Real Estate Mortgage Investment Conduit (“REMIC”) trust that held the mortgage loans on behalf of the certificate holders of the trust. In its capacity as a Special Servicer, the company collected borrower payments and property cash flow and remitted them to the REMIC trust, which was responsible for distributing those funds to the certificate holders. Wagenblast oversaw both the loans and properties that acted as security for the loans serviced by the company, including the application and utilization of funds generated by the properties he managed.
Wagenblast admitted that he redirected a portion of the funds collected from the properties he managed into the bank accounts of three limited liability companies he controlled. Those redirected funds should have been sent to the company and then forwarded to the REMIC trust bank accounts. Wagenblast obtained these funds in three ways: by sending fake invoices to the property managers and directing them to wire the funds for payment into one of the bank accounts Wagenblast controlled; by creating fake service contracts and again directing the property managers to wire the funds for payment into one of the bank accounts Wagenblast controlled; and by sending the property managers an email requesting that all wires in excess of $10,000 be sent to a bank account Wagenblast controlled.
The company conducted a search of Wagenblast’s work computer and found documents detailing the fraudulent activity, including a spreadsheet detailing each diverted funds transaction that listed the amount taken, the property from where the funds originated, the date of the transaction and the bank account into which the funds were directed. From September 2012 through September 2013, Wagenblast caused over $5 million to be wire transferred into bank accounts he controlled
Wagenblast faces a maximum sentence of 20 years in prison and a fine of $250,000 for wire fraud. U.S. District Judge Theodore D. Chuang scheduled his sentencing for July 20, 2015, at 11:00 a.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. 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 FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.
Calvert County Man Admits to Selling Heroin That Resulted in DeathRead the Press Release
Greenbelt, Maryland - Russell Edward Johnson, age 23, of Lusby, Maryland, pleaded guilty today to distributing heroin to a person who died as a result of ingesting the heroin.
The plea agreement 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; Calvert County Sheriff Mike Evans; and Calvert County State’s Attorney Laura Martin.
According to his plea agreement, on July 18, 2013 in St. Leonard, Maryland, Johnson sold heroin to an individual who ingested the heroin. A few hours later, Johnson again sold heroin to the individual. The individual ingested the additional heroin, and died shortly thereafter. The victim’s cause of death was determined to be heroin intoxication.
Johnson and the government have agreed that if the Court accepts the plea agreement, Johnson will be sentenced to between 10 and 12 years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for June 18, 2015, at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the DEA, Calvert County Sheriff’s Office, and Assistant State’s Attorney Lisa Ridge of the Calvert County State’s Attorney’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Daniel C. Gardner, who are prosecuting the case.
Silver Spring Man Indicted for Allegedly Distributing Acetyl Fentanyl Resulting in DeathRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Jeffrey Sean Nazari, age 44, of Silver Spring, Maryland, on charges of distributing a controlled substance analogue resulting in death, possession with intent to distribute a controlled substance analogue, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. The indictment was returned today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to the four count indictment and court documents, on January 4, 2015, Nazari allegedly distributed acetyl fentanyl, a controlled substance analogue that he represented to be heroin, to an individual who subsequently died as a result of using the substance. As part of the investigation into that death a search warrant was obtained for Nazari’s residence. The indictment alleges that on January 7, 2015, Nazari possessed acetyl fentanyl with the intent to distribute it, and illegally possessed a .380 caliber handgun.
Nazari faces a mandatory minimum sentence of 20 years and up to life in prison for distribution of acetyl fentanyl with death resulting; a maximum of 20 years in prison for possession with intent to distribute a controlled substance analogue; a minimum of five years, consecutive to any other sentence, and up to life in prison for possession of a firearm in furtherance of a drug trafficking crime; and up to 10 years in prison for being a felon in possession of a firearm. No court appearance has been scheduled. Nazari 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 DEA, Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Nicolas A. Mitchell, who are prosecuting the case.
MS-13 Member Pleads Guilty in Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland –Wilmer Argueta, a/k/a “Chengo,” age 23, of Hyattsville, Maryland, pleaded guilty today to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including an assault, attempted murder and extortion.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge William Winter 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 the statement of facts filed with his plea agreement, from 2009 until at least 2012, Argueta was a member and leader of the Peajes Locos Salvatrucha clique of MS-13. Argueta and MS-13 members in the Peajes clique 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 January 3, 2010, he and other MS-13 members attempted to kidnap and assault two victims in the area of East-West Highway and Riggs Road. After the two victims fled in different directions, several MS-13 members allegedly caught one of the victims in a nearby wooded area and sexually assaulted her as retribution for associating with a rival gang.
According to the plea agreement, on January 13, 2011, Argueta attended a Peajes clique meeting with co-defendant Roni Arriola-Palma and other MS-13 members near the Greenbelt Metro Station. Another MS-13 member spoke at the meeting, criticizing members of the clique for not committing enough violent crimes on behalf of MS-13, and encouraging clique members to find rival gang members and commit acts of violence against them.
After the meeting ended, Argueta and other MS-13 members got into a mini-van being driven by Arriola-Palma. Near the Fort Totten Metro Station, they saw a person they believed was an associate of a rival gang. Argueta and other MS-13 members attacked the victim and dragged him back into the mini-van, where they continued to assault him. Arriola-Palma drove the mini-van around Hyattsville, eventually parking near a dead end in the vicinity of Chillum Manor Road. After Arriola-Palma stopped the mini-van, Argueta and several other MS-13 members kicked, stabbed and choked the victim. Since the victim was wearing heavy winter clothing, Argueta, Arriola-Palma and other MS-13 members forcefully stripped the victim of all clothing, in order to stab the victim. After the assault, two MS-13 members dragged the victim into the woods, where one of the gang members strangled the victim with his belt. When they returned from the woods, they informed the other members that the victim was dead. Arriola-Palma then drove the group of MS-13 members away from the scene. The victim survived the attack.
From March to November, 2011, members of the Peajes clique threatened to kill a fellow MS-13 gang member unless he paid them a weekly or bi-weekly “rent” or “tax,” which gang members collected from the victim. Argueta admitted that he ordered other MS-13 associates to relay the death threats to the victim, and contacted the victim himself on multiple occasions to arrange extortion payments. Argueta picked up payments himself, and sent other MS-13 members, including Arriola-Palma, to pick up extortion payments on his behalf. Argueta also used “Facebook,” “Gmail,” and text messaging to relay the extortion demands to the victim.
According to his plea, from September to November 2011, Argueta ordered a “greenlight,” which is an order to kill, from inside Prince George’s County Corrections Facility on a victim who planned to testify against him in Circuit Court for Prince George’s County. During the conspiracy, Argueta contacted co-defendant Francisco Hernandez from the Prince George’s County Corrections Facility and instructed Hernandez to relay to other MS-13 members that the victim now had a “greenlight” on him. Members of the Peajes Clique of MS-13 acted on this “greenlight,” shooting the victim on November 15, 2011.
Argueta faces a maximum sentence of life in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for August 4, 2015, at 2:00 p.m. Argueta remains detained pending sentencing.
Francisco Hernandez, age 21, and Roni Arriola-Palma, age 24, both of Hyattsville, previously pleaded guilty for their roles in the racketeering conspiracy and are scheduled to be sentenced at 10:00 a.m. on June 29 and June 30, 2015, respectively.
United States Attorney Rod J. Rosenstein commended 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 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 are prosecuting this case
Suitland Man Charged in Fatal Shooting at the U.S. Census BureauRead the Press Release
Greenbelt, Maryland – A criminal complaint was filed today in U.S. District Court in Maryland charging Ronald Anderson, age 48, of Suitland, Maryland, with kidnapping, murder, using and discharging a firearm during a crime of violence, and causing death by use of a firearm during a crime of violence.
The criminal complaint 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 Mark A. Magaw of the Prince George’s County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Director Eric Patterson of the Federal Protective Service, Department of Homeland Security.
According to the affidavit filed in support of the criminal complaint, on April 9, 2015 Anderson abducted victim 1 at gun point from the 1800 block of 3rd Street, NE, Washington, D.C. Anderson drove victim 1 to the rear of his apartment complex in Suitland, Maryland. On the way, he called another person (victim 2) and asked her to meet him at his apartment. When Anderson and victim 1 arrived at the apartment complex, Anderson parked next to victim 2’s vehicle. Anderson exited his car and approached the driver’s side of victim 2’s vehicle. Victim 2 saw that victim 1 was crying and victim 1 mouthed words to victim 2 asking for help. Victim 1 got out of Anderson’s vehicle and into victim 2’s Honda CRV. Victim 2 sped off with victim 1. Anderson got back into his car and pursued the CRV at a high rate of speed.
Victim 2 fled to the U.S. Census Bureau building at 4600 Silver Hill Road in Suitland, because she knew there were armed security officers there. As victim 2 drove into the Census Bureau complex, Anderson continued to pursue the CRV. As Anderson continued to chase her, Victim 2 crashed the Honda CRV into a light pole near two armed security officers, including Officer 1. Anderson stopped his vehicle behind the Honda CRV and exchanged gunfire with Officer 1, striking Officer 1 once in the chest. Anderson fired additional rounds at a second officer, but did not hit that officer. Anderson then fled from the Census Bureau in his dark colored Honda Accord. Prince George’s County Police Officers responded to the Census Bureau for a shooting in progress. Upon arrival, police officers located Officer 1, suffering from a gunshot wound. Officer 1 was transported to the Prince George’s County Hospital Center where he was pronounced dead.
Later that evening, Metropolitan Police Department (MPD) officers saw Anderson driving the Honda Accord and attempted to make a traffic stop. Anderson continued to flee, and fired numerous times at MPD officers. The pursuit concluded in the vicinity of 11th and H Street, NE in Washington DC. Anderson continued to fire at law enforcement. MPD officers returned fire, striking Anderson multiple times. One MPD officer was struck in the leg. Anderson and the MPD officer were transported to the hospital for treatment. Anderson had identification on him and his identity was further confirmed by a comparison of fingerprints taken from Anderson at the hospital. Law enforcement saw a .45 caliber handgun in plain view in the Honda Accord.
If convicted, Anderson faces a maximum sentence of death or life in prison. An initial appearance has not been scheduled. Anderson continues to undergo medical treatment and remains detained on related charges filed in the Superior Court for the District of Columbia.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department, Metropolitan Police Department, and the Federal Protective Service of the National Protection and Programs Directorate, Department of Homeland Security for their work in the investigation and thanked the U.S. Attorney’s Office for the District of Columbia for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Bryan E. Foreman, who are prosecuting the case.
Owner of Silver Spring Nightclub Pleads Guilty to Drug TraffickingRead the Press Release
Greenbelt, Maryland – Jason Miskiri, age 39, of Silver Spring, Maryland pleaded guilty today to conspiring to possess with intent to distribute more than 1,000 kilograms of marijuana.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement and court documents, Miskiri obtained marijuana from several sources for distribution in Maryland. Miskiri was arrested in March 2009 in Texas after purchasing 209 pounds of marijuana that he intended to transport to Maryland.
Miskiri was also the largest customer of a drug trafficking organization headed by Garfield Mullings (Mullings DTO) that shipped large quantities of marijuana from California to Maryland. On numerous occasions from 2010 to 2012, Miskiri gave money to the Mullings DTO to buy marijuana in California and Arizona, which was shipped using commercial shipping companies to Miskiri in Maryland. He also received marijuana on consignment, and paid for it once it was sold. Initially, some of the shipments were sent to Island Flavors Restaurant in Laurel, Maryland, which Miskiri owned and operated. From August 31, 2010 to May 20, 2011, 8,690 pounds of freight, including marijuana, was delivered to the restaurant. After May 20, 2011, Miskiri continued to pick up large quantities of marijuana from the Mullings DTO at other locations.
In 2012, Miskiri obtained marijuana from other Texas sources with whom he met in Prince Georges County, Maryland.
Miskiri used the drug proceeds to open the Society Lounge, an upscale nightclub located on Georgia Avenue in Silver Spring, Maryland. At the time the night club opened , Miskiri received as much as $1 million in cash for each load of marijuana that he obtained from the Mullings DTO and sold in Maryland.
Miskiri did not file a personal tax return for any of the years in which he was engaged in the drug trafficking activity.
During his participation in the drug conspiracy, Miskiri was found to be responsible for the distribution of between 3,000 and 10,000 kilograms of marijuana.
Miskiri has agreed to forfeit all of his interest in Society Lounge, and to pay taxes for 2009 to the present.
Miskiri faces a maximum sentence of life in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for September 14, 2015 at 2:00 p.m.
In a separate case, Garfield Mullings, age 41, of Hyattsville, Maryland, and five others previously pleaded guilty to conspiring to distribute 100 kilograms or more of marijuana. U.S. District Judge J. Frederick Motz sentenced Mullings on May 29, 2014 to five years in prison and entered an order that Mullings forfeit $12,190,000.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, DEA and the Maryland State Police for their work in the investigation, and thanked the Houston, Texas Police Department and the Texas Department of Public Safety for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Matthew C. Sullivan, who are prosecuting the case.
Bowie Man Convicted in Identity Theft Fraud SchemeRead the Press Release
Greenbelt, Maryland – A federal jury convicted Kenneth Wayne Watford, age 55, of Bowie, Maryland, today of conspiring to commit wire fraud, four counts of wire fraud and attempted wire fraud, three counts of credit card fraud and attempted credit card fraud, and four counts of aggravated identity theft in connection with the wire and credit card fraud offenses. Watford’s fraud schemes involved using the stolen identities of others to purchase expensive cars and obtaining credit cards in Watford’s businesses’ names backed by other people’s credit. After being charged with the first scheme, and while on federal pre-trial supervision, Watford also used another victim’s stolen identity to obtain and use a credit card to make purchases exceeding $14,300.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Chief J. Thomas Manger of the Montgomery County Police Department, and Chief John Nesky of the Bowie Police Department.
According to evidence presented at his six day trial, Watford, Flinton Newton and Juan Carlos Willis obtained the identity information of credit-worthy individuals, created false identity documents in the names of those individuals, and then posed as those individuals at automotive dealerships in order to apply for vehicle financing. Watford and his coconspirators filled out credit applications with dealers in Maryland and Virginia, and then used the extended credit to purchase, or attempt to purchase, expensive cars without any intention of making payments on the loans.
On June 23, 2012, Watford, Willis and a coconspirator posing as an identity theft victim used the victim’s identity to complete and submit a credit application for $77,450 in financing to purchase a 2011 BMW 750 at BMW of Silver Spring, Maryland.
On June 29, 2012, Watford used the victim’s identity to apply for an American Express business credit card account in the name of Annie M’s Groceries, a business entity Watford had registered in North Carolina the previous year. Evidence presented at trial also revealed that Watford, Willis and the unidentified co-conspirator also attempted to purchase two Cadillac Escalades using the same victim’s credit from Capitol Cadillac in Greenbelt.
On July 19, 2012, Newton and Willis returned to Capitol Cadillac in Greenbelt. On that day, Newton posed as a second victim whose identity he had fraudulently obtained, to apply for $80,663 in financing to purchase a 2013 Cadillac Escalade in the second victim’s name. Watford had provided Willis with access to a business auto insurance policy he had established in the name of Annie M’s Groceries, a company which Watford claimed to have owned. Willis used this online access to Watford’s insurance policy to obtain proof of insurance in support of the vehicle purchase.
Later that evening, Newton and Willis drove to Mercedes-Benz of Silver Spring where Newton again posed as the second victim. The men attempted to purchase a 2012 Mercedes-Benz CL550 and a 2009 Mercedez-Benz S550 for a total of $120,056. They filled out credit applications to finance the entire purchase price, again using the victim’s identity and credit, and an insurance policy under the name of Annie M’s Groceries. The dealership manager, however, saw that the victim’s credit had just been used to purchase the Cadillac Escalade, so he notified Montgomery County Police, who responded and arrested Newton and Willis.
A subsequent search of Willis’ cell phone revealed text messages between Willis and Watford concerning the purchase and use of the BMW, as well as the victim’s personal information. On July 26, 2012, Watford was arrested while driving the BMW in Bowie. Inside the car were the victim's credit reports from three credit bureaus, and a social security card and driver’s license in the name of Watford’s alias, “Abdul Abrams.” Law enforcement executed a search warrant at Watford’s residence and seized credit reports and financial documents in the names of other victims.
The total attempted loss as a result of this fraudulent scheme was between $400,000 and $1 million.
After Watford was charged for the above scheme and released pending trial in 2013, he obtained the personal identifying information of a third victim. Using that identity to guarantee the cards, Watford twice applied for credit cards in the name of a second business entity he controlled, Futranet Coaches of America. Watford’s first attempt, an application to American Express in August 2013, was declined; however, in September 2013 Watford successfully used the third victim’s credit to obtain a $15,000 line of credit with Fleetcor, LLC, a credit-card issuer specializing in fuel cards. During the next month, Watford ran up over $14,300 in purchases on cards issued on that account, including $13,000 paid to a former business associate who was holding several vehicles belonging to Watford as collateral on a large outstanding debt Watford owed him. In addition to being found guilty of two counts of unauthorized credit card use and two counts of aggravated identity theft in conjunction with this post-release conduct, Watford was also found guilty of committing these offenses while on federal pre-trial release, which means that his sentences for these counts must run consecutive to his sentence on the automobile-related fraud charges.
The federal jury acquitted Watford of the charge of being a felon in possession of a gun.
Watford faces a maximum sentence of 20 years in prison for the conspiracy count; 30 years in prison for each wire fraud count; 10 years in prison for being a felon in possession of a firearm; 15 years in prison for each credit card fraud count; and a mandatory minimum of two years in prison consecutive to any other sentence for each aggravated identity theft count. U.S. District Judge Peter J. Messitte scheduled sentencing for July 28, 2015, at 9:30 a.m.
Flinton Newton, age 34, of Bartlett, Tennessee previously pleaded guilty to his participation in the scheme and was sentenced to 42 months in prison for conspiring to commit wire fraud and aggravated identity theft. Juan Carlos Willis, age 41, of Hyattsville, Maryland pleaded guilty to the same offenses on the day before his trial was scheduled to begin, and is awaiting sentencing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the Secret Service, U.S. Postal Inspection Service, Montgomery County Police Department and Bowie Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Adam K. Ake and Special Assistant United States Attorney James I. Pearce, who are prosecuting the case.
Manchester Man Pleads Guilty to Production and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Jesse David Kuchta, age 28, of Manchester, Maryland, pleaded guilty today to production and possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Carroll County Sheriff James DeWees, and Carroll County State’s Attorney Brian DeLeonardo.
According to Kuchta’s plea agreement, on May 14, 2014, a detective with the Carroll County Sheriff’s Office received a Cybertip from the National Center for Missing and Exploited Children (NCMEC) concerning images depicting minors engaged in sexually explicit conduct that had been uploaded to Photobucket, a free image and video hosting website. Based on their investigation of the tip, law enforcement identified Kuchta as the holder of the Photobucket accounts and obtained a search warrant for his address in Manchester. On May 14, 2014, law enforcement executed the search warrant.
During the search, Kuchta arrived at the home and spoke with investigators. He admitted taking the images and videos of a minor female engaged in sexually explicit conduct and uploading them to his Photobucket accounts. Law enforcement seized a flash drive, two micro SD cards and two cell phones used in the production, possession or transportation of child pornography, as well as other items of evidence that were seen in the images and videos that Kuchta produced.
As part of his plea agreement, Kutcha must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Kutcha faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison for production of child pornography; and a maximum of 10 years in prison for possession of child pornography, each followed by up to lifetime of supervised release. U.S. District Judge George L. Russell, III has scheduled sentencing for August 7, 2015 at 11:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police, Carroll County Sheriff’s Office and Carroll County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.
Glen Burnie Man Sentenced to Four Years in Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Paul Anthony Philip III, age 31, of Glen Burnie, Maryland, today to four years in prison, followed by 15 years of supervised release, for possession of child pornography. Judge Blake ordered that upon his release from prison, Philip must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Philip’s plea agreement, during January and February 2014, Philip logged onto a website designed for video and file sharing. On the website Philip described himself and offered to share child pornography in exchange for “hardcore” pornography involving fathers and daughters. During that time, Philip admits that he received two emails, containing images of children engaged in sexually explicit conduct, including pre-pubescent children. For example, on January 29, 2014, Philip received an email containing two images depicting young toddlers subject to abuse and degradation and displayed in a lascivious manner. Philip also sent emails with images of child pornography. For example, on January 29, 2014, Philip sent an email which included two video files depicting young infants subjected to sadomasochistic activities.
On August 1, 2014, a search warrant was executed at Philip’s home and his cell phone was seized. Philip admitted that he used his cell phone to access the internet in order to solicit, trade, download and view child pornography. A forensic examination of Philip’s phone revealed 3783 digital images and videos, all of which contained visual depictions of minors engaged in sexually explicit conduct. Many of the images included photographs of young children who are bound/restrained and subject to physical and sexual abuse.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore and the Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.
Baltimore Man Sentenced in Fraud Scheme with Losses of More Than $600,000Read the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Curlee Smittie, age 42, of Baltimore, today to 18 months in prison followed by three years of supervised release for wire fraud in connection with a scheme to defraud his bank and an automobile auction house. Chief Judge Blake also entered an order that Smittie pay restitution of $632,850.24.
The sentence 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.
According to his plea agreement, from April 2008 until January 2009, Smittie fraudulently obtained checks from an automobile auction company by buying cars he already owned, using the company’s short-term credit program.
The company operates auction houses for automobile dealers at locations throughout the United States. Automobile dealers must be registered with the company to buy or sell automobiles at its locations. An individual who wishes to sell an automobile must list the car for sale under the name of a registered automobile dealer. Smittie was registered as a buyer and a seller under the company name Smittie Auto Brokers.
For buyers with an established track record of timely payment, such as Smittie, the company extended short term credit for purchases. Under this arrangement, the company issued a check for the proceeds of the automobile sale to the seller of the automobile on the day of sale. The buyer was allowed to take the automobile, with the promise to pay the purchase price to the auction company within two weeks.
Smittie admitted that he would list an automobile that he already owned for sale under the name of another registered automobile dealer. Smittie then purchased the automobile in his own name or the name of Smittie Auto Brokers, using the auction company’s short term credit program. Thus, Smittie was “selling” the car to himself using the company’s money.
As the person who had listed the car for auction, Smittie accepted the seller proceeds check from the company and deposited those checks into his business checking account. When the time came for Smittie to repay the short term loan from the auction company, Smittie sold another car to himself in the same manner, and used the seller proceeds to pay the previous debt.
As a result of the scheme, from April 2008 until January 2009, Smittie received a total of $2,126,997.50 in seller checks from the auction company and deposited them into his bank account.
In January 2009, employees at the auction company learned of Smittie’s scheme and ordered its bank to stop payment on all checks to sellers from whom Smittie had purchased automobiles. Once all of the checks that Smittie had recently deposited were reversed, the bank was left with a loss of $166,500.16.
When the auction company discovered Smittie’s scheme, Smittie owed the company $702,956.28 for automobiles that he had purchased using the company’s short term credit. The company was able to recover $236,606.20 by repossessing some of the automobiles Smittie had purchased, but was left with a loss of $466,350.08.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
Perry Hall Man Sentenced in Scheme to Defraud the City of BaltimoreRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Robert Johnson, age 33, of Perry Hall, Maryland, today to a year and a day in prison followed by three years of supervised release, and ordered him to serve 75 hours of community service, for wire fraud conspiracy and aggravated identity theft related to a scheme to defraud the City of Baltimore through the reissuance of fraudulent checks for pay and benefits.
On March 4, 2015, a federal jury convicted co-defendant Denita Hill, age 26, of Baltimore, of wire fraud conspiracy and two counts of aggravated identity theft, related to the scheme.
The sentence and trial conviction were 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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
Johnson worked in the Consumer Relations Service of the U.S. Department of Veteran’s Affairs. Denita Hill was an accountant in the Finance Department of the City of Baltimore.
Baltimore City employees who leave their employment are entitled to a lump sum check of any pay and benefits for which they are qualified. According to his guilty plea and court documents, from July 11, 2013 to August 2, 2013, Johnson and Hill used the financial and identity information of former Baltimore City employees to request fraudulent employee benefit payout checks. Hill identified individuals who had received and cashed large lump sum payments and then requested that such checks be reissued, 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 and purportedly signed by the original payee. Johnson endorsed and cashed the checks, deposited the proceeds into his bank account and used the funds for his and Hill’s benefit.
For example, on July 11, 2013, Johnson deposited a check fraudulently endorsed to Johnson with the victim’s forged signature, and made out to the victim in the amount of $14,741.09. 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 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, who purportedly confirmed that the endorsements were genuine. In fact, neither statement was true. 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, Johnson and Hill fraudulently obtained approximately $70,000 all of which was ultimately recovered.
Denita Hill faces a maximum sentence of 20 years in prison for the wire fraud conspiracy; and two years in prison, consecutive to any other sentence imposed, on each of two counts for aggravated identity theft. Judge Russell has scheduled her sentencing for May 19, 2015 at 2:00 p.m.
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 J. Felsen, a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.
Marydel Woman Sentenced for Embezzling over $1.2 Million from Her EmployerRead the Press Release
Greenbelt, Maryland - U.S. District Judge George J. Hazel sentenced Janice McCumbie, age 45, of Marydel, Maryland, today to 37 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with a scheme to steal over $1.2 million from a consulting company. Judge Hazel entered an order that McCumbie forfeit and pay restitution of $1,249,267.53, the loss resulting from her conduct.
The sentence 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.
According to her plea agreement, McCumbie worked for a global consulting business that had offices in Maryland and elsewhere. Clients paid large retainers to secure consulting services. The consulting company would issue refund checks to the clients in certain circumstances, including when a client’s retainer exceeded the amount of work that the consulting company actually performed or when the client made duplicate payments to the consulting company. McCumbie’s duties included coordinating client refunds.
Between June and December 2008, McCumbie caused the consulting company to issue six fraudulent refund checks totaling $121,081.22 to a co-conspirator in exchange for a share of the check proceeds.
From February 2009 to October 2013, McCumbie caused the consulting company to issue 42 false refund checks totaling $910,490.74 to co-defendant Leonard Smedley in exchange for a share of the check proceeds. Similarly, from October 2010 to November 2013, McCumbie caused the consulting company to issue 17 false refund checks totaling $217,695.57 to her niece, co-defendant Amber Gayleard, who cashed the checks and shared the proceeds with McCumbie. Smedley and Gayleard were not clients of the consulting company.
Leonard Smedley II, age 35, of Capitol Heights, Maryland; Amber Gayleard, age 29, of Schuylkillhaven, Pennsylvania, and Brian Hooper, age 43, of Woodbridge, Virginia previously pleaded guilty to the conspiracy. Judge Hazel sentenced: Hooper to 27 months in prison and ordered him to pay restitution of $1,031,571.96; Gayleard to 21 months in prison and ordered her to pay restitution of $217,695.57; and Smedley to 18 months in prison and ordered him to pay restitution of $910,490.74.
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 Salem, who prosecuted the case.
Registered Sex Offender Sentenced to 11 Years in Prison for Sex Trafficking of A MinorRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Thomas Sean Tinsley, age 29, of Glen Burnie, Maryland today to 11 years in prison, followed by 35 years of supervised release, for sex trafficking of a minor. Tinsley is a registered sex offender, having previously been convicted of having sex with a minor female.
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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to Tinsley’s plea agreement, in May 2013, Tinsley met a 15 year old runaway near the Gallery Mall in downtown Baltimore, and invited her to live with him at his residence - a motel on Caton Avenue in Baltimore. Soon thereafter, Tinsley began having sex with the victim.
Tinsley encouraged the victim to engage in prostitution to pay for the motel room and to provide him with additional money. The victim routinely met with prostitution clients and communicated with Tinsley regarding her client interactions, including the location of the commercial sex and the identity of her patrons. Tinsley monitored the victim’s commercial sex activities and gave her instructions regarding her client interactions, including telling her to collect cash before the commercial sex. Sometimes, Tinsley negotiated directly with prospective clients for commercial sex on behalf of the victim.
According to court documents, a confidential informant called law enforcement after Tinsley offered the victim to him to perform commercial sex acts for $100. The FBI’s Crimes Against Children Task Force was alerted and law enforcement responded to Tinsley’s motel room, where they located the victim.
Inside the motel room were condoms, cell phones and prescription medication. Law enforcement also recovered from the room Tinsley’s sex offender registry paperwork from a 2007 conviction, which listed the motel address as his “place of residence.”
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
New Charges Filed Against the Owner of Alpha Diagnostics Including Four Counts of Health Care Fraud Resulting in DeathRead the Press Release
Baltimore, Maryland - A federal grand jury has returned a superseding indictment against the owner of Alpha Diagnostics, Rafael Chikvashvili, age 67, of Baltimore, Maryland, adding four counts of health care fraud resulting in serious bodily harm and death, as well as conspiracy and wire fraud, related to a scheme to defraud Medicare and Medicaid of more than $7.5 million. The superseding indictment was returned late on April 9, 2015. No court appearance has been scheduled yet for Chikvashvili on the superseding indictment, and he continues on release under the supervision of U.S. Pretrial Services.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the indictment, Chikvashvili formed Alpha Diagnostics Services, Inc., which later became Alpha Diagnostics, LLC, in 1993, and always acted as Managing Member, Authorized Official, Managing Employee, President and Chief Executive Officer for Alpha Diagnostics. Chikvashvili holds a PhD in mathematics, but was never a medical doctor or licensed physician. Timothy Emeigh was the Vice President in charge of Operations at Alpha Diagnostics. He was a licensed radiologic technologist.
Alpha Diagnostics was a portable diagnostic services provider, principally of X-rays, but also provided ultrasound tests, and cardiologic examinations. Alpha Diagnostics operated in Maryland, Delaware, Pennsylvania, Virginia and the District of Columbia. Alpha Diagnostics was headquartered in Owings Mills, Maryland, where Chikvashvili worked full time.
The 33-count superseding indictment alleges that beginning in 1997 through October 2013, Chikvashvili conspired with Timothy Emeigh and others to defraud Medicare and Medicaid by creating false radiology, ultrasound and cardiologic interpretation reports; by submitting insurance claims for medical examination interpretations that were never completed by licensed physicians; by falsely representing to Medicare and Medicaid, as well as to treating physicians, that the interpretations had, in fact, been completed by actual licensed physicians; and by submitting insurance claims for radiology, ultrasound and cardiologic examinations (and their associated costs) that were never performed, and/or which were in excess of the number of examinations ordered by the treating physician.
For example, in June 2012, Emeigh traveled to Jamaica for a vacation. The superseding indictment alleges that Chikvashvili directed Emeigh, through text messages and telephone calls, to view medical images using his personal laptop in his hotel room and then draft false physician interpretation reports. Alpha Diagnostics personnel subsequently submitted false claims to Medicare for these images and fraudulent physician reports.
The superseding indictment alleges that four patients died because their x-rays were not interpreted by a qualified radiologist. Instead, Alpha Diagnostics employees reviewed the images and failed to detect congestive heart failure, pneumonia, and a large pelvic mass revealed in the images. The patients suffered serious complications, and ultimately died. According to the indictment, had those images been correctly interpreted by a licensed radiologist, the medical treatment for those patients would have been different and/or their surgery avoided.
For example, on May 1, 2012, Alpha Diagnostics personnel took a chest X-ray of a patient who was scheduled to undergo elective surgery, to determine if the patient could safely have surgery. The indictment alleges that the image was not interpreted by a qualified radiologist but instead, a non-physician Alpha employee attempted to interpret the image. The employee reported the image as negative for any chronic conditions when in fact, the image revealed mild congestive heart. Based on the incorrect reading of the chest X-ray, the patient was cleared for the elective surgery, which resulted in significant complications and the worsening of the patient’s congestive heart failure. The patient died on May 7, 2012. The indictment alleges that, if the chest X-ray had been properly interpreted, the patient would not have been cleared for surgery and would not have died at that time. Subsequently, Alpha Diagnostics submitted a claim to Medicare falsely representing that a licensed radiologist had interpreted the patient’s chest X-ray. Medicare paid Alpha Diagnostics $218.36 for this claim.
Further, according to the superseding indictment, Chikvashvili and Alpha Diagnostics routinely submitted insurance claims to Medicare and Medicaid that, among other things, exaggerated the services performed by its technologists or exceeded the services ordered by the treating physician; overcharged for transportation costs; and falsely represented that Alpha Diagnostics was properly overseen by supervising physicians.
Finally, the superseding indictment seeks forfeiture of at least $7.5 million, including two properties, luxury vehicles, bank and investment accounts, and a safe deposit box.
Chikvashvili faces a maximum sentence of life in prison for the conspiracy and for each of four counts of health care fraud resulting in serious bodily harm and death; 10 years in prison for each of seven counts of health care fraud; 20 years in prison for each of eight counts of wire fraud; a maximum of five years in prison for each of 11 counts of false statements relating to health care matters; and a mandatory two years, consecutive to any other sentence imposed, for two counts of aggravated identity theft.
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.
Timothy Emeigh, age 51, of York Springs, Pennsylvania previously pleaded guilty to health care fraud and is awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the HHS-OIG and the FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and P. Michael Cunningham, who are prosecuting the case.
Former Maryland Licensed Counselor Pleads Guilty to Conspiring to Sexually Exploit an InfantRead the Press Release
Baltimore, Maryland – Stephen H. Schaffner, age 34, of Greensboro, Maryland, pleaded guilty today to conspiring to sexually exploit a child and sexual exploiting a child, arising from the sexual abuse of a six week old baby who was born prematurely.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; United States Attorney for the Southern District of California Laura E. Duffy; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation - Maryland; Acting Special Agent in Charge Robert Howe of the Federal Bureau of Investigation – San Diego Division; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Jeff A. Jackson of the Greensboro Police Department and Chief David A. Spencer of the Easton Police Department.
“Thankfully, most technology companies continue to honor federal search warrants and most cellular phones can be searched with a warrant,” said U.S. Attorney Rod J. Rosenstein. “If telecommunications companies provide software and hardware that is immune from federal search warrants, pedophiles will be free to commit such egregious crimes with little risk of detection.”
According to his plea agreement, for over four years, Schaffner was a licensed associate counselor in Arizona, providing behavioral health and education services for children ages 11-17 whose lives and family relationships were in crisis, or who were struggling with mental health or substance abuse challenges.
Schaffner worked as a clinician in Easton, Maryland for 18 months, providing individual and family mental health counseling, including treatment for children and for sex offenders. In 2011 and 2012, Schaffner attended trainings and conferences focused on the assessment, management and treatment of sex offenders. On October 30, 2012, Schaffner sent an adult counseling client inappropriate text messages of a sexual nature. In November 2012, Schaffner was fired from the practice where he worked, and his license was later suspended.
Beginning in 2004, Schaffner collected child pornography he obtained from the internet. Thousands of images and videos of minors engaged in sexually explicit conduct were located on digital devices, storage media and online accounts seized from Schaffner. In his electronic communications, Schaffner repeatedly expressed a sexual interest in boys from “age zero” up, and his desire to commit violent sexual abuse against infants, including making the children cry during the abuse, and injuring or killing children in the course of sexual abuse. He discussed ways to ensure that the children did not report the abuse, including drugging or killing the children.
In late June 2014, Schaffner began communicating online with Michael Lutts who lived in California and worked as a pediatric nurse at a hospital in San Diego County. On August 4, 2014, Lutts brought to his home a six week old baby boy, born prematurely, who was placed in his care as a foster child. That evening, Lutts texted Schaffner images of the infant.
Over the next several hours, Schaffner exchanged numerous graphic and sexually explicit messages with Lutts about Lutts sexually abusing the infant. Schaffner directed Lutts to sexually abuse the infant to produce photos and videos. Lutts sent Schaffner images and videos with the infant, including images of the infant being sexually molested. Schaffner and Lutts discussed Schaffner travelling to San Diego to rape the infant.
Law enforcement obtained a federal search warrant in April 2014 for an email address of a person who was distributing child pornography, which led them to other suspects who were transmitting child pornography. On August 26, 2014, authorities obtained a search warrant for Michael William Lutts’s residence in San Diego, and seized a cell phone that contained images and videos of Lutts sexually molesting the infant. Michael Lutts has pleaded guilty in federal court in the Southern District of California to three counts of sexual exploitation of a child and is scheduled to be sentenced on April 20, 2015.
As part of his plea agreement, Schaffner 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).
Schaffner and the government have agreed that if the Court accepts the plea agreement Schaffner will be sentenced to 35 years in prison followed by up to a lifetime of supervised release. U.S. District Judge J. Frederick Motz scheduled sentencing for July 9, 2015 at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI’s Baltimore and San Diego offices, the Maryland State Police Interstate Crimes Against Children Task Force (ICAC), the San Diego, California ICAC, Greensboro Police Department, and Easton Police Department for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Alessandra P. Serano from the Southern District of California who is prosecuting the case against Michael Lutts, and Assistant U.S. Attorney Zachary A. Myers from Maryland, who is prosecuting the case against Stephen Schaffner.
Rockville Man Admits to Trafficking over 400 Kilograms of Marijuana and Laundering over $2.5 Million of Drug ProceedsRead the Press Release
Baltimore, Maryland – Issa Haddad, age 24, of Rockville, Maryland pleaded guilty today to conspiring to distribute and possess with intent to distribute 100 kilograms or more of marijuana, and conspiring to commit money laundering.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, from March 2010 to April 10, 2014, Haddad provided addresses in Montgomery County, Maryland and elsewhere to which co-conspirators in California would ship marijuana. Haddad and others received packages of marijuana in Maryland, and Haddad was responsible pursuant to the conspiracy for sending, receiving, and preparing for distribution between 400 and 700 kilograms of marijuana in Maryland.
Members of the conspiracy provided Haddad with bank account numbers into which the proceeds from the sale of the marijuana were deposited. Haddad and others deposited cash in amounts less than $10,000 into the provided banks accounts which were controlled by co-conspirators. These deposits of less than $10,000 were structured to evade IRS reporting requirements and conceal from the government large cash transactions by narcotics dealers.
Haddad admitted that his role in the conspiracy involved the laundering of between $2.5 million and $7 million of drug proceeds.
Haddad has agreed to forfeit at least $2.5 million.
To date, seven defendants have pleaded guilty to their participation in the drug and/or money laundering conspiracies, and await sentencing: Bianca Rosales, age 26, of New York, New York, pleaded guilty on July 7, 2014; Raymond Dixon, age 27, of San Francisco, California, pleaded guilty on July 25, 2014; Alnisha Hooks, age 23, of Los Angeles, California, pleaded guilty on August 5, 2014; David Fahrali-Simonson, age 24, of San Francisco, pleaded guilty on February 20, 2015; Ramon Rodriguez-Cruz, age 28, of Silver Spring, Maryland, pleaded guilty on February 23, 2015; and Sebastian St. John, age 23, of Silver Spring, Maryland, pleaded guilty on March 26, 2015.
Haddad faces a maximum sentence of 40 years in prison for the drug conspiracy and 20 years in prison for the money laundering conspiracy. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 25, 2015 at 11:00 a.m.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O. Hayes and Mara Zusman Greenberg, who are prosecuting the case.
MS-13 Gang Associate Convicted for the Robbery of A Brothel That Included A Rape and MurderRead the Press Release
Greenbelt, Maryland - A federal jury today convicted Alexsi Lopez, age 26, of Hyattsville, Maryland, of conspiracy and the violent robbery of a Hyattsville brothel that resulted in a rape and murder.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to the evidence presented at his six day trial, Lopez was associated with the MS-13 gang and knew his co-defendant, Ramon Miguel Cerros-Cruz through MS-13. Evidence showed that Lopez and Cerros-Cruz familiarized themselves with the location and operation of brothels in the Hyattsville-Langley Park area of Prince George’s County, then planned the robbery of a Hyattsville brothel apartment. According to trial testimony, on February 28, 2007, Lopez and Cerros-Cruz entered the brothel apartment armed with knives, and using force and violence, demanded money from the people within the brothel and searched the apartment for cash and items of value. Witnesses testified that Lopez and Cerros-Cruz bound one of the brothel’s employees, raped another employee and murdered a third person who arrived at the brothel during the commission of the rape and robbery, stabbing him multiple times when he resisted the demands of the defendants. DNA evidence placed Lopez and Cerros-Cruz at the scene.
Lopez faces a maximum sentence of 20 years in prison for the conspiracy and for the robbery. U.S. District Judge Paul W. Grimm has scheduled sentencing for August 24, 2015, at 1:00 p.m.
Ramon Miguel Cerros-Cruz, age 25, of Silver Spring, Maryland previously pleaded guilty and was sentenced of 10 years in prison for the robbery.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Prince George’s County Police Department for their work in the investigation and thanked the Prince Georges County Department of Corrections and the Maryland Department of Public Safety and Correctional Services for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Daniel C. Gardner, who are prosecuting the case.
Chestertown Felon Sentenced to 10 Years in Prison for Obtaining Guns Through Straw Purchases and TheftRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Daniel P. Welch, age 36, of Crumpton and Chestertown, Maryland, to 10 years in prison followed by three years of supervised release. Welch, who was prohibited from possessing firearms because of his criminal record, obtained guns through straw purchases and theft.
“It is illegal to help a criminal get a gun,” said U.S. Attorney Rod J. Rosenstein.
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; Queen Anne’s County Sheriff R. Gary Hofmann III; Chief G. Adrian Baker of the Chestertown Police Department; and Queen Anne’s County State’s Attorney Lance G. Richardson.
According to his guilty pleas, Welch is a previously convicted felon and therefore is prohibited from possessing firearms. Welch and co-defendant Jonathan Sutton have known each other since they were small children. At Welch’s request, between January 29, 2011 and January 31, 2014, Sutton obtained six firearms for Welch through private sellers and through “straw purchases” by Sutton from a federally licensed firearms dealer. A “straw purchase” occurs when an individual, who is ineligible to lawfully purchase a firearm, such as a previously convicted felon, solicits another to conduct the transaction.
Welch admitted that on January 29, 2011, he and Sutton visited four ATMs in Stevensville, Maryland, near a federally licensed firearms dealer, and Welch withdrew approximately $1,700 in cash. Welch and Sutton then went to the firearms dealer and selected firearms for Sutton to purchase for Welch. Sutton purchased a Smith & Wesson MP5-22, a Mossberg Persuada 500, and a Century Arms SKS. Sutton completed the required forms indicating that he was the actual buyer of the firearms and was not acquiring the firearms for another person. On February 1, 2011, Sutton picked up the guns, which he then transferred to Welch. On February 11, 2011, Sutton purchased a Marlin rifle from the firearms dealer, again completing the required form and falsely indicting that he was buying the gun for himself. In 2012, Sutton acquired a Remington Arms 597 and a Ruger Single Six, both .22 caliber, through private purchases. Those guns were subsequently possessed by Welch.
Welch also admitted that on May 17, 2013, he broke into a neighbor’s home and stole an express pump action 20 gauge shotgun with a 21 inch barrel and other items. On June 14, 2103, officers with the Queen Anne’s County Sheriff’s Office executed a search warrant at Welch’s residence in Crumpton and recovered items Welch had stolen from the neighbor, including the shotgun. Welch had sawed off a portion of the barrel and removed the serial number. During the search, officers also located the two firearms Welch received from Sutton in 2012. A subsequent search of Welch’s residence recovered the Marlin rifle from Welch’s bedroom.
Jonathan M. Sutton, age 36, of Chestertown, Maryland, pleaded guilty to conspiring to unlawfully obtain firearms for a prohibited person and is scheduled to be sentenced on April 16, 2015, at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, Queen Anne’s County Sheriff’s Office, Chestertown Police Department and the Queen Anne’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Zachary A. Myers, who is prosecuting the case.
Leader of Heroin Distribution Ring Sentenced to 11 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jeffrey Anderson, age 36, of Upper Marlboro, Maryland, today to 11 years in prison, followed by five years of supervised release, for conspiring to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Washington County Sheriff Douglas W. Mullendore; and Hagerstown Police Chief Mark Holtzman.
“This investigation, initiated by the Frederick County Sheriff’s Office (FCSO), was a cooperative effort between the FCSO, HSI and our law enforcement partners,” said Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. “As a result of the cooperative efforts of our federal, state and local law enforcement partners, a large scale, multi-jurisdictional heroin trafficking organization was dismantled.”
According to his plea agreement, beginning as early as September 2013, Anderson and co-conspirator Reginald Jones worked with Rahdel Sharbaan to obtain bulk quantities of heroin from sources in New York and transport that heroin to Maryland for further distribution. Anderson would either travel to New York himself, or have Sharbaan and Jones bring the heroin and cutting agent to him in Maryland via commercial bus. With co-defendant Shawn Malley’s assistance, Anderson used stash locations to store and cut the heroin, including a storage unit in Gambrills, Maryland, and Malley’s home. Once diluted, Anderson sold the heroin in bulk to several Maryland-based dealers, including co-defendants William Robinson and Gary Barham on the Eastern shore of Maryland, and Amanda Jo Palmer in Western Maryland. According to their plea agreements, once Robinson, Palmer and Barham obtained drugs from Anderson they re-distributed the drugs in street-level quantities. Jones used the drug proceeds from Anderson to pay the source in New York.
On May 15, 2014, investigators executed search warrants, seizing: 40.1 grams of heroin, cutting agents, packaging materials and paraphernalia from the storage unit; 49 grams of heroin from Anderson’s vehicle; $2,957 in cash, drugs, multiple cell phones and digital scales from Malley’s home; and four vehicles from other co-conspirators.
Anderson admitted that during the time of the conspiracy at least one kilogram of heroin was distributed.
Six co-defendants pleaded guilty to their participation in the conspiracy and have been sentenced. Gary Barham, age 52, of Easton, Maryland, was sentenced to 11 years in prison. Co-defendants William Ulysses Robinson, age 39, of Grasonville, Maryland, was sentenced to six years in prison; Shawn Christopher Malley, age 25, of Crofton, Maryland, was sentenced to five years in prison; and Amanda Jo Palmer, age 33, of Hagerstown, Maryland, was sentenced to 29 months in prison. Finally, Rahdel Sharbaan, age 32, and Reginald Jones, age 26, both of Bronx, New York, were sentenced to two years in prison, and a year and day in prison, respectively.
United States Attorney Rod J. Rosenstein praised HSI-Baltimore, DEA, Frederick County Sheriff’s Office, Maryland State Police, Washington County Sheriff’s Office and Hagerstown Police Department for their work in the investigation and recognized the Maryland Natural Resources Police, St. Michael’s Police Department, Easton Police Department, Ocean City Police Department and Talbot County Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Baltimore Area Drug Dealer Sentenced to 11 Years in Prison for Conspiracy to Distribute Kilograms of CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Vincent Cooper, age 47, of Washington, D.C., to 11 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to court documents and his plea agreement, Cooper conspired to distribute cocaine from at least November 2013 through August 2014. During the time of the conspiracy, Cooper purchased a total of at least 14 kilograms of cocaine on four separate occasions.
On August 11, 2014, Cooper told a cooperating individual (CI) that he wanted to purchase seven kilograms of cocaine and one kilogram of heroin, but currently had the money to purchase six kilograms of cocaine. According to court documents, Cooper instructed the CI to meet him at an apartment complex in Baltimore, where Cooper worked as a maintenance man. Law enforcement saw Cooper and co-defendant Antoine Washington arrive at the apartment complex. Washington was arrested in the parking lot. Cooper was located coming up the basement stairs of the apartment complex. Law enforcement found a key to the maintenance closet thrown near the stairs where Cooper was first seen by law enforcement. After obtaining consent to search the maintenance closet from the owner of the apartment complex, law enforcement recovered a brown paper bag containing $216,140 in cash. Law enforcement also recovered $7,000 in cash from Washington’s car.
Four other co-defendants previously pleaded guilty to their participation in the scheme: Antoine DeMarr Washington, age 42, of Washington, D.C.; Guy Bordes Agnant, Jr., age 38, of Laurel, Maryland; Tavon Alexander Louis Hopkins, age 38; and Donte Eugene Taylor, age 39, both of Baltimore. All are awaiting sentencing.
On March 20, 2015, a federal jury today convicted co-defendants Jermaine Cannady, a/k/a “Main,” age 39; Cornell Dion Brown, a/k/a “Nelly,” age 29; Dominic William Parker, a/k/a “Nick,” age 30, all of Baltimore; and Ronald Timothy Sampson, a/k/a “Little Ronald,” age 35, of Windsor Mills, Maryland for conspiracy to distribute kilograms of cocaine and/or heroin, and for attempting to possess with intent to distribute cocaine and/or heroin. Each faces a mandatory minimum sentence of 10 years in prison and up to life in prison for conspiring to distribute and possess with intent to distribute cocaine and/or heroin, and for attempted possession with intent to distribute cocaine and/or heroin. U.S. District Judge Richard D. Bennett has scheduled sentencing for Sampson, Parker, Cannady and Brown on June 24, June 26, June 29, and June 30, 2015, respectively.
United States Attorney Rod J. Rosenstein commended the FBI, DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Christopher J. Romano and Seema Mittal, who are prosecuting the case.
Arsonist Sentenced to Almost Six Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Brian Keith Swope, Jr., age 33, of Brooklyn Park, Maryland late yesterday to 70 months in prison followed by three years of supervised release for the arson of a pizza restaurant in Brooklyn Park. Judge Hollander also ordered Swope to pay restitution of more than $100,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Allan C. Graves, Fire Chief of the Anne Arundel County Fire Department.
According to his plea agreement, on March 22, 2013, Swope learned that the owner of Pizza City restaurant had been arrested and remained in custody. Swope and a co-conspirator used heroin together and planned to burglarize Pizza City, where Swope had previously worked. Shortly after midnight on May 23, 2013, Swope and the co-conspirator used a tire iron to pry open the front door of Pizza City. They took money from the cash register and other items from the store, then used the money to purchase heroin. After using the heroin, Swope and the co-conspirator returned to Pizza City and stole numerous items, including computers, telephones, food and sodas. They sold some of the stolen items and purchased more drugs with the money. At the end of the evening, Swope and the co-conspirator again returned to Pizza City and set a fire to cover up their burglary by destroying the video surveillance system and any fingerprints left behind. After setting the fire, Swope and the co-conspirator took a taxi back to Swope’s home, taking along many of the food items stolen from Pizza City.
As a result of the investigation of the arson fire at Pizza City, on May 23, 2013, law enforcement seized the food stolen from Pizza City at Swope’s home. Swope was arrested the next day. Federal agents subsequently obtained a copy of a letter written by Swope attempting to obstruct the investigation by encouraging a witness to tell law enforcement that they had no information about the fire and burglary at Pizza City. The letter also advised the individual to falsely allege misconduct by law enforcement, and falsely tell law enforcement that Swope had broken into Pizza City two days before the fire.
United States Attorney Rod J. Rosenstein praised the ATF and Anne Arundel County Fire Department, Fire Marshal Division, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case.
Baltimore Cocaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake, sentenced Tyrone Robert Bailey, age 28, of Baltimore, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from December 2013 through April 2014, Bailey was a member of a conspiracy to distribute cocaine. As part of the conspiracy, Bailey obtained kilograms of cocaine from a New York supplier. Law enforcement overheard Bailey discussing drug activity over court-ordered wiretaps on a co-conspirator’s phones.
For example on March 10, 2014, Bailey was overheard telling a co-conspirator that he was traveling to New York that day to obtain cocaine. As Bailey returned from New York, Maryland State Police conducted a traffic stop of Bailey’s pick-up truck for speeding. Co-conspirator Lamont Thomas was driving the vehicle and Bailey was the front seat passenger. After a K-9 alerted to the presence of narcotics, law enforcement located an electronically controlled false compartment in the seat back of the rear bench seat. The compartment contained approximately 4.2 kilograms of cocaine. Law enforcement recovered $1,600 in cash and multiple cell phones from Bailey. One of the cell phones was the phone Bailey used to talk to his co-conspirator.
Lamont G. Thomas, age 34, of Baltimore, pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on May 7, 2015, at 9:15 a.m. Bailey and Thomas have been detained since their arrest on March 10, 2014.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department, Maryland State Police, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Christopher J. Romano and Special Assistant U.S. Attorney Christopher Flagg, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Husband and Wife Indicted in $1.5 Million Fraud ConspiracyRead the Press Release
Baltimore, Maryland – A federal grand jury returned a superseding indictment charging Shaun Tucker, a/k/a “Shawn Turner,” and “Mark Tyler,” and his wife, Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” both age 49, of Keymar, Maryland with stealing over $1.5 in employee benefits. The original indictment charged the defendants with embezzling from employee benefit plans and tax evasion. A superseding indictment was returned on March 24, 2015 and unsealed today, adding the charge of conspiracy to commit wire fraud.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas J. Kelly 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; and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
The Tuckers were controlling officers and majority shareholders of Quantell, Inc. and Intaset Technologies Corporation. Quantell and Intaset provided labor services, including environmental science, engineering and information technology services, to federal and state agencies and the private sector.
Quantell and Intaset entered into service contracts with the federal government that were only available to companies that certified that they would use a portion of the money paid on the contract to provide bona fide health and welfare benefits to their employees pursuant to the McNamara-O’Hara Service Contract Act (SCA). From 2005 to 2008, SCA money paid to Quantell and Intaset under federal contracts was deposited into qualified employee health and welfare plans subject to the Employee Retirement Income Security Act (ERISA). At this time, the ERISA plans had a third party administrator and trustees who were not associated with the Tuckers, Quantell, and Intaset.
According to the six count indictment, from 2008 to March 2012, the Tuckers stopped contributing SCA funds to the ERISA plans. Instead, the Tuckers diverted at least $1.2 million in SCA monies paid by the government to Quantell and Intaset under service contracts for their own personal benefit, instead of using the money for the benefit of the companies’ employees. The Tuckers used shell companies and companies that they were associated with to conceal the diversion of SCA funds to them. Shaun Tucker made false statements to the third party administrator and trustees for the ERISA plans, the Department of Labor (DOL) and the IRS concerning the health and welfare benefits provided to Quantell and Intaset employees, including falsely claiming that he was requesting plan to plan transfers of the remaining assets in the ERISA plans. 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’ home in Carroll County and construct a 5,000 square foot residence in Swanton Maryland.
The Tuckers also served as the plan administrators of both companies’ employee health and welfare plans, and as representatives of the plan sponsors, Quantell and Intaset. The indictment re-alleges that from 2009 to April 2010, the Tuckers further embezzled $284,999 from employee benefit plans when they caused checks to be issued from the companies’ plan funds, which they used for their personal benefit. In 2010, Shaun Tucker falsely told representatives of DOL that there had been no transfers of any Quantell plan assets. On November 8, 2010, Shaun Tucker submitted a form to DOL falsely certifying that all of the remaining assets from the Quantell plan had been transferred to a Quantell employee plan, while knowing that the Tuckers had instead used the funds for their personal benefit, including the construction of the home in Swanton.
Finally, the indictment re-alleges that the Tuckers filed a joint tax return for 2009 in which they falsely reported income of $180,251, when in fact they knew that their income was far in excess of that amount, upon which taxes were owed.
The indictment seeks the forfeiture of at least $1.5 million, the amount of loss resulting from the fraud scheme. The indictment also seeks the forfeiture of the residence in Swanton and two vehicles.
The Tuckers face a maximum sentence of 20 years in prison and a $250,000 fine or twice the gain or loss for the wire fraud conspiracy, five years in prison and a fine of $250,000 for embezzling from an employee plan; and a maximum of five years in prison and a $100,000 fine for tax evasion.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the 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 and DCIS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry Gruber and Judson Mihok, who are prosecuting the case.
Parsonsburg Man Sentenced to 16 Years in Prison for Distributing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Edward James Maycock, Jr., age 28, of Parsonsburg, Maryland, today to 16 years in prison followed by a lifetime of supervised release for distribution of child pornography. Judge Russell ordered that upon his release from prison, Maycock must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Wicomico County Sheriff Michael A. Lewis.
According to his plea agreement, on November 8, 2013, Maycock uploaded files containing child pornography to a website. After linking the IP address used to upload the files to Maycock’s residence, law enforcement executed a search warrant on February 6, 2014 and seized a notebook computer and several external hard drives from Maycock’s home which contained thousands of files depicting children, including prepubescent minors, engaged in sexually explicit conduct. Some of the files included images of sadistic and masochistic conduct, or other depictions involving violence. Maycock actively traded the child pornography files with other individuals via the internet. The total volume of child pornography from Maycock’s computer and hard drives was roughly the equivalent of 1,000 gigabytes.
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, Maryland State Police and Wicomico County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Member of Cherry Hill Group “UDH” Sentenced to over 10 Years in Prison for Conspiracy to Distribute Heroin and Crack CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Demond Pinkney, a/k/a “Cal,” age 30, of Baltimore, today to 121 months in prison, followed by five years of supervised release, for conspiracy to distribute and possesses with the intent to distribute heroin and crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, since the late 1990s Pinkney has been distributing powder cocaine, crack cocaine and heroin in the Cherry Hill area of Baltimore. Pinkney 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 disputes with members and associates of organizations known as “Coppin Court” and “Little Spelman,” that are involved in criminal activity in the part of Cherry Hill known as “Down the Hill.” UDH members and associates committed various crimes to include distribution of drugs, such as crack cocaine, heroin, cocaine and oxycodone. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in their part of Cherry Hill. Some of these acts of violence include the January 22, 2011 murder of Little Spelman member Harry Hicks; the August 28, 2011 murder of Little Spelman member Dewayne Jones; and the January 20, 2012 murder of Little Spelman leader Dominic Hope. Pinkney himself was shot on June 1, 2008, by persons from “Down the Hill,” leaving Pinkney paralyzed. Pinkney continued his association with UDH, renting a stash house in the UDH area and selling narcotics.
In the earlier part of Pinkney’s drug distribution years, he sold crack cocaine with a group of individuals associated with “Down the Hill.” Pinkney later became a member of the UDH group and as a teenager, sold crack and heroin for various UDH leaders. Pinkney was a right-hand man to a UDH drug supplier for a period of time and later worked for a UDH member who supplied Pinkney with crack cocaine and heroin. Throughout the course of Pinkney’s involvement in the UDH drug conspiracy, the conspirators distributed between three and 10 kilograms of heroin and at least 840 grams but less than 2.8 kilograms of crack cocaine.
In addition to distributing narcotics, Pinkney participated in two bank robberies with fellow UDH members. In each robbery, Pinkney wrote the demand note used by the robbers and shared in the proceeds of the robberies.
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.
Leader in Residential Mortgage Fraud Scheme Sentenced to 57 Months in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 46, of Severn, Maryland, today to 57 months in prison, followed by five years of supervised release, for conspiracy to commit wire fraud and aggravated identity theft, arising from a residential mortgage fraud scheme. Judge Hazel also ordered Tibakweitira to pay restitution of $2,482,856.05.
Also today, Judge Hazel sentenced Nsane Phanuel Ligate, age 43, of Ashburn, Virginia, to five months in prison, followed by five months of home detention as part of three years of supervised release for conspiracy to commit wire fraud, in connection with a separate, but related mortgage fraud scheme. Ligate was also ordered to pay restitution of $352,091.82.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Kathy Michalko of the United States Secret Service – Washington Field Office; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According his plea agreement, from March 2007 to November 2008, Tibakweitira, who was a real estate agent, and his co-conspirators sought mortgages for properties at values in excess of the properties’ actual market values. Tibakweitira recruited his wife Flavia Makundi, and others, including Mokorya Cosmos Wambura, Cane Mwihava and Annika Boas, to act as straw purchasers of homes.
Tibakweitira admitted that he procured inflated appraisals and created false addendums to the sales contracts requiring large amounts of loan proceeds to be disbursed for renovations or repairs. The defendants used stolen or false identities, false documents – including W-2 forms, earnings statements, and bank statements – and false credit information to induce lenders to provide residential mortgage loans to the straw buyers. Co-conspirator Carmen Johnson, through her company CJ Lending, created fictitious lines of credit for the straw buyers to fraudulently enhance their credit worthiness. Large amounts of the proceeds of the fraudulently obtained loans were disbursed from escrow accounts to Destiny Property Management, LLC and Destiny Property Management Company, which were shell companies owned by Tibakweitira, for repairs and renovations that were never made to the properties. These funds were paid to the defendants. The defendants did not make or stopped making the mortgage payments and allowed the properties, including 10 properties located in Severna Park, Baltimore, Hyattsville and Silver Spring, to go into foreclosure.
As a result of the conspiracy, lenders provided over $3.5 million for fraudulently obtained loans, which resulted in losses of almost $2.5 million to the lenders, the Federal Housing Administration which insured some of the loans, and the Federal National Mortgage Corporation (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), who purchased some of the loans in the secondary mortgage market.
In the second scheme, between April and July 2008, real estate agent Nsane Phanuel Ligate conspired with Carmen Johnson and others in a similar mortgage fraud scheme involving two properties in Baltimore, resulting in losses to HUD and the lender of $352,091.58.
Tibakweitira co-conspirators Flavia Makundi, age 43, of Severn Park, Maryland, Ayoub Luziga, age 36, of Bowie, Maryland, Raymond Abraham, age 48, of Silver Spring, Maryland, Mokorya Cosmas Wambura, age 42, of Takoma Park, Maryland, Abdallah Suleiman Kitwara, age 44, of Bowie, Maryland, pleaded guilty to their roles in the first scheme. Luziga was sentenced to 21 months in prison and ordered to pay restitution of $999,726. Kitwara was sentenced to 15 months in prison and ordered to pay $290,954 in restitution. Abraham was sentenced to 33 months in prison and ordered to pay $999,726 in restitution. Makundi was sentenced to time served. Annika Boas, age 37, of Mount Rainier, Maryland, was convicted after trial. Boas was sentenced to 27 months in prison and ordered to pay restitution of $511,147.
Ligate co-conspirators Cane Mwihava, age 44, of Bowie, Maryland, Larry Johnson, age 58, of Capital Heights, and Gladyness Silaa, age 36, of Bowie, Maryland also pleaded guilty to their roles in the second mortgage fraud scheme. Larry Johnson was sentenced to eight months in prison consecutive to the current sentence he is serving on an unrelated case and ordered to pay restitution of $352,091. Silaa was sentenced to six months home detention and ordered to pay $378,602 in restitution. Mwihava was sentenced to six months home detention and ordered to pay $352,091 in restitution.
Carmen Johnson, age 48, of Gambrills, Maryland, was convicted after trial for her participation in both schemes. Johnson is scheduled to be sentenced on June 3, 2015 at 10:00 a.m.
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. 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 HUD-OIG, FHFA-OIG, Treasury OIG, U.S. Secret Service and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin Di Gregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who prosecuted the case.