District of Maryland

Greenbelt, Maryland – A federal grand jury has returned two indictments charging 18 defendants with conspiring to distribute cocaine and heroin, and possession with intent to distribute the drugs. The indictments were returned on June 3, 2015 and unsealed today upon the arrest of the defendants, and the execution of search warrants at 29 residences and two businesses.

The first indictment charges 14 defendants in connection with drug trafficking operations conducted primarily at or near the housing complex in the 14000 block of Bel Pre Drive, Silver Spring. The second indictment charges four defendants with drug trafficking operations conducted primarily at or near a music studio located in the 7900 block of Cryden Way, District Heights, Maryland.

The indictments 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 J. Thomas Manger of the Montgomery County Police Department; Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service, Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief T. N. Treschuk of the Rockville City Police Department; Captain Timothy Lloyd of the Hackensack (New Jersey) Police Department; and Montgomery County State’s Attorney John McCarthy.

“An intensive investigation of drug dealing and related violence in the vicinity of Bel Pre Square yielded these allegations that much of the criminal activity in the area is related to an organized group of drug dealers,” said U.S. Attorney Rod J. Rosenstein. “Working together, local and federal authorities can help bring safety and security to Maryland neighborhoods by prosecuting criminals who deal drugs and foment violence. Surveillance and wiretaps were essential to gather the evidence.”

U.S. v. Frederick Davis, et al., No. 15-CR- 00317

According to the four count indictment and court documents, the FBI and Montgomery County Police Department identified a crack cocaine and heroin distribution operation led by defendant George Gee.  Gee and his distribution network primarily operated in Bel Pre Drive housing complex and the surrounding area from at least June 2014 to June 3, 2015. They allegedly used the housing complex as an open-air drug market where traffickers routinely conducted hand-to-hand drug transactions. Gee allegedly directed and supplied several local drug distributors operating in the housing complex and conducted hand-to-hand drug transactions with local distributors.  Drugs and drug proceeds were stored at the residences of some of the defendants.

The following defendants are charged in this indictment with conspiring to distribute cocaine base (crack), five kilograms or more of cocaine, and heroin:

Frederick J. Davis, age 31, of Gaithersburg, Maryland,

William T. Fergerson, a/k/a “Fats,” age 42, of Silver Spring, Maryland,

George Earl Gee, age 37, of Beltsville, Maryland,

Tiki Harmon, age 42, of Burtonsville, Maryland,

Amir Bey-Jones, a/k/a “Meano,” age 41, of Silver Spring,

Keenan Jones, age 54, of Silver Spring, Jovan Brian Lancaster, a/k/a “Juvie,” age 30, of Maryland,

Greg Milden, age 40, of Cliffside, New Jersey,

Joseph Miles, age 62, of Westerport, Maryland,

Brandon Richardson, age 30, of Silver Spring,

Alfonso Salazar, age 38, of Maryland,

Ryan Snowden, age 30, of Laurel, Maryland

Sonya Darby Thomas, a/k/a “Peaches,” age 37, of Gaithersburg, and

Rayvon Walls, age 25, of Indian Head, Maryland.

Gee, Snowden, Richardson, Salazar and Miles are also charged with possession with intent to distribute controlled substances. The indictment seeks forfeiture of $400,000.

U.S. v. Vincent Collins, et al., No. 15-CR-00316

According to the two count indictment and court documents, the FBI and the Montgomery County Police Department identified a heroin and cocaine distribution operation led by Anthony Niles.  Niles primarily operated out of a music studio in Districts Heights.  Niles allegedly directed and/or supplied several local drug distributors operating in Prince George’s County and the surrounding area from at least February 2015 to June 3, 2015.  The indictment charges the following defendants with conspiring to distribute heroin and cocaine:

Vincent Collins, age 36, of Oxon Hill, Maryland,

Sierra Lynch, age 37, of Beltsville, Maryland,

Anthony Niles, age 36, of Bowie, Maryland, and

Abdul Hakim Sauda, age 30, of Laurel, Maryland.

Niles and Sauda are also charged with possession with intent to distribute heroin and cocaine.

According to court documents, Harmon and Snowden worked at a barber shop on Old Columbia Pike in Burtonsville where they stored drugs and drug proceeds. The indictment seeks forfeiture of $280,000.

All 18 defendants face a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison for the drug conspiracy. Gee, Snowden, Richardson, Salazar, Miles, Niles and Sauda also face a maximum sentence of 20 years in prison for distributing drugs.  The initial appearances of the defendants are scheduled to begin this afternoon at 2:00 p.m. in U.S. District Court in Greenbelt.

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

United States Attorney Rod J. Rosenstein praised the FBI, the Montgomery County Police Department, NCIS, Prince George’s County Police Department and the Rockville and Hackensack (New Jersey) Police Departments for their work in the investigation.  Mr. Rosenstein commended the Bergen County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their assistance, and thanked Assistant United States Attorneys Daniel C. Gardner and Joseph R. Baldwin, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Ishmael Ford-Bey, age 40, of Mitchellville, Maryland, late yesterday to 33 years in prison, followed by 10 years of supervised release, for conspiracy, possession with intent to distribute cocaine, using a phone to facilitate drug distribution, and money laundering. Judge Chasanow had previously entered an order requiring Ford-Bey to pay a $108 million money judgment, and a forfeiture order for personal property, including luxury vehicles, jewelry and cash.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief of Police Robert D. MacLean of the U.S. Park Police; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

According to court documents, from at least January 2011 through his arrest on August 16, 2013, Ishmael Ford-Bey conspired with Anthony Tatum and others to distribute cocaine. The drugs were often sold in different locations in Prince George’s County, Washington, D.C. and Oxon Hill, Maryland.

In late 2010, law enforcement received information that Tatum was the source of supply of cocaine to a cooperating source and that Ford-Bey was providing Tatum and others with kilogram quantities of cocaine. Between April 2011 and January 2012, U.S. Park Police conducted undercover purchases of a total of 308 grams of crack cocaine from co-conspirator Terrin Anderson.  Anderson drove a vehicle registered to Ford-Bey to make some of the deliveries.  As a result of wire taps on conspirators’ cell phones law enforcement overheard numerous conversations with Ford-Bey discussing and arranging drug transactions.  Agents observed Ford-Bey providing conspirators with drugs in exchange for cash.

On August 15, 2012, the Texas Department of Public Safety stopped a refrigerated box truck that was transporting thirteen boxes, each containing approximately ten kilograms of cocaine.  The boxes were to be delivered to Ford-Bey in Temple Hills, Maryland.  A controlled delivery of the boxes was arranged.  On August 17, 2012, law enforcement established surveillance at the meeting location in Marlow Heights, Maryland.  A few minutes after the truck arrived at the meeting location, a vehicle registered to Ford-Bey at a Mitchellville address arrived at the location.  Law enforcement observed the truck driver and Ford-Bey unloading the drugs into Ford-Bey’s vehicle. As Ford-Bey left the area, he was pursued by law enforcement officers. Ford-Bey abandoned the vehicle in the median on I-495 and ran away.  Agents recovered Ford-Bey’s vehicle, the cocaine, cell phones, and other evidence from the vehicle.

Based upon review of the documents in the vehicle and further investigation, agents identified another residence for Ford-Bey located in the 2400 block of Pennsylvania Avenue, NW, in Washington, DC.  On the evening of August 17, 2012, officers were at the Pennsylvania Avenue address and saw Ford-Bey in the lobby. Ford-Bey fled dropping a bag that contained prepaid cellphones and other items.  Agents were unable to locate Ford-Bey.  A search warrant of the residence resulted in the seizure of watches and jewelry, and a loaded Glock handgun.  Agents also seized two other vehicles - a 2003 Audi and a 2011 Maserati, both registered to Ford-Bey.

Ford-Bey was arrested on August 16, 2013, during a traffic stop of a vehicle being driven by Ford-Bey’s girlfriend.  A Maryland State Trooper ran the tag and determined the vehicle was registered in the name of the driver and Ford-Bey. When the trooper asked Ford-Bey for identification, he identified himself as Jason Green and presented a New Jersey driver’s license in that name. The trooper pulled up the warrant photograph for Ford-Bey, positively identified him as Ford-Bey, and placed him under arrest.

On October 1, 2013, a search warrant was executed at the apartment of a co-conspirator that Ford-Bey and co-conspirator Anthony Tatum had been identified as visiting.  Agents located a safe which contained $823,640 in cash, several expensive watches, and jewelry. In addition, agents recovered scales, three heat sealers, a coffee grinder, a currency counter, and other drug paraphernalia, as well as approximately 350 grams of cocaine.  Latent fingerprints recovered from the heat sealers were identified as belonging to Ford-Bey and Tatum.

In an effort to disguise and hide their drug proceeds, Ford-Bey, Tatum and others created numerous business entities, which had little, if any, legitimate business. They set up bank accounts in the names of each business and deposited their drug proceeds into those business accounts.  Between 2008 and 2011, Ford-Bey deposited drug proceeds into business bank accounts he owned or controlled.  Ford-Bey used drug proceeds to purchase a 2007 Lexus for his girlfriend, a 2011 Land Rover vehicle for $65,749.  Ford-Bey also purchased jewelry and used the drug proceeds to pay rent for his apartment and for travel expenses, among other things.

The government contends that over the course of the conspiracy Ford-Bey distributed approximately 1,710 kilograms of cocaine.

Four defendants, including Ford-Bey were convicted federally for their participation in the conspiracy.  Co-conspirators Terrin Tamal Anderson, age 29, of Waldorf, Maryland, and David Allen Jones, age 40, of District Heights, Maryland, previously pleaded guilty and were sentenced to 12 years in prison and 45 months in prison, respectively. Anthony Torrell Tatum, age 36, of Arlington, Virginia, also pleaded guilty and is scheduled to be sentenced on July 7, 2015.

United States Attorney Rod J. Rosenstein commended the DEA, FBI, Prince George’s County Police Department, U.S. Park Police, U.S. Postal Inspection Service, IRS-CI, ATF and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas P. Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – After four days of trial, Jeffrey Brian Cohen, age 39, of Reisterstown, Maryland, pleaded guilty late today, to wire fraud, aggravated identity theft, making false statements to an insurance regulator, and obstruction of justice.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division.

U.S. Attorney Rod Rosenstein stated, “Jeffrey Cohen carried out a massive fraud scheme for which he finally will be held accountable.”

According to his plea agreement, Cohen acted as the president and chairman of the board of a Delaware corporation Indemnity Insurance Corporation RRG (Indemnity).  Cohen previously controlled a District of Columbia corporation called Indemnity Insurance Corporation of DC, Risk Retention Group (Indemnity-DC), which was a predecessor entity to Indemnity.  Both companies were located in Sparks, Maryland, and provided general liability insurance, liquor liability insurance, and excess liability insurance coverage to their customers, which were individuals and companies involved in the entertainment industry, such as nightclubs, concert tours, and special events.  Both companies operated in several states, including Maryland. From 2008 through 2012, Indemnity insured more than 3,000 policyholders, and collected over $100 million in premiums.   

The Delaware Insurance Commissioner and the DC Insurance Commissioner were charged by law with the responsibility of protecting insurance policyholders and the general public by regulating insurance companies and risk retention groups and their products to ensure among other things, that insurance companies and risk retention groups had the ability to pay claims.

Cohen admitted that he obtained and attempted to obtain money from insurance policyholders and potential insurance policyholders of Indemnity-DC and Indemnity based on financial ratings, financial audits, and insurance regulatory approvals that Cohen fraudulently obtained.  Beginning in January 2008, and continuing until the fall of 2013, Cohen defrauded insurance policyholders and prospective insurance policyholders in order to obtain more than $100 million in insurance premiums, by falsely representing the financial status of Indemnity-DC, Indemnity, and other Cohen controlled entities to insurance policyholders, prospective insurance policyholders, the rating agency A.M. Best, to independent auditors, the DC Insurance Commissioner, and the Delaware Insurance Commissioner.

Specifically, Cohen created false financial documents, including bank statements, letters of credit, and confirmations of bank account balances.  Cohen transmitted some of these false documents to A.M. Best in order to obtain financial ratings for Indemnity-DC and Indemnity that were not based on the companies’ true financial condition. Cohen then touted the A.M. Best ratings to potential policyholders, policyholders, and regulatory agencies. Cohen also transmitted false and fraudulent emails, management representation letters, financial statements, and other documents to the auditing firms Marcum and BDO so the auditors would provide an unqualified audit opinion on Indemnity-DC and Indemnity financial statements that Cohen knew were false. Cohen used the name and identity of a bank official to create a false bank confirmation.

To conceal the true financial condition of the companies, Cohen transmitted fraudulent audited and unaudited financial statements for Indemnity-DC and Indemnity to the DC Insurance Commissioner and the Delaware Insurance Commissioner. Cohen also made false statements to representatives of the Delaware Insurance Commissioner in June 2012.

The Delaware Insurance Commissioner instituted civil proceedings against the Cohen companies in June 2013.  In October 2013, two attorneys referred Cohen’s criminal offenses, including the false statements to an insurance regulator offense to which he’s pleading guilty, to federal authorities.  On February 20, 2014, Cohen threated one of the attorneys who had referred his case in an effort to prevent the attorney from communicating with federal law enforcement concerning the crimes Cohen committed in the operation of his insurance companies.

Cohen faces a maximum sentence of 20 years in prison for each of the wire fraud and obstruction of justice counts, 15 years in prison for making false statements to an insurance regulator, and a mandatory two years, consecutive to any other sentence, for aggravated identity theft.  U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for August 6, 2015, at 10:00 a.m.  Cohen remains detained.

United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore, IRS – Criminal Investigation and U.S. Postal Inspection Service - Washington Division for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Joyce K. McDonald, who are prosecuting the case.

Baltimore, Maryland – Following an investigation of firearms trafficking in Baltimore City, a federal grand jury has indicted five defendants in three separate cases, on firearms related charges including: unlawful possession of an unregistered firearm; possession of a firearm and/or ammunition by an illegal alien, possession and sale of a stolen firearm and being a felon in possession of a firearm. The indictments were returned on June 3, 2015, and unsealed upon the arrest of the defendants.

The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Commissioner Anthony W. Batts of the Baltimore Police Department.                      

“These cases resulted from an intensive ATF investigation of firearms trafficking in Baltimore City,” said U.S. Attorney Rod J. Rosenstein. “Federal agents are working with police and prosecutors to stop the flow of guns into Baltimore.”

According to their indictments David Boj-Perez, a/k/a “David Salomon Boj,” and “Daniel,” age 31; Estelle Julia Lewis, age 28; and Philip Samuel Simmons, age 39, all of Baltimore, illegally possessed an unregistered firearm, specifically, a sawed-off 12 gauge shotgun.  They each face a maximum sentence of 10 years in prison.

In a separate indictment, Kevin Mauricio Guzman Rivera, age 21, and Raymond Escobar, a/k/a “Ray,” age 35, both of Baltimore, are charged with possession of a firearm by an illegal alien, and being a felon in possession of a firearm, respectively, in addition to drug conspiracy and related charges. Rivera faces a maximum sentencing of 10 in prison for possession of a firearm by an illegal alien.  Escobar also faces a maximum of 10 years in prison for being a felon in possession of a firearm. Rivera and Escobar also face a maximum sentence of 20 years in prison for possession with intent to distribute controlled substances, and for the drug conspiracy. 

The defendants had an initial appearance in U.S. District Court in Baltimore.  Boj-Perez and Escobar are detained.  Rivera was already in custody and remains detained. Simmons and Lewis were detained pending detention hearings scheduled for Monday, June 8, 2015.

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

United States Attorney Rod J. Rosenstein praised the ATF, HSI-Baltimore, and Baltimore Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Kenneth S. Clark 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 are prosecuting these Organized Crime Drug Enforcement Task Force cases.

Baltimore, Maryland – Avery Terry, age 23, of Laurel, Maryland, pleaded guilty today to commercial robbery, using and brandishing a firearm during a crime of violence, and accessory after the fact to a second robbery resulting in death.                    

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Gary Gardner of the Howard County Police Department; and Howard County State’s Attorney Dario Broccolino.

According to Terry’s plea agreement, on January 21, 2014, Terry and another individual robbed the CVS Pharmacy in Elkridge, Maryland, at gun point stealing approximately $200.  A store video camera recorded the robbery, including the distinctive clothing worn by the robbers.  The gun used during the robbery belonged to Terry, who texted a picture of himself holding the handgun two days before the robbery.  Terry had a previous felony conviction for drug distribution and was prohibited from possessing a gun or ammunition.

On January 26, 2014, Howard County Police executed an arrest warrant for the suspected shooter in a January 23, 2014 robbery and homicide of a drug dealer.  Law enforcement saw Terry the suspected shooter leaving the alleged shooter’s home.  The two got into Terry’s car.  Police conducted a traffic stop and arrested the suspected shooter.  A black .38 caliber revolver (different from the gun used in the CVS robbery) was found under the driver’s seat where Terry was driving.  Ammunition was also found in Terry’s car.

A Howard County detective who was investigating the CVS robbery was also participating in the execution of the arrest warrant that day.  The detective noticed clothing in Terry’s car that matched the distinctive clothing worn by the robbers.  After being advised of his rights, officers interviewed Terry regarding the gun found in his car.  A search warrant was also executed at Terry’s home and law enforcement recovered a mask and other clothing matching that worn by one of the CVS robbers.

After Terry’s arrest, Howard County Police monitored Terry’s jail calls, including a call in which he asked his mother to get his employer to provide a false alibi for him at the time of the CVS robbery.  Terry’s mother called the employer and asked him to provide the alibi, but the employer refused and promptly reported the call to police.  Cell site data from Terry’s phone revealed that it was used to send calls or data through a cell tower location near the CVS Pharmacy at the time of the robbery.

Subsequent investigation revealed additional information concerning Terry’s knowledge of the January 23, 2014, robbery/homicide.  Call records show that between January 21 and January 26, 2014, Terry had frequent and regular telephone communication with two individuals charged with that crime.  The alleged shooter is facing murder charges in Howard County Circuit Court. A second alleged co-conspirator is charged federally for his role in the robbery and murder.  In addition, Terry admitted that at the time of the suspected shooter’s arrest in Terry’s car, they were attempting to get rid of the murder weapon.

Terry faces a maximum penalty of 20 years in prison for the robbery, a mandatory minimum sentence of seven years and up to life in prison for using and brandishing a firearm during a crime of violence, and a maximum of 10 years in prison for being an accessory after the fact.  U.S. District Judge George L. Russell, III has scheduled sentencing for September 11, 2015, at 2:00 p.m.

United States Attorney Rod J. Rosenstein commended the ATF, Howard County Police Department and Howard County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Zachary A. Myers, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge George Jerrod Hazel sentenced Carmen Johnson, age 48, of Gambrills, Maryland, late yesterday to 57 months in prison followed by five years of supervised release for conspiracy, wire fraud and making a false statement on a loan application, arising from two residential mortgage fraud schemes.  Judge Hazel also entered an order that Johnson pay $2,315,660.94 in restitution.

 The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; Acting Special Agent in Charge James Murray 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 Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

According to the evidence presented at her seven day trial, in the first scheme, which operated from March 2007 to November 2008, Johnson conspired with real estate agent Edgar Tibakweitira and others to fraudulently obtain residential mortgage loans by making false statements during the loan application and approval process. In the second scheme, witnesses testified that between April and July 2008 Johnson conspired with real estate agent Nsane Phanuel Ligate and others in a similar mortgage fraud scheme involving two properties in Baltimore.

Johnson owned and operated CJ Lending and its predecessor Able Estate & Company, which provided credit repair services.  Witnesses testified that in both schemes Carmen Johnson reported to credit bureaus and provided her fellow co-conspirators with false credit histories showing backdated lines of credit that were used to convince lenders to give mortgage loans. As part of both schemes, Johnson’s co-conspirators used stolen or false identity information, false documents – including W-2 forms, earnings and banks statements – and false credit information to induce lenders to provide mortgage loans to straw purchasers.  Johnson’s co-conspirators also inflated the sales prices of the properties by creating false documents for repairs and renovations that were never made.  After the settlement, the conspirators divided up the cash received for the purported repairs.

As a result of both schemes, losses to financial institutions totaled $2,309,646.

Co-conspirators Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 46, of Severn, Maryland, Flavia Makundi, age 42, of Severn Park, Maryland, Ayoub Luziga, age 35, 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, have pleaded guilty to their roles in the first scheme. Tibakweitira was sentenced to 57 months in prison and ordered to pay restitution of $2,482,856.05. 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.  Annika Boas, age 37, of Mount Rainier, Maryland, was convicted after trial and sentenced to 27 months in prison and ordered to pay restitution of $511,147.  Makundi was sentenced to time served.

Nsane Phanuel Ligate, age 42, of Ashburn, Virginia, Cane Mwihava, age 43, of Bowie, Maryland, Larry Johnson, age 58, of Capital Heights, and Gladyness Silaa, age 36, of Bowie, Maryland have 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 and Mwhihava were each sentenced to six months home detention, and Ligate was sentenced to five months home detention.

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

United States Attorney Rod J. Rosenstein praised 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.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Johnny Devon Snow, age 20, today to 150 months in prison, followed by three years of supervised release, for his role in the armed robberies of three 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; and Chief Gary Gardner of the Howard County Police Department.

According his plea agreement, from May 1, 2014 through June 24, 2014, Johnny Snow, his brother Justin Snow, their cousin Taylor Snow and Arkeene Redditt-Abrams conspired to rob three cell phone stores.  The defendants planned to steal cash, cell phones and other electronic communications devices, and tablet computers; and that they planned to sell the stolen merchandise.  As part of the plan, the defendants determined which firearms were used in the commission of the robberies; conducted surveillance of the targeted stores; wore face masks, hooded jackets and gloves to conceal their identities; and used plastic trash bags to carry the stolen items from the stores.

Specifically, on June 17, 2014, the defendants used a car rented by Taylor Snow to travel to an AT&T store on Dual Highway in Hagerstown.  Taylor Snow entered the store to to find out how many people were in the store and whether there were any security cameras.  She was talking on ta cell phone as she entered.  Less than a minute later Johnny and Justin Snow entered the store, and Justin Snow brandished a firearm in an attempt to rob an employee of the store. Johnny Snow stood near the door and Redditt-Abrams remained in the car, which was parked outside.  The defendants realized the store had cameras, left the store and fled in the waiting car.

A few hours later the defendants drove the rented car to an AT&T store in Ellicott City, Maryland. Redditt-Abrams entered the store to “case” it.  After he left the Snows entered the store, with Justin Snow again brandishing a gun. They stole cash, cell phones and tablet computers worth more than $18,000.  Surveillance video at an adjoining gas station captured images of Taylor Snow’s car at the gas pumps and while it was parked in front of the AT&T store.  The video showed Redditt-Abrams entering and leaving the store, then shows three people exiting the car and entering the store.  A short time later three people run from the store and get back into the car.

Further, after Johnny Snow’s arrest on June 24, 2014, Justin and Taylor Snow traveled to Mechanicsburg, Pennsylvania, where they used a gun to rob a T-Mobile store of cash, cell phones and tablet computers.

Justin Jose Snow, a/k/a “J.O.,” age 22; Taylor Yvonne Snow, age 22; and Arkeene Antoyn Redditt-Abrams, a/k/a “Duke,” age 26, all of Baltimore, previously pleaded guilty to their roles in the robberies.  Taylor Snow was sentenced to nine years in prison.  Justin Snow is scheduled to be sentenced on June 30, 2015 and Redditt-Abrams is scheduled to be sentenced on August 15, 2015.  They remain detained.

United States Attorney Rod J. Rosenstein praised the FBI, and Howard County Police Department, for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, who is prosecuting the case.

Greenbelt, Maryland – Michelle Lee Davis, age 37, of Laurel, Maryland pleaded guilty today to criminal contempt.

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; and Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office.

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

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

U.S. District Judge Peter J. Messitte has scheduled sentencing for September 18, 2015 at 9:30 a.m., at which time Davis faces a sentence of a fine or imprisonment, or both, within the court’s discretion.

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

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Stanley Duryea Johnson, age 60, of Baltimore today to 20 years in prison followed by three years of supervised release for robbery and using a gun during the robbery.  Judge Garbis also entered an order that Johnson pay restitution of $93,000.

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

According to his plea agreement, on June 18, 2013, a driver of a prescription drug van was waiting for a pharmacy to open at a parking lot on Reisterstown Road in Baltimore.  The van contained $93,000 worth of pharmaceutical drugs, which the driver planned to deliver at a number of locations that day.  Johnson approached the van, ordered the driver to move to the passenger seat, and began driving the van.  Johnson eventually left the driver on the side of the road and drove off in the van.

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

Greenbelt, Maryland – A federal grand jury has indicted the following defendants on charges arising from a bank fraud scheme:  

Brian Edward Diggs, a/k/a “Bryan Diggs” and “Big Poppa,” age 43, of Brandywine, Maryland; Patricia Yvonne Diggs, a/k/a “Patricia Yvonne Johnson,” and “Patricia Yvonne Holmes,” age 48, of Brandywine Maryland; Rechelle Deborjah Fowler, a/k/a “Rechelle Fowler-Jones,” and “Daisy Fowler,” age 45, of Waldorf, Maryland; Brian Dominique Wilson, age 23, of Brandywine; Robert Anthony Fitzgerald Lathan, age 37, of Accokeek, Maryland; and
Derrick Kwan Byas, Jr., age 26, of Baltimore.

The indictment was returned on April 29, 2015 and partially unsealed today upon the arrests of four defendants.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.

“The defendants allegedly submitted fake documents and false information to obtain car loans, defrauding lenders of more than $1 million,” said U.S. Attorney Rod J. Rosenstein. “The defendants also allegedly agreed to sell vehicles to other people and took their money but did not provide the cars. The charge of ‘aggravated identity theft” – using someone else’s identity to commit a crime – carries a mandatory sentence of two years in federal prison, in addition to the penalty for the fraud offense.”

Brian Diggs owned Big Boi Auto Sales LLC, Showcase Auto Sales, Inc., Car Wiz, Inc. and Auto Dupo of Waldorf LLC.  Robert Lathan owned Total Computer Solutions, Inc. 

According to the two count indictment, from January 2009 to April 29, 2015, the defendants and others created shell entities purporting to be legitimate businesses, including the businesses identified above.  The defendants applied for vehicle loans with financial institutions and lenders using false information as to employment history at the shell entities, addresses, dates of birth and social security numbers.  They created and submitted fake documents, such as lien releases, utility bills, paystubs, letters of recommendation and a police report. The defendants often applied for vehicle loans on the same vehicle with different lenders.  They sold the vehicles, obtained money from the sales and then did not provide the vehicles to the buyers.  They deposited the loan funds into bank accounts and cashed loan checks at liquor stores.  The defendants failed to pay the vehicle loans, which often resulted in the vehicles being repossessed by the lenders.

As a result of the scheme, the lenders lost over $1 million.

The defendants face a maximum sentence of 30 years in prison for conspiring to commit bank fraud and a mandatory minimum of two years in prison for aggravated identity theft consecutive to any other sentence.  An initial appearance was held today for Fowler, Wilson and Lathan in U.S. District Court in Greenbelt and they were released under the supervision of U.S. Pretrial Services. Patricia Diggs also had an initial appearance today and was detained pending a detention hearing on Thursday, June 4, 2015.  Byas remains detained on state charges.  Brian Diggs is expected to have an initial appearance on June 3, 2015.

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

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

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

United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and Joseph R. Baldwin, who are prosecuting the case.

Baltimore, Maryland – A federal grand jury has returned two indictments charging five Baltimore City Department of Public Works (DPW) employees and six commercial trash haulers with conspiracy and other charges, including bribery and theft, related to two schemes to defraud the City of Baltimore through the operation of the DPW waste management services.  Two employees are charged in both indictments.  The indictments were returned on May 28, 2015 and unsealed today.

“The first indictment alleges that trash haulers paid bribes to landfill employees in exchange for not charging dumping fees, which cheated the city of almost $6 million. The second indictment charges that landfill employees stole scrap metal that the city would have sold for almost $1 million,” said U.S. Attorney Rod J. Rosenstein. “The Baltimore City Inspector General brought these allegations to the attention of federal authorities and assisted in the investigation.”

The first indictment alleges that over a 14-year period three DPW employees solicited and accepted cash payments from at least six private commercial haulers in return for not charging them or their companies the required disposal fees for trash dumped at the Baltimore City Quarantine Road Landfill. The second indictment alleges that over a 9-year period four DPW employees falsely represented on their daily time sheets that they were performing the jobs for which they were hired when, in fact, those employees used their paid positions to engage in a private enterprise for personal gain by selling scrap metal dumped at Baltimore City trash collection sites.

The indictments 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; Assistant Special Agent in Charge Kathy Montemorra of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.

The Department of Public Works’ Bureau of Solid Waste

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

Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters located near the main entrance of the Landfill, free of charge.  Individuals or companies commercially hauling trash that have registered their vehicles with the City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located further within the Landfill.  Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash, also referred to as a “tipping fee.”  The disposal fee applies to the net weight of the trash deposited at the Landfill.

U.S. v. Washington, Et Al., Criminal No. MJG-15-0303

The 44-count indictment alleges that from approximately 2001 until May 2015, DPW employees sought and accepted cash payments from commercial haulers in return for allowing the commercial haulers to deposit trash at the Landfill without paying the required disposal fees.

The indictment charges:

            Tamara Oliver Washington, age 54, of Baltimore;             Williams Charles Nemec, Sr., age 55, of Baltimore;             Charles Dennis Bolden, Sr., age 68 of Baltimore;             Adam Williams, Jr., age 52, of Randallstown;             Mustafa Sharif, age 63, of Baltimore;             Larry Lowry, age 61, of Orchard Beach, Maryland;             Quentin Turgot Glenn, age 49, of Hanover, Maryland;             Jessie Lee Wilson, Jr., age 40, of Baltimore;             John Howard Brady, age 73, of Glen Burnie.

Washington was a DPW employee assigned to the scale house at the Landfill.  DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system.  To activate the system and record a particular transaction, DPW employees must enter the tag number of the truck and a corresponding billing code.  The scale house operators reweigh each truck as it leaves the Landfill.  The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver. Nemec was initially employed by the DPW as a scale house operator at the Landfill and Northwest Transfer Station, and then later promoted to solid waste supervisor.  Bolden was employed as a laborer at the Landfill. 

Williams, Sharif, Lowry, Glenn, and Brady all had commercial trash hauling businesses in Maryland. Wilson was employed by Glenn.

Specifically, the indictment alleges that the DPW employees allowed the commercial haulers to enter the Landfill with truckloads of trash – sometimes multiple times a day - without activating the computerized truck scales and point-of-sale system, ensuring that there would be no record of the commercial haulers’ use of the Landfill.  In exchange, the commercial haulers paid cash bribes to the DPW Employees, ranging from approximately $50 to $100 per Landfill visit. According to the indictment, the bribes were delivered on a daily or weekly basis to the DPW employees in folded paper through the scale house window or dropped off in envelopes at designated times and places outside the Landfill. The DPW employees allegedly divided the cash payments from the commercial haulers among themselves.  The payments were approximately 20% to 30% of what the commercial haulers would have otherwise had to pay to use the Landfill.  The indictment alleges that when the commercial haulers’ trucks drove onto the outbound scale after dumping their loads of trash, DPW employees handed the truck drivers fraudulent receipts, usually in the form of white scrap paper or a blank receipt, to maintain the pretense that the trucks had been weighed and appropriately charged for using the Landfill. 

The indictment alleges that the ongoing relationship between the commercial haulers and DPW employees resulted in a loss of revenue to the DPW and the City of Baltimore of approximately $6,000,000.   

The defendants each face a maximum sentence of five years in prison for the conspiracy; and all but Bolden also face a maximum of 10 years in prison for each count of bribery. Washington, Nemec and Bolden face a maximum of 20 years in prison for each count of extortion.

U.S. v. Hazelton, Et Al., Criminal No. MJG-15-0302          

The 18-count indictment alleges that from approximately 2005 through March 2015, Jarrod Terrell Hazelton, age 32, of Parkville, Maryland; Michael Theodore Bennett, age 46, of Baltimore; Bolden and Nemec, conspired to unlawfully sell scrap metal from the Landfill and NWTS, while falsely representing to DPW that they were performing the jobs for which they were hired.         

The defendants are all employed by DPW at either the Landfill or the NWTS.  According to the indictment, the defendants and others used their personal cell phones during work shifts to let each other know when and where recyclable scrap metals were being dumped at the Landfill and NWTS. Hazelton and Bennett used their personal pick-up trucks during work hours to collect the scrap metal and transport it to a private salvage company, frequently making multiple trips during an eight-hour work shift. Hazelton and Bennett sold the scrap metal for as much as $300 per truckload, resulting in a loss of revenue to the City totaling approximately $893,000.

Hazelton and Bennett allegedly used part of the proceeds of the sale of the scrap metal to pay a fee to Bolden and other DPW employees for their help locating, setting aside, collecting and loading the scrap metal onto their trucks.  According to the indictment, Hazelton and Bolden also paid Nemec in return for allowing them to collect and transport scrap metal from the Landfill. The indictment alleges that the defendants prepared and submitted false time and attendance records, which claimed they had been working, when they were instead illegally collecting and selling the scrap metal, called “junking.”  For Hazelton and Bennett, this allegedly resulted in approximately $60,000 in wages being paid to them for work they did not perform. 

The indictment charges Hazelton with filing false tax returns for tax years 2011 through 2014, by failing to report a total of $537,554 in income.  Bennett is charged with failing to file tax returns for tax years 2011, 2012, and 2013, even though he had reportable income of at least $180,834, $152,494, and $146,154, respectively.

Finally, the indictment seeks the forfeiture of $953,000, alleged to be the value of the property stolen or obtained by fraud.

The defendants each face a maximum sentence of five years in prison for the conspiracy. Hazleton, Bennett and Nemec each face a maximum of 20 years in prison for wire fraud; and Hazleton, Bennett and Bolden also face a maximum of 10 years in prison for each count of theft from a government program. Hazleton faces a maximum of three years in prison for each of four counts of subscribing to a false tax return and Bennett faces a maximum of one year in prison for each of three counts of failure to file a tax return.

An initial appearance is scheduled at 2:30 p.m. today for Brady, Williams, Sharif, and at 3:00 p.m. for Glenn, Lowry, and Wilson in U.S. District Court in Baltimore.  Washington, Nemec, Bolden, Hazelton, and Bennett had an initial appearance on the charges in their previous criminal complaints, and are released under the supervision of U.S. Pretrial Services. They are expected to be arraigned on the charges in the indictments in the next few weeks.

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

United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General, and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Martin J. Clarke and Gregory R. Bockin, who are prosecuting the case.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Shawn Hearn, age 42, of Baltimore, Maryland today to 151 months in prison, followed by three years of supervised release, for possession with intent to distribute approximately 10 kilograms of heroin.

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

According to his plea agreement, on September 25, 2014, the Baltimore Police Department Ceasefire unit executed a search warrant at Hearn’s home in the 2500 block of Oakley Avenue, in Baltimore.  Hearn drove up in his vehicle, but was stopped prior to entering the home. Hearn was shown a copy of the signed search warrant, and then stated, “yeah, I got something.”  When asked by the officers, what he had, Hearn replied, “some heroin.”  Hearn took the officers to his bedroom and directed the officers to the location in the room where officers recovered approximately 10 kilograms of heroin and approximately $825,000 in cash.  The street value of the heroin was approximately $10 million.  The officers also recovered various items used in the processing of heroin for distribution including approximately 70 bars of mannite, a heroin diluent.

 According to court documents, in 2000 Hearn was also convicted of a federal drug trafficking charge.  In that case Hearn was in possession of approximately 1.5 kilograms of cocaine, as well as 80 grams of crack cocaine.  Hearn was sentenced on December 6, 2000 to 110 months in prison, followed by four years of supervised release, which he completed in 2011.

United States Attorney Rod J. Rosenstein praised the DEA, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney James T. Wallner, who prosecuted the case.

Baltimore, Maryland - A federal grand jury has returned three indictments charging a total of 16 individuals with drug conspiracy and other charges for operating purported pain management clinics that the indictments allege were actually “pill mills.” The indictments were returned on May 20, 2015, and unsealed late yesterday upon the arrest of eight defendants.  In addition to yesterday’s arrests, agents executed search warrants at 14 locations, including clinics, pharmacies and residences.

The indictments were 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; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Chief Gary Gardner of the Howard County Police Department; Charles County Sheriff Troy Berry; St. Mary’s County Sheriff Tim Cameron; Chief Mark A. Magaw of the Prince George’s County Police Department; Calvert County Sheriff Mike Evans; Chief Cathy L. Lanier of the Metropolitan Police Department; and Colonel W. Steven Flaherty, Superintendent of the Virginia State Police. 

“Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper medical supervision and without valid medical need,” said U.S. Attorney Rod J. Rosenstein.  “Abuse of oxycodone is one of our most significant drug enforcement challenges, and it is a direct cause of the epidemic of heroin overdose deaths.”

“These indictments, search warrants, and subsequent arrests show that DEA is dedicated to dismantling “pill-mill” operations.  When prescriptions are obtained through rogue pain management clinics and then sold on the streets, it creates and feeds a new generation of users and addicts,” stated DEA Special Agent in Charge Karl C. Colder.  “These addicts will continue to abuse the illegal prescriptions, or switch to a cheaper and more potent drug; heroin.  DEA and its partners will continue to work vigilantly to stop this dangerous trend,” stated SAC Colder.

“Prescription drug diversion schemes undermine public health and divert Medicare and Medicaid funds meant to pay for legitimate health care,” said Special Agent in Charge Nick DiGiulio, of the U.S. Department of Health and Human Services, Office of Inspector General.  “Today’s arrests show the commitment of the Office of Inspector General and our law enforcement partners to protecting both the public’s health and the integrity of federal health care programs.”

Each of the three indictments alleges that the owners operated the purported pain management clinics as “pill mills,” which routinely engaged in the practice of prescribing and dispensing controlled substances - primarily oxycodone - outside the scope of professional practice and without a legitimate medical purpose. The owners kept the profits from the pill mill operations and from the sales of oxycodone in cash.  According to the indictments, the owners recruited “distributors” and “runners” to visit their clinics so that they would profit from the cash fees charged for an office visit.  Runners are recruited - usually by a distributor - to enter pill mill clinics with fictitious complaints of pain in order to obtain prescriptions for oxycodone and other controlled substances.  Typically, runners filled the prescription and gave the oxycodone tablets they received to the distributor.  Runners were typically paid in either cash or oxycodone tablets for their services.  The distributors then generally sold the pills for a profit.

The indictments allege that the owners of the pill mill clinics required runners to have certain “paperwork,” generally an MRI report and a prescription history, which would be kept in the patient’s file to support a false claim that there was a medical need for the prescription of oxycodone.  The owners or other conspirators created false paperwork for runners who were unable to obtain MRI reports or prescription histories that would provide a basis for requesting a prescription for oxycodone.  Conspirators took steps to circumvent the state prescription drug monitoring programs (PDMPs) in order to ensure that runners and distributors would not be prevented from obtaining multiple prescriptions from different doctors at the same time. For example, conspirators directed distributors and runners to fill prescriptions in Washington, DC, which did not have an active PDMP, or in states other than Maryland that had active PDMP systems (such as Delaware and Virginia)   because individual state PDMPs were not connected so prescriptions filled in those states would not show up in the Maryland PDMP system.  Members of the conspiracies also kept track of which pharmacies had supplies of oxycodone and were willing to fill prescriptions for runners.

 

U.S. v. Russell Et Al. Criminal No. 15-0288

This indictment charges the following 13 individuals with conspiracy to distribute and possess with intent to distribute oxycodone:

Donald Russell, age 51, of Waldorf, Maryland; Bruce Kevin Lewis, age 52, of Deale, Maryland; Danielle Silberstein, age 31, of Waldorf; Peter Snyder, age 34, of Ocean City, Maryland; Robert Long, age 34, of Mechanicsville, Maryland; Jamie Davis, age 28, of LaPlata, Maryland; Ronald Tennyson, age 32, of Mechanicsville; Terrell Downing, age 25, of New Carrollton, Maryland; John Fields, age 62, of Temple Hills, Maryland; Ronald Rust, age 44, of Alexandria, Virginia; Ronald Kans, age 41, of LaPlata; Walter Moffett, age 51, of Chestertown, Maryland; and
Melissa Catlett, age 38, of King George, Virginia.

The indictment alleges that from February 2014 through May 2015, Russell and Lewis owned and operated PG Wellness Center, LLC (PG Wellness), and A Plus Pain Clinic, LLC (A Plus Pain), purported pain management clinics located in Oxon Hill, Maryland and Washington, D.C., respectively.  According to the indictment, PG Wellness and A Plus Pain were actually pill mills.  The indictment alleges that defendants Silberstein, Snyder, Long, Downing, Rust, Kans, and Moffett each acted as distributors who brought a number of runners to the clinics.  Davis and Tennyson allegedly were runners and worked with Long to fund additional visits to pill mill clinics and distribute the pills obtained during those visits.  According to the indictment Fields was a runner who dealt directly with Russell to obtain oxycodone pills and distribute them, and co-defendants Silberstein and Catlett regularly purchased bulk quantities of oxycodone pills from Russell.

The indictment also charges Russell, Fields, and Moffett with health care fraud for submitting or causing to be submitted health insurance claims seeking reimbursement for fraudulent prescriptions, in that the prescription was not for a legitimate medical need.  Further, the indictment seeks the forfeiture of $1,200,000, several vehicles and bank accounts. This estimates that, during one month of operation, A Plus Pain and PG Wellness would see at least four hundred patients, each receiving at least 100 oxycodone 30 mg pills, a total of 40,000 pills.  The street value of each pill is estimated at $30 per pill, the equivalent of $1,200,000.

U.S. v. Mori and Dalton, Criminal No. 15-0287

This indictment charges Alex Mori, age 29, of Nanjemoy, Maryland, and Thomas Dalton, age 29, of Waldorf, with conspiracy to distribute and possess with intent to distribute oxycodone.  The indictment alleges that from November 2013 through May 2015, Mori and Dalton operated First Priority Health Care, LLC, a purported pain management clinic located in Elkridge, Maryland.  According to the indictment, First Priority was a pill mill.  The indictment also seeks the forfeiture of $600,000 and property in Nanjemoy, Maryland. This estimates that, during one month of operation, First Priority would see at least two hundred patients, each receiving at least 100 oxycodone 30 mg pills, a total of 20,000 pills.  The street value of each pill is estimated at $30 per pill, the equivalent of $600,000.

U.S. v. Joyce Vercauteren, Criminal No. 15-284

This indictment charges Joyce Vercauteren, age 41, of Clinton, Maryland, with conspiracy to distribute and possess with intent to distribute oxycodone.  According to the indictment, from May 2014 through May 2015, Vercauteren owned and operated MPC Wellness Center, LLC (“MPC Wellness”), a purported pain management clinic located in Greenbelt, Maryland.  The indictment alleges that, in reality, MPC Wellness operated as a “pill mill.”  Further, the indictment seeks the forfeiture of $1,200,000, and a vehicle. This estimates that, during one month of operation, MPC Wellness would see at least four hundred patients, each receiving at least 100 oxycodone 30 mg pills, a total of 40,000 pills.  The street value of each pill is estimated at $30 per pill, the equivalent of $1,200,000.

 

The defendants in all three indictments face a maximum sentence of 20 years in prison and a $1 million fine for the drug conspiracy. Russell, Fields, and Moffett also face a maximum of 10 years in prison for health care fraud.

Russell, Lewis, Silberstein, Snyder, Mori and Vercauteren had initial appearances on May 27, 2015 in U.S. District Court in Baltimore and were detained, pending detention hearings scheduled today.  Rust also had his initial appearance on May 27, 2015 and was released under the supervision of U.S. Pretrial Services. Moffett will have his initial appearance today.  Kans and Fields are expected to turn themselves in and will also have an initial appearance later today.  Dalton, Long, Davis, Tennyson, Downing and Catlett are still being sought.

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

The investigation is continuing and additional charges are expected.

United States Attorney Rod J. Rosenstein praised the DEA Tactical Diversion Squads from Baltimore and Washington DC., HHS-Office of Inspector General, Howard County Police Department, Charles County Sheriff’s Office, St. Mary’s County Sheriff’s Office, Prince George’s County Police Department, Calvert County Sheriff’s Office, Metropolitan Police Department, and Virginia State Police for their work in this pharmaceutical investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and Joshua Ferrentino, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

Greenbelt, Maryland – Gregory Cooper, 59, of Glenn Dale, Maryland, a former U.S. Postal Service contracting officer, pleaded guilty today to receiving bribes in connection with the awarding of contracts to deliver the mail.

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; and Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General.

According to a factual stipulation filed with the court, Cooper engaged in a course of conduct that consisted of corruptly demanding, seeking, receiving, accepting, and agreeing to receive and accept a stream of benefits from a co-defendant who owned ER&R Transportation and MC&G Trucking LLC, which bid on and secured transportation contracts with the Postal Service for the delivery of the mails.  The stream of benefits to Cooper from the co-defendant included $15,900 in cash and the payment of a $7,355 tuition bill for Cooper’s daughter. Total payments to or benefitting Cooper amounted to nearly $26,000.

Cooper admitted that in exchange for these payments, he gave favorable consideration to bids submitted by ER&R Transportation and MC&G Trucking LLC for contracts with the Postal Service.  Specifically, as to the nine Postal Service contracts on which the co-defendant bid during the relevant time period, Cooper personally awarded three of those contracts to the co-defendant’s companies, and recommended to his superiors that the other six should likewise be awarded to those companies.  As a result, during the relevant time period, the co-defendant was successful in every bid placed with the Postal Service.

Cooper faces a maximum sentence of 15 years in prison for accepting a bribe as a public official.  U.S. District Judge George J. Hazel has scheduled sentencing for September 3, 2015 at 10:00 a.m.

U.S. Attorney Rosenstein and Assistant Attorney General Caldwell commended the U.S. Postal Service Office of the Inspector General for its work in the investigation.  The case is being prosecuted by Assistant U.S. Attorney Arun G. Rao and Trial Attorneys Maria Lerner and Mark Cipolletti of the Criminal Division’s Public Integrity Section.   

Baltimore, Maryland – U.S. District Judge Richard D. Bennett has sentenced three co-defendants in a Baltimore area drug conspiracy.  Guy Bordes Agnant, Jr., age 38, of Laurel, Maryland was sentenced today to 10 years in prison, followed by five years of supervised release, for attempted possession with intent to distribute cocaine. On May 27, 2015, Judge Bennett sentenced Antoine DeMarr Washington, age 42, of Washington, D.C. and Donte Eugene Taylor, age 39, of Baltimore, to 12 years in prison and five years in prison, respectively, each followed by five years of supervised release. Washington and Taylor had previously pleaded guilty to attempted possession with the intent to distribute cocaine and heroin.

The sentences 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; 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 their plea agreements, on August 11, 2014, the defendants were contacted by a cooperating individual (CI) concerning their desire to obtain drugs.  As a result of the call from the CI, Agnant indicated to the CI that he wanted to purchase five kilograms of cocaine and Taylor indicated a desire to purchase cocaine and heroin. Agnant and Taylor went to meet the CI and were arrested.  Washington traveled with co-defendant Vincent Cooper to meet the CI in order to purchase five kilograms of cocaine and one kilogram of heroin.  Law enforcement saw Washington and Cooper arrive at the arranged meeting place and they were arrested.  Between Washington and Cooper they had with them more than $223,000 to purchase the drugs.

Vincent Cooper, age 47, of Washington, D.C., was sentenced to 11 years in prison, for his participation in the drug conspiracy and co-defendant Tavon Alexander Louis Hopkins, age 38, of Baltimore also pleaded guilty and was sentenced to three years in prison.

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. Judge 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.

Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Eric Goodall, age 44, of Temple Hills, Maryland today to 13 years in prison, followed by five years of supervised release, for two counts of possessing with intent to distribute one kilogram or more of phencyclidine (PCP), and illegal possession of ammunition by a convicted felon.  Judge Titus also ordered Goodall to forfeit $22,316 seized from his home, a 2013 Porsche Panamera and a 2005 Chevrolet van.

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; and Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division

According to his plea agreement, on October 22, 2013, United States Postal Inspectors intercepted a suspicious Express Mail parcel addressed to a residence in Lanham, Maryland.  After obtaining a search warrant for the package, agents found an iced tea jug containing 128 ounces, or approximately 3.6 kilograms, of a PCP mixture.  The next day, agents saw Goodall arrive at the residence, park the Chevrolet van he was driving in the driveway and go into the home.  Agents then conducted a controlled delivery of the package to Goodall. After Goodall accepted the delivery of the package, law enforcement executed a search warrant at the residence and the Chevrolet van agents saw Goodall driving prior to the delivery.  Law enforcement recovered from the van a United States Postal Service receipt for an Express Mail parcel that Postal Inspectors had previously intercepted on August 13, 2013, in California.  That package was found to contain $80,000 in cash.  Goodall was arrested and provided an address in Temple Hills, Maryland, as his current address.

On October 23, 2013, after the controlled delivery, another parcel addressed to the Lanham residence was intercepted by Postal Inspectors.  That package also contained an iced tea jug containing 128 ounces, approximately 3.6 kilograms, of a PCP mixture.  On October 25, 2013, members of law enforcement executed a search warrant at Goodall’s Temple Hills residence and recovered $22,316 in cash, a scale, a grain alcohol bottle, and an iced tea jug with PCP residue.  In addition, inside the master bedroom, law enforcement found a box of .380 caliber ammunition.  Goodall had a previous felony conviction and was prohibited from possessing a firearm or ammunition.

United States Attorney Rod J. Rosenstein praised the FBI and U.S. Postal Inspection Service for their work in the investigation and thanked the Prince George’s County Police Department and Maryland State Police for their assistance.  Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Howard James Clem IV, a/k/a “Jamie,” age 34, of Pasadena, Maryland, today to nine years in prison, followed by lifetime supervised release, for conspiracy to distribute and receive child pornography, and for receipt and possession of child pornography. Clem has been detained since his conviction by a federal jury on January 28, 2015.

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; and Anne Arundel County Police Chief Tim Altomare.

According to the evidence presented at Clem’s six day trial, Clem met Erin Elizabeth Mali in a mobile social networking and dating application in September 2012.  Many of the communications exchanged by Mali and Clem, and images Mali sent to Clem focused on graphic sexual conduct involving prepubescent minors.  Mali sent Clem images depicting prepubescent minors engaged in sexually explicit conduct, including a prepubescent female whom Mali and Clem identified by name.

According to witness testimony, on June 3, 2013, the social networking and dating application and website captured the images and communications exchanged by Mali and Clem, including child pornography, which caused a “cybertip” to be generated to the National Center for Missing and Exploited Children.  An investigation by the Anne Arundel County Police Department resulted in a search warrant being executed at Clem’s and Mali’s residences and on their social networking accounts.

As a result of his conviction, Clem will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

Erin Elizabeth Mali, age 33, of Arnold, Maryland, previously pleaded guilty to conspiracy to distribute and receive child pornography, and to distribution of child pornography and was sentenced to seven years in prison and lifetime supervised release.

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 and Anne Arundel County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Leo J. Wise, who prosecuted the case.

Greenbelt, Maryland – U.S. District Judge Theodore Chuang sentenced Christian Diamond Byrd, age 44, of Laurel, Maryland today to 15 years in prison followed by four years of supervised release for distribution of heroin.  Judge Chuang also ordered Byrd to forfeit $440,000, as the proceeds of his drug distribution.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Mark A. Magaw of the Prince George’s County Police Department.

According to his plea agreement, Byrd admitted that from May 2012 through September 2014 he regularly distributed heroin in 50 gram and 100 gram quantities.  For example, Byrd sold a confidential source 100 grams of heroin for $11,000 on June 11, 2014, and again on July 9, 2014.  On July 24, 2014, Byrd sold a confidential source 50 grams of heroin for $5,500.  Each transaction took place in Laurel, Maryland and was video and audio recorded.

On October 1, 2014, a search warrant was executed at Byrd’s residence and law enforcement recovered $31,400, including some of the money given to Byrd by the confidential source on June 11th.  Byrd was arrested on October 1, 2014 and agents seized approximately one gram of heroin and $8,510 in cash from Byrd.

United States Attorney Rod J. Rosenstein praised DEA, FBI, IRS-CI and Prince George’s County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Gregg Lee Purbaugh, age 53, of Baltimore, and his business partner, Kenneth Trainum, age 46, also of Baltimore, today to 18 months in prison and a year and a day in prison, respectively, each followed by three years of supervised release, for conspiring to transport stolen nickel briquettes, which had been imported through the Port of Baltimore.  Judge Quarles also ordered each man to pay restitution of $1 million.

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

According to their plea agreements, Purbaugh and Trainum opened Bear Creek Warehouse Company in 2006.  Their primary customer was an international mining company that shipped cargo containers of nickel to the Port of Baltimore from its mines outside the United States, then stored the nickel in the Bear Creek Warehouse.  Beginning in 2006, Purbaugh and Trainum began removing the mining company’s nickel from the warehouse, setting it aside to sell later.  In June 2006, Purbaugh approached a co-conspirator to sell the nickel in Pittsburgh, Pennsylvania.  The co-conspirator contacted the owner of a Pittsburgh scrap metal company who agreed to purchase the nickel from the co-conspirator.

Purbaugh sold the co-conspirator a total of 80,000 pounds of nickel worth approximately $1 million, for the scrap metal price of $8 per pound. Purbaugh arranged the delivery of the nickel with the co-conspirator and the scrap metal dealer.  Purbaugh then arranged for his driver, who lives near Pittsburgh, to drive a truck to the warehouse, which Trainum then loaded with the stolen nickel.  Each load typically contained 6,000 pounds of nickel and the shipments took place at least twice a year.  The co-conspirator paid Purbaugh in cash, which he divided with Trainum.

On November 2, 2011, agents from Homeland Security Investigations saw the driver enter the Bear Creek Warehouse parking lot.  Purbaugh unlocked a shipping container adjacent to the warehouse that contained unmarked sacks of nickel briquettes.  Trainum removed one of the sacks of nickel with a fork lift and loaded it onto the truck.  While Trainum was transferring a second bag of nickel, HSI agents intervened and secured the stolen nickel.  During the subsequent search, agents recovered 15 bags containing approximately 30,000 pounds of nickel which had been diverted from the mining company’s shipments.

United States Attorney Rod J. Rosenstein commended HSI Baltimore for its work in the investigation and thanked Assistant United States Attorneys Gregory R. Bockin and Martin J. Clarke, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Kenneth Ray Graham, age 38, of Baltimore, today to 382 months in prison, followed by five years of supervised release, for attempting to commit an armed robbery, possessing and discharging a weapon in furtherance of a crime of violence, and possession of a firearm by a convicted felon.  Graham was convicted by a federal jury on February 12, 2015.

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 evidence presented at Graham’s three day trial, on September 17, 2013, Graham attempted to force his way into a home in the Cherry Hill neighborhood of Baltimore and demanded money.  Witnesses testified that Graham fired three shots into the living room during the attempted robbery.  One of those bullets struck a nine year old boy.  Graham was previously convicted of a felony and as a result was prohibited from possessing a firearm.

Trial evidence included a shoe containing Graham’s DNA left at the robbery location and a matching shoe also containing his DNA along the escape route.  At the time of his arrest, Graham also had gunshot residue on his hand.

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Kenneth S. Clark, who prosecuted the case.

Greenbelt, Maryland - Richard A. Brennan, age 42, of Clarksburg, Maryland, pleaded guilty today to two counts of mail fraud, and to making a false statement on a tax return.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Maryland Attorney General Brian E. Frosh.

According to his plea agreement, until January 2009, Brennan was a licensed attorney in Maryland. In late 2005 or early 2006, Brennan established the Law Offices of Richard A. Brennan (LORAB) to perform debt settlement services. “Debt settlement” differed from “debt management” services.  In debt management, debtors continue to make payments on accounts on negotiated terms, while debt settlement involves allowing debt accounts to go delinquent and making a lump sum offer to settle the account.  While debt management services – and the fees that could be charged customers – were closely regulated in Maryland, debt settlement services were not.

The Maryland Attorney General’s Office and the Maryland Attorney Grievance Commission both received a high number of complaints from Brennan’s customers reporting that they were deceived by telemarketers who convinced them of the high probability of success by engaging Brennan and his debt settlement program, but who reported seeing little success in having their debts resolved.  When the clients complained to LORAB, their calls frequently went unreturned and they were typically told their payments would not be refunded as they constituted Brennan’s attorney fees.

In October 2007, Brennan agreed with the Maryland Attorney General’s Office to cease engaging in a number of business practices, including misuse and commingling of his clients’ funds.  Despite this agreement, Brennan continued to recruit new clients without making the disclosures required under the agreement with the Attorney General’s office, and omitting any mention of his restrictions under the agreement, which included a requirement that he maintain a surety bond in order to continue to provide debt settlement services.

To evade the restrictions in the agreement, Brennan changed his business entity name several times in quick succession, to include doing business for a few months as the Capital Law Group, then the Frederick Law Group and later as theMetro Law Group.  Brennan did so in an effort to keep new clients from researching the large numbers of complaints posted online about his practices, and also instructed telemarketers working for him to deny the new entities’ relationship with Richard Brennan.

In January 2009, Brennan surrendered his license to practice law by signing a joint petition with the Attorney Grievance commission.  In that document, Brennan admitted that he had used client trust money for purposes other than its intended use.  In June, 2009, Brennan appeared before the Circuit Court of Frederick County and acknowledged that he continued to debit funds from client bank accounts even after his surety bond had been revoked.  Brennan was ordered to pay a $2.58 million money judgment in restitution to clients from whom he collected money up until October 2007. The Court also briefly jailed Brennan for contempt after he failed to provide the Attorney General’s Office a list of clients or accounting for funds as he had promised.

Even after losing his license to practice and this judgment, Brennan continued to attempt to defraud debt clients.  On November 6, 2009, Brennan mailed an existing Frederick Law Group client a letter under the business entity name “International Debt Solutions.”  In that letter, Brennan acknowledged that Frederick Law Group’s “web site and call center have been closed” “[d]ue to unforeseen circumstances” and attempted to dissociate himself with that firm by claiming that that “[Frederick Law Group] has forwarded us your information.”  Brennan asked the client to fill out a new representation agreement, power of attorney, and electronic funds transfer authorization, which the victim returned by mail to an address two houses away from Brennan’s.   

Brennan’s debt management fraud scheme caused the loss of approximately $2.9 million to his clients between October 18, 2007, and 2010, and involved more than 250 victims.

Brennan also admitted that he filed false tax returns in 2006 and 2007, underreporting his income in both years. For example, in 2007, Brennan reported an adjusted gross income of negative $576,273.10 when he had unreported business receipts that year of at least $9,229,802. Additionally, Brennan received a total of $5,387 in tax refunds based on his knowingly false returns submitted for 2006 and 2007.  Brennan filed no tax returns for the tax year 2008, despite receiving over $6 million into business bank accounts he controlled. The total approximate tax loss to the United States is $297,087.

Further, Brennan knowingly possessed unregistered machineguns and short-barreled rifles and also engaged in the unlicensed manufacture of the machineguns.  Specifically, in February 2011, a search warrant executed at Brennan’s home in Clarksburg, Maryland, yielded evidence that Brennan unlawfully converted 10 semiautomatic rifles into fully automatic weapons, and modified another rifle so that it had a barrel length of less than six inches.  Brennan failed to register those modified weapons, as required by law.

Brennan faces a maximum sentence of 20 years in prison for mail fraud and a maximum of three years in prison for the tax charge. U.S. District Judge Theodore Chuang has scheduled sentencing for September 3, 2015, at 10:15 a.m.

United States Attorney Rod J. Rosenstein praised ATF, U.S. Postal Inspection Service, IRS-Criminal Investigation, and the Maryland Attorney General’s Office for their work in the investigation and thanked the Maryland Attorney Grievance Commission for its assistance.  Mr. Rosenstein thanked Assistant United States Attorneys Adam K. Ake and Joseph R. Baldwin, who are prosecuting the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Donnell Edward Harris, age 22, of Burtonsville, Maryland, today to 117 months in prison, followed by five years of supervised release, for robbing a convenience store in Waldorf, Maryland, and to brandishing a gun during the robbery.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Charles County Sheriff Troy Berry.

According to Harris’ plea agreement, on September 11, 2013, Harris, Charles Johnson and Madani Tejan robbed a convenience store on St. Ignatius Drive in Waldorf.  Harris brandished a firearm during the robbery and the conspirators forced the store employee at gunpoint to open the store’s cash register.  The robbers stole $90 in cash and several packs of cigarettes.

Harris also admitted that after he was arrested for the robbery and while he was incarcerated, he threatened to hurt co-conspirator Charles Johnson if Johnson did not lie to law enforcement by stating that he (Johnson) had brandished the firearm during the robbery.

Johnson, age 21, of Beltsville, Maryland, and Madani Ilara Tejan, age 33, of Upper Marlboro, Maryland, previously pleaded guilty to the robbery, and were sentenced to 51 months in prison and 68 months in prison, respectively.

United States Attorney Rod J. Rosenstein commended the ATF, Montgomery County Police Department and Charles County Sheriff’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and Daniel Gardner, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr., sentenced Damien Riley, age 34, of Baltimore, Maryland, today to 210 months in prison, followed by three years of supervised release, for three counts of possession with intent to distribute heroin and one count of possession with intent to distribute cocaine.  Riley was convicted for those charges on February 9, 2015, after a six day trial.  At today’s sentencing hearing Judge Quarles found that Riley was a career offender, based on previous convictions for robbery and drug distribution.  In addition, Riley had a prior federal conviction for unlawful possession of ammunition by a convicted felon.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.

According to evidence presented at trial, on August 13, 2013, August, 19, 2013 and September 4, 2013, an undercover ATF Task Force Officer purchased a total of more than 10 grams of heroin and 1.7 grams of crack cocaine.  Riley provided the drugs in exchange for a total of $1,560 in premarked bills.  The transactions occurred in the 3300 block of West Cold Spring Lane in Baltimore and were observed by ATF agents.

Witnesses testified that on October 23, 2013, a search warrant was executed at Riley residence in the 2900 block of West Cold Spring Lane.  Law enforcement recovered a .357 caliber revolver loaded with five rounds of ammunition, 45 rounds of .357 caliber ammunition in a box, eight ziplock baggies of heroin, five cell phones, a digital scale, drug packaging material, a revolver speed loader, a firearm holster, and personal items belonging to Riley.

The jury was not able to reach a verdict on three other counts: possession with intent to distribute heroin; illegal possession of a ammunition by a convicted felon; and maintaining a place for the purpose of manufacturing, storing, distributing, and using any controlled substance. 

United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, and Assistant U.S. Attorney Michael C. Hanlon, who prosecuted the case.

Baltimore, Maryland – Richard Drummond, age 38, of Hyattsville, Maryland pleaded guilty today to conspiracy to engage in money laundering.

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; Chief James W. Johnson of the Baltimore County Police Department; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

According to Drummond’s plea agreement, he conspired with others to launder the proceeds from the sale of marijuana.  The conspiracy distributed large quantities of marijuana in Maryland, Pennsylvania, Ohio and elsewhere, which generated hundreds of thousands of dollars in proceeds.  Richard Drummond’s role in the conspiracy was to gather proceeds from various locations and deliver the cash to his co-conspirators.  The proceeds were then deposited in various bank accounts, often in amounts exceeding $10,000, and transferred elsewhere to pay for the acquisition of additional drugs or to fund other activities by members of the conspiracy.  Drummond admitted that he laundered between $200,000 and $400,000.

For example, on September 10, 2013, Drummond drove from Maryland to Ohio and took delivery of a white trash bag from a man at a gas station in Cincinnati, Ohio.  Drummond then drove to a Family Dollar store and purchased a bag of rubber bands, and returned to his hotel. The following day, September 11, 2013, Drummond was stopped by officers of the Ohio Highway Patrol after he left Cincinnati.  When he was stopped by police, Drummond had $96,500 in cash, separated into bundles held together by rubber bands. Extra rubber bands were also found in the vehicle. Drummond then drove back to Maryland.  The next day Drummond met with a co-conspirator at a restaurant in Laurel, Maryland.

On October 31, 2013, Drummond traveled from California to Phoenix, Arizona with a co-conspirator.  After police conducted surveillance, the vehicle operated by Drummond was stopped and the police recovered approximately $58,000 in cash, along with approximately 27 cellular phones, and an airline boarding pass in the name of the co-conspirator.  Drug notations and tally sheets were also recovered, indicating that Drummond and his co-conspirator were engaged in the distribution of marijuana.

Drummond faces a maximum sentence of 20 years in prison for the money laundering conspiracy.  As part of his plea agreement, Drummond will also be required to forfeit the cash seized during the 2013 traffic stops, totaling $154,500, as well as any assets derived from, acquired as a result of, or used to facilitate the commission of the money laundering or drug distribution conspiracies.  U.S. District Judge Richard D. Bennett has scheduled sentencing for August 14, 2015 at 10:00 a.m.

United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department, the Maryland Transportation Authority Police, IRS-Criminal Investigation and HSI-Baltimore for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Baltimore, Maryland – A federal grand jury has indicted six men in connection with a conspiracy to rob a jewelry store that included a carjacking and kidnapping.  The indictment was returned on May 12, 2015 and unsealed today.

The following individuals are charged in the indictment:

            Stanislav (Steven) Yelizarov, age 25, of Pikesville, Maryland;             Alexsey (Losha) Sosonko, age 34, of Owings Mills, Maryland;             Igor Yasinov, age 25, of Baltimore;             Grigoriy (Greg) Zilberman, age 24, of Owings Mills;             Peter Magnis, age 27, of Hydes, Maryland; and
            Marat (Mike) Yelizarov, age 26, of Pikesville.

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

According to the six count indictment, from November 2012, through February 2013, the defendants planned and organized the robbery of an Owings Mills jewelry store, in order to sell the stolen goods for cash.

The indictment alleges that the defendants gathered intelligence, including conducting surveillance and the use of a GPS device that was attached to the car of an employee of the jewelry store, prior to the robbery in order to learn the employee’s travel routine and habits.  According to the indictment, on January 16, 2013, as the employee was driving from Zilberman’s home, S. Yelizarov, Sosonko, Yasinov, and Magnis drove a rented SUV and used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, the defendants allegedly removed the employee from his car, taking his car keys and the keys to the jewelry store. S.Yelizarov, Sosonko, Yasinov, and Magnis allegedly bound and blindfolded the employee, put him into the trunk of his own car and drove him to a predetermined location.  According to the indictment, once at the location, S.Yelizarov, Sosonko, Yasinov, and Magnis brandished firearms and demanded the code to the jewelry store’s alarm system.  During the abduction and robbery the defendants allegedly wore masks and gloves to conceal their identities.

At approximately 3:52 a.m., the indictment alleges that S. Yelizarov and Sosonko drove the employee’s vehicle from the remote location to the jewelry store, where M. Yelizarov and another person were stationed nearby to act as “look-outs.”  S. Yelizarov and Sosonko allegedly used the employee’s key and the alarm code forcibly obtained from the employee to enter the jewelry store.  Jewelry, stones and watches, valued at about $500,000, were stolen from the store.

The indictment alleges that over the next few days, S. Yelizarov sold a portion of the items stolen from the jewelry store, both in Maryland and in Brooklyn, New York, receiving in excess of $129,000 in cash, which S. Yelizarov divided among the conspirators and others.  According to the indictment, at the direction of S. Yelizarov, M. Yelizarov, Sosonko, and others removed guns and other evidence of the crimes from S. Yelizarov’s residence.

The defendants each face a maximum sentence of life in prison for the kidnapping conspiracy and the kidnapping and for carrying and brandishing a firearm in relation to a crime of violence. The defendants each face 15 years in prison for the carjacking.  Initial appearances were held today for Sosonko and M. Yelizarov in U.S. District Court in Baltimore and they were detained pending detention hearings scheduled for May 26, 2015 and May 21, 2015, respectively. Zilberman is scheduled to have his initial appearance on May 21, 2015.  S. Yelizarov, Yasinov and Magnis are currently detained on unrelated state charges.  Their initial appearances on the federal indictment will be scheduled for some time in June.

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

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

Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Michael P. Scudder, age 32, of Reisterstown, Maryland today to 18 months in prison followed by three years of supervised release for mail fraud in connection with a scheme in which he forged bulk mail forms, allowing him to mail over $1.6 million in bulk mail through the U.S. Postal Service for which postage had not been paid. Chief Judge Blake also entered an order that Scudder pay restitution to the U.S. Postal Service of $1,639,912.89.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division. 

Scudder owned and operated Precision Solutions, Inc., an Owings Mills-based company engaged in bulk mail marketing.  Precision Solutions brought its mail to a U.S. Postal Service mail entry facility, where the mail was weighed and counted to determine the total cost of postage.  The Postal Service then debited the cost from Precision Solutions’ advance deposit account.

Precision Solutions then obtained an additional discount on postage by transporting the mail from the mail entry facility to the Postal facility which is closest to the delivery addresses.  To do so, Precision Solutions was required to: bring a postage statement to the initial mail entry facility which details the type and weight of the mail, and the total number of pieces and containers in the mailing; and fill out a verification form for each mailing to be transported to the destination postal facility after verification, detailing among other things, the weight of the mail and number of containers. A copy of the verification form is kept at the initial mail entry facility, and the original is provided to Precision Solutions to present to the destination Postal facility as proof of payment. When Precision Solutions transports the mail to the destination Postal facility, it provides the mail and the original verification form to a Postal employee as proof of payment.

According to his plea agreement, Scudder executed his scheme to defraud the U.S. Postal Service by bringing only a small amount of mail to the initial mail entry facility for which a stamped and verified verification form was obtained.  Scudder would then modify the stamped, verification form to reflect that a much larger amount of mail had been paid for and was ready for shipment.  Scudder and his employees would use the forged verification form to present the larger amount of mail to the destination facility.

Scudder forged at least 120 verification forms, and he or his employees presented the forged forms at several Postal facilities in Maryland, Virginia, Pennsylvania and New Jersey.  From January to December 2012, the alterations allowed Precision Solutions to mail a total of over 8,860 trays of mail for which postage had not been paid, resulting in a loss of revenue to the U.S. Postal Service of $1,639,912.89.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division for its work in the investigation and thanked Assistant U.S. Attorney Joyce K. McDonald, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jason Evans, age 32, of Millsboro, Delaware, today to four years in prison followed by five years of supervised release for  bank fraud conspiracy and aggravated identity theft, arising from the use of stolen credit and debit cards to manufacture counterfeit credit cards used to buy merchandise and services. Judge Quarles also entered an order that Evans pay restitution of $126,318.99, the amount of the actual loss to victims.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Gary Gardner of the Howard County Police Department; Commissioner 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 his plea agreement, co-defendant Michael 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, Evans and his co-conspirators would use those numbers 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.  The counterfeit access devices were then used to make unauthorized purchases of goods and services.

In the fall of 2012, Crew’s embossing machine broke.  Crew asked Evans to help him get it fixed or replaced.  Ultimately, Evans, Crew and another member of the conspiracy traveled to Pittsburgh, Pennsylvania to obtain another embosser and pick up the repaired embosser.  Evans kept the repaired embosser as a backup initially. He used it to make counterfeit credit cards for himself and another co-conspirator.

On March 21, 2013, a search warrant was executed at Evan’s residence.  Law enforcement seized the embosser, counterfeit gift cards bearing stolen credit card numbers, computers, notes with credit card account information, and a list of credit card numbers.

During the conspiracy from March 2012 through the arrest of the final defendants on June 7, 2014, Evans and his co-conspirators accessed or attempted to access credit card accounts with credit limits of between $400,000 and $1 million, using the financial account numbers of real people.  More than 250 individuals and institutions were defrauded by the scheme.

Michael Crew, age 55, of Owings Mills, Maryland, was sentenced to nine years in prison after Crew pleaded guilty to bank fraud conspiracy and aggravated identity theft.  Four other defendants have pleaded guilty to their participation in the scheme and await 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 the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.

United States Attorney Rod J. Rosenstein commended the U.S. Secret Service; Howard County, Baltimore City, Baltimore County, Ocean City and Newport News Police Departments, HSI Ocean City and Maryland State Police for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Tamera L. Fine, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge William D. Quarles Jr. sentenced Maryland attorney Don F. Lindner, age 61, of Severna Park, Maryland, today to a year and a day in prison, followed by one year of supervised release, for filing a false tax return.  Judge Quarles also entered an order requiring Lindner to pay restitution of $341,730 to the IRS for the tax years 2007 to 2011, which is the total amount of taxes he owed as a result of falsely reporting gross receipts and rental expenses.

The sentence 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.

According to his plea, Lindner practiced law in Glen Burnie, Maryland, and treated his law practice as a sole proprietorship. For his tax returns for 2007 and 2011, Lindner omitted $1,230,614 of gross receipts from his law practice.  Lindner also maintained a rental property.  Lindner falsely reported on his tax returns that he paid over $82,700 in repairs on the rental property during the same tax years, when in fact no repairs were done, thereby fraudulently decreasing his purported taxable income.

United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney David I. Sharfstein, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced the owner of Health Way Pharmacy, Salim Yusufov, age 43, of Reisterstown, Maryland, today to 12 months home confinement as part of four years’ probation, for a conspiracy to traffic over $6.6 million in contraband cigarettes, health care fraud, and receipt and delivery of misbranded drugs. Judge Quarles also ordered Yusufov to forfeit $200,000.

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; 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.   

“Distribution of unapproved foreign drugs presents a real danger to U.S. consumers especially barbiturates, which are potentially addictive prescription drugs," said Antoinette V. Henry, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “We will continue our work to keep such illegal medicines out of the U.S. marketplace and help bring to justice those who would circumvent FDA requirements and place the public health at risk.”

According to his guilty plea, Salim Yusufov, conspired with his brother, Elmar Rakhamimov, and other family members and associates to receive, possess, sell and distribute contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid. Rakhamimov, who was the leader and organizer of the scheme, 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. Salim Yusufov received more than $81,000 in kickbacks for brokering the first nine of the contraband cigarette transactions with the undercover FBI agent. These transactions included thousands of cartons of contraband cigarettes.  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 $5.85 per package of cigarettes ($58.50 per carton of cigarettes).  The total tax evaded was more than $1 million.  

Salim Yusufov also admitted that he illegally provided unapproved prescription drugs from Germany and Eastern Europe and sold them to customers. Corvalol, also referred to Corvalolum, and Valocordin, is not approved by the FDA for distribution in the United States, although it is sold in Eastern European countries, where it is used to treat elevated blood pressure and as a tranquilizer and sedative. Valocordin and Corvalol contain large amounts of phenobarbital, a prescription drug regulated by the FDA. According to his plea agreement, from July 23, 2010 through July 14, 2011, Yusufov, who is not a licensed pharmacist, imported and distributed Valocordin, dispensing the drug without a prescription.

In addition, Yusufov admitted to defrauding Medicare and Medicaid by causing Health Way Pharmacy to bill for prescriptions and/or prescription refills that the pharmacy did not provide to customers.  One of the ways Yusufov did this was by intentionally failing to reverse claims for payment submitted to Medicare when customers did not pick up or otherwise receive refills.  A second way that Yusufov defrauded Medicare and Medicaid was by providing drugs other than those prescribed, while still invoicing Medicare or Medicaid for the prescribed medication.

Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland, and seven other co-conspirators have been convicted for their roles in the scheme 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.

Greenbelt, Maryland – A federal jury convicted Valentina Elebesunu, age 49, of Temple Hills, Maryland late yesterday of conspiracy to commit an armed robbery, and robbery, of an armored truck.

The guilty verdict 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.

Elebesunu was the branch manager at a Bank of America located at 3413 Kenilworth Avenue in Hyattsville, Maryland.  According to evidence presented at the five day trial, between mid-November and November 21, 2012, Elebesunu conspired with Damione Lewis – a security guard at the bank, Delacey Brown, Taurian Miller, Adriane Baldwin and Barrington Turner to rob an armored truck that serviced the bank branch.  Trial evidence showed that Elebesunu had provided Lewis with inside information about the precise amount of funds scheduled to be picked up by the armored truck.  Lewis, in turn, provided that information to the other co-conspirators.

On November 21, 2012, an armored car employee picked up $272,956.17 from the bank. Elebesunu and Lewis were working their respective jobs at the bank at the time.  Elebesunu’s co-conspirators were in vans outside the bank.   As the employee was taking the money from the bank to the armored truck, Elebesunu’s co-conspirators approached the employee brandishing firearms, took the money bags to their vans and drove away.  The robbery proceeds were later divided between Elebesunu and her co-conspirators.

Elebesunu faces a maximum sentence of 20 years in prison for the conspiracy and the robbery counts.  U.S. District Judge George J. Hazel has scheduled sentencing for August 25, 2015 at 10:00 a.m.

Damione Lewis, age 36, of New Carrolton, Maryland; Delacey Kinte Brown, age 38, of Landover, Maryland; and Taurian Devon Miller, age 30, and Adrian Baldwin, age 29, both of Washington, DC; and Barrington Turner, age 35, of Forestville, Maryland; have all pleaded guilty to their roles in the robbery.  Lewis is scheduled to be sentenced on June 25, 2015 and the remaining four defendants have been sentenced to between 51 and 96 months in prison.

United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department and other members of the Cross Border Task Force for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys William D. Moomau and Bryan E. Foreman, who are prosecuting the case.

Baltimore, Maryland – Paul Milton Laney, age 61, of Silver Spring, Maryland pleaded guilty today to committing two bank robberies within three days.

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; and Chief J. Thomas Manger of the Montgomery County Police Department.

According to Laney’s plea agreement, on February 18, 2014, Laney entered a bank in the 13000 block of Georgia Avenue in Silver Spring and demanded that the teller put money in a plastic bag that he threw over the counter.  The victim teller was frightened and didn’t immediately comply.  Laney then leapt up onto the counter, took money directly from the register and stuffed the money into the plastic bag, stealing approximately $2,920.  As Laney was leaving, a bank employee approached Laney and attempted to stop him.  Laney stated, “If you take another step closer, I’ll blow your head off.”  The employee stepped away and allowed Laney to exit the bank.

On February 21, 2014, Laney entered a bank in the 8700 block of Georgia Avenue in Silver Spring, approached one of the tellers, threw a plastic bag over the counter and stated, “This is an armed robbery.  I want all your $100s and $50s.”  The teller was frightened and was slow to put money in the bag.  Laney leaned over the counter and revealed a large kitchen knife inside his jacket and threated to kill the teller.  The teller then removed approximately $999 from the register, placed the cash in the bag and handed it to Laney, who exited the bank.

Laney faces a maximum sentence of 20 years in prison for each of the two counts of bank robbery.  U.S. District Judge Peter J. Messitte has scheduled sentencing for August 19, 2015 at 9:30 a.m.

United States Attorney Rod J. Rosenstein commended the FBI and Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Daniel C. Gardner, who is prosecuting the case.

Greenbelt, Maryland – Carlos Beltran-Flores, aka “Joker,” 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 murder, attempted murder, assault, extortion and robbery; and carrying, using and brandishing a firearm during a crime of violence.

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; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Montgomery County State’s Attorney John McCarthy.

MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.  MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang and against rival gangs.

According to his plea agreement and court documents, from 2009 until at least 2013, Beltran-Flores was a member of the Peajes Locos Salvatrucha clique of MS-13.  Beltran-Flores and MS-13 members committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation.

Beltran-Flores admitted that on September 3, 2010, he and another MS-13 member assaulted and robbed a victim in the area of New Hampshire Avenue in Hyattsville.  On November 15, 2010, Beltran-Flores and other MS-13 members robbed two other victims in the area of Jamestown Road in Hyattsville, and one member stabbed the victims.

On January 10, 2011, Beltran-Flores and other MS-13 members murdered a person they believed was a rival gang member, and attempted to murder another purported rival gang member, in the parking lot of the former Shoppers Food Warehouse on University Boulevard in Hyattsville. The group repeatedly punched, kicked, and stabbed the victims, one of which survived the attack.  Beltran-Flores helped plan the attack and afterwards, hid the murder weapons in a nearby park.

On January 13, 2011, after attending a Peajes clique meeting at which a member criticized other MS-13 members for not committing enough violent crimes, Beltran-Flores, co-defendant Wilmer Argueta, and other MS-13 members got into a mini-van driven by co-defendant Roni 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.  Beltran-Flores and others continued to assault him, at times attempting to use a seat belt to strangle the victim.  Arriola-Palma eventually parked near a dead end in the vicinity of Chillum Manor Road.  Beltran-Flores, Argueta, and others kicked, stabbed and choked the victim. They forcefully stripped the victim of all of his heavy winter clothing in order to stab him.  After assaulting the victim near the mini-van, they dragged the victim into the woods, where they left him for dead, and fled. 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.  Beltran-Flores arranged the extortion payments using Facebook and text messaging to relay the extortion demands to the victim. Beltran-Flores picked up several extortion payments, and sent other members to pick up payments on his behalf.

From September to November 2011 and while incarcerated in the Prince George’s County Corrections Facility, Argueta ordered MS-13 members to kill a victim who planned to testify against him in state court.  Acting on this order to kill, Beltran-Flores and two others drove to the victim’s house on November 15, 2011, and spotted the victim in front of his house.  Beltran-Flores shot at the victim several times from the moving car, striking the victim once in the chest.  A short car chase ensued during which Beltran-Flores threw the gun out of the car.  He was arrested with the two other MS-13 members.  The victim survived the attack.

Beltran-Flores and the government have agreed that if the Court accepts the plea agreement, Beltran-Flores will be sentenced to between 20 and 40 years in prison.  U.S. District Judge Roger W. Titus has scheduled sentencing for November 13, 2015, at 9:00 a.m.  Beltran-Flores remains detained pending sentencing.

Francisco Hernandez, age 22, Roni Arriola-Palma, age 25, and Wilmer Argueta, age 23, all of Hyattsville, Maryland, previously pleaded guilty for their roles in the racketeering conspiracy and are scheduled to be sentenced on June 29, June 30, and August 4, 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.

Baltimore, Maryland – Gilbert Stokes, age 46, of Baltimore, Maryland, pleaded guilty today to the December 12, 2013 armed robbery of a Windsor Mill, Maryland, convenience store.  Stokes also admitted to the attempted armed robbery of a hotel on December 6, 2013, and to the armed robbery of a fast food restaurant on December 23, 2013.

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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.

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

On December 12, 2013, Stokes entered a convenience store in Windsor Mill and brandished a handgun at two victims.  The victims were able to hide in the store and Stokes stole multiple packs of cigarettes and left the store.  The vehicle Stokes used to flee was identified by witnesses at the scene and subsequently located by police.  Recovered from under the front seat was a .357 Magnum revolver that matched the firearm seen in the store’s surveillance video.  A witness identified Stokes as the person who brandished the gun and committed the robbery.

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

Stokes and the government have agreed that if the Court accepts the plea agreement Stokes will be sentenced to 18 years in prison.  U.S. District Judge George L. Russell, III, has scheduled sentencing for August 21, 2015 at 11:00 a.m.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution.  Mr. Rosenstein thanked Special Assistant United States Attorney Matthew K. Hoff, a cross-designated Baltimore City Assistant State’s Attorney, part of the Baltimore initiative to combat violent crime, and Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.

Baltimore, Maryland – Ryan C. Anton, age 42, of Elverson, Pennsylvania, pleaded guilty today to travel with intent to engage in illicit sexual conduct.

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); and Commissioner Anthony W. Batts of the Baltimore Police Department.

According to his plea agreement, in July, 2014, as part of an investigation of individuals who were targeting minors online for sexual exploitation, an undercover Baltimore City Police detective placed an ad on the internet.  On July 23, 2014, Anton initiated text messaging with the undercover detective.  Anton believed that the detective was a 14 year old, hearing-impaired girl named Heidi who was in the 10th grade.  After a series of exchanges of sexually-explicit text messages over a period of weeks, including the solicitation of pornographic images from “Heidi,” Anton relayed that he was on a bus to Baltimore, provided the bus number and attempted to convince “Heidi” to board the bus.

Baltimore City Police detectives assisted by HSI agents boarded the bus and arrested Anton.  Anton admitted that the plan was for “Heidi” to get on the bus with him to travel to Washington, D.C. where he had booked a hotel room to have sex.

As part of his plea agreement, Anton must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

Anton and the government have agreed that if the Court accepts the plea agreement, Anton will be sentenced to seven years in prison followed by 10 years of supervised release.  U.S. District Judge Richard D. Bennett has scheduled sentencing for August 6, 2015 at 3:00 p.m.

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

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

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Jimile Williams, age 29, of Baltimore, today to 219 months in prison followed by three years of supervised release for robbery and using a firearm during the robbery.  Judge Motz also entered an order that Williams pay restitution of $15,235.

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; Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore Police Commissioner Anthony W. Batts.

According to his plea agreement, on October 27, 2012, Williams and co-defendant Lydell Pittman entered a cell phone store on Security Boulevard in Baltimore, pointed a handgun at a clerk’s face and demanded money.  One of the robbers ordered the clerk to lie on the floor while the other took approximately $400 from the store.  Pittman’s fingerprint was recovered from behind the counter of the store.

That same day, Williams and Pittman robbed an employee at a dry clean store on Reisterstown Road in Baltimore.   One of the robbers pointed a gun at the clerk while the other stole $835 from the cash registers. Several witnesses identified Williams and Pittman from video footage of the robbery, as well as the robbers’ getaway vehicle.

On November 16, 2012, Williams and Pittman robbed a check cashing store on Windsor Mill Road in Baltimore.   They pointed a gun at an employee, and told him to get down or he would die. They took $14,000 from two lock boxes and a cash register.  Further investigation placed Pittman’s car at the store at the time of the robbery.

Lydell Pittman, age 24, of Baltimore, previously pleaded guilty to his participation in the robberies and was sentenced to 181 months in prison.

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

Baltimore, Maryland - Fifteen employees of the United States Attorney’s Office and three law enforcement officers were honored today with the Office’s most prestigious awards. At a ceremony held to announce the awards this morning at the U.S. Courthouse in Baltimore, the United States Attorney also welcomed 14 new Assistant U.S. Attorney and other employees who have joined the Office since last year.                   

Maryland U.S. District Judge George L. Russell, III served as the keynote speaker for the event. Judge Russell was a Maryland Assistant U.S. Attorney from 1994 to 1999 and from 2002 to 2007.

“These award recipients accomplished superb results while respecting our high ethical and professional standards,” commented U.S. Attorney Rod J. Rosenstein.  “As the U.S. Attorney’s Office works with our partners to promote the rule of law, punish criminals, deter crime and protect government property, it is essential to maintain our commitment to excellence, integrity and achievement.”

During the annual ceremony, the U.S. Attorney encourages prosecutors to heed the advice of Robert H. Jackson, while serving as Attorney General in 1940: “’A sensitiveness to fair play and sportsmanship is perhaps the best protection against the abuse of power, and the citizen’s safety lies in the prosecutor who tempers zeal with human kindness, who seeks truth and not victims, who serves the law and not factional purposes, and who approaches his task with humility.’”

Annual Awards

The following awards were announced for accomplishments over the past year:

Gary Jordan Award

Recipient:        Andrea L. Smith

Gary P. Jordan served with distinction for many years as an Assistant U.S. Attorney, as First Assistant from March 29, 1987 until his death on October 25, 1996, and as interim U.S. Attorney in 1993. This is an honorary award presented annually to an Assistant U.S. Attorney for exemplary performance that demonstrates the highest traditions of the office: integrity, ingenuity, dedication to public service and fairness.

Barnet D. Skolnik Award

Recipients:      Ayn B. Ducao
                         Robert H. Harding

Barnet D. (Barney) Skolnik was an Assistant U.S. Attorney who led teams that prosecuted numerous white collar criminals and corrupt public officials in the 1970s, including Vice President Spiro T. Agnew. This is an honorary award presented annually to one or more Assistant U.S. Attorneys who demonstrate outstanding professionalism, determination and creativity in a case of unusual public significance.

Employee of the Year Award

Recipient:        Christopher W. Seybolt

The Employee of the Year Award recognizes sustained superior performance and outstanding achievements by a non-attorney employee. The award also recognizes the recipient's professionalism, dedication and comprehensive knowledge in their area of expertise.

Pete Twardowicz Award

Recipients:      Carrie I. Dayton
                         Eric S. Nye
                         Julie A. Pitocchelli              

The Pete Twardowicz Award was established in honor of Eugene P. (Pete) Twardowicz, who rendered many years of outstanding service to the U.S. Attorney’s Office as an IRS criminal investigator and a Special Investigator for this Office. This award recognizes law enforcement agents or officers for outstanding cooperation and achievement while working with the U.S. Attorney’s Office on a significant case.

Excellence in Civil Advocacy

Recipient:        Tarra Deshields-Minnis

The U.S. Attorney’s Award for Excellence in Civil Advocacy, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding advocacy in civil litigation.

Excellence in Prosecution of Fraud

Recipients:      Kathleen O. Gavin
                         Judson T. Mihok
                         David I. Sharfstein
                         Leo J. Wise

The U.S. Attorney’s Award for Excellence in Prosecution of Fraud, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting fraud.

Excellence in Prosecution of Violent Crime

Recipient:        Daniel C. Gardner
                         William D. Moomau

The U.S. Attorney’s Award for Excellence in Prosecution of Violent Crime, established in 2007, is presented annually an Assistant U.S. Attorney for outstanding work in prosecuting violent crime.

Excellence in Prosecution of Organized Crime

Recipient:        David I. Sharfstein
                         James G. Warwick

The U.S. Attorney’s Award for Excellence in Prosecution of Organized Crime, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting organized criminal activity.

Excellence in Legal Support

Recipient:        Christine M. Minor

The U.S. Attorney’s Award for Excellence in Legal Support, established in 2007, is presented annually to one or more non-attorney employees for outstanding work in support of the mission of the U.S. Attorney’s Office.

Outstanding Contributions to a Law Enforcement Initiative

Recipient:        Harvey E. Eisenberg

The U.S. Attorney’s Award for Outstanding Contributions to a Law Enforcement Initiative, established in 2007, is presented annually to one or more employees for outstanding work in support of an initiative of the U.S. Attorney’s Office.

Carl S. Lackl Award

Recipient:        Alison Palencia

The Carl S. Lackl Award for Exemplary Perseverance and Fortitude in Pursuit of Justice was established in 2008 in honor of Carl Stanley Lackl, Jr. Mr. Lackl witnessed a murder in Baltimore in 2006 and agreed to testify against the suspect he identified. After the suspect was arrested by police and charged in state court with the murder, he used a contraband cellular telephone to contact co-conspirators and arranged to murder Mr. Lackl, who was shot to death outside his house in front of his daughter. All of the conspirators were convicted on federal charges.

New Employees

In addition, the U.S. Attorney welcomed new employees who joined the office last year. Assistant U.S. Attorneys: Jane Andersen, Sean Delaney, Molissa Farber, Joshua Ferrentino, Daniel Gardner, Lindsay Kaplan, Rebecca Koch, Sarah Marquardt, Ray McKenzie, Patricia McLane, Michael Packard, Matthew Phelps, Matthew Sullivan, and Aaron Zelinsky.  Special Assistant U.S. Attorneys: Gustav Eyler, Shelly Glenn, David Kehoe, Conor Mulroe, Matthew Paeffgen, Lauren Perry and Jennifer Wine. Non-Attorney Staff: Jasmine Burnett, Allison Crandle, Adaliah Davis, Vincent DeVivo, Tiffany Dorsey, Imani Gaddy, Carrie Hannon, Joanna Huber, Rebecca Johnson, Luis Martinez, Berclyn Mitchell, Morgan Murphy, John Russo, Joshua Schnitzlein, Elizabeth Singer, Joyce Thaden, and Matthew Wells.

Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Robert Collins, age 49, of Baltimore, Maryland, today to 125 months in prison followed by five years of supervised release for robbery, attempted robbery, and carrying and brandishing a firearm during a robbery.

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 his plea agreement, on December 15, 2013, Collins walked into the New York Fried Chicken Restaurant at 542 E. Patapsco in Baltimore.  He pointed a handgun at the cashier, demanded that the register be opened and took about $290.

That same day, Collins walked into the Italiano’s Restaurant at 2229 Washington Boulevard in Baltimore.  He pointed a handgun at a cashier and demanded money.  The cashier refused to cooperate.  Collins grabbed three iPhones belonging to other Italiano’s employees and fled.  Collins was apprehended and the three iPhones were recovered.  Additionally, a .380 caliber pistol was found near Collins.

United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney Scott A. Lemmon, who prosecuted the case.

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Sharmaine Christopher Diggs, age 35, of Baltimore, today to 20 years in prison followed by five years of supervised release for robbery, and two counts of using and brandishing a firearm during a robbery.  Judge Russell also entered an order that Diggs pay restitution of $19,000.

Late yesterday, following a six day trial, a federal jury convicted Diggs’ co-defendant Paul Chance, age 28, of Baltimore, Maryland, of conspiring to commit robbery, three counts of robbery, four counts of possessing and brandishing a firearm in furtherance of robbery, and being a felon in possession of a firearm.

The sentence and conviction 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; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Marilyn Mosby; Baltimore Police Commissioner Anthony W. Batts;  Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County Police Chief Tim Altomare.

According to Diggs’ plea agreement, on March 29, 2013, Diggs and Chance arrived at the Ashland Café on York Road in Cockeysville, Maryland.  Both brandished semi-automatic handguns at the owner, who they forced inside his business and bound his hands with duct tape.  They threatened to shoot the owner if he did not provide money, and pistol-whipped him.  The defendants took $4,000 and a .45 caliber weapon that was in the kitchen safe, and another $15,000 from a downstairs safe.  The robbers then forced the owner into the walk-in freezer, and left.

On May 3, 2013, Diggs and another co-conspirator came back to rob the café a second time.  Diggs wore a mask and carried a duffle bag and a handgun.  The café’s employees called the police. The robbers’ vehicle was stopped a short distance away.  Diggs fled, but was located an hour later in the woods.  Detectives executed a search warrant and recovered the duffle bag containing a ski mask, duct tape and the handgun and ammunition that was stolen in the first robbery.

According to trial testimony, Chance, armed with a firearm, also robbed the following businesses: Pizza Hut on Annapolis Road in Severn, Maryland on April 7, 2013; the Hobbit Liquor Store on Bowleys Lane in Baltimore on April 26, 2013; and attempted to rob the Olive Garden on Perry Hall Boulevard in Baltimore on April 29, 2013.  The jury also found that on April 19, 2013, Chance possessed a semi-automatic rifle and a pump action shotgun.  Because of a prior felony conviction, Chance was prohibited from possessing a firearm.

Judge Russell has scheduled sentencing for Paul Chance on August 24, 2015, and he faces a mandatory minimum sentence of 82 years in prison.

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

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, 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, 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 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.

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.

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, 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.

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.

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, 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.

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.

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.